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Differentiation among Small-Scale Enterprises: The Zambian Clothing Industry in Lusaka. Soweto Market. Informal Sector Characteristics. Small-scale operations Use of labor-intensive techniques Low technology Indigenous ownership Heterogeneous. Three Categories of Ownership. - PowerPoint PPT Presentation
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Differentiation among Small-Scale
Enterprises: The Zambian Clothing Industry in Lusaka
Soweto Market
Informal Sector Characteristics
Small-scale operationsUse of labor-intensive techniquesLow technologyIndigenous ownershipHeterogeneous
Three Categories of Ownership
Asian communityZambian WomenZambian Men
Small-Scale Women in the Clothing Industry
ProblemsLimited marketsDomestic responsibilitiesNecessity of husband’s permissionCultural attitudes toward womenLower access to financial support and
creditConcentrated in second-hand clothing
Upper Income Women in the Clothing Industry
Boutique-style outletsProduce for the upscale marketHigh quality fashion garmentsGreater capital input and foreign
exchangeFashion courses abroadNetwork of personal contactsFormal education
Zambian Businessmen in Small-Scale ManufacturingNot very successfulLack ties to wholesalersControlled marketsLack of investment capitalLow skill baseHigh operating costsNo secure market
Workshop Tailors: A Challenge to the Asian Dominance of the Clothing
IndustryTailors can produce low-cost clothingNumerous small workshopsLocated near large market areasSmall capital outlayRely on network of repeat customersAllows for reliable customer baseExtend credit
The “Veranda” TailorsCapital base is smallerOutdoorsAround their residencesOn the veranda of a storeConcentrate on repair servicesPoorer clienteleRetired men or young men
Petty Producers: Toward Evolution or Involution?
Owner, worker, manager often the sameRarely movement into large-scale
productionSometimes expansion within enterpriseObstacle is need for expensive inputsDifferent relationship with marketLow purchasing power of population
The Effect of Salaula on the Lusaka Clothing
IndustryMany shops owned by the Asian
communityMost Zambians work for AsiansWork for commissionsTeachers, doctors, nurses, secretariesThreat to indigenous clothing industryHigh volume of salaulaZambian government at a fault
Who Rules the Streets? The Politics of Vending
Space in LusakaInformality vs. the Free
Market in Zambia
Overview 1997: New City
Market
1998: Crowding Traffic problems Public health dangers Pickpockets and thieves Businesses relocated
1999: Crackdown Vendor stalls
demolished
Why the Crackdown? Law and order
Sanitation
Health
Infrastructure
Growth of Informal SectorSecond Republic: 1972-1991Response to shortages of basic
necessities“Suitcase Traders”1990s: Structural AdjustmentNeoliberal economic strategiesSouth African companiesLack of formal economic development
The “Office of the President” and the “Vendors’ Desk”
1993: LCC removes street vendorsPresident Chiluba intervenedBlamed the LCC for not giving other spacesViewed as government acceptance of stallsLeft markets and descended on city center1996: Vendors’ Desk established
Address concerns of vendors
The New City MarketChiluba calls for an “ultra modern
market”Based on ones he saw in IsraelReplaced the old Soweto marketVendors demonstratedPromised stands in the new marketVendors set up stalls in new marketQuickly left
ComplaintsExodus within first days of new marketConflicts: vendors, police, LCCMake-shift stalls burned on opening
nightRule: no vending within 200 MHigh feesVendors shunned the market
The Crackdown on Street Vendors
April 1999: Occupancy at 10%Police and paramilitary officersRazed temporary stalls in city centerContinued across the cityVendors moved back to the marketsChiluba encouraged the crackdown
The Timing of the Crackdown
Market open and nearly empty for two years
Vacant stands in other marketsCostly exerciseEnvironmental and health concernsProvide basic infrastructure Establish public orderMaintain supervision
Embracing the Free Market: Removing Vendors from Public
SpacesUrban markets upgrading program: EDFMust fill markets if upgrading themOpening market to potential vendorsMust end lawlessness and anarchy on
streetsGoal: improve overall investment climateMarket and mall developments continueVendors continue to return to the streets
Where did the Vendors Go?
Mobile stands that are dismantled easily
Retreating into Old Soweto MarketReturning to the city streetsAnother crackdown in August of 2002Conflict between vendors and the
local authority continues
Home Based Enterprise in a Period of Economic
Restructuring in Zambia
Why Home-Based Enterprises?
Disillusionment with formal sector jobsPublic sector restructuringInadequate incomesHigh rates of urban poverty1992-1995: 77,300 formal sector jobs lost1986-1993: 1.8 to 2.3 in informal sectorContinued privatization is a threat to jobs
The Copperbelt Province7 urban districts
(86%)3 rural districts (14%)7 major copper
minesDecline in formal jobsKitwe
Mine TownshipCouncil Township
Pilot Study of Home-Based Enterpises
1. Explore how enterprises were established
2. How the home was adapted for activities
3. Challenges/opportunites in home work
Emphasis: How workplace and residential activities and spaces were integrated
Range of Economic Activities
Three CategoriesPetty trading or retailingPetty manufacturing or repairServices
Engaged in simultaneous enterprises
Who is Involved?Both men and womenAverage age is 30Not below 20 or above 45Some have formal educationChildren were involvedInformal networks of family and
friends
Why are People Involved?The need for employment and incomeThe type of enterpriseAdvantage of working from homeTwo major groups of people
Informal sector is the last resortFormal sector separation by choice
Ability to earn substantial incomes
Beneficial Characteristics of HBEs
RentfreeSimultaneous engagement in several HBEsChildcare by household membersSite of storage and productionMixed use of house and landDomestic and economic functions at one
siteConduct business at any time of dayNon-monetary exchange networks
Negative Aspects of HBEsOperational constraintsLack of access to financial supportInfrastructural constraintsDifficulty in starting an HBE
Resource mobilization -- savings, friends, family
Limited skills
The Home as a Work PlaceAdaptability and Fungibility
Space can be converted quicklySpatial changes only inconvenient
when visitors are comingIntrusion of business generally
acceptedSpace to build workshops, sheds,
rooms
ConclusionsHBEs are not transient, stop-gap
measuresLucrative despite constraintsChanged landscape in residential areasShould trend be stopped or regulated?New concepts:
Land use zoningPlot usage
RecommendationsBroaden conceptual categories of home
useIncome generating activities as valid and
normalReevaluate strict land-use controlsNew focus in city planning
To assist development of HBEsTo mitigate negative effects
Planners must increase focus on HBEs