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Spatiality, Clustering and the Agglomeration Economies of Scale: A Spatial Statistical Approach to Informal Manufacturing in Harare, Zimbabwe
... However urban informality has been marginalised in city service provision which is a denial of their right to the city. The informal sector has developed to be an important economic sector in the urban areas, especially in developing economies where it is contributing more than 90% of labour (Magure, 2015), and it has also developed to be a strong development partner because it has created linkages with the formal sector for sustainable development (Mazongonda & Chirisa, 2018). As such local authorities should try and incorporate urban informality in the city's development because the sector is contributing significantly to job creation, and to the Gross Domestic Product of economies (Aliyev, 2015;Brown et al., 2014;ILO, 2000;Jackson, 2012;Kamete, 2012;Onyenechere, 2011;UN-Habitat, 2010a, 2010b. ...
In many cities, urban informality is sidelined in the provision of services and development of the city. The outbreak of COVID-19 has called for myriad interventions to stop the spread in many cities. The big question in the city of Masvingo is how urban informality has been included in these interventions. COVID-19 has been on the increase since it was ever recorded in the city of Masvingo. As at end of August 2020, over 200 cases of COVID-19 have been recorded and pointers also show that cases are on the increase. Many people have been deprived of their livelihoods in the city due to the outbreak of COVID-19, thereby exposing people to vulnerability due to lack of livelihoods. The outbreak of COVID-19 has also resulted in closure of countless economic activities in the city, thereby depriving people from their sources of livelihoods. The most affected by the closure of economic activities are the informal traders. The outbreak of COVID-19 pandemic has called for copious interventions to try and stop the spread of the disease. The study examined the inclusivity of COVID-19 interventions in the city of Masvingo to see how they include other disadvantaged groups such as the urban informality. The informal sector in the city of Masvingo is not included in the city's COVID-19 response strategies. The city is mainly focusing on the formal sector in their response strategies, thereby leaving the informal sector out and exposing them to elevated risk of contracting the COVID-19 disease. This research examined the inclusivity of the COVID-19 interventions in the city of Masvingo, with special reference to the people in the informal sector. The informal sector, even though they live in cities, they are usually regarded as people living in the urban periphery because they are not included in the city's development agenda and service delivery system. The research applied a qualitative methodology where in-depth interviews and field observations were used to collect data. Interviews were done with city authorities and people in the informal sector. The research showed that the interventions taken to fight the outbreak of the COVID-19 have not benefited the people in the informal sector but only the formal sector. The informal sector has been sidelined, showing a clear exclusionary urban policy. Their livelihoods were destroyed in the guise of preventing the spread of the COVID-19 pandemic. However, such destructions were not done in the formal sector which again apparently shows exclusive urban policy. The research therefore calls for a more holistic approach in the fight against COVID-19 disease for the inclusive of the city and the betterment of life for all people in the city.
This chapter revisits the notion of radical planning, which in the last two decades has placed major emphasis on inclusion and participation. It highlights the hegemonic drive of neoliberal capitalism to stabilize state-citizen relations by implicating civil society in governance, and it stresses the importance to radical planning of the contested terrains of inclusion and dominance. The first section of the chapter interrogates the role of citizen participation in neoliberal governance. The second section on South Africa's Western Cape Anti-Eviction Campaign examines how the insurgent citizenship practices move across both invited and invented spaces of action. The relation between neoliberal inclusion and insurgent citizenship and the concrete implications of grassroots insurgency for radical planning practice and pedagogy in the neoliberal era are explored in the third section. Finally, the chapter identifies important insights drawn from the anti-colonial struggles of the South.
Over the past twenty years or so, there has been a debate that basically asks “…whether the informal sector should really be seen as a marginalized, ‘survival’ sector, which mops up excess or entrenched workers, or as a vibrant, entrepreneurial part of the economy which can stimulate economic growth and job creation.” (African Union 2008). This paper argues the latter. Further, this paper argues that employment in the informal sector is no longer a journey, but has become the destination of many. If the aim is to create jobs and reduce poverty, the informal sector must be included in the debate. Indeed, this paper recommends that the debate about the advantages of formal sector vs. the informal sector needs to end. Governments need to unequivocally recognize and admit the importance of the informal sector and finds ways to encourage its growth. They also need, at the same time, to decide how to strengthen the formal sector and extend benefits to those in the informal sector, while removing barriers to the formal sector to allow more to participate. Specifically, there are at least five major areas where changes need to be made: 1) Establish an enabling environment and supportive regulatory framework, 2) Provide access to appropriate training, 3) Improve basic facilities and amenities and infrastructure, 4) Increase ability to obtain property title and access to credit, and 5) Improve national databases and establish uniform standards.
