Explain the concept of urban informality.

Economics Urbanization Questions



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Explain the concept of urban informality.

Urban informality refers to the existence and operation of economic and social activities that are not regulated or recognized by formal institutions and authorities in urban areas. It encompasses a wide range of informal practices, such as informal settlements, street vending, unregistered businesses, and informal employment. These activities often emerge as a response to limited formal job opportunities, inadequate housing options, and lack of access to basic services in urban areas. Urban informality is prevalent in developing countries, where rapid urbanization and population growth have outpaced the capacity of formal institutions to provide adequate infrastructure and services. While urban informality can provide livelihood opportunities for marginalized populations, it also poses challenges in terms of social inequality, lack of legal protection, and limited access to social services.