Revisiting the informal economy: an inquiry into the economic, socio-political, and spatial dimensions of street vending in Baclaran.

Abstract

MMDA Resolution No. 02-28 (2002) strengthened the mandate of the Metropolitan Manila Development Authority (MMDA), particularly its Metro Parkway Clearing Group (MPCG), to clear streets, sidewalks, alleys, avenues, bridges, parks and other public places in Metro Manila of illegal obstructions. Such is said to be a response to the growing road congestion that characterized the metro. Unfortunately, more than a decade after the Resolution has been implemented, traffic conditions in these areas did not seem to improve and only saw the worse. One of the many directives by the President Duterte upon taking his oath was targeted at the improvement of the traffic situation of Metro Manila, which by then, had started to get the attention of not only domestic critiques but also international media outlets. While he asserted four (4) possible solutions to the said issue, the focus of this study was on one specific aspect - the removal of street obstructions – which sought to reinforce the mandate of the MPCG. Such government initiative affects the livelihood of the vendors of Baclaran, most of whom rely on public spaces to sell their wares and make a living. This is fairly significant because the informal economy, a sector of which street vending is a part, contributes about 45% to the Gross Domestic Product (GDP). This study utilized in-depth interviews and key informant interviews (KII) to gather the conflicting perspectives of major stakeholders in order to come up with a middle ground; a solution that could possibly bridge the gaps of the different interests of these stakeholders. In doing so, this study also discussed the introduction of the informal economy to the Philippines, and the causes of the persistence of street vendors in Baclaran despite laws passed by both national and local governments.This study drew from the critique that the assessment of the informal economy comes from a very economistic point of view. It argued that there are other elements such as socio-political and spatial – without discounting the importance of economic factors – in a structure that influences the proliferation of informal trading practices and the decision of many of our brethren to continue vending in public spaces despite the lack of security of tenure and benefits, and possible physical and mental risks.