| Sharit
K. Bhowmik
In most Indian cities the urban poor survive by working
in the informal sector. Poverty and lack of gainful employment
in the rural areas and in the smaller towns drive large
numbers of people to the cities for work and livelihood.
These people generally possess low skills and lack the
level of education required for the better paid jobs in
the formal sector. Besides, permanent protected jobs in
the formal sector are shrinking hence even those having
the requisite skills are unable to find proper employment.
For these people work in the informal sector are the only
means for their survival. This has led to a rapid growth
of the informal sector in most of the larger cities. For
the urban poor, street vending is one of the means of
earning a livelihood, as it requires minor financial input
and the skills involved are low.
A large section of street vendors in urban areas are those
with low skills and who have migrated to the larger cities
from rural areas or small towns in search of employment.
These people take to street vending when they do not find
other means of livelihood. Though the income in this profession
is low, the investment too is low and the people do not
require special skills or training. Hence for these people,
men and women, street vending is the easiest form for
earning their livelihood.
There is also another section of the urban population
that has taken to street vending, namely, those once engaged
in the formal sector. These people, or their spouses,
were once engaged in better paid jobs in the textile mills
in Mumbai and Ahmedabad and engineering firms in Kolkata.
Formal sector workers in these three metropolises have
had to face large-scale unemployment due to the closure
of these industries. Many of them, or their wives, have
become street vendors in order to eke out a living. A
study on street vendors, conducted in these cities, show
that around 30% of the street vendors in Ahmedabad and
Mumbai and 50% in Kolkata were once engaged in the formal
sector. A study conducted by Self Employed Women's Association
(SEWA) in Ahmedabad shows that around half the retrenched
textile workers are now street vendors.
Street Vendors and the
Urban Economy
Over the past few decades we can observe
that there is substantial increase in the number of street
vendors in the major Indian cities. Mumbai has the largest
number of street vendors numbering around 250,000. Kolkata
has more than 150,000 street vendors. Ahmedabad and Patna
have around 80,000 each and Indore, Bangalore and Bhubaneshwar
have around 30,000 street vendors.
The total employment provided through
street vending becomes larger if we consider the fact
that they sustain certain industries by providing markets
for their products. A lot of the goods sold by street
vendors, such as clothes and hosiery, leather and moulded
plastic goods and household goods, are manufactured in
small scale or home-based industries. These industries
employ a large number of workers and they rely mainly
on street vendors to market their products. In this way
street vendors provide a valuable service by helping sustain
employment in these industries.
Street vendors are mainly those who are unsuccessful or
unable to get regular jobs. This section of the urban
poor tries to solve their problems through their own meagre
resources. Unlike other sections of the urban population
they do not demand that government create jobs for them,
or engage in begging, stealing or extortion. They try
to live their life with dignity and self-respect through
hard work. The study on street vendors in seven cities
shows that the average earnings range between Rs. 40 and
Rs. 80 per day. Women vendors earn even less. These people
work for over 10 hours a day under gruelling conditions
on the street and are under constant threat of eviction.
A study of street vendors in Mumbai conducted by SNDT
Women's University and ILO showed that an overwhelming
majority of them suffered from ailments related to stress--hyperacidity,
migraine, hypertension, loss of sleep etc.
The poorer sections too are able to procure their basic
necessities mainly through street vendors, as the goods
sold are cheap. A study on street vendors in seven cities
conducted by the National Alliance of Street Vendors of
India (NASVI) showed that the lower income groups spend
a higher proportion of their income in making purchases
from street vendors mainly because their goods are cheap
and thus affordable. Had there been no street vendors
in the cities the plight of the urban poor would be worse
than what it is at present. In this way one section of
the urban poor, namely, street vendors, helps another
section to survive. Hence though street vendors are viewed
as a problem for urban governance, they are in fact the
solution to some of the problems of the urban poor. By
providing cheaper commodities street vendors are in effect
providing subsidy to the urban poor, something that the
government should have done.
Street Vendors and Public
Space
Street vendors have existed since time
immemorial. In recent times however they have come to
be regarded as public nuisance by certain sections of
the urban population. NGOs representing the elite sections,
especially the residents' associations of the middle class
and upper middle class, are most vocal about eviction
of street vendors from their vicinity. In most of the
large cities, such as Mumbai, Delhi, Kolkata, Chennai,
Bangalore, these associations aggressively argue for restoration
of pavements as public space only when street vendors
‘encroach’ on them. At the same time these
associations too blatantly encroach on public space by
employing private guards who regulate entry of people
through public roads that access their residential areas
and they cordon off public space such as roads and lanes
by erecting fences and gates.
