Skip to main content

Urban Informality and the State: A Relationship of Perpetual Negotiation

  • Chapter
  • First Online:
The Palgrave Handbook of International Development

Abstract

This chapter traces the evolution of debates on the urban informal economy and informal settlements, with particular attention to the relationship between informality and the state. A much-contested concept since it was coined in the early 1970s, the idea of informality has nevertheless grown in popularity and usage over the decades. The chapter reviews changing debates on the meaning of informality, whether it is good or bad for development and what the role of the state should be in supporting, managing or minimising it. In addition to considering the diverse range of theoretical approaches to informality, it provides empirical examples of how states intervene to reproduce and manipulate informal economies, and considers potential governance solutions to the dilemmas posed by informal urban development.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Institutional subscriptions

Similar content being viewed by others

References

  • Agamben, G. 1998. Homo sacer: Sovereign power and bare life. Stanford: Stanford University Press.

    Google Scholar 

  • Bayat, A. 1997. Un-civil society: The politics of the “informal people”. Third World Quarterly 18(1): 53–72.

    Article  Google Scholar 

  • Bayat, A. 2007. Radical religion and the habitus of the dispossessed: Does Islamic militancy have an urban ecology? International Journal of Urban and Regional Research 31(3): 579–590.

    Article  Google Scholar 

  • Benjamin, S. 2008. Occupancy urbanism: Radicalizing politics and economy beyond policy and programs. International Journal of Urban and Regional Research 32(3): 719–729.

    Article  Google Scholar 

  • Boeke, J.H. 1942. Economies and economic policy in dual societies. Haarlem: Tjeenk Willnik.

    Google Scholar 

  • Briggs, J. 2011. The land formalisation process and the Peri-Urban zone of Dar es Salaam, Tanzania. Planning Theory and Practice 12(1): 131–137.

    Google Scholar 

  • Bromley, R. (ed.). 1978. The urban informal sector: Critical perspectives. World Development nos. 9–10.

    Google Scholar 

  • Brown, A., and M. Lyons. 2010. Seen but not heard: Urban voice and citizenship for street traders. In Africa’s informal workers: Collective agency, alliances and transnational organizing, ed. I. Lindell. London: Zed Books.

    Google Scholar 

  • Castells, M., and A. Portes. 1989. World underneath: The origins, dynamics, and effects of the informal economy. In The informal economy: Studies in advanced and less developed countries, ed. M. Castells, A. Portes, and L.A. Benton. Baltimore: Johns Hopkins University Press.

    Google Scholar 

  • Centeno, M.A., and A. Portes. 2006. The informal economy in the shadow of the state. In Out of the shadows: Political action and the informal economy in Latin America, ed. J. Shefner and P. Fernandez-Kelly. Pennsylvania: Pennsylvania State University Press.

    Google Scholar 

  • Chant, S., and C. Pedwell. 2008. Women, gender and the informal economy: An assessment of ilo research, and suggested ways forward. Geneva: International Labour Organisation.

    Google Scholar 

  • Chatterjee, P. 2004. The politics of the governed: Reflections on popular politics in most of the world. New York: Columbia University Press.

    Google Scholar 

  • Chazan, N. 1988. Ghana: Problems of governance and the emergence of civil society. In Democracy in developing countries, ed. L. Diamond. Boulder, CO: Lynne Rienner.

    Google Scholar 

  • Chen, M. 2001. Women and informality: A global picture, the global movement. SAIS Review 21(1): 71–82.

    Article  Google Scholar 

  • Chen, M. 2006. Rethinking the informal economy: Linkages with the formal economy and the formal regulatory environment. In Linking the formal and informal economy: Concepts and policies, ed. B. Guha-Khasnobis, R. Kanbur, and E. Ostorm. Oxford: Oxford University Press.

    Google Scholar 

  • De Mel, S., D. McKenzie, and C. Woodruff. 2012. The demand for, and consequences of, formalization among informal firms in Sri Lanka. Working Paper No. 18019, Cambridge MA: National Bureau of Economic Research.

    Google Scholar 

  • De Soto, H. 1989. The other path: The invisible revolution in the third world. New York: Harper and Row.

    Google Scholar 

  • Dias, M.S., and F.C. Gama Alvas. 2008. Integration of the informal recycling sector in solid waste management in Brazil. GTZ, study prepared for the sector project Promotion of concepts for pro-poor and environmentally friendly closed-loop approaches in solid waste management, Mar 2008.

    Google Scholar 

  • Feige, E. 1990. Defining and estimating underground and informal economies: The new institutional economics approach. World Development 18(7): 989–1002.

    Article  Google Scholar 

  • Foucault, M. 1980. In Power/knowledge: Selected interviews and other writings 1972–1977, ed. C. Gordon. Brighton: Harvester Press.

    Google Scholar 

  • Fox, S. 2013. The political economy of slums: Theory and evidence from Sub-Saharan Africa. World Development 54: 191–203.