The purpose of this paper is to take stock of what is known about industrial clusters in LDCs and to put forward an agenda for further research. The paper shows that clustering (sectoral and geographical concentration) is common in a wide range of countries and sectors. The way clusters are organized varies a great deal. Socio-cultural ties seem to heighten economic performance, but there are exceptions. The relevance of clustering is brought into focus most sharply by those case studies which show the success of local producers in breaking into international markets and/or coping with domestic crisis. Other case studies, show that clustering does not necessarily lead to collective efficiency and raise competitiveness. -from Authors
The paper characterises women in the informal sector in the peri-urban settlement by way of a case study of Ruwa. Qualitative methodologies, with a little mix of the positivist approach, were adopted. Forty women engaged in informal sector operations ranging from street (offplot) and on-plot activities were adopted. Challenges that these operators faced were noted as relating to elements (rain, wind, and the sun), service provision, marketing of products,and regulatory forces. It is recommended that all stakeholders dissect common issues and formulate poverty-tolerant strategies that are accommodative of the plight and challenges of the peri-urban women. Critical to note is strength of the will-power and resilience most of the
respondents displayed. The most important thing is perhaps of harnessing on this intrinsic
virtue to nurture and develop it for local developmental gain.
This paper seeks to review the state of knowledge to this much talked-about paradigm, first made famous by Porter (1990). Clusters are a striking and common feature in today’s economy. Nonetheless, this phenomenon is not exactly new and has been the object of attention from a wide variety of social scientists for much of this century. In the last ten years, this phenomenon has attracted renewed interest from academics, practitioners, and the British Government – who have become aware of its central importance in competitive strategy. An understanding of clusters adds an important dimension to the more commonly debated role of personal contact networks in the success of entrepreneurial small business.
Urban informality is taking different shapes and dimensions. Theoretically the scope and dimensions of these remain little understood. This paper examines the different dimensions that the city is shaping itself informally. A case of Harare, the capital city of Zimbabwe is proved as a basis for grounding the theory. Examples cited include housing informality, self-help initiatives by the youths and street vending by different age and gender groups. It is overall argued that the informal sector operations are ever shifting, ever-configuring and worth exploring. Such a study as this one is helpful in finding medium to long-term solutions in urban Africa, as a whole.
The engagement by households in the informal economy is not only a headache to local authorities in the developing countries but also heartache to the households themselves (comprising students, full-time street vendors, and formal private or public officials. This paper maps the diversity of ethical dilemmas which households and practitioners undergo. Doing something contrary to one's belief and value systems 'pricks' conscience; they have but acted against their wish. From a spatial viewpoint, the whole urban Harare, is somewhat littered by a host of urban dwellers who are acting contrary to their life goals, at least in light of their career planning and personal aspirations. It is a sphere with destabilized personalities. One then wonders the kind of overall urban milieu that results from this development.
Informal sector operations in the urban sphere of Zimbabwe, like in any other developing countries, continue to rise astronomically. The chief reason for the growth of this sector is nothing but the plummeting economy explained in terms high urban unemployment rates and consequential urban poverty. By way of a qualitative methodology, this paper gives a geographical description and explication of the ISO phenomena in the country. It is noted that geography of this emerging quintessential sector is analyzable in both spatial and non-spatial variables and parameters including location, operator composition, organisation and support engaged, returns realisable, services offered and value added. Different urban centre -whether urban proper or rural-based -shows different patterns of distribution of ISOs. Understanding the dynamics of ISO patterning and growth is critical for conceptual development, theorisation and policy direction. This is the thrust of this short paper.
The purposes of this article are to position mixed methods research (mixed research is a synonym) as the natural complement to traditional qualitative and quantitative research, to present pragmatism as offering an attractive philosophical partner for mixed methods research, and to provide a framework for designing and conducting mixed methods research. In doing this, we briefly review the paradigm “wars” and incompatibility thesis, we show some commonalities between quantitative and qualitative research, we explain the tenets of pragmatism, we explain the fundamental principle of mixed research and how to apply it, we provide specific sets of designs for the two major types of mixed methods research (mixed-model designs and mixed-method designs), and, finally, we explain mixed methods research as following (recursively) an eight-step process. A key feature of mixed methods research is its methodological pluralism or eclecticism, which frequently results in superior research (compared to monomethod research). Mixed methods research will be successful as more investigators study and help advance its concepts and as they regularly practice it.
