| Abstract | A great deal of attention in recent years has been given to
the informal sector in the Third World cities. This has however
mostly been limited to the general development issues and
policies. Although the wider scope of employment creation has
been a dominant feature in the on-going debate on the informal
sector, the housing problem of the people working in the sector
seems still out of attention. This may in part be a reflection of
non-realization of the crucial role of housing as a facilitator
of income earning endeavors. But more importantly, as this study
finds, it is a reflection of unwillingness of the policy makers
in accepting the activities of the informal sector as a reliable
collateral. Indeed the absence of guarantee is noted to be the
major obstacle for encompassing the informal sector workers to
the official housing program. This study shows that the housing
program need to be more specifically targeted than what is the
practice now . Even low income people is too broad a group for
housing purposes. It need to be as specific as possible. The
housing for the informal sector workers, as taken up here, is an
example of such specificity.
The major objective of this study has been to demonstrate
the above need of reorientation in policy approach. To attain
this goal, the housing affordability of the informal sector
workers is studied here to find out the alternative solutions for
the housing problem which is particularly severe for the informal
sector workers. Housing priorities, job stability, and
residential characteristics are considered and given due emphasis
in outlining the alternative housing schemes for these workers.
The data were obtained through a questionnaire survey,
conducted in 1988, encompassing 205 sampled enterprises of three
major types of activity , and
10 "becak" (rickshaw,pedicab) drivers. The survey generated a
wide variety of data on the migratory and demographic
characteristics, employment status, skill level, reasons for
entering the informal sector activity, ownership of enterprise,
job history, job perception, capital, profile of income and
expenditure, housing status, housing history, housing
accessibility, housing condition, housing affordability and
priorities of the informal sector workers.
In general, the analysis of these data provides the
following conclusions. Evidence on the job stability shows that
the informal sector employment is not a temporary source of
income. Forty seven per cent of the participants had been
operating the enterprises for more than five years. Their ability
to pay is good enough to meet the monthly repayment which is
required by the PERUMNAS housing. There is strong evidence
suggesting that the informal sector workers have no access to
formal housing provisions: 97 per cent of the workers have never
applied to the PERUMNAS housing. Of those who have ever applied,
56 per cent got no reply, 22 per cent were still waiting, 11 per
cent were told that they were late, and the rest had no money as
down payment.
It becomes clear from the
transitional accommodations are
informal sector workers. These
housing, staying with relatives
renting one house.
survey that temporary and
common features among the
accommodations include rental
or friends, and sharing in
On the question of housing priorities, the following
variability is observed: (1) 'Job proximity' is essential for
the middle income group, "competitors", and "network extenders";
( 2 ) 'Tenure' is essential for the low income group, "successors",
and "consolidators"; (3) 'House price' is essential for the
middle income group and "adaptors"; <4> ·Social relationship' is
essential for the middle income group, "adaptors", and "foot
holders"; (5) 'Amenities' is essential for "identity seekers" and
"steaders".
Overall, the analysis leads to an optimistic conclusion that
the provision of official housing program for the informal sector
workers is desirable and supportable. Three specific proposals
made are <1> provision of new settlements, targeted for
"consolidators", "steaders", "successors", and " identity
seekers " ; <2 > improvement of existing settlements of the informal
sector workers, intended for "network extenders" and
"competitors"; and ( 3) provision of transitional settlements for
" footholders" and " adaptors " . |