    Article  Google Scholar 

  • Gilbert, A. 2002. On the mystery of capital and the myths of Hernando de Soto: What difference does legal title make? International Development Planning Review 24(1): 1–19.

    Article  Google Scholar 

  • Gilbert, A. 2007. The return of the slum: Does language matter?’. International Journal of Urban and Regional Research 31(4): 697–713.

    Article  Google Scholar 

  • Goldman, M. 2010. Speculative urbanism and the making of the next world city. International Journal of Urban and Regional Research 35(3): 555–581.

    Article  Google Scholar 

  • Goodfellow, T. 2012. State effectiveness and the politics of urban development in East Africa. London: London School of Economics and Political Science.

    Google Scholar 

  • Goodfellow, T. 2013a. Planning and development regulation amid rapid urban growth: Explaining divergent trajectories in Africa. Geoforum 48: 83–93.

    Article  Google Scholar 

  • Goodfellow, T. 2013b. The institutionalisation of “noise” and “silence” in urban politics: Riots and compliance in Uganda and Rwanda. Oxford Development Studies 41(4): 436–454.

    Article  Google Scholar 

  • Goodfellow, T. 2013c. Urban planning in Africa and the politics of implementation: Contrasting patterns of state intervention in Kampala and Kigali. In Living the city in Africa: Processes of invention and intervention, ed. B. Obrist, V. Arlt, and E. Macamo. Lit Verlag: Zurich.

    Google Scholar 

  • Goodfellow, T. 2015. Taming the “rogue sector”: State effectiveness and the politics of informal transport in East Africa’. Comparative Politics 42(7): 127–147.

    Article  Google Scholar 

  • Goodfellow, T., and K. Titeca. 2012. Presidential intervention and the changing “politics of survival” in Kampala’s informal economy’. Cities 29(4): 264–270.

    Article  Google Scholar 

  • Goodfellow, T., and S. Lindemann. 2013. The clash of institutions: Traditional authority, conflict and the failure of “hybridity” in Buganda’. Commonwealth and Comparative Politics 51(1): 3–26.

    Article  Google Scholar 

  • Green, R. 1981. Magendo in the political economy of Uganda: Pathology, parallel system, or dominant sub-mode of production? Discussion Paper No. 164. Institute of Development Studies, University of Sussex.

    Google Scholar 

  • Guha-Khasnobis, B., R. Kanbur, and E. Ostrom (eds.). 2006. Linking the formal and informal economy: Concepts and policies. Oxford: Oxford University Press.

    Google Scholar 

  • Harriss, B. 1978. Quasi-formal employment structures and behaviour in the unorganized urban economy, and the reverse: Some evidence from South India. World Development 6(9–10): 1077–1086.

    Article  Google Scholar 

  • Hart, K. 1973. Informal income opportunities and urban employment in Ghana. The Journal of Modern African Studies 11: 61–89.

    Article  Google Scholar 

  • ILO. 1972. Employment, incomes and equality: A strategy for increasing productive employment in Kenya. Geneva: International Labour Office.

    Google Scholar 

  • Jerven, M. 2012. Comparability of GDP estimates in Sub-Saharan Africa: The effect of revisions in sources and methods since structural adjustment. Review of Income and Wealth 59: 16–36.

    Article  Google Scholar 

  • Kagawa, A., and J. Tuksra. 2002. The process of land tenure formalisation in Peru. In Land rights and Innovation: Improving tenure security for the urban poor, ed. G. Payne. London: ITDG Publications.

    Google Scholar 

  • Kasfir, N. 1983. State, Magendo, and class formation in Uganda. Commonwealth and Comparative Politics 21(3): 84–103.

    Article  Google Scholar 

  • Lindell, I. 2010. Introduction: The changing politics of informality - Collective organizing, alliances and scales of engagement. In Africa’s informal workers: Collective agency, alliances and transnational organizing, ed. I. Lindell. London: Zed Books.

    Google Scholar 

  • Lombard, M., and M. Huxley. 2011. Contribution to interface: Self-made cities: Ordinary informality? Planning Theory and Practice 12(1): 120–125.

    Google Scholar 

  • Lourenço-Lindell, I. 2002. Walking the tight rope: Informal livelihoods and social networks in a West African city. Stockholm: Acta Universitatis Stockholmiensis.

    Google Scholar 

  • Lund, F., and C. Skinner. 2004. Integrating the informal economy in urban planning and governance. IDPR 26(4): 421–456.

    Google Scholar 

  • Lyons, M., and S. Snoxell. 2005. Creating urban social capital: Some evidence from informal traders in Nairobi. Urban Studies 42: 1077–1097.

    Article  Google Scholar 

  • MacGaffey, J. 1991. The real economy of Zaire. Philadelphia: University of Pennsylvania Press.

    Google Scholar 

  • Makaria, K. 1997. Social and political dynamics of the informal economy in African cities. Lanham, MD: University Press of America.

    Google Scholar 

  • Meagher, K. 1995. Crisis, informalization and the urban informal sector in Sub-Saharan Africa. Development and Change 26(2): 259–284.

