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Livelihood Sustainability of Street Vendors: A Study in Dhaka City

Conference Paper · February 2017

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 Livelihood Sustainability of Street Vendors: A Study in Dhaka City.
1 2
S M Asif Ur Rahman , Mohammad Junayed
1
United International University, Dhanmondi, Dhaka. Email: asif@bus.uiu.ac.bd
2
United International University, Dhanmondi, Dhaka.

Abstract

With an unemployment rate of around 23%, and 34 percentage of households living below
poverty line, Dhaka- the capital city of Bangladesh, incubates profusion of informal sector
economy of which street vending takes the biggest portion. Inadequate employment
opportunities in both public and private sectors contribute to the rise of these ventures.
City dwellers who live on such labor-intensive activities as street vending were surveyed
using The British Department for International Development (DFID) defined Framework
for Sustainable Livelihood to cast light on their access to certain types of capital assets.
Analysis of collected data shows that street vendors in Dhaka city have the most access to
Human and Social capitals. However, they have very low possession of two very important
sets of assets - Natural and Physical. Regarding control over another set of capital assets-
Financial, respondents show a somewhat moderate belongingness. The research findings
are expected to facilitate policy makers in devising avenues for developing sustainable
livelihood for street vendors in Dhaka city in particular, and in other third world cities in
general.

Keywords: Sustainable development, Livelihood assets, DFID SLA Framework, Street vendors, 3rd
World cities.

1.Introduction and Purpose of the study

Dhaka, the most densely populated megacity of the world, is home to 8.5 million people
(World Population Review, 2016). Of them, a large number engage themselves in informal
income generating activities like scavenging, street vending, working as transport helper,
rickshaw pulling etc. Lack of skills and proper education, conflict-driven migration
(Timalsina, 2007), shrinking of permanent and protected jobs (UWITIJE, 2016), economic
slump (Nkululeko. J Ndiweni, 2014) added with political influence and nepotism give rise
to urban informal sector. The activities in the informal sector can be categorized into two
sections – the self-employed and casual (non-permanent) labor. A major section of the
self-employed individuals works as street vendors. (BHOWMIK, 2005)

According to Dhaka City Corporation records, around 60% of the city dwellers lead an
impoverished live who mostly depend on street vending for their living. An unofficial
estimate by several hawker associations hints the number of street vendors in Dhaka city to
be around 0.25 million in recent years which has increased from 90,000 in 2005 (Shaiara
Husain, 2015).

Informal sector plays a vital role in the economy of 3rd world countries. Because of street
vendors, other city dwellers can purchase certain commodities even 25-50% lesser than
market price. They sometimes provide necessary commodities at doorsteps, thus further
saving time, money and energy. On the other hand, according to media, vendors pay
around BDT 0.5 million per day as illegal toll to local political leaders and law enforcers to
run their businesses on streets and footpaths of Gulistan, Farmgate and New market area
(Ansary, 2014).

1.1 Research purpose

The purpose of this research is to explore Dhaka city’s street vendors’ access to 5
categories of livelihood assets defined by the DFID Guidance and to analyze ways for
sustainable development.

1.2 Significance of the study

Street vendors contribute immensely in the shaping of informal economic sector of 3rd
world countries like Bangladesh. Therefore, as an integral part of our urban society, they
may have quite definitive livelihood approaches and assets to make their survival more
sustainable. The findings of this research may be of special significance to policy makers
and development sector workers of both government and non-government streams. It is
expected to suggest ways for sustainable development in the lives of urban low income
community.

2.Background

Livelihood comprises the capabilities, assets (including both material and social resources)
and activities required for a means of living. A livelihood is sustainable when it can cope
with and recover from stresses and shocks, maintain or enhance its capabilities or assets
while not undermining the natural resource base (Chambers, 1992).

Sustainable livelihood approach is a multi-dimensional approach to poverty reduction

where sustainability is considered in terms of capitals or assets available to individuals. It
can be applied in both planning new developmental activities and assessing the set of
assets’ contribution in livelihood sustainability (DFID, 1999).

