Economy

Why Cities Should Support, Not Exclude, Street Vendors

In developing countries, informal workers make up 50 to 80 percent of the urban workforce. Keeping them locked out of prosperity is bad for everyone, according to a new report.
A vendor sells fruits during a heavy monsoon rain shower in New Delhi.Anindito Mukherjee/Reuters

Connaught Place in New Delhi has a rich pageant of street vendors. Chai-wallahs who dole out tumblers of steaming tea to weary bureaucrats; Chaat guys pushing bags of crispy Golgappa shells and vats of chutney on their bicycles; grizzled ladies squatting on sidewalks in front of colorful spreads of trinkets and tchotchkes; boys at the roundabout, selling cages full of parrots they caught in the Lodi Gardens. These are among Delhi’s informal workers.

They not only contribute to the city’s economic output but form an integral part of urban fabric. And yet they face numerous barriers to economic, political, and social integration—many of which are set up by the city itself. This is a common state of affairs in the urban centers of developing countries, but it doesn’t have to be.