    Article  Google Scholar 

  • Meagher, K. 2005. Social capital or analytical liability? Social networks and African informal economies. Global Networks 3(5): 217–238.

    Article  Google Scholar 

  • Meagher, K. 2010. Identity economics: Social networks and the informal economy in Nigeria. Suffolk, UK: James Currey.

    Google Scholar 

  • Meagher, K. 2012. The strength of weak states?: Non-state security forces and hybrid governance in Africa. Development and Change 43(5): 1073–1101.

    Article  Google Scholar 

  • Meagher, K. 2013. Unlocking the informal economy: A literature review on linkages between formal and informal economies in developing countries. WIEGO Working Paper No. 27. Cambridge, MA: Women in Informal Employment Globalizing and Organizing.

    Google Scholar 

  • Meagher, K., T. De Herdt, and K. Titeca. 2014. Unravelling public authority: Paths of hybrid governance in Africa, Justice and Security Research Programme Policy Brief No. 10. London: London School of Economics and Political Science.

    Google Scholar 

  • Migdal, J. 1994. The state in society: An approach to struggles for domination. In State power and social forces: Domination and transformation in the third world, ed. J. Migdal, A. Kohli, and V. Shue. Cambridge: Cambridge University Press.

    Chapter  Google Scholar 

  • Ong, A. 2006. Neoliberalism as exception: Mutations in citizenship and sovereignt. Durham: Duke University Press.

    Book  Google Scholar 

  • Payne, G. 1997. Urban land tenure and property rights in developing countries: A review. London: Overseas Development Agency (ODA) and Intermediate Technology Publications.

    Book  Google Scholar 

  • Payne, G. 2001. Urban land tenure policy options: Titles or rights? Habitat International 25(3): 415–429.

    Article  Google Scholar 

  • Peattie, L. 1987. An idea in good currency and how it grew: The informal sector. World Development 15(7): 851–860.

    Article  Google Scholar 

  • Porter, L. 2011. Informality, the commons and the paradoxes for planning: Concepts and debates for informality and planning. Planning Theory and Practice 12(1): 112–150.

    Article  Google Scholar 

  • Roy, A. 2005. Urban informality: Towards an epistemology of planning. Journal of the American Planning Association 71(2): 147–158.

    Article  Google Scholar 

  • Roy, A. 2009. Why India cannot plan its cities: Informality, insurgence and the idiom of urbanization. Planning Theory 8(1): 76–87.

    Article  Google Scholar 

  • Roy, A. 2011. Slumdog cities: Rethinking subaltern urbanism. International Journal of Urban and Regional Research 35(2): 223–238.

    Article  Google Scholar 

  • Roy, A., and N. AlSayyad. 2004. Urban informality: Transnational perspectives from the Middle East, Latin America, and South Asia. New York: Lexington Books.

    Google Scholar 

  • Schindler, S. 2013. Producing and contesting the formal/informal divide: Regulating street hawking in Delhi, India. Urban Studies 51(12): 2596–2612.

    Article  Google Scholar 

  • Schindler, S. 2014. ‘Approaching “subaltern urbanism” inductively: Understanding urban processes in Flint Michigan’. International Journal of Urban and Regional Research 38(3): 791–804.

    Article  Google Scholar 

  • Spiro, P.S. 1997. Taxes, deficits, and the underground economy. In The underground economy: Global evidence of its size and impact, ed. O. Lippert and M. Walker. Vancouver: The Fraser Institute.

    Google Scholar 

  • Syagga, P., W. Mitullah, and S. Karirah-Gitau. 2002. A rapid economic appraisal of rents in slums and informal settlements. Prepared for Government of Kenya and UN-HABITAT Collaborative Nairobi Slum Upgrading Initiative.

    Google Scholar 

  • Tendler, J. 2002. Small firms, the informal sector, and the devil’s deal. IDS Bulletin 33(3): 1–15.

    Article  Google Scholar 

  • UN-HABITAT. 2003. The challenge of slums. London: Earthscan.

    Google Scholar 

  • Wagenaar, H., and M. Allegra. 2014. Informality, contention and democratic governance in urban settings. Conference paper presented at CITY FUTURES III - Cities as strategic places and players in a globalized world, Paris, 18–20 June 2014.

    Google Scholar 

  • WIEGO. 2014. “Statistical Picture”, Women in Informal Employment: Globalizing and Organizing. http://wiego.org/informal-economy/statistical-picture. Date accessed 16 Nov 2014.

  • Yiftachel, O. 2009. Theoretical notes on ‘gray cities’: The coming of urban apartheid? Planning Theory 8(1): 88–100.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Editor information

Editors and Affiliations

Copyright information

© 2016 The Author(s)

About this chapter

Cite this chapter

Goodfellow, T. (2016). Urban Informality and the State: A Relationship of Perpetual Negotiation. In: Grugel, J., Hammett, D. (eds) The Palgrave Handbook of International Development. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-137-42724-3_12

Download citation

Publish with us

Policies and ethics