Does culture have a causal effect on economic development? The data on European regions suggest that it does. Culture is measured by indicators of individual values and beliefs, such as trust and respect for others, and confidence in individual self determination. To isolate the exogenous variation in culture, we rely on two historical variables used as instruments: the literacy rate at the end of the 19th century, and the political institutions in place over the past several centuries. The political and social history of Europe provides a rich source of variation in these two variables at a regional level. The exogenous component of culture due to history is strongly correlated with current regional economic development, after controlling for contemporaneous education, urbanization rates around 1850, and national effects. (JEL: O10, F10, P10, N13) (c) 2010 by the European Economic Association.
The realties of rapid urbanization and population growth in Africa are objectively patent with the realities of diversity of challenges, constraints and threats to service delivery in urban centres. Urban centres are attraction centres for rural population and, through multiplier effects, population sizes continue to grow concomitant with the demand for the services (hospitals, schools, industrial and commercial zones, security, etc.). This paper will explore the historical and contemporary challenges of population growth by way of looking at case studies of Nigeria (Lagos), South Africa (Johannesburg), Zimbabwe (Harare), Ethiopia (Addis Ababa), Kenya (Nairobi), Egypt (Cairo) and Rwanda (Kigali). These countries give a diversity of experiences when put together given the differences in institutions and cultures, historical backgrounds, political economy and other structural proclivities. Such an analysis helps in the formulation of the ‘appropriate’ nomenclature and taxonomy of the subject of urbanisation (and ruralisation, as it were). Socially, most urban centres in Africa have gone through metamorphoses and transitions from white domination to black majority rule. The advent of political independence has opened the gates for the former ruralites resulting in novel challenges which had hitherto been unforeseen (particularly, the increased demand for housing, which, in its own right is indivisible with other socio-economic facets of urban centres). Economically, this transition has heralded calls for black economic empowerment or indigenisation programmes which have beckoned for more urban space being allocated for enterprise. Space allocation for any land-use calls for installation of the supporting infrastructure (roads, water utilities, electricity, buildings and/or shelter, etc). The paper maps out the nesting effect of these challenges in a bid to overcome them so as to produce viable urban economies for the 21st Century Africa, in which amenity, harmony and sustainability are the chief objects. Urban development policy is recommended is the prime solution to attaining the three mentioned objects. This is founded on the notions of balancing between and within settlements (rural and urban) in an economy, urban modelling and stewardship.
The need to advance the conventional understanding of production systems as fixed flows of goods and services to dynamic systems based on learning is discussed. The theory advanced is based on research on the Japanese robot industry. The paper opens with a discussion of the meaning of flexibility in a dynamic economy to expose the social division of labour as the foundation of the creation and evolution of production systems. Production systems are established to obtain the scale and scope economies offered by the independent firms of the social division of labour. The necessity to organize production requires the creation of some type of an internal or external governance structure. The Japanese have developed a social technology that resolves the transaction cost trade-offs confronting North American industry between internal and external governance structures. Asanuma's relation-specific skill is discussed as the crux for comprehending the shift from production systems to learning systems.
The paper is concerned with spatial clustering of economic activity and its relation to the spatiality of knowledge creation in various sorts of interactive learning processes. It questions the merit of the prevailing explanatory model where the realm of tacit knowledge transfer is confined to local milieus whereas codified knowledge may roam the globe almost frictionless. When doing so the paper highlights the conditions under which both tacit and codified knowledge can be exchanged locally and globally. A distinction is made between, on the one hand, the learning processes taking place among actors embedded in a community by just being there - dubbed buzz - and, on the other, the knowledge attained by investing in building channels of communication - called pipelines - to selected providers located outside the local milieu. It is argued, that the co-existence of high levels of buzz and many pipelines may provide firms located in outward looking and lively clusters with a string of particular advantages not available to outsiders. Finally, some prescriptive elements, stemming from the argument, are identified.
