Latin America - struggles for legality and vending organisation - street vending issues in six cities (Summary of research by Sally Roever, 2006)  

CClick here to read Street Trade in Latin America: Demographic Trends, Legal Issues, and Vending Organizations in Six Cities, (48 pages) by Sally Roever, Dept of Public Administration, Leiden University (Netherlands), Prepared for WIEGO Urban Policies Programme, 2006.

As a result of armed conflict in the Colombia, Bogotá has become refuge for a large population of displaced people and this combined with economic depression in the second part of the 90s saw the informal economy grow very rapidly. Street traders more than doubled from 220 344 to 557 934 between 1996 and 2005. In terms of  gender, men and women are almost equally represented with 49.7% women and 50.3% men (Roever, 2006:7-8)  

Regulations and legal status of street vendors:

In 1991 Colombia's constitution was changed and a clause was adopted which protects public space as a right that is enforced by its mayors. At the same time the individual right to work is also a constitutional right. The efforts to harmonise the needs of street and market vendors in earning a living with those of the city's to preserve public space has led to clear rulings that set out the responsibility of the city when vendors are relocated. Relocation projects provide spaces where vendors can work permanently and also have minimum guarantees of hygiene and security. The clarity of the law in requiring public authorities to consider the needs of street vendors provides work-security that does not exist in other Latin American countries. 

The Fondo de Ventas Populares (FVP) is responsible for governing street trade in the city under the mayor's control. A FVP report states that its relocation projects assisted 3200 vendors from 1998-2000 and Donavon (2002:8) reports that the FVP invested $16.5 million in relocation projects in that two-year period.   

Street vendors' organisation:

Research (Donavon, 2002:20) shows that almost 25% of street vendors in the eight main thoroughfares of trading belonged to a union, association or organisation.

In the pre-1988 era organisations held sway as they were a conduit for obtaining trading licences. After 1990 when labour reforms were introduced, street vendor organisations grew in number. At the same time the licence system which was based on  patronage changed and street  vendor organisations' power shrunk. Vendors organisations are now largely neighbourhood or market based, or formed by vendors selling a certain product. Relocated vendors who have been formalised through city programmes have not created broader alliances with the vendors who are still on the streets and this has tended to fragment the sector.   

"Sustainable solutions are more likely when street vending organisations are incorporated into the decision-making processes, particularly when they involve relocation projects," (Sally Roever, 2006)

The economy that grew out of exploitation of the petroleum sector until the 80s has become increasingly informalised. Street vending is a relatively recent activity and ordinances were introduced in the 80's, whereas in other countries like Peru and Brasil street vendor regulation dates back several centuries. The estimated number of street vendors was 74 000 in 2002, an increase from       48 000 the previous year. Women form the majority of street vendors (58%) (Roever, 2006:16-17).

Regulations and legal status of street vendors:         

A legal conflict over planning jurisdictions exists between the five districts of Caracas and the metro. This has created a complex and unclear legal situation for street and market vendors in interpreting their rights and for the implementation of the laws. An unofficial system in which bribes are exchanged for public vending spaces operates in parallel because of the lack of clarity. Street vendors have not been consulted on the decrees issued and ordinances that affect them, instead a system of negotiation and confrontation is in use to defend street vending spaces. A conflict between political leaders involving issue of permits and relocation projects prompted a response from the newly-elected President Chávez in 1998 to declare that street vendors 'not be touched'. Relocation projects in the city have triggered off popular opposition from the urban poor and policy on street vendors has as a result become more tolerant of street vendors.           

Organisation of street vendors:

Organisations have emerged to establish informal rights to trading space in a situation where law and practice often do not intersect. The organisations of street vendors are a conduit for information sharing and innovation and for accessing credit for non-dependant workers. Formal labour union support for informal economy unions and lobbying by FUTRAND (Federation of Non-Dependent Workers of Venezuela) led to the formal recognition of informal economy workers in the 1999 Constitution. The labour law now recognises informal workers, street vending and the right to organise. FUTRAND represents 10 000 workers in several federations and guild associations.       

"The lack of legal clarity has meant that street vendor organisations negotiate the agreements individually with the authorities around trading space", (Sally Roever, 2006)               

ILO estimates place Lima as the 4th largest informal sector on the South American continent after Bolivia, Ecuador and Paraguay. The country never experienced strong industrial growth during the import substitution phase that most Latin American countries introduced and its economy has maintained a large informal component for many decades. Informal traders have been trading in Lima since the 16th century. The present estimate of the number of people earning a living from informal street trade is 360 000 (Roever, 2006:24-26).       

Regulations and legal status of street vendors:

Relocation of street vendors in 1996 from the city centre Historic District to commercial centres resulted in 'formalisation' and the introduction of a series of laws to promote small and micro-business. Overlapping local ordinances have complicated the regulation of street vending. The right to work is a right in the national Constitution, but street commerce is regulated by municipal districts and at metropolitan level a regulatory framework exists for the 43 municipal districts. These call for a daily tax (sisa) in exchange for the right to trade in the public space, the issue of licences, for a social security fund and consultative commission on policy design matters in the districts of the metro. In return vendors are supposed to comply with regulations, such as staying within designated areas, compliance with health and safety regulations etc. The ordinances are selectively enforced and compliance is also selective leading to disputes and negotiations over the use of public space by vendors. The lack of legal clarity has meant that street vendor organisations individually negotiate the agreements with the authorities around trading space.               

