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BEYOND ACCEPTANCE OR REJECTION: RETHINKING STRATEGY TO ADDRESSING THE INFORMAL SECTOR WITH LESSONS FOR THE FEDERAL CAPITAL CITY (FCC), ABUJA By Professor Adamu Ahmed FNITP Department of Urban and Regional Planning Ahmadu Bello University Zaria – Nigeria. Paper presented at the workshop on the Review of the FCC Master Plan, organized by the FCT Chapter of the Nigerian Institute of Planners (NITP) held on Thursday 30 th of March, 2017at the CBN Training Institute, Abuja. INTRODUCTION The Informal Sector has received widespread and growing attention in the literature relating to perceived notions of value and liability (Carbreath ,2015; Feige, 1989, Hart, 1971). The view of the Sector as a major contributor to the economies of most developing countries has been established from studies of the World Bank (2005, 2016, & 2009) and the International Labor Organization (ILO), just as other studies have stigmatized the sector for being unproductive, chaotic and difficult to manage. As expected, many of the policy responses to the sector have either been towards enablement or coercion, both often producing undesirable outcomes. The growing prominence to the subject of informality and the contradictions of emergent policies raise concerns for new perspectives and approach to addressing the constraints and 1

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Page 1: Davis, J. and J.V. Henderson (2003) “Evidence on the …nitpng.com/2017docs/BEYOND ACCEPTA…  · Web view · 2018-01-03Alonzo O.R (1991), “the informal sector in the Philippines”

BEYOND ACCEPTANCE OR REJECTION: RETHINKING STRATEGY TO ADDRESSING THE INFORMAL SECTOR WITH LESSONS FOR

THE FEDERAL CAPITAL CITY (FCC), ABUJA

ByProfessor Adamu Ahmed FNITP

Department of Urban and Regional PlanningAhmadu Bello University Zaria – Nigeria.

Paper presented at the workshop on the Review of the FCC Master Plan, organized by the FCT Chapter of the Nigerian Institute of Planners (NITP) held on Thursday 30 th of March, 2017at the CBN Training Institute, Abuja.

INTRODUCTION

The Informal Sector has received widespread and growing attention in the

literature relating to perceived notions of value and liability (Carbreath ,2015;

Feige, 1989, Hart, 1971). The view of the Sector as a major contributor to the

economies of most developing countries has been established from studies of the

World Bank (2005, 2016, & 2009) and the International Labor Organization

(ILO), just as other studies have stigmatized the sector for being unproductive,

chaotic and difficult to manage. As expected, many of the policy responses to the

sector have either been towards enablement or coercion, both often producing

undesirable outcomes. The growing prominence to the subject of informality and

the contradictions of emergent policies raise concerns for new perspectives and

approach to addressing the constraints and opportunities of the sector. What

should be the concern of this new policy? And what role would be expected of

planners? This paper contributes to this debate with particular reference to Abuja,

the Federal Capital City in two ways. First by raising concerns on the degree of

significance to which coercion or accommodation would work for the informal

sector. The second explores the argument that informal developments and

activities are symptoms of defective economies, and policy focus should as much

be about creating robust and comprehensive economic growth rather than

addressing symptoms. The theoretical footing of the position argued in the paper

lie within the traditional view of the modernization theory, that the unorganized

sector with its surplus labor will gradually disappear as the surplus labor gets

1

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absorbed in the organized sector. The paper is structured into three parts. The first

explores the literature on the informal sector regarding value and nuisance and the

second, the conceptual basis for the need to rethink approach. The third examines

the enabling factors of informality linked to the quality of urban planning, and

how planners would be required to respond. The last part relates the arguments

raised to the FCC, Abuja with lessons from Dubai.

UNDERSTANDING THE CONCEPT OF THE INFORMAL SECTOR

The original use of the term ‘informal sector’ is attributed to the economic

development model put forward by W. Arthur Lewis in the early 1950’s.The later

usage of the term was by Hart (1971) following a study of Ghana. The concept is

generally used to describe employment or livelihood activity primarily within the

developing world that falls outside of the sector. The ‘traditional sector’, the

“survival” sector, the ‘unregulated sector’, etc, are all terms that are used to

describe the informal sector, to encompass production activities of small size,

including handicrafts, which have a “domestic or unorganized character” and may

also be part of the “non-monetary” sector of the economy (Hugon, 1990).

Bromley (1978) considers the sector to be the spin-off of the dual economy

literature, originating with Lewis (1955), which conceptualized economic

development as the emergence and growth of the manufacturing sector (modern)

through the absorption of labor being freed from agriculture (the ‘traditional’

sector) due to the more efficient means of production in the former. Whereas the

dual economy (the ‘modern-traditional’ dichotomy) literature mainly addressed

the sectoral differences in terms of the technology applied, a somewhat later

related literature focused more on the organization of the sectors (Sethuraman,

1976).

Participants in the informal economy generally lack employment security, work

and social security. Definitions of the informal sector also imply a lack of choice

or agency in involvement, and participation may also be driven by a wish to avoid

regulation or taxation. This may manifest as unreported employment, hidden from

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the state for tax, social security or labour law purposes, but legal in all other

aspects. Edgar (1989) further sees the informal economy from the perspective of

non-compliant behavior to an institutional set of rules. While Feige (1989) also

argues that circumvention of labor market regulations specifying minimum

wages, working conditions, social security, unemployment and disability benefits

as giving rise to an informal economy that deprives some workers of deserved

benefits while conveying undeserved benefits to others.