Technological networks and gradual mechanization in small and medium-sized carpentry enterprises in two secondary cities, Nakuru and Mutare, in Kenya and Zimbabwe respectively, are discussed on the basis of data collected in two field trips, in 1988 and 1990. The author argues that what can be seen at work in the carpentry collectives in Mutare and Nakuru is a different type of industrialization logic than implied by conceptions which assume linear development towards ever-increasing scale of production within an enterprise. This type of mechanization represents an alternative industrialization model, which can and does coexist with the traditional model. -from Author
With the publication of his best-selling books "Competitive Strategy (1980) and "Competitive Advantage (1985), Michael E. Porter of the Harvard Business School established himself as the world's leading authority on competitive advantage. Now, at a time when economic performance rather than military might will be the index of national strength, Porter builds on the seminal ideas of his earlier works to explore what makes a nation's firms and industries competitive in global markets and propels a whole nation's economy. In so doing, he presents a brilliant new paradigm which, in addition to its practical applications, may well supplant the 200-year-old concept of "comparative advantage" in economic analysis of international competitiveness. To write this important new work, Porter and his associates conducted in-country research in ten leading nations, closely studying the patterns of industry success as well as the company strategies and national policies that achieved it. The nations are Britain, Denmark, Germany, Italy, Japan, Korea, Singapore, Sweden, Switzerland, and the United States. The three leading industrial powers are included, as well as other nations intentionally varied in size, government policy toward industry, social philosophy, and geography. Porter's research identifies the fundamental determinants of national competitive advantage in an industry, and how they work together as a system. He explains the important phenomenon of "clustering," in which related groups of successful firms and industries emerge in one nation to gain leading positions in the world market. Among the over 100 industries examined are the German chemical and printing industries, Swisstextile equipment and pharmaceuticals, Swedish mining equipment and truck manufacturing, Italian fabric and home appliances, and American computer software and movies. Building on his theory of national advantage in industries and clusters, Porter identifies the stages of competitive development through which entire national economies advance and decline. Porter's finding are rich in implications for both firms and governments. He describes how a company can tap and extend its nation's advantages in international competition. He provides a blueprint for government policy to enhance national competitive advantage and also outlines the agendas in the years ahead for the nations studied. This is a work which will become the standard for all further discussions of global competition and the sources of the new wealth of nations.
ABSTRACT Economists,as well as anthropologists have seriously questioned,the empirical validity of the dual economy paradigm. Indeed, the evidence is overwhelming that while formal and informal sector enterprises may be differentiate d in terms of their capitalization, organization, labor processes, market penetration, and the like, it is generally the case that these differentiated enterprises are structurally articulated within a centralized political economy. Accordingly, three macrotheories have,been ,offered ,to explain ,the ,structural ,articulation ,of formal ,and ,informal ,sector developments. One theory, that of modernization , suggests that informal sector developments are a temporary,by-product of migratory flows of unskilled labor that have,been,set in motion by rapid urban industrialization. The other two theories, both Marxist or neo-Marxist in conception, consider,informal,sector,developments,to be primarily the result of economizing,production strategies. According to one of these theories, firms in the formal sector seek to depress wages by maintaining a reserve of surplus labor and, thus, they force into the informal sector large numbers of unemployed or underemployedworkers. In the alternative view, firms in the formal
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This article originated in the study of one Northern Ghanaian group, the Frafras, as migrants to the urban areas of Southern Ghana. It describes the economic activities of the low-income section of the labour force in Accra, the urban sub-proletariat into which the unskilled and illiterate majority of Frafra migrants are drawn.
Price inflation, inadequate wages, and an increasing surplus to the requirements of the urban labour market have led to a high degree of informality in the income-generating activities of the sub-proletariat. Consequently income and expenditure patterns are more complex than is normally allowed for in the economic analysis of poor countries. Government planning and the effective application of economic theory in this sphere has been impeded by the unthinking transfer of western categories to the economic and social structures of African cities. The question to be answered is this: Does the ‘reserve army of urban unemployed and underemployed’ really constitute a passive, exploited majority in cities like Accra, or do their informal economic activities possess some autonomous capacity for generating growth in the incomes of the urban (and rural) poor?
Seventy-five years ago, Yates (1934) presented an article intro-ducing his continuity correction to the χ 2 test for independence in contingency tables. The paper also was one of the first introductions to Fisher's exact test. We discuss the historical importance of Yates and his 1934 paper. The development of the exact test and continuity correction are studied in some detail. Subsequent disputes about the exact test and continuity correction are recounted. We examine the current relevance of these issues and the 1934 paper itself and attempt to ascertain its place in history.