The constant tirade by these elite NGOs
that street vendors deprive pedestrians of their space,
inconvenience traffic and encourage anti-social activities
finds favour with the media which highlights these issues.
The municipal authorities too act promptly on their advice
by evicting these street vendors and depriving them of
their livelihood. The inconvenience caused to the majority
of the population who find it convenient to purchase from
street vendors is never a consideration. The fact that
no committee of slum dwellers has ever complained against
street vendors is of course irrelevant to the municipal
authorities as well as these self-proclaimed defenders
of public space.
The Supreme Court has taken a different position. More
than a decade ago, the New Delhi Municipal Corporation
evicted a common street vendor, Sodhan Singh, who sold
garments at Janpath in New Delhi. He appealed to the Supreme
Court through a Public Interest Litigation claiming that
the act violated his fundamental rights, more specifically
his right to carry on business or trade (article 19(1)g).
In a very significant judgement, the Court ruled that,
"if properly regulated according to the exigency
of the circumstances, the small traders on the side walks
can considerably add to the comfort and convenience of
the general public, by making available ordinary articles
of everyday use for a comparatively lesser price. An ordinary
person, not very affluent, while hurrying towards his
home after a day's work can pick up these articles without
going out of his way to find a regular market. The right
to carry on trade or business mentioned in Article 19(1)g
of the Constitution, on street pavements, if properly
regulated cannot be denied on the ground that the streets
are meant exclusively for passing or re-passing and no
other use." (Sodhan Singh versus NDMC, 1989).
The above extract from the Supreme Court judgement is
significant because it emphasises on several important
aspect of street vending and use of public space. The
judgement notes the positive role of street vendors in
providing essential commodities to common people at affordable
prices and at convenient places. Moreover, the judgement
notes that street vending, if regulated, cannot be denied
merely on the ground that pavements are meant exclusively
for pedestrians. The most important aspect is that street
vendors are exercising their constitutional right to carry
out trade or business hence it should be regulated properly
and not abolished.
Organising Street Vendors
Street vendors conduct their business amidst insecurity.
Whenever eviction drives are conducted their wares are
confiscated or destroyed. Even where street vending is
permitted by the municipality, the police has the authority
to remove them. Section 34 of the Police Act empowers
the police to remove any obstructions on the streets.
Hence, even if the municipal authorities demarcate areas
as street vending zones, the police have the right to
evict street vendors in these zones. Even licensed street
vendors can be evicted under this law. The Section reads:
"No person shall cause obstruction in any street
or public place by…exposing anything for sale or
setting out anything for sale in or upon any stall, booth,
cask, and basket or in any other way whatsoever."
In order to overcome these restrictions street vendors
organise themselves into unions that enable them to continue
their activities. These organisations are mainly localised
bodies representing street vendors in specific areas of
the city. In fact in all the larger cities trade unions
representing different political hues try to mobilise
street vendors. Some of these trade unions are independent
organisations but most of them are affiliates of the larger
trade union federations. Since street vending is not officially
permitted the main role of these organisations is to negotiate
with the local authorities (the officers in the municipal
wards and police stations) for occupying public space.
In general it is found that the rate
of unionisation is low. The different studies conducted
on street vendors in Mumbai, Delhi and Ahmedabad show
that less than 20% of them are members of unions. Most
of these members are males as the female vendors constitute
a small section of the profession. In most cases they
marginalised. Ahmedabad is an exception as female vendors
constitute a sizeable section (40%) and they are also
unionised mainly due to the efforts of Self- Employed
Women's Association (SEWA). The existence of SEWA as a
union of women in the informal sector has encouraged females
from the urban poor to take to street vending. Ironically,
Ahmedabad is the only city where the male vendors have
the lowest level of unionisation.
Trade unions organise protest meetings
and demonstrations when street vendors are threatened
by the municipalities or the police. If this does not
get them any redressal, they go to court and obtain stay
orders against the action taken by the civic bodies. These
are basically stop-gap arrangements and are more like
fire-fighting methods. In other words, whenever vendors
feel threatened they resort to actions that enable them
to continue their business, though for temporary periods.
