Challenges Facing Megacities
Challenges Facing Mega-cities
Access to Formal and Informal Employment
There are high levels of unemployment and under-employment in all the mega-cities of the developing world. This is because there just aren’t enough jobs in urban markets to account for the vast number of people requiring them. It is estimated by the International Labour Organisation (ILO) that 20-25% of adults in urban areas of developing world cities are without regular employment. Jobs are desperately needed for people, not only as an economic necessary, but also as a social identity, and a lack of them results in urban poverty and social exclusion. Without access to employment, people living in urban areas have no way to provide for their basic needs, which creates widespread, absolute poverty. About one quarter of the urban population in developing nations live in absolute poverty (according to the World Bank), in Africa, however, the figure 40% and in Latin America, the figure is 25%.
Informal employment is employment not recognised by the government, therefore informal business ventures do not pay tax. Many people, due to the lack of formal jobs are forced to take informal jobs and create their own form of employment – in Dhaka, Bangladesh; the informal sector plays a major role in the cities economy, accounting for 65% of all employment. In developed countries, informal employment still happens, for example: babysitting without a formal service; and busking, however, within informal employment in developing nations, the potential for exploitation is great. With such a large surplus of labour, working conditions can be kept poor and wages low, and exploitation of child labour is common. The informal sector of employment whilst important to the urban poor, providing cheap goods and services to those who can’t afford otherwise, is detrimental to the government, as it reduces tax. With such a large amount of people to support in the city, and only ¾ (for example) of the
Access to Formal and Informal Employment
There are high levels of unemployment and under-employment in all the mega-cities of the developing world. This is because there just aren’t enough jobs in urban markets to account for the vast number of people requiring them. It is estimated by the International Labour Organisation (ILO) that 20-25% of adults in urban areas of developing world cities are without regular employment. Jobs are desperately needed for people, not only as an economic necessary, but also as a social identity, and a lack of them results in urban poverty and social exclusion. Without access to employment, people living in urban areas have no way to provide for their basic needs, which creates widespread, absolute poverty. About one quarter of the urban population in developing nations live in absolute poverty (according to the World Bank), in Africa, however, the figure 40% and in Latin America, the figure is 25%.
Informal employment is employment not recognised by the government, therefore informal business ventures do not pay tax. Many people, due to the lack of formal jobs are forced to take informal jobs and create their own form of employment – in Dhaka, Bangladesh; the informal sector plays a major role in the cities economy, accounting for 65% of all employment. In developed countries, informal employment still happens, for example: babysitting without a formal service; and busking, however, within informal employment in developing nations, the potential for exploitation is great. With such a large surplus of labour, working conditions can be kept poor and wages low, and exploitation of child labour is common. The informal sector of employment whilst important to the urban poor, providing cheap goods and services to those who can’t afford otherwise, is detrimental to the government, as it reduces tax. With such a large amount of people to support in the city, and only ¾ (for example) of the