This paper presents estimates of the shadow economy for 110 countries, including developing, transition and developed OECD economies. The average size of the shadow economy as a proportion of official GDP in 1999–2000 in developing countries was 41%, in transition countries 38%, and in OECD countries 17%. An increasing burden of taxation and social security contributions underlies the shadow economy. If the shadow economy increases by 1%, the growth rate of the “official” GDP of developing countries decreases by 0.6%, while in developed and transition economies the shadow economy respectively increases by 0.8% and 1.0%.
The effects of urban agglomeration economies on productivities in two-digit manufacturing industries is estimated using the cross section data of Japanese cities in 1979. Urbanization and localization economies, which are major forms of urban agglomeration economies, are explicitly separated. The estimates of these economies vary considerably among industries. Light industries receive more productive advantages from urbanization economies than from localization economies, but heavy industries experience these economies more from localization economies than from urbanization economies.
This paper develops a simple model that shows how a country can endogenously become differentiated into an industrialized "core" and an agricultural "periphery. " In order to realize scale economies while minimizing transport costs, manufacturing firms tend to locate in the region with larger demand, but the location of demand itself depends on the distribution of manufacturing. Emergence of a core-periphery pattern depends on transportation costs, economies of scale, and the share of manufacturing in national income. The study of economic geography-of the location of factors of production in space-occupies a relatively small part of standard economic analysis. International trade theory, in particular, conventionally treats nations as dimensionless points (and frequently assumes zero transportation costs between countries as well). Admittedly, models descended from von Thunen (1826) play an important role in urban studies, while Hotelling-type models of locational competition get a reasonable degree of attention in industrial organization. On the whole, however, it seems fair to say that the study of economic geography plays at best a marginal role in economic theory. On the face of it, this neglect is surprising. The facts of economic geography are surely among the most striking features of real-world economies, at least to laymen. For example, one of the most remarkable things about the United States is that in a generally sparsely populated country, much of whose land is fertile, the bulk of the population resides in a few clusters of metropolitan areas; a quarter of the inhabitants are crowded into a not especially inviting section of the East Coast. It has often been noted that nighttime satellite
The informality discourse is large and vibrant, and is expanding rapidly. But there is a certain conceptual incoherence to the literature. New definitions of informality compete with old definitions leading to a plethora of alternative conceptualisations. While some individual studies may apply a tight definition consistently, the literature as a whole is in a mess. This article proposes that informality and formality should be seen in direct relation to economic activity in the presence of specified regulation(s). Relative to the regulation(s), four conceptual categories that can help frame the analysis are: (A) regulation applicable and compliant, (B) regulation applicable and non-compliant, (C) regulation non-applicable after adjustment of activity, and (D) regulation non-applicable to the activity. Rather than use the generic labels 'informal' and 'formal', it would be preferable if the analysis focused on these four categories (or even more disaggregated as appropriate). A central determining factor in the impacts of regulation on economic activity across these four categories is the nature and intensity of enforcement. While lack of enforcement is well-documented, an understanding of its determinants - why and to what extent a government would not enforce a regulation that it has itself passed, and why non-enforcement varies from one context to another, is relatively neglected in the literature. Thus, specificity on regulation and on enforcement is the key to achieving conceptual clarity in the analytical literature and in the policy discourse on informality.
The expansion of industrial manufacturing alone cannot be expected to solve the unemployment and underemployment problem in most developing countries. A manufacturing sector employing 20 % of the labour force would need to increase employment by 15 % per year merely to absorb the increment in a total work force growing at an annual rate of 3 %. The required rate of increase of manufacturing output is even greater than 15 % if increases in labour productivity are taken into account.1 In the light of these orders of magnitude, the contribution of the industrial sector to employment growth over the last decade has been disappointing in many developing economies (see Table 1 ). Ina number of countries in Latin America and Africa, despite significant investments in manufacturing, employment in the sector grew less rapidly than population, and in some cases even declined in absolute terms.
We estimate aggregate production functions for metrpolitan areas in Japan to derive the magnitudes of agglomeration economies. Using the estimates of agglomeration economies, we test if Japanese cities, in particular, Tokyo, are too large.J. Japan. Int. Econ.,December 1996,10(4), pp. 379–398. Faculty of Economics, University of Tokyo, 7-3-1 Hongo, Bunkyo-ku, Tokyo 113, Japan; Socio-Economic Research Center, Central Research Institute of Electric Power Industry, 1-6-1 Ohtemachi, Chiyoda-ku, Tokyo 100, Japan; and Institute of Socio-Economic Planning, University of Tsukuba, 1-1-1 Tennodai, Tsukuba, Ibaraki 305, Japan.
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