Fig. 1: Livelihood Assets Pentagon (adopted from Stephen Morse, 2009)

Despite the DFID propounded Sustainable livelihood approach began to take place in
global poverty reduction research itinerary since the start of the new millennium, its
application and implications in Bangladeshi context has remain very rare to date. United
Nation’s Food and Agriculture Organization commissioned paper on impacts of
sustainable livelihood approach (SLA) presented 12 country case studies amongst which
there was a case on Bangladesh. Here the contributors attempted to relate that Sustainable
livelihood approaches had some positive impacts on rural poor having good access to
human, social, financial, and physical assets while further attainment was needed in terms
of natural assets (Constance Neely, 2004). Later, Nesar Ahmed (2009) applied SLA to the
analysis and development of freshwater prawn industry in Bangladesh- which is very
much a part of formal economic sector.

Therefore, application of the SLA framework to analyze livelihood sustainability of lower

income community employed in informal economic sector in Bangladeshi urban setting
was a gray area which the researchers of this paper tried to focus on.

3.Methodology

By nature, this research was an exploratory one. For collecting primary data on street
vendors’ access to livelihood assets, a 38-item structured questionnaire was formulated.
Questions in the questionnaire were constructed in light of the DFID propounded
Sustainable Livelihood framework. This questionnaire was circulated among 275
respondents of which 237 turned to be valid ones. These respondents were selected on the
basis of convenience from around different regions of Dhaka city. Data collection took
place during September-December, 2016. Collected survey data was then processed with
the help of Microsoft Excel software. Simple statistical tools like frequency and percentage
were used to transform the raw data into insightful findings.

4. Results and Discussion

Being part of a patriarchal society, women working on street are still not very frequent in
Dhaka. The study found only 46 female street vendors among the total 237 respondents,
that is to say, in every 5 vendors, 1 is a female, who are mostly engaged in tea stalls and
flower sales. 40% of the respondents are aged between 26-35 years while another 28%
belong to 36- 45 years of age; these two age groups constitute a majority of around 68% of
street vendors. Vendors at the ages of less than 15 years or more than 46 years are really
scarce.

4.1 Access to Social assets

Social assets denote individual’s relationship with the society s/he belongs to. This
relationship is based on trust and reciprocity (Khatiwada, 2013). These assets comprise
personal and family networks, as well as close family friends who offer diverse means of
potential support when past favors are reclaimed (Ellis, 2000). An individual’s success or
failure are largely determined by social networks and organizations. It is also important
because it lowers the cost of working or doing business together (Khatiwada, 2013).
In the current research, respondents showed a strong possession of social assets. In
response to whom they get help from for business, 1 in every 2 street vendors mentioned it
was their own family while 1 in every 3 got help from friends. About 43% respondents
identified relatives to be their patrons.
Around 55% street vendors have membership of different community organizations. 87%
of the respondents got infrequent help from neighbors in times of emergency, while 12%
were very lucky to get their neighbors always by their side; only 3 (1.25%) replied they
seldom got their neighbors’ help. Another question asked was whether they got invitation
during neighbors’ good times, i.e. festivals and ceremonies. Here, again, 67% said
‘sometimes’, 30% ‘always’, and only 3% got ‘never’ invited. Close knit dependency on
family, friends, and relatives, as well as personal involvements with neighbors during good
times and bad times clearly point out street vendors’ very good access to social assets.

4.2 Access to Human assets

Human assets represent the skills, knowledge, ability to labor and good health that together
enable people to pursue different livelihood strategies and achieve their livelihood
outcomes (DFID, 1999). In the current study, 1 in every 3 respondents did not get any
institutional education; however, 50% had only primary level education while 17%
extended to secondary level. Nobody was found educated beyond this level. This indicates
street vendors in Dhaka city are 5% ahead in access to education where overall country
literacy rate is below 62% (UNESCO, 2015).
However, this picture is not very optimistic with regard to their children’s education; close
to 70% of the street vendor parents could afford to send their kids to school, while net
enrollment rate is quite higher at 90.51% (UNESCO-UIS, 2010). It may be accrued to high
education costs in urban area like Dhaka.
Street vendors’ access to health services projected a positive picture. A hefty 95% of them
can afford health care facilities of any sort; 28% were fortunate enough to get it when it is
needed and another 67% said they ‘sometimes’ could manage to get medical facilities.
Another relevant question was ‘to whom they go for health care services’, and 33% replied
they visited doctors (both homeopathic and allopathic) while 53% consulted with drug
store executives as it is more affordable. However, 14% of the street vendors still relied on
traditional healers like quack, kabiraj (herbal and religious treatments) etc.
One particular question that signaled a somewhat weaker possession of human assets was
‘to what extent they got current news and information’. Only slightly over 35% street
vendors in Dhaka city could get to know what is taking place around in the city; national-
level information is a far cry.
Overall, street vendors’ access to human assets in Dhaka city projects some wholesome
figures considering their education and health care facilities.