There are other means through which street
vendors manage to conduct their trade. Vendors in an area
form their informal associations that negotiate with the
local authorities. This invariably means offering rents
(bribes) to the authorities for warding off eviction drives
or forewarning them of impending drives. These associations
collect money from their members and pay it as rent to
the concerned authorities. There are others forms of extracting
rents. In some cases local musclemen, more often than
not with the backing of a political party, collect protection
fees through threats. Their links with the local authorities
ensure that those who pay will not be disturbed and those
who do not pay will face eviction either by the musclemen
or the authorities. The level of unionisation is low mainly
because street vendors feel that they can survive through
paying rents rather than forming unions that will fight
for their rights.
The non-official / illegal status of
street vending along with low level of unionisation has
given rise to an alarming rate of rent seeking. NASVI's
study of street vendors found that they pay between 10%
to 20% of their earnings as rent. In Mumbai the total
rents collected amounts of Rs. 4 billion annually. In
Delhi, Manushi Trust, a women's organisation, conducted
a public hearing on problems of street vendors and cycle
rickshaw pullers in the city in 2000. It was found that
Rs. 500 million is collected as rents daily from these
people. These findings were later endorsed by the Central
Vigilance Commission. However, in Ahmedabad where female
vendors are unionised, rent seeking is much less. Hence
legalising the profession and encouraging trade unions
would be means through which rent seeking could be reduced.
But these are also the precise reasons why the authorities
may resist such moves.
Intervention at the National
Level: Formation of NASVI
The common problems faced by street vendors imply that
these can be tackled only at the national level and not
through makeshift local initiatives. There was thus a
need for forming a national organisation that could help
co-ordinate activities of the associations of street vendors
and project these at a national level. The Bellagio declaration
of 1998 could form the basis of such an organisation.
The points raised could become the basic demands of street
vendors. SEWA had played an important role in the Bellagio
meeting and in order to raise the points of the declaration,
it initiated the formation of the National Alliance of
Street Vendors of India in September 1998 in Ahmedabad,
India. It is a coalition of trade unions and voluntary
organisations working for street vendors spread all over
India. NASVI, now based in Patna, started off as a networking
organisation of street vendors. It advocates for the basic
rights of vendors and street vendors. It gives them a
platform to unite together and to raise their voice for
their just demands and rights. At present, more than 350
street vendor organisations from 22 states of the country
are part of the Alliance. It creates awareness about the
usefulness of the vendors and hawkers, brings to light
their plight, so that the urban planners and authorities
can no longer ignore them. NASVI publishes a quarterly
newsletter in Hindi and English called Footpath Ki Awaz
(Voice from the pavement/sidewalk) that provides its activities.
One of the first major activities of NASVI was to gather
more information on street vendors in different cities.
In December 1998 NASVI organised a meeting in Mumbai to
discuss on the means through which information on street
vendors could be gathered. The methods engaged by trade
unions of street vendors were not sufficient as they were
merely reactions to the threats from the authorities.
What was needed was a long-term perspective on street
vendors at the national level. On the one hand it was
important for NASVI to intensify its activities of forming
a network among street vendors’ trade unions and
other organisations working among them such as NGOs, Voluntary
Organisations etc. At the same time, in order to justify
the rights of the street vendors to carry out their trade
with self-respect it is necessary to study all the problems
associated with street vending in urban areas. A mere
assertion of the demands of street vendors for the right
to work and the right to an existence is not enough to
put forth their case at the national level. It is necessary
to examine all factors associated with the profession.
Only then could a clear idea on the problem emerge. This
in turn could help organising a national campaign on problems
of street vendors.
What are the problems relating to street
vending? The meeting identified four major issues. First,
in most cities street vending is regarded as an illegal
activity. There are municipal and police laws that impose
restrictions on the trade. In most cases these laws do
not directly prohibit street vending as a profession.
They impose restrictions on the use of public urban space
for street vending. Hence there is a need to study the
municipal laws in different cities/states.
This brings up the next important issue,
namely, the urban plans. All urban plans allot space for
public use. These include space for parks and gardens,
markets, educational institutions, hospitals etc. An assessment
of these plans should be made in order to find out if
some of this space could be allotted for street vending.
Third, besides examining the existing
laws and the plans, it is also necessary to study the
nature of the trade in its totality. A study of he street
vendors should be conducted, as this will throw light
on the type of problems the street vendors’ face.
In some of the cities such as Mumbai, Ahmedabad and Kolkata
survies of street vendors had been carried by some institutions.
In Mumbai, the municipal corporation had commissioned
the Tata Institute of Social Sciences and Youth for Unity
and Voluntary action (YUVA), an NGO, to undertake a census
of street vendors who conduct their business on municipal
lands. The SNDT Women’s University in Mumbai in
collaboration with the International Labour Organisation,
conducted a study on street vendors in Mumbai in 2001.