The term Informal Sector is also useful in describing and accounting for forms of

shelter or living arrangements that are similarly unlawful, unregulated, or not

afforded protection of the state. In their conditions, informal developments are

generally considered to be poor quality of depressed value and unhealthy for

habitation. Because informal developments are considered ‘illegal’, most are of

temporary materials. The informal sector is largely characterized by several

qualities including; ease of entry, lack of stable employer-employee relationships,

a small scale of operations, and skills gained outside of a formal education. The

type of work that makes up the informal economy is diverse, particularly in terms

of capital invested, technology used, and income generated. The spectrum ranges

from self-employment or unpaid family labor to street vendors, shoe shiners, and

junk collectors.

Agriculture Reta il

Sm a ll- sca le farmers

Financia l Services

Th rift cooperative so cieties (ajo, esusu)

Money lenders Accountants

Info rm a l Econom y

Street vendors Ro a d - sid e sellers Hawkers Caterers

Educa tion Priva te tutors

O ther Service Providers

M ak e- up artists Photographers Fa sh io n designers Even t planners Artisans Technicians

Tra nsport Priva te- h ire taxi drivers Tricycle o pera to rs (marwa) M o to rcycle operators

(okada)

3

Fig 1: Example of Informal Sector Activities Source: Informal Economic Survey by Philips Consulting

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THE VALUE VERSUS NUISANCE DEBATE

Most literature view the Informal sector favorably based on its positive spin offs

especially in the developing countries. It is also considered by far, to be the most

important source of employment as the formal sector has struggled to generate

sufficient employment. While initially the informal sector was viewed as more or

less a ‘residual sector’ for those unable to find employment in the formal sector,

recent empirical research has shown the contrary. Charmes (1990) has shown

evidence that the informal sector worker generally contributes to GDP over and

beyond the minimum wage, and that productivity in the sector is much higher

than average per capita GNP in most 3rd world economies.

In many countries also, the Informal sector is the primary source of employment

for workers, particularly for those that are relatively disadvantaged in the labor

market. The sector is generally seen to be larger in sub-Saharan Africa than in

other parts of the developing world accounting for up to 80% of non-agricultural

employment (Charmes,1990). The share varies across countries as for instance,

India (73%), Indonesia (77%), Philippines (66%) and Thailand (51%).In Latin

America and North Africa, the share is much smaller (Charmes, 1990; Charmes

2000). The share for Eastern Europe and Central Asia shows that the informal

sector generally constitutes only about 5-20% of non-agricultural employment.

Across Asia and Africa, the shares exhibit a strong upward trend given weak

employment creation and income generation from economic growth (ILO

2000).Evidence also exist showing that the poor in most developing countries

resort to the Informal Sector activities as an escape route out of poverty. The

positive views of the informal sector provided basis for the inclusionist arguments

of policy makers and international support organizations.

Most of the criticisms of the informal sector have been directed at the fact that

often, the earnings and employment situation of its workers is inferior to that of

the formal sector workers. Wages are generally very low in the sector and

unstable compared to the formal sector, and more often below legislated national

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minimum wage levels. Informality both in housing and livelihood generation is

also considered a social ill usually described in terms of what participant’s lack,

or wish to avoid. The worker’s lack of access to basic protections and services is a

related shortcoming. Generally, an inverse relationship between an increased

informal sector activity and slower economic growth has long been established.

Informal businesses are stigmatized for lack of potential for growth, trapping

employees in menial jobs indefinitely.

The negative perception of informality also extends to the view of the sector

being disruptive to the national economy and a hindrance to development. Such

criticisms are justified by the view that the informal economy is fraudulent

resulting in loss of revenue to governments; it’s capacity to weaken unions; its

links to the creation of unfair competition; absence of regulatory controls by

government; the sectors lack of observance of health and safety standards; and

reduced availability of employment benefits and rights. These characteristics have

led to many countries and cities pursuing a policy of deterrence, with strict

regulation and punitive procedures, including arrests, demolitions and evictions,

etc.

RETHINKING THE APROACH TO ADDRESSING INFORMALITY

The Shortcomings of Formalization and Eviction Strategies

In the economic literature, the most important incentive to informal sector

operators is the escape of government taxation and increased regulation. That is,

the tax burden and social security contribution implied from formalization

amongst other reasons is an important explanation for the existence of the

informal sector. This notion is today as valid and relevant as it was at the turn of

the century. Many authors therefore view the political economy of the

formal/informal divide as being exploitative primarily to meet the insatiable

appetite of governments to generate revenue. Interest by governments to tax and

regulate aspects of their economies has never been unusual. The opposing

interests of the informal sector and governments creates conflict points that

regularly undermine policy formulation and implementation. As shown from

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several case studies, the excessive use of legal instruments and coercion has not

produced sufficient incentives to the formal sector to formalize or grow. De’Soto

has shown that for instance, the excessive taxes and regulation in the Peruvian

economy (and other Latin American countries) of the informal sector instead have

forced a large part of the economy into informality and thus preventing the

formalization agenda of the government. Several studies also refer to the failure

of the eviction strategy as being suggestive of the lack of suitability of the

coercion strategy to addressing informality. Deriving the incentive for the

formalization of the informal sector from the tax argument therefore, and the

failure of coercion strategies provide the justification for a rethink of approach to

policy.

Addressing Informality through Economic growth

A great majority of literature have shown how economic underdevelopment is

directly linked to the existence