Organisation of street vendors:

Thousands of organisations have been formed by street vendors since the 60s. Membership is high in districts where commerce is concentrated. The organisations are often small, serving members in markets or neighbourhoods to resolve disputes and the problems of members. At a higher level, federations negotiate with local authorities to protect and advance the rights of street vendors.      

"Street selling in Mexico city employs more people than any single branch of industry". (Mary Williams, 2006)

Mexico has the highest GDP of all the six countries and also has evolved legal infrastructure for street vending. Like in Lima a major city centre clean-up led to the relocation of street vendors to commercial centres. Street selling in Mexico City is a source of income and work for more people than any single branch of industry. Street vendors also represent one of the largest categories of workers in retail trade, outnumbering workers in supermarkets and formal retail outlets. In Mexico in 2000, 73 154 street vendors were counted in the federal district. Men outnumber women, being 60% and women 40% of informal traders (Roever, 2006:31-33).

Regulations and legal status of street vendors:

Street vendors fall into two categories, those that are tolerated and those without 'tolerance' from the authorities (Cross:1998). Those that have some measure of legality are vendors who are providing the same service as a public market in residential areas; 'tianguis' or street markets that rotate; government set-up markets on wheels; and hawkers with stalls. Vendors who sell independently in the neighbourhoods or in the metro and who are able to escape arrest by moving with their goods off the street fast enough to evade police (toreros) fall into the 'not tolerated' category. Two relocation programmes followed the historic district relocation of street vendors in 1993,  in 1998 and in 2003 (Stamm, 2006).

Organisation of street vendors:

Many street vendors join organisations to get help in negotiating the red tape and regulations on trading in public space. Administrative procedures require street vendors form part of a 'recognised association' before being allowed to trade. Organisations resolve conflicts between members and provide access to informal markets, provide information and are a source of important social capital in the functioning of the street markets. The majority of street vendors belong to associations. There are 60 street vending organisations alone, with 10 000 members, in the Historic Centre. A longstanding mutually beneficial relationship with the ruling political party the PRI for over 70 years has paid dividends for street vendors but also resulted in a relationship of clientism. 

  "We (street vendors) control 80% of the sales in vegetables and fruits." (street vendor leader quoted in Lisette Aliaga, 2006)

Although the Chilean informal economy is the smallest in the region, it has been the most stable. In Santiago markets and street vending gained legitimacy in the 50s (Salazar, 2003).  By 2005 the total number of street market had reached 657, the majority of which were in the city of Santiago. The Chilean Association of Organisations of Street Markets (ASOF) estimates that there are about       40 000 market vendors in the city and 80 000 in the country. Planned street markets (Ferias libres) established by the government were originally a means of distribution of agricultural products, and later opened to other vendors, and now sustain 300 000 small farmers (Roever, 2006:41-42).

Sales of vegetables and fruit are 80% controlled by street vendors (Alliaga, 2006:60). This also reflects the dominance in the region of Chile as an agricultural producer. Regulation of street vending is effectively under the control of government which sanctions the use of the public space providing some security of workspace for street vendors. Although there may be evictions these are not likely to be arbitary. As in other countries there are street vendors who trade on the streets on the outside of the market because they cannot secure a permit or space.

Regulations and legal status of street vendors:

There are 32 comunas, or local municipalities in Santiago and street vending is regulated by mayors of local governments. Regulations govern permits and place and time of the markets' operation. Most markets run from 8am-3pm so no investment in lighting is needed. A limitation on the number of licences issued to control congestion and traffic has resulted in a growing number of coleros, or unlicenced vendors.

Organisation of street vendors:

Vendors in the feria libres are members of market organisations that in turn belong to ASOF. ASOF was formed in 2001 in response to the threat posed by supermarket chains to the markets. Organisations sanction applications for space by vendors and also provide internal mechanisms for governance of the feria libres. The associations also promote the interest of vendors in the political system.   

"The importance of street vending as a source of income is reflected by the dominance of women representing 73.3%, of whom more than half are heads of households."  (Sally Roever, 2006) 

Brazil is the largest country in the region and also the most unequal in the region. The country also has the largest number of documented street vendors in the region, numbering 711 825. In São Paulo, the largest city in Brazil, 42% are informal economy workers and there are approximately 73 000 street vendors, representing 11% of the economically active population (Itikawa, 2006).  The importance of street vending as a source of income is reflected by the dominance of women representing 73.3%, of whom more than half are heads of households. This compares with the city's overall labour force in which 56% are women and 46% head of household. São Paulo's street vendors face difficult work conditions with harassment from police and violence, patronage from officials who control licences and corruption in the form of requests for bribes (Roever, 2006:41-42).

Regulations and legal status of street vendors:

There is no national legislation governing street commerce although local regulation in São Paulo has been in existence for three centuries. The legal relationship between officials and street vendors on policy lacks clarity and there is an alternation between tolerance and repression of street trade. The licensing programme for street trade covers only 30% of all vendors and this has led to a parallel black market in licences.

Organisation of street vendors:

There are 770 street vendors' associations in São Paulo, many lacking democratic leadership. The electoral success of the left has generated new interest in the organisation of informal economy workers among the formal trade union labour movement, particularly the CUT.