In Ahmedabad, SEWA had conducted studies on street vendors
in the city and in Kolkata, the Hawkers' Sangram Committee
had conducted some studies on the trade. The findings
of these studies could supplement the reports on street
vendors carried out in this study.
Another important aspect of this trade
is the views of the consumers. Who are the people who
buy from street vendors and why do they patronise them?
What, according to them, are the positive and negative
aspects of street vending?
The meeting felt that a comprehensive
study covering the four points could throw up many important
issues relating to street vending. It could provide concrete
data for furthering the cause of the street vendors and
at the same time provide issues which could form the basis
of a national movement. The trade unions and other organisations
working for the street vendors could use the findings
as the basis for fighting for concrete positive proposals
at the regional level as well as the national level. In
other words, the findings of this study could become the
platform for NASVI to further the cause of street vendors.
Survey
on Street Vending
The survey was conducted in seven cities
between April 1999 and March 2000. These cities were Mumbai,
Ahmedabad, Kolkata, Imphal, Patna, Bhubaneshwar and Bangalore.
They were chosen because of their specific characteristics
and their geographic locations. Mumbai, Ahmedabad, Kolkata,
Bangalore and Patna have large populations of street vendors
and are situated in different parts of the country. Mumbai
and Ahmedabad are in Western India, Kolkata and Patna
in Eastern India and Bangalore in Southern India. Imphal
was chosen because it is in North-East India and more
specifically because it presents a rare instance where
street vendors, who are all women, have gained some legal
rights to carry out their trade. Bhubaneshwar was chosen
because it is a planned city (after Chandigarh) and hence
the position of street vendors needs to be studied in
this environment. The main findings of the survey are
noted below.
The laws relating to street vending in these cities varied.
With the exception of Kolkata, all the above municipalities
have provisions for providing licenses for street vending.
A mention of Kolkata is necessary because of its unique
position on street vendors. In 1997 the Government of
West Bengal proposed an amendment to section 371 of the
Kolkata Municipal Corporation Act. This section deals
with street vending. The amended section made street vending
illegal and anyone contravening or abetting in contravening
this section, will be punished with rigorous imprisonment
for a term extending up to three months or fined Rs. 250.
In the Statement of Objects and Reasons, the act states
in 2(ii) that in order to prevent encroachment in public
places, “it has been decided to declare any such
encroachment by the hawkers, stall holders and other organisations
as cognisable and non-bailable offence.” It is ironic
that alleged rapists and murderers, in some cases, are
granted bail, but a street vendor selling wares on the
street is regarded as more dangerous criminals by the
state government.
On examining the ground reality in each
of the cities we find that in actual practice there are
common features in all of them. Municipal authorities,
in cities that have provisions for issuing licenses to
street vendors, are most reluctant to issue them or the
provisions are such that it makes it almost impossible
for most vendors to avail of licenses. For example the
forms to be filled up for getting a license are so elaborate
that it would be difficult for an illiterate or semi-literate
vendor to apply. In Mumbai, where there are around 250,000
street vendors, the municipal corporation has granted
only 14,000 licenses. Moreover, the municipal corporation
has stopped granting new licenses for the past two decades,
hence most of these license holders do not ply the trade
at the present as they are too old or they have died.
The survey undertaken by TISS-YUVA on street vendors in
Mumbai found that only 5,653 street vendors, out of a
total of 102,401 street vendors covered, had licenses.
Though there are provisions in the law for granting licenses,
most street vendors in Bangalore are denied this.
Most of the female street vendors in
these cities (who form the poorer section of the street
vendors) are subjected to all forms of harassment by the
police and the municipal authorities because they do not
possess licenses. In Ahmedabad too, most vendors, especially
the women, do not possess licenses. There is hence a need
to ensure that there is uniformity in laws relating vending
and these should be more liberal. Laws need to recognise
street vending as regular business and street vendors
should not be treated as criminals.
Though each city has its development
plan that may or may not be implemented, it is quite evident
from the review of these plans that the term 'public space'
has a very restrictive meaning. Street vendors or markets
that can take care of street vending are not considered
in the discussions on public space. Imphal is the only
city that has clearly stated rules for street vending.
The Manipur Town Planning and Country Planning Act, 1975
provides that in residential areas (which include private
as well as government housing) there should be provisions
for 4 to 6 shops and 10 hawkers per 1,000 people.
The incomes of street vendors were more or less the same
in all the cities. Their daily incomes range from Rs.
