New and old dilemmas of the informal economy in Latin America: the case of street vendors in Porto Alegre, Brazil

The recent and renewal interest on the informal economy seems to overcome some dilemmas emerged from the 1970s debate. In particular, theoretical analysis has become more centred on the understanding of sectoral or regional phenomena, rather than on constructing master narratives. The focus has shifted to the relative nature of the notion of informal economy, and analysis concentrates on the space and the interplay between the two poles of economy. The article follows this recent trend, presenting some insights from a “thick” description of informal economic activities conducted by street vendors in Porto Alegre, Brazil. Observations of the street vendors’ actions have shown a relevant fragmentation related to the nature of goods street vendors sell, the area where they work, the status of employment, and the mix between manufacture and retail activities that often typifies their informal jobs. Moreover, street vendors have revealed individual capacities aimed at competing in the market. However, most of them does not able to make sufficient profits in order to improve their overall economic and social well-being. It is precisely in order to defend themselves against the free operation of market that these social actors seek to rebuild a sociality, which can assume different forms. In particular, some street vendors’ associations have been able to redefine its initial objectives (linked to the need to cope with an emergence situation) and shift its action to gaining important improvements for its members. Using Albert O. Hirschman’s (1970) “exit/voice” framework, some grassroots organizations have improved the efficacy of voice, increasing its attractiveness in a context where the incentive to act independently (exit option) seemingly predominates