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Rule of law discourses at the local level: Evaluating the impact of Business Rights for the poor
No full textLegal Empowerment of Informal Workers Formalizing Street Vending as a Tool for Poverty Reduction
Get PDFThis chapter brings empirical data to the debate about the ability of law to contribute to the empowerment and development of informal workers, looking into the case of street vendors. Looking into the potential that law has for poverty reduction is an important goal and for that reason, this research aims to understand whether legal change, getting the legal permit to sell, can in fact bring empowerment for street vendors
Formalizing Street Vendors: Regulating to improve well-being or to gain control?
No full textFormalization, understood as gaining legal status to develop their businesses, is the mainstream policy to regulate the work of street vendors in most cities in the world. However, formalization policies are criticized by different scholars, and many vendors go back to the streets after formalization despite government efforts. To contribute to this long-standing debate, this chapter explores the relation between the formalization of street vendors and the improvement of their well-being. Formalization is addressed from the point of view of the vendors. The empirical data are based on an ethnographic study of a formalization programme for street vendors in the city of Bogotá, Colombia. A total of 169 vendors were interviewed. This study concludes that formalization often covers a very small number of street vendors, while the majority work informally and do not have access to formalization programmes. However, the few vendors who were formalized were better off after the formalization of their businesses. They gained confidence, self-respect and autonomy. They were empowered by the law that recognized their work and gave them legal status, contrary to previous laws that disempowered them and prohibited their livelihoods. Therefore, formalization can be a tool to enhance well-being when governments use the law to improve the life of the poor, and not as a tool of control
Legal Empowerment of Informal Workers: Alternative models of regulation for street vendors in Bogota, Colombia
Get PDFMany street vendors live under constant fear of eviction and harassment because the law does not recognize their businesses and they work outside the rule of law. Furthermore, in some cities street vending is a criminal offence to public order and vendors can be sent to prison. Using the empowerment theory, defended by Hernando De Soto, this article will examine to what extent formalization - understood as gaining legal status - can serve to empower informal vendors to increase their capital and economic development. Based on 169 interviews conducted in 2012 among street vendors in the city of Bogotá, Colombia whose businesses were formalized, this research was able to observe improvements in the vendors’ working conditions and income. However this improvement was not because of access to formal credit, as stated by the theory of formalization but instead due to the ability of the vendors to improve their working conditions and be protected from bad weather. The results illustrate that formalization is more than access to credit; it is a tool to improve the autonomy, self-esteem, and empowerment of the poor
Legal and Social Norms for Development:Why legal reform of the informal economy failed to influence vulnerable groups in developing countries
No full textUsing the concepts of social norms and social reality, this chapter explores why legal reforms that aimed to facilitate the formalization of informal workers have largely failed to influence vulnerable groups in developing countries. It explores the use of legal reforms in order to achieve development and poverty reduction. Using empirical material from a qualitative study conducted in Colombia among a group of internally displaced people engaged in small economic activities, as well as quantitative data from national statistical surveys, this chapter illustrates that there is an overestimation of the impact of legal norms in the decision of people to work in the informal economy. In contrast to the legalist approach supported by international organizations, such as the World Bank and the International Monetary Fund, this research confirm the thesis that social norms and informal institutions play a crucial role for this type of small entrepreneurs The case studied describes the situation of a group of victims of war in Colombia who were displaced from rural areas and were engaged in the informal economy upon arrival to the cities, most of them as street vendors, domestic workers, and small entrepreneurs. For this group, society accepted informality and built a number of reasons, arguments, and social norms to legitimize not following the law. Internally displaced persons were not worried by the formalities of the law and instead regarded the informal economy as a legitimate source of income
Applying labour law to micro, small and medium-sized enterprises: : A comparative study of 16 countries
No full textThe self-employed and micro, small and medium-sized enterprises (MSMEs) account for the greatest share of employment and make up the largest number of economic units worldwide. However, some countries exclude these economic units from certain obligations under their national labour laws in the belief that such obligations may impair enterprise growth and prosperity. This study considers the ways in which different countries regulate labour rights for MSME workers, its main purpose being to improve understanding of current trends and developments in this area. The 16 countries covered by the study are Brazil, China, Colombia, Costa Rica, Egypt, Germany, Mexico, Nepal, Peru, the Russian Federation, South Africa, Spain, Sri Lanka, Sweden, Turkey and the United Republic of Tanzania. Drawing on comparative analysis of labour law coverage for MSMEs in the above countries, this study identifies a general trend towards the extension of equal protection to all workers regardless of the enterprise size, including those in the informal economy and in self-employment. To achieve that, governments are relying not only on labour laws but also on other frameworks and policies. This study did not find any country that completely excluded MSMEs from the application of labour laws. Where selective exclusions or special regimes are in place, these apply mainly to micro and small enterprises, while workers in medium-sized enterprises are often fully covered. Invoking the concept of "social control", this study highlights a number of innovative approaches used to achieve enforcement of, and compliance with, labour laws among MSMEs - ranging from targeted inspections to wider campaigns designed to raise awareness and change social norms and perceptions. On the whole, the findings presented in this working paper tie in with those of other studies, showing how labour legislation as such is neither a major obstacle nor a panacea when it comes to promoting enterprise growth and sustainability. It would be worth undertaking further research to explore the ways in which recent labour law reforms in a number of countries have had an impact on the day-today experience of MSME workers
Outside the Law : An Ethnographic Study of Street Vendors in Bogotá
Get PDFMillions of people worldwide work outside the law as street vendors in order to earn a living. However, they often work in fear of police evictions and confiscations since their work is in many places considered illegal. In this context, formalization (steps towards legalization) is often portrayed as a model for empowerment that allows poor street vendors to improve their well-being. Formalization, as a model to manage street vending, is widely promoted by various international development organizations. While important, studies of formalization show that street vendors often resist state control, and the majority continues to work outside the law.The main research question guiding this study is: how does formalization of street vendors in Bogotá enable and/or hinder their well-being? To examine this question, this study uses an ethnographic approach and the concept of social control within the tradition of sociology of law. The data for this study was collected through ethnographic fieldwork conducted between 2012 and 2014 in the city of Bogotá, Colombia. Three groups were studied: vendors within the transitional zones (a formalization program), two rickshaw driver associations, and itinerant ice cream vendors. The main findings illustrate that although street vendors work outside the law, they do not operate in a state of chaos or anarchy. Quite the opposite, law and other forms of social control are present in their work. These practices of control often affect their well-being. Despite harsh working conditions, well-being according to them means more than economic survival, and often, street vendors strive to improve their lives and gain independence in their work. Another finding is that formalization is often directed toward the more established vendors and does not account for the fact that new individuals arrive on the streets every day trying to make a living. Often, the most vulnerable groups (immigrants, women, the newly unemployed) lack the time and knowledge to formalize or simply are not targeted in formalization programs. Without a deep understanding of how social control already operates, the state runs the risk of developing formalization initiatives that undermine the well-being of the most vulnerable groups. Thus, this study of everyday forms of social control provides empirically based insights into the ways law influences the lives of those working outside the law
Transformative Local Governments : Addressing Social Urban Challenges by Bringing People and Politics Together
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