50 to Rs. 100 for males and Rs. 35 to Rs. 40 for females.
In all the cities, despite the fact that street vendors
provide various types of services, they are persecuted
by the municipal authorities and the police. Bribery is
the only way most street vendors can survive in their
trade. The working conditions of the vendors are very
poor and most of them lead a very hard life. They work
for more than ten hours a day to earn their meagre income.
Corruption, in the form of bribery and extortion, ate
into the earnings of these people and further reduced
their income. In normal circumstances, street vendors
part with 10 to 20% of their earnings to the local authorities
as bribes. During times when eviction drives are undertaken
by the municipal authorities, the bribes increase considerably.
At these times street vendors pay larger sums to corrupt
officials to forewarn them of impending raids. It would
appear that these periodic eviction drives are carried
out mainly to increase the rents sought by these officials.
The survey of consumers showed that people
from all sections bought some goods from the streets.
A section of the upper income group patronised some food
hawkers because of the taste and flavours. The middle
income groups bought clothes, vegetables and fruits from
street vendors as these were cheap and fresh. The main
beneficiaries were the urban poor. These people purchased
nearly all their necessities from street vendors because
of the low prices. It was found that though all sections
of the urban population patronised street vendors, the
middle and upper income groups were critical of the problems
caused by them.
After the survey was completed SEWA and NASVI discussed
the findings with the Ministry of Urban Development and
Poverty Alleviation of the Government of India. The two
organisations explained to the government the need for
taking a serious look at the problems of street vendors
in the country. In May 2001 the ministry, in collaboration
with SEWA, organised a National Workshop on Street Vendors
at Delhi. The Minister as well as the Minister of State
in the Ministry of Urban Development and Poverty Alleviation
attended the workshop along with senior bureaucrats. NASVI
mobilised members from almost all organisations of street
vendors in the country and some NGOs to attend the workshop.
The findings of the survey were presented at the workshop
and during the two days, representatives of street vendors
deliberated on their problems. NASVI used the workshop
to build pressure on the government to evolve a national
policy on street vending. In the valedictory session,
the Minister announced that his ministry would soon constitute
a national task force, with the Minister of State as the
chairperson, to draft a national policy on street vending.
This workshop was a major victory for SEWA and NASVI as
it appeared that their struggles were likely to bear results.
Towards a National Policy
The National Taskforce on Street Vendors was formed in
August 2001. Besides the Minister of State the members
comprised senior officials of the ministry, mayors, municipal
commissioners, senior police officials and representatives
of trade unions. After a couple of meetings, held
in Delhi and Ahmedabad, the Secretary of the Ministry
proposed that a Drafting Committee should be formed that
would prepare the draft policy document. This seven member
committee was formed in April 2002 and was headed by the
Chairperson and Managing Director of Housing and Urban
Development Corporation (HUDCO). The Drafting Committee
submitted the draft policy which was placed before the
final meeting of the taskforce on 30 September 2002. After
deliberations, the taskforce passed the draft policy with
minor changes.
The ministry has sent the policy to the state governments
for approval. Till date 17 of the states have responded
positively with only one of the states dissenting. The
ministry is waiting for a few more states to send their
comments before the document is sent to the Union Cabinet
for final approval.
Policy Guidelines
The draft national policy tries to follow the guidelines
of the Supreme Court judgement, quoted earlier. It is
an important document as it tries to restore some dignity
to street vendors. Its introduction states: "The
role played by the street vendors in the economy as also
in the society needs to be given due credit but they are
considered as unlawful entities and are subjected to continuous
harassment by civic authorities." It further stares
that "this policy tries to ensure that this important
section of the urban population finds recognition for
its contribution to society, and is conceived of as a
major initiative for urban poverty alleviation."
(Emphasis in original).
The main objective of the policy is to "provide and
promote a supportive environment for earning livelihoods
to the street vendors, as well as ensure absence of congestion
and maintenance of hygiene in public spaces and streets."
This may appear contradictory. The police and municipal
authorities, backed by the so-called citizens' groups
who fight for protection of public spaces, would argue
that street vendors cause congestion and create unhygienic
conditions. If street vendors are allowed to function
streets cannot be free of congestion. This is not at all
true. If hawking is properly regulated and the right environment
is created, it can certainly be a positive contribution
to urban life, as the Supreme Court judgement notes. Moreover,
urban development plans must take street vendors as a
part of the planning process and only then can there be
any semblance of order. At present, street vendors are
treated as irritants to urban planning and organisation.
