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Uruguay: informal economy shelters masses in wake of economic crisis
By Lucía Melnikov
As a result of rapid deterioration of the Uruguay economy following the failure of the banks and financial sector two years ago, the people find themselves in the streets and in the informal economy, without any economic or social protection.
When there is a war, the effects of the destruction can be measured by the assistance you can seek overseas for food and medicines. In this case, it can only be measured by the damage inflicted on basic human rights, due to the lack of economic resources, eg lack of proper shelter, medical assistance, work and food.
This causes the unravelling of the social fabric; the migration of people looking for work from inland to the capital and the depopulation of the rural areas. As a result, we, the Uruguayan people, are going through the worst crisis we have ever lived through in history.
The industrial crisis that commenced in 1968, with the continuous closing down of different industries was caused, amongst other factors, by the lack of re-organisation and modernisation to meet the needs of regional and global competition. Uruguay has a population of around three million people. The economically active population is 800 000, and it is estimated that 300 000 people belong to the informal economy.
At the same time as the economy has begun to informalise, Uruguay has taken backwards steps regarding labour rights, especially for women. A pregnancy test has now been introduced as a pre-requisite to getting employment. To be a woman and mother is the basis of discrimination for many jobs, and is one of the primary reasons why the majority of vendors at the markets are women.
The bulk of job creation occurs in the informal economy, and street vending is the most visible economic activity. The ‘outskirts’ or markets are situated in the poorest areas and are constantly accommodating more and more people. They are places where some vendors sell what little possessions they have left to get basic food for their families.
People with training or those who can operate machinery, start home businesses, making different products which enable them to carry out honest work. Production co-operatives for the recycling of plastic products have been developed to make bags for produce sold at the markets.
We have made it clear to the authorities that our motivation for organising activity in the markets is to assist people to earn a living, to find a reason to live and reclaim their dignity. This is little solace when one looks at the growth in official statistics that are the tell-tale signs of Uruguay’s situation: higher crime and delinquency, suicide and emigration.
In most cases, there is no appropriate labour protection for vendors. The loss of formal employment has created the need for new regulations and laws to safeguard the well-being of the working population.
I believe that the next step for workers in this economy, is to organise themselves into networks and to present proposals for protection and labour empowerment.
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