Informal economies and informal settlements are deeply intertwined with the urban structure of cities in the Global South, including Latin America, Africa, and Asia. In these regions, millions of people rely on informal economic activities for survival, such as street vending, unregulated construction, and other occupations not formally recognized by the state. These economies are essential for the daily livelihoods of millions, yet they are often excluded from official urban planning and lack access to basic services such as water, electricity, and transportation. This dynamic of informality and urban exclusion expands inequality and limits development opportunities for the most vulnerable communities.
AbdouMaliq Simone, in his studies of African cities, highlights the importance of what he calls “human infrastructure.” Rather than focusing on buildings and physical infrastructure, Simone emphasizes the crucial role of social networks and interpersonal exchanges that sustain informal economies. In cities such as Kinshasa and Lagos, residents create informal support systems that allow them to survive in highly precarious environments. These networks provide access to resources and function as mechanisms of resistance against exclusion from formal systems.
Simone argues that informality represents a form of urban resilience in fragile contexts where resources are scarce and government planning is limited. Similarly, Ananya Roy analyzes how urban informality is closely linked to neoliberal policies and globalization. Roy argues that informality is not a marginal phenomenon or a deviation from the formal system; rather, it is an integral component of global economic and urban processes. In cities such as Mumbai or Lagos, policies aimed at the “formalization” of informal settlements often lead to forced displacement and land appropriation by economic elites.
Roy criticizes the tendency to treat informality as a problem to be eliminated instead of recognizing it as a vital component of urban life in the Global South. One of the main characteristics of informal settlements is their exclusion from access to basic public services, which worsens the living conditions of residents. The lack of potable water, electricity, public transportation, and adequate sanitation not only poses significant public health risks but also restricts opportunities for social and economic advancement. Urban policies that fail to address these needs perpetuate the marginalization of these communities, trapping them in precarious living conditions with limited prospects for improving their quality of life.
Informality is also deeply connected to patterns of exclusion within urban planning processes. Cities in the Global South often adopt development models that prioritize private investment and real estate speculation, leading to the displacement of informal communities and reinforcing spatial inequalities. Policies of “modernization” and “formalization” frequently overlook the realities and needs of these communities, generating tensions and conflicts with residents who struggle to maintain their homes and livelihoods. In conclusion, informal economies and informal settlements are fundamental components of urban life in the Global South, yet they remain largely excluded from formal planning and access to essential services.
The work of Simone and Roy demonstrates that informality is not peripheral but deeply embedded in both global and local power dynamics. Addressing the challenges associated with informality requires recognizing the specific needs of these communities and developing more inclusive and equitable urban policies capable of integrating informal practices into broader urban development strategies. 🌍🏙️
