How does the idea of new informal economy fit into the debate?
My research suggests that besides the old informal economy, cities such as Mumbai and Sao Paulo now also have a new informal economy. In cities in the developed world,this new informal economy is very visible becauseinformal economies were eliminated in the early 1900s. The new informal economy is very much a part of the global advanced urban economy. For instance, it includes a variety of new small-scale manufacturing that services the service industry. This contrasts with the historic role of services which was tocater to mass-manufacturing and heavy industry. This new informal economy is not always recognised in the megacities of the global south. Look at the new boutiques, the restaurants and the designer furnishing shops that have come up in Mumbai. They need cheap labour but not industrial factories; because its all about being ‘unique’ and chic. For example, I would not be surprised if much of the fashion industry in Mumbai is serviced, somewhat discreetly, by Dharavi. That woul