Provision for hawking need to be made in the urban plans
and the existing street vendors need to be settled. The
policy tries to tackle these problems through democratic
means and collective action. Normally hawking and no-hawking
zones are designated by the civic or police authorities.
These are done in an arbitrary manner and in many cases
the interests of street vendors and the needs of consumers
are not considered. In many cases the authorities deliberately
demarcate hawking zones in areas that are least likely
to have to have consumers. The policy stresses that "designation
of vendors markets / no-vending zones should not be left
to the sole discretion of any civic or police authority
but must be accomplished by a participatory process".
Ward committees in large cities and town committees in
smaller towns will take care of these issues. These committees
will have representatives of the municipal authority,
traffic and local police, associations of shopkeepers,
traders and residents' associations including association
of slum dwellers and representatives of street vendors.
The representation of street vendors will be from membership-based
organisations. These representatives will constitute 40%
of total number of members of the committee and a third
of them will be women.
It is often found that apart from forcible evictions,
street vendors are removed from the streets under the
guise of beautification of pavements. Potted plants or
decorated signs are placed on the pavements to prevent
street vendors from plying their trade. At times shops
or residential plots encroach on the pavements by cordoning
off a portion in order to plant trees or flowers there.
These forms of encroachments often hinder pedestrians
more severely than those by street vendors. The policy
therefore states that, "no hawker / street vendor
should be arbitrarily evicted in the name of 'beautification'
of the cityscape. The beautification and clean up programmes
undertaken by the states or towns should involve street
vendors in a positive way as a part of the beautification
programme."
Legal Changes
In the discussions while formulating the policy, senior
police officials pointed out that Section 34 of the Police
Act empowers the police to remove any obstructions on
the streets. Hence, even if the municipal authorities
demarcate areas as hawking zones, the police have the
right to evict street vendors in these zones. This section
needs to be amended in order to remove the anomaly between
a legal vendor and illegal obstruction. Even licensed
street vendors can be evicted under this law. The Section
reads: "No person shall cause obstruction in any
street or public place by…exposing anything for
sale or setting out anything for sale in or upon any stall,
booth, cask, and basket or in any other way whatsoever."
The policy has recommended that all states should amend
the Police Act of their respective state and add the following
rider: "Except in case of street vendors and service
providers with certain reasonable regulations." Similarly
the Union Government should amend Sections 283 and 431
of the Indian Penal Code and include the rider. The state
governments have been advised to "remove the restrictive
provisions in the Municipal Acts to make street vendors
inclusive in the city plan / cityscape.
Legalising Street Vending
One of the ways of legalising street vendors is by issuing
licenses to them. The municipal authorities are thus able
to keep a check on the number of vendors and can also
earn revenue through license fees and other charges. However,
the experience with licensing has been very negative.
Legalising of street vending through licensing should
remove the basis of their harassment, extortion and eviction
by the concerned authorities, provided this system is
more liberal. The unlicensed street vendor is vulnerable
to all sorts of extortion from various quarters. The police
and municipal authorities extract rents for allowing them
to operate.
Rent seeking is related with unlicensed vending. However
the licensing system, even if liberalised, may itself
provide new avenues for rent seeking. The draft policy
notes: "…numerical limits to such licenses,
which are sought to be justified on the argument that
congestion in public places would thus be avoided, has
given rise to an elaborate regime of rent seeking. In
the first instance, rents are derived from the issue of
licenses, since the demand exceeds the (often arbitrary)
numerical limits of such licenses. Second, given the demand
for services of street vendors exceeds the supply from
licensed vendors, a number of unlicensed vendors seek
to operate, and rents are extracted during enforcement
by allowing them to operate without licenses." The
policy therefore recommends that instead of licenses,
there should be a simple of registration of street vendors
and non-discretionary regulation of access to public spaces
in accordance with the planning standards and nature of
trade / service. Registration of street vendors will be
done by the Ward Committees as these are best suited to
assess the situation at the ground level and vendors will
be provided identity cards. The registration fee is to
be nominal and will be fixed by the Urban Local Body (ULB).
Registration will be renewed after every three years.
The registration fees, monthly maintenance charges and
fines, if any, will be collected by the Ward Committee
on behalf of the ULB. A portion of the revenue collected
will be allotted to the Ward Committee for its operations.
Another aspect connected with legalisation is eviction.
Besides causing financial hardship and impoverishment,
eviction creates loss of dignity for the vendor. The policy
lays down that evictions should be avoided but where relocation
of street vendors is necessary a minimum notice of 30
days should be served to them. It further notes that the
vendors or their representatives should be involved in
planning and implementation of relocation and efforts
have to be made to ensure that the vendors in the new
locality have the same earnings as the pre-evicted level.
