Urban Informality and the State: A Relationship of Perpetual Negotiation

Abstract

This chapter traces the evolution of debates on the urban informal economy and informal settlements, with particular attention to the relationship between informality and the state. A much-contested concept since it was coined in the early 1970s, the idea of informality has nevertheless grown in popularity and usage over the decades. The chapter reviews changing debates on the meaning of informality, whether it is good or bad for development and what the role of the state should be in supporting, managing or minimising it. In addition to considering the diverse range of theoretical approaches to informality, it provides empirical examples of how states intervene to reproduce and manipulate informal economies, and considers potential governance solutions to the dilemmas posed by informal urban development.