Monday 6 February 2012

Economic Theory of street vending, a brief.

For so long I have thought of street vending especially in a snob-kind-of-way and held that it just made Lusaka city dirty.

Well, my perspective changed after I read the historical background of street vending. After grasping the historical background of street vending in Zambia and pondering to myself how economically important it is, I realized how important street vending is, especially for economic development. In a young and growing economy like that of Zambia, street vending holds a vital place when it comes to venting off the economic heating of high unemployment.

For most of you who know the unemployment situation in Zambia, which must go without mentioning, you will agree with the view that the situation is rather pathetic. A majority of the youth are unemployed and wallowing in poverty and desperation, not to mention even a greater number of Zambian women who mostly carry the heavier burden of providing for their families. In this light, street vending comes as a good way to vent off the heat of unemployment in the country. I get struck sometimes at why people just go on criticizing street vending without knowing its root cause. A challenge for you, have you ever thought about the root cause of street vending before criticizing? Or do you ever think about anything before criticizing? Getting back to street vending, I suppose it has already struck in your mind about the root cause of street vending in Zambia. Yes! Like I mentioned before, it is unemployment, so the next time you want to criticize street vending, stop and think about its root cause.

I, for once, give credit to the PF government for allowing street vending, I suppose this is a good sign of things to come. At least am hopeful! For those of you talking about street vending as a vice that is making our cities dirty, stop and think back, I mean! Look at Lusaka city, what significant difference would be there even if we chased street vendors? I remember once when street vendors were taken off the streets, the city looked empty rather than clean. And to think we only have Cairo road to boast of as a first class area of our capital city, imagine! The streets of Lusaka are already dirty even left without street vendors. What city cleanliness do you have to pride about at the expense of starving your fellow citizens? Let us not be selfish. Street vendors are in the streets to earn an income, if you want them out, create jobs. Street vending for most of the women you see in streets is a means to an end of  providing bread and meat at their tables. Take a moment to think before taking away peoples only source of livelihood and consider that nobody fancies being in the open scorching sun to make ends meat.

With high unemployment rate standing at over and above 50% with a labour force of over 4 million in our country composed mostly of the youth, street vending can prove a helpful way for solving the macro economic problem of unemployment. Street vending can be a means by which people can be empowered to earn an income. Once people get this form of empowerment, they will have greater spending power than before. Street vending can also help increase the rate of exchange of money, or put simply velocity of money, and therefore can explicitly be used as a means or mechanism for the "trickle down effect" where high income earners pass on some of their income to low income earner, people in formal employment passing on their income to those in informal employment. This is a great deal of money exchange and patriotism, I mean, why go and spend all your money in a South African Transnational company which is on a 5 year tax break while complaining of the poverty you see in your own background?

Street vending can also be of economic importance in solving the problem of food marketing and distribution for our subsistence farmers in the outskirts of our cities. This is especially important in view of the unreasonable quality and quantity standards set by most established food retailers especially of foreign origin. Without mentioning, some quality and quantity standards are deliberately set to favour foreign produce at the expense of our own. It is worth noting that most of the produce that you will find with our street vendors especially vegetables is local produce. In this way a market is created and the supply side problem of our local farmers is solved. Thus, simply put, street vending can create a market for local produce and easy the burden of distribution of commodities.

Therefore, rather than looking at eradicating street vending, I would otherwise recommend that the local government find ways of regulating this "sector". For example, the Kitwe Municipal Council recently allowed street vending from 5pm up. Such legislation empowered by the decentralization act can also be used to institute a form of "street vending permit". This permit would act as a small tax imposed on street vending and help contribute and be part of the tax base for the local government. Our object should never always be to fulfill our own desires and wants but rather live for others too and see how their own means to an end can be harmonised with our own.