Urban planning for city leaders
How to address informality The informal economy is estimated to be worth USD 10 trillion globally100 and helps to make many cities competitive by providing cheap and flexible labour. It creates opportunities for poorer households that the formal economy cannot offer them. Informal settlements provide employment to up to 90 per cent of their inhabitants through thousands of businesses, and, although there are no legal title deeds, these settlements are “home� for millions of families who cannot afford anything on the formal housing market. Local governments in developing countries, where the informal economy can account for close to 50 per cent of the GDP, would benefit from addressing the issues created by informality without stifling the opportunities it brings: they could make informality part of the city, upgrade existing slums and prevent the formation of new ones. Urban planning - which has been singled out as one of the causes of informal housing areas – can make space for lower income groups and their livelihood strategies in the city and can support inclusion rather than exclusion.
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