Informal Economy: Beneficial or Liability to the urban social welfare of the Philippine

Cities?

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Margarita Carla Ramos

TEOCAR: Position Paper 2

10.5 Million Operators

9.1 Million are self-employed

1.3 Million are employers

Informal Economy in the Philippines:

39% in Main City (Manila)

59% in secondary cities (Cebu & Davao)

(National Statistics office of the Philippines, 2008)

(Koo & Smith, 1983)

Informal industry has attracted more rural immigrants causing overcrowding in the city. (Koo & Smith, 1983)

http://www.urbanlandscape.org.uk/nealo/squatter/Manila04.jpg

Informal sectors may cause crime through illegal transaction after another, putting them in more trouble. (Sookram, Watsons, & Schneider, 2009)

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Health and safety risks for members of informal sectors are higher and uncompensated with proper work safety regulations nor insurances.

(Dror, 2001)

http://www.cincity2000.com/content/images/stories/successories/Manual%20Labor.jpg

(Amuedo-Dorantes, 2004)

Wages go really low within informal sectors and there is no moderation or control from proper authorities leaving workers exploited.

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The informal sector operates without paying taxes which means the demands from the government are increasing but there are less fund coming in to utilise.

(Srinivas 2008)

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Since this informal sectors are not registered, they are not served with proper infrastructures and sanitary services, leaving them to produce waste and garbage with no proper disposal.

http://www.pdnphotooftheday.com/wp-content/uploads/2010/06/Living_With_The_Dead_02.jpg

(Srinivas 2008)

Their attempt to cater certain markets and avoiding rent, informal trading tend to be located on spaces not allotted for such. Streets are reclaimed for informal transactions, roads are blocked leading to chaos on traffic flow or discomfort to the pedestrian.

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(Srinivas 2008)