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Creative development : the political economy of the urban informal sector in Kenya

University of British Columbia

There seems to be a widely shared consensus in the literature on the comparative study of development about the main characteristics of underdeveloped countries, the causes of their underdevelopment, and the appropriate policies for securing their development. Some of the ideas and suggestions resulting from this conventional approach do not appear to be consistent with empirical observation, and do not seem to take into consideration the unintended consequences of policy proposals. This may have often resulted in public policies which conflict with the ostensible goal of securing higher standards of living. One reason for the apparent failure of many development models may be the restrictive focus of much of the political and economic research on underdeveloped countries. While many economic studies can be justly accused of abstracting from politics, many political studies of development seem to ignore economic variables. This thesis explicitly recognizes the interrelationship of political, economic and social factors in the pursuit of development. The interplay of these factors seems to have resulted in the evolution of an informal (unofficial) economy as a counterpart to the state-favoured formal (official) economy. The existence of this informal sector has been used in the thesis to provide new perspectives on some of the main policy issues of development, for example, the creation of employment and income opportunities, urbanisation, migration and urban political stability. It challenges the accuracy of standard measures of underdevelopment such as Gross Domestic Product, per capita income, and unemployment rates, as well as the utility of a range of essentially normative concepts like "employment," "unemployment," "productivity," "subsistence," "modern," and "traditional." Empirical data was collected in Kenya to test the main hypotheses advanced in the theoretical model. The data indicate that the informal sector is a development sector spontaneously created through the actions and initiatives of individual Africans. It is important in providing low cost goods and services as well as employment and training. This occurs despite the lack of state support and often in the face of active state harassment and discouragement. The informal sector appears to be a repository for significant attitudes and beliefs favourable to development, for example, the interest in securing higher incomes, determination in the face of poverty, the abundance of ambition self-reliance and a sense of personal responsibility for one's economic fortune the belief that wealth is the result of hard work, and an appreciation of risk-taking in the exploitation of new opportunities. The creative contribution of the informal sector to economic development and political stability is seldom recognized by development planners or political leaders and is frequently ignored in development models. The formulation of development strategies and the goals of development administration would be enhanced through the enlightened appreciation of the contribution of small-seal "informal" enterprises to national development.

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2010-03-18

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http://hdl.handle.net/2429/22065

Political Science

University of British Columbia

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