The states too have been asked to take comprehensive measures
to check and control the practice of forced evictions.
Self-regulation and organisation
Street vendors can be assets to the urban system if they
are given the opportunity to contribute to its development.
Being a part of the marginalised urban poor, they are
treated as trouble-makers whose sole purpose is to create
chaos on the streets. This attitude is prevalent not only
towards street vendors but also towards the other sections
of the marginalised. The civic authorities and the urban
elite in fact seem to regard the majority of the urban
population as obstacles to improving urban environment.
Whenever the question of citizens' initiatives for improving
cities arises, the reference is invariably to the middle
and upper middle class. It these people and their representative
NGOs who can take on the responsibility of improving the
cities. The vast majority of the urban population is not
only kept out of these initiatives but they are, more
often than not, regarded as the main problem. In other
words this majority is denied the rights of citizenship.
The fact is that no plan for improving the city can be
successful without the participation of the urban poor.
They need to be integrated into the planning process and
in the campaigns for better environment. The experience
of another marginalised section of the urban workforce,
namely, rag pickers, has shown this. Rag pickers have
been regarded as a nuisance and they are blamed for spreading
garbage. They are harassed by the civic authorities and
by middle class residents associations. In fact these
people, who form the poorest section of the urban population,
are engaged in activities that are very positive for the
environment as they collect recyclable materials from
the city's garbage. Instead of victimising them for their
activities, the civic authorities could instead incorporate
them in keeping the city clean. There are instances where
this has happened and the results have been positive.
In Ahmedabad, SEWA has been able to include rag-pickers
in the 'clean city' campaign. In Mumbai, the Stree Mukti
Sangathana, a woman's organisation, has involved rag-pickers
in beautification campaigns in some parts of the suburbs.
Such moves are not only beneficial for the urban environment,
they also try to restore citizenship to the marginalised.
In the case of street vendors too, their involvement in
keeping the pavements clean could be very beneficial for
the urban population. But this cannot be done if hawking
is regarded ipso facto as illegal. If street vending is
legalised and regulated, street vendors could be given
the responsibility of keeping their environment clean.
This would be readily accepted by them as no street vendor
likes to work in unclean surroundings. The policy in fact
recommends that beautification programmes should necessarily
involve street vendors and their organisations.
The main highlight of the policy lies in its stress on
self-regulation among street vendors. This aspect becomes
more important in the case of food vendors who need to
operate under hygienic conditions. The policy stresses
that instead of having health inspectors, food vendors
must ensure hygiene through self-compliance. It states,
"though quality control is essential, the practice
of 'health inspector' may not be suitable for the hawkers."
This mainly because such inspections encourage rent seeking
rather than the objective of promoting hygiene. Street
vendors therefore need to take up the responsibility of
quality control. If this is violated, the Ward Committee
can take action by imposing fines or by asking the offenders
to close their business.
Another aspect that the policy stresses on is encouragement
of collective organisations among street vendors. One
of the objectives of this policy is "to promote organisations
of street vendors e.g. Unions / Co-operatives / Associations
and other forms of organisations to facilitate their empowerment."
Along with empowerment, organisations of street vendors
will be the basis of their credit, social security and
insurance programmes recommended in the policy.
Credit and Social Security
As street vendors are a part of the urban informal sector
they have little or no access to institutional credit.
This makes them dependent on private moneylenders who
charge high rates of interests or they depend on their
savings as working capital. The policy therefore suggests
that banks should encourage street vendors to form Self-Help
Groups (SHGs) for income generating activities. It further
states that Vendors' Associations should be assisted by
NGOs and they should be covered in government schemes
for poverty alleviation. The attempt should be towards
forming federations of SHGs to create "a financial
interface between the vendors and formal sector financial
institutions to gain access to larger credit not only
for income generation but also for housing, whenever the
need arises."
The policy notes that the need for social security is
high for the informal sector. Social security generally
covers medical care, sickness, maternity benefits, employment
injury, inability and survivors' benefits, old age pension
etc. The social security laws granting these provisions
are generally applicable only to workers in the formal
sector. These schemes are financed partly through the
workers' contributions and through contributions from
their employers. If these schemes are applicable to street
vendors they would be run solely through their own contributions
as they are self-employed. Hence, the policy proposes
that the government must provide a matching contribution
to those of the street vendors.
