‘From the Stall to the Store’: The Formalization of Street Vendors in Quito, Ecuador

In 2003, after many years of back and forth negotiations, about six thousand five hundred informal street vendors were relocated from the streets, sidewalks and squares of the Historic Centre of Quito (HCQ) into eleven Popular Comercial Centres (Centros Comerciales de Ahorro - CCAs) built and conditioned by the Municipality of Quito (MDMQ), with support from local and international institutions. This process of formalization started in 1998 and concluded in 2003 when the vendors moved into the CCAs. It is recognized that the informal economy plays an important role both in terms of jobs created and in contribution towards GDP in many developing countries. At the same time, it is important to consider that vulnerability and decent work deficits tend to be more persistent in the informal economy. In theory, formalization should improve the working and living conditions of workers. Decentralization policies implemented in Ecuador during the 1990s empowered the MDMQ to take a leading role in the process of local development taking place at the HCQ. As part of that process, the MDMQ undertook the formalization of informal street vendors. Through the lenses of decent work, this research examines the extent to which formalization has altered the different dimensions of the working and living conditions of vendors. Fieldwork included pictures of the ‘Ipiales Mires’ (CCAs), interviews with representatives from the main organizations that particitipated in the process and a survey among vendors working at the ‘Ipiales Mires’. The information gathered in the survey was complemented by first-hand interviews with vendors. The outcomes are mixed, as formalization has meant both increases and decreases in the different dimensions of the working and living conditions of vendors. In the end, many among the vendors remain at the bottom of the informal economy, where vulnerability and decent work deficit are still present. In this context, local government have a key role to play in ensuring that all actors are included in processes of local development.