Livelihood resilience of informal settlements

The Covid-19 pandemic has had serious repercussions in Latin America, from an economic upheaval and social disruption to more than a million deaths as of November 2021. This disruption has harmed the livelihood of households restricting their economic and social capital, and destabilizing strategies available. The capacity of livelihoods to respond to this crisis relies on the socio-economic resilience present; this is particularly true in informal settlements. It is uncertain whether a view of vulnerability or prosperity applies to these settlements during this crisis, especially in countries where they are highly proliferated in the urban fabric, such as Peru. The main objective of this paper is to focus on the livelihood of residents in the informal settlement of Las Delicias de Villa, in Lima, Peru, and its responsive capacity to the impacts of the COVID-19 pandemic on the local economy. An exploratory approach was adopted for this research with the use of a single case study, and the main data collection method applied is qualitative by in-depth semi-structured interviews of households. With the data collected an analysis is done for the main variables identified: economic activities, social capital, strategies, and the COVID-19 pandemic, looking at before pandemic perceptions and a year a half after. The findings from the fieldwork highlight the importance of informal employment as it embodies available income-generating activities in a time where layoffs where common and unskilled labor force lacks opportunities. It also portrays the role of cooperation at informal and formal networks in the community as a provider of basic goods and services to residents in need. Lastly, the deployment of strategies during the year and a half of the pandemic illustrates the link between the economic panorama and the social setting of the informal settlement as residents would rely on one another for economic support, mainly via casual employment; the community support in new businesses created in the settlement by residents; and the information transfer of various opportunities such as cheap goods, work prospects, and social activities. In conclusion, the findings confirm the theories of urban resilience and livelihoods at informal settlements as facilitation of informal employment and social networks act as safety nets and as main sources for strategy implementation during the pandemic.