🌍2 Billion Invisible: Why Cities Must Embrace The Informal Economy

Madflux
Madflux
|
Published on 11 Oct 2025


The Invisible Backbone of Cities: Why Integrating Informal Workers Matters

~ Samarth Krishna Kanaksubramaniam

Walk through any city at dawn.
Street vendors set up stalls. Waste pickers begin their routes. Construction workers gather for day labor. Domestic workers head to wealthy households.

👉 This is the informal economy—and it’s where most urban poor actually survive.


🌍 The Scale of Informal Work

Over 2 billion people globally work informally.

  • They’re not registered, taxed, or protected by labor laws.

  • They have no contracts, no benefits, no safety nets.

  • Yet they are the backbone of urban life.

Without them, cities simply wouldn’t function.


đźš« How Cities Often Respond

Most city planners criminalize informal work:

  • Vendors get fined and arrested.

  • Waste pickers are pushed out.

  • Day laborers are labeled “undesirable.”

Instead of integrating informal workers into the economy, cities push them underground or out entirely.


⚠️ Why This Matters

When you criminalize survival, you don’t eliminate poverty—you deepen it.

  • A street vendor making $10 a day gets fined $15. They lose income and fall into debt.

  • A waste picker supporting a family gets arrested, and their children go hungry.

These aren’t mere policy failures. They are human tragedies, happening daily in cities worldwide.


🌱 Why the Informal Economy Exists

Informal work exists because formal opportunities are scarce:

  • Not enough jobs

  • Not enough affordable housing

  • Not enough access to basic services

Rather than tackling these root causes, many cities punish the poor for surviving.


🌟 Cities That Are Breaking the Pattern

  • Bogotá
    Integrated street vendors into the formal economy through legal status, credit access, and business training.
    → Better livelihoods, cleaner streets, safer communities, and a more vibrant city.

  • Nairobi
    Formed waste picker cooperatives, formalizing recycling work.
    → Dignity, income security, legal protections, improved waste management, and environmental gains.

  • Mumbai
    Domestic workers’ collectives fought for legal recognition and protections.
    → Safer working conditions, better pay, and greater dignity.


🌆 The Transformation

When informal workers transition to formal recognition, they gain stability.

  • They invest in housing, education, and businesses.

  • They participate more fully in civic life.

  • Communities strengthen.

  • Cities become more resilient.


âś… The Real Solution

Sustainable cities don’t exclude informal workers — they integrate them.

They:

  • Recognize informal work as legitimate work

  • Provide pathways to formalization

  • Ensure legal protections

  • Enable access to credit and business support

This isn’t charity. It’s about recognizing that cities depend on these workers — and that their contributions deserve protection and respect.


🌿 A Call to Action

Every street vendor formalized.
Every waste picker protected.
Every day laborer recognized.

👉 Each is a person lifted toward stability and dignity — and that transforms entire communities.


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#sdgs#community#urban-innovation
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