The policy states that there are two options for enlisting
street vendors for social security benefits. Welfare Boards
could be created for street vendors on the lines of those
existing for construction workers or home-based workers.
Vendors could deposit their contributions to banks. At
the end of the month, the bank will transfer the amount
to the Welfare Board. Such an arrangement would require
enactment of a law.
The other option is that the unions of street vendors
should be assisted by NGOs or other agencies to promote
SHGs. These could be networked and developed into a financial
institution which will look into extending credit and
also deliver other products such as insurance, old age
pension etc. The government must provide matching contribution.
The policy also suggests that special insurance schemes
should be developed to cover the loss of goods of street
vendors due to natural and manmade disturbances.
When implemented, the policy will be an important step
towards empowering this section of the urban population
and giving them a sense of dignity and citizenship. Street
vendors are micro-entrepreneurs and they need to be treated
as such. The urban population, that forms the consumers,
too will benefit.
Follow up Action
NASVI's activities within a short span of five years has
been very promising. As mentioned earlier, it has managed
to bring in a large number of street vendors' unions and
NGOs working for street vendors in its network. It's newsletter
too has become an important means of informing vendors
of the activities at the national level. The initiation
of a national policy on street vending has been a major
boost for NASVI's activities. Its main activity now is
of trying to get the policy passed by the government.
The structure of NASVI has changed since its inception.
There has been a growing demand from its affiliates that
instead of merely operating as a networking body, it should
play a more proactive role in organising street vendors.
The move now is to turn NASVI into a trade union federation.
It has framed its constitution which was discussed by
at a meeting with its affiliates.
The trade union movement in India is divided among unions
based on divergent political ideologies. This has led
to inter-union rivalries. Unions of street vendors are
no exception as they too are affiliated to federations
that have links with political parties. In the midst of
this mosaic, NASVI's strength lies in its politically
neutral position. This has made it acceptable to unions
of differing political affiliations. The unions affiliated
to NASVI owe allegiance to the communist, socialist and
liberal democratic ideologies, besides unions independent
of political parties. NASVI has been able to bring these
unions together on a common minimum programme of protecting
the rights of street vendors by getting the national policy
approved.
The strategy NASVI has adopted is of staying clear of
narrow partisan trade union activities. In the given situation,
NASVI had to debate considerably on whether it should
emerge as a trade union federation or as a society. After
a lot of deliberations it was decided that NASVI should
register itself under the Societies Registration Act instead
of the Trade Union Act. Had it been registered as a trade
union, its affiliates belonging to different trade union
federations may not have continued their affiliation as
NASVI would be viewed as a competing trade union. The
new set-up of NASVI enables street vendors unions to retain
their allegiance to their respective federations while
continuing as affiliates of NASVI. This is very important
for maintaining unity of trade unions of divergent political
affiliations. At the same time the new structure of NASVI
is closer to that of a trade union federation. Though
NGOs and individuals having interest in problems of street
vendors (eg. academics, lawyers, social workers) can be
members of the body, they cannot cast their vote or contest
for elections to the managing committee. They can be co-opted
to the council by the elected members, who represent the
trade union affiliates. However, they cannot vote on any
issue discussed by the managing committee.
NASVI's role has become extremely important at this present
juncture. Even if the policy is accepted, as it is likely
to be shortly, there is a always a slip between acceptance
by the government and implementation. Street vending is
basically an issue concerning urban local bodies (ULBs).
The rules governing their functioning are within the jurisdiction
of the state governments and not the Union Government.
Hence, if ULBs are to incorporate the rules relating to
street vending, the state legislatures have to pass or
modify laws. Therefore pressure needs to be built up at
the state level. NASVI's main role is to mobilise street
vendors across political lines and press for implementation
of the policy at the state level. SEWA, with NASVI's help,
has been able to pressurise the Gujarat government to
accept the national policy. The government has now finalised
the rules for street vending, based on the policy. This
is the first state government to take such an initiative
even before the policy gets approval from the Union Cabinet.
The
next few years will be crucial for NASVI as well as street
vendors. The main task will be of implementing the policy
at the state and ULB levels. NASVI is therefore trying
to increase its mass base to achieve this purpose.
The data for this paper
is mainly drawn form:
Sharit Bhowmik, Hawkers in the Urban
Informal Sector: A study of street vendors in six cities,
National Alliance of Street Vendors of India. http://www.nasvinet.org
Government of India, National Policy
on Street Vendors, Ministry of Urban Development and Poverty
Alleviation. http://www.urbanindia.nic.in |