4.3 Access to Physical assets

Physical assets comprise the basic infrastructure and goods needed to support livelihoods
(DFID, 1999). The different categories of street vendors surveyed in this current research
include puffed rice sellers, tea- beetle leaf- cigarette sellers, seasonal fruits sellers,
vegetable traders, flower vendors, snacks sellers, junk jewelry sellers, small electronic
accessories sellers, indigenous cake sellers etc. A large number of them (62%) have a fixed
site or location for doing business, while 9 out of 10 vendors (91%) have their own
vehicles or make-shift shop arrangements (like 3-wheel van, exhibition tray/ basket, hot
water flask, oven, hand mike etc.). Close to 80% of the respondents live at 30 minute to 1-
hour distance from their business location, while 21% need more than 1 hour to get back
home after day’s business is over.

However, their access to toilet and necessary water supply is rather dismal; 74% do not get
water nearby, hence need to bring it from home/ distant places. Since street vendors trade
on/ by open roadside places, they need to compromise most with toilet facilities; a large
portion of them are compelled to squat (55%), or ‘manage’ market guards (24%) which
sometimes result in stealing of their merchandise.

4.4 Access to Financial assets

According to the DFID guideline, financial assets denote financial resources that people
use to achieve their livelihood objectives. It can be associated with cash or equivalent that
enables people to adopt different alternative livelihood strategies (DFID, 1999).

Respondents in this study represent urban lower income group, hence they quite frequently
require financial help for sustenance. Due to complications, street vendors (62%) usually
avoid traditional banking system. A big portion identified friends, family and neighbors
(68% and 19%) to be their financial patrons, whereas 13% respondents went to informal
lenders. However, the help does not come for free; 8 out of every 10 street vendors
claimed they were compelled to borrow at high interest rate.

The study at hand attempted to have an overview of financial resources that the street
vendors can live on. 42% of the respondents earn tk300 to tk500 daily while 22% earn
tk500 to tk800 and a considerable number of street vendors (24%) are earning tk1000 or
more. Very few (6%) are earning barely tk300 or less. Since only earnings cannot signify
financial conditions, they were asked about ‘how much they could save monthly’. The
largest portion (32%) said they could save tk1000 to 2000 per month and another 30%
could save tk2000 to 3000. People having ability to save hardly tk1000 or beyond tk3000
are very scanty. Therefore, in terms of earning and saving, street vendors in Dhaka city
have a somewhat moderate position.

4.5 Access to Natural assets

According to Ellis (2000) Natural livelihood assets comprise the land, water and biological
resources that are utilized by people to generate means of survival. As street vendors
excessively expose to outside environment, they quite frequently get affected by water-
borne and dust-related infections. Almost 76% respondents reported several forms of
breathing ailment. Atmospheric factors, especially heavy/ incessant rain affect 6 out of
every 10 vendors, whereas 86% reported they need to change type of business to adapt
with weather- this at least partially weakens street vendors’ livelihood strategies and
outcomes.
 5. Conclusion

In light of the above discussion, street vendors in Dhaka city have reasonable access to
human and social assets required for livelihood sustainability. This may be because of
traditional close-knit family bondage of Bangladeshis. Regarding financial assets, street
vendors earn and hold very limited resources which often push them to borrow at high
risk. On the other hand, both natural and physical assets seem to be on down side of the
scale. Being an over populated region, healthy environment and physical facilities for
better livelihood are continuously in severe demand in Dhaka city. Developmental
practitioners and policy makers, therefore, need to address issues like air pollution, water
clogging, sanitation, and bottleneck in micro-level banking system with a view to making
street vendors’ livelihood less vulnerable in Dhaka city.

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