Informal Sector Flashcards
What is an informal settlement
Settlement in which land is not owned but is built with whatever resources are available
Where are they mainly built
In hotspots of natural hazards
3 Physical aspects
Steep slopes
No drainage system
Little structure and support
3 economic aspects
Can’t afford structured house
Not built for disasters
No waste removal
3 social aspects
High density
Trapped in poverty cycle
No medical health and hygiene
3 environmental aspects
Waste blocks drains
Destroys natural habitat
No vegetation ➡️ nothing to slow down the movement of water
What is the informal sector
The part of any economy that is neither taxed nor monitored by any form of government
Why do people work and rely on the informal sector
People who can’t afford to live in a proper house and are unemployed, work there
The more undeveloped a country is, the more they rely on it
What is urbanisation
The increase in the proportion of people living in towns and cities
What is formal housing
Homes made with structure and planned correctly ➡️ include proper roofs, built with cement and bricks
What is informal housing
Homes made form the materials available ➡️ shacks made from wood and metal sheets, not sturdy
What is traditional housing
Dwellings made from natural materials ➡️ eg. Clay and thatch
What is the informal sector seen as and what does it provide
Troublesome, unmanageable
Provides economic opportunities for poor
What is the GDP
Gross domestic product
The value of goods and services produced within a year in a country
Positive aspects of informal sector
Flexibility
Employment opportunities
Entrepreneurship
Local economy support
Skills development
