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Comparing Informal Sector Engagement Across Pakistan’s Largest Urban Centers: Lessons in State and Non-state Engagement from Karachi and Lahore

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Abstract

Pakistan’s expanding urban informal sector (IS) continues to overwhelm the country’s largest municipal centers. In the light of national policy failures, this study investigates inter-provincial differences in the political will and administrative capacity to engage the IS. The policy contexts of housing, labor, water and sanitation, and transportation—all service delivery—are compared for the cities of Lahore and Karachi to examine the relationship between state and non-state actors in engaging the IS. Cross-municipal data analysis and key informant interviews provide comparative evidence about policy and program outcomes of IS engagement in the two megacities. Evidence supports the current understanding that lower tiers of the state (i.e., municipal governments) are better placed than upper tiers of the state (national and provincial governments) to engage with the IS. The service delivery capability of large municipal corporations is constrained by policy formalism, mal-governance, interdepartmental conflict, and political interference linked to the interests of elite actors at the upper tiers of the state. Civil society engagement in informal settlements, especially in partnership with municipal actors, is the most successful form of service delivery. Moreover, evidence from low-cost, incremental, and “one window” service delivery solutions highlights the benefits of civil society–municipal government cooperation in holding upper tier administrators and ill-conceived policies in check. These research findings build on the critique of “top-down” policy development thinking by confirming that investment in basic service delivery at the municipal level will generate the highest returns in human development outcomes.

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Notes

  1. 1.

    Megacities are defined as urban centers with a population of over 10 million (Siddiqui 2004).

  2. 2.

    When we refer to those outside of the business or formal economy, we do not assume a disconnection. In fact, many within the formal economy arguably depend upon inputs from service providers, goods, and services from the informal economy in order to operate (Davis 2006).

  3. 3.

    For a more detailed discussion of the various definitions, see Shaheen (2014).

  4. 4.

    The successes experienced by self-help and welfare organizations demonstrate the effectiveness of philanthropy in alleviating human suffering. However, as Baqir (2009) outlines, a distinction is required between such organizations and “contractor NGOs” that are driven by market forces in supporting the IS.

  5. 5.

    While interactions at the City District Government level were the main focus, I also examined provincial and federal interventions and their outcomes within urban society.

  6. 6.

    The rationale for the methodology, and the study’s limitations, are discussed in more detail in the original thesis (Shaheen 2009).

  7. 7.

    Legacy agencies were established by previous administrations only to be marginalized by successors, reducing their functionality. Such agencies and institutions continue to staff personnel, but do not serve any purpose. Khan (1996) laments this in his autobiography.

  8. 8.

    For example, most recently the Benazir Income Support Program has been proposed to target the poorest of the poor. However, the program is to be managed by senate offices rather than existing machinery that already distributes funds to the marginalized and poor (Dawn Newspaper Group 2014). This is an example of politicians marginalizing existing structures in favor of building their own political credentials or legacies.

  9. 9.

    Punjab P&D Urban Unit staff members have mentioned in interviews the advanced position of Faisalabad’s institutions as a result of professional development and capacity building—leading to growth from within.

  10. 10.

    While the capital project-oriented LDA is operated and maintained by the province of Punjab, the CDGL is the actual municipal government, which is responsible for operations and maintenance.

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Authors and Affiliations

  1. Department of Politics and Public Administration, Ryerson University, Toronto, ON, M5B 2K3, Canada

    Faisal Shaheen

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  1. Institute for Public Policy and Governance, University of Technology Sydney, Ultimo, New South Wales, Australia

    Bligh Grant

  2. Andrew Young School of Policy Studies, Georgia State University, Atlanta, Georgia, USA

    Cathy Yang Liu

  3. School of Government, Sun Yat-sen University, Guangzhou, China

    Lin Ye

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Shaheen, F. (2018). Comparing Informal Sector Engagement Across Pakistan’s Largest Urban Centers: Lessons in State and Non-state Engagement from Karachi and Lahore. In: Grant, B., Liu, C., Ye, L. (eds) Metropolitan Governance in Asia and the Pacific Rim. Springer, Singapore. https://doi.org/10.1007/978-981-13-0206-0_6

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