Shelter, employment and the informal city in the context of the present economic scene: implications for participatory governance

This paper analyses the scope of policies related to both shelter and employment for reducing urban poverty. It puts forward suggestions on how to strengthen such policies through local governance processes. Yet, the paper states that such local processes and associated shelter–employment policies are constrained by the broad economic context: although valuable local actions to combat poverty have indeed succeeded to some extent (e.g. support to small-scale, labour intensive, informal production), counteracting global trends have in many circumstances strengthened conditions such as capital-intensive production, unstable employment, unemployment and/or intra-urban differentials. The paper challenges the possibility of a comprehensive and sustainable development without significant changes in the current global context. It elaborates on the links between the shelter–employment policies at the local level and the overall economic trends, and makes recommendations for action.