KAI at work. Credit. yahoo.groups |
Note: This article was first published in Youthspeak on the 10th of February 2014.
Africa's development path (in terms of creating sustainable income, ability to live a decent life, general well-being, increased purchasing power parity, having access to basic social amenities) is different from that of Europe, America and Asia. This is because Africa lags behind on development metrics and creativity is required to catch up with others.
Africa's development path (in terms of creating sustainable income, ability to live a decent life, general well-being, increased purchasing power parity, having access to basic social amenities) is different from that of Europe, America and Asia. This is because Africa lags behind on development metrics and creativity is required to catch up with others.
Also, Africa is able to avoid the
development challenges and phases other nations went through. For instance,
Countries in Africa literally jumped from no access to telecommunications to 650 million
mobile telephone subscribers. Yet, in spite of available models to adapt to
suit our needs, the continent has failed to translate her positive GDP rates to
real effects for her citizens.
Government inefficiencies, failure
of leadership and negative effects of globalization birthed an unintended
consequence that may be a solution to our development challenges. This
unintended consequence is the informal economy.
World Bank reports state that this
economy contributes at least 40% of Africa’s GDP. Yet governments alienate its
members culturally, socially and economically. Though there is no precise
definition of the informal economy because it encapsulates many aspects, the
International Labour Organization (ILO)
defines it as
“all
economic activities by workers and economic units that are – in law or in
practice- not covered or insufficiently covered by formal arrangements. Their
activities are not included in the law, which means that they are operating
outside the formal reach of the law; or they are not covered in practice, which
means that although they are operating within the formal reach of the law, the
law is not applied or not enforced; or the law discourages compliance because
it is inappropriate, burdensome, or imposes excessive costs”
Therefore, street hawkers, tailors, drivers,
carpenters, handymen, kiosk owners, recharge card vendors, mobile and home
offices fall into this category. The informal economy exists in most African
cities and Lagos, Nigeria’s melting pot has her share of vendors who survive by
hawking items from recharge cards, potatoes, shoe racks, mobile phones,
accessories, fruits in traffic or curb sides.
In 2003, the Lagos State government
set up the KAI (Kick Against Indiscipline) Brigade. “to keep Lagos Environment Clean: by eliminating indiscriminate dumping
of refuse in unauthorized places and eliminating all forms of Street
trading and hawking”. This is in line with the government's Mega city goal.
The Brigade carries out its duties faithfully and diligently. The fear of KAI
is the beginning of wisdom for most hawkers as their goods (which may not be
worth more than N15,000) are confiscated in addition to other penalties that
may be levied by the State. This action by the government is overkill.
Rather than destroy the meager means
of livelihood of certain residents, the government should first identify why
people hawk.
Some reasons include migration to
Lagos for greener pastures, business failure (especially artisans who have
learnt a skill but are unable to practice) and
the cumbersome and expensive process of setting up a business. Of the 3
in Nigeria, Lagos ranks 25th in the World Bank’s ease of doing
business Rankings. Add to this overheads such as space and electricity. It
would take a while for even a shrewd business owner to break even. It is no
surprise that even businesses that can afford the legal process do not register
their businesses.
Lagos is not the only city faced with
the problem of street vending and its attendant effects such as pollution. The
arrest and seize approach of KAI has not been successful. Instead, it has
alienated the government from the "poor" who now view it as
elitist. Hawkers do not make enough to create sustainable income, thus
even after they are caught and penalized, they return to the streets.
To address the hawking problem, the
State can adapt alternatives used in other cities such as creating mobile
stalls for vendors in designated areas and stipulating hours they are allowed
to operate or creating multi-shops stores around the city where hawkers
are allowed to operate.
For an industry that emerged by
accident and was regarded as a passing phase by scholars, the informal economy
is here to stay. Governments like Lagos State should proactively harness the
potentials of this sector by acknowledging it and creating conducive policies
that aid its growth. This would be beneficial for both the members and the
government because holding other factors constant (adequate provision of basic
services) when players in the sector are able to create sustainable incomes,
the government would be able to earn revenue like it does from the formal
sector.
0 Thoughts:
Post a Comment