Chapter

Enforcement and compliance in Lima's street markets: the origins and consequences of policy incoherence towards informal traders

Sally Roever

in Linking the Formal and Informal Economy

Published in print September 2006 | ISBN: 9780199204762
Published online September 2006 | e-ISBN: 9780191603860 | DOI: http://dx.doi.org/10.1093/0199204764.003.0014

Series: WIDER Studies in Development Economics

 Enforcement and compliance in Lima's street markets: the origins and consequences of policy incoherence towards informal traders

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For decades, excessive and costly regulations have provided strong incentives for people to work outside Peru’s formal economy. In the case of street vending, repeated efforts to govern street traders’ use of public space have produced a body of policy that is incoherent and ultimately unenforceable. This paper identifies two sources of such policy incoherence: (1) a lack of definitional clarity in national and metropolitan level policy; and (2) contradictory legal provisions concerning municipalities’ right to charge fees for street traders’ use of public space. It is shown how municipal policy oscillates dramatically over time as local governments experiment with different ways to implement the contradictory policies created by national and metropolitan laws. The constant improvisation at the municipal level precludes stable and effective governance of street trade.

Keywords: informal economy; street vending; local governance; policy incoherence

Chapter.  6820 words. 

Subjects: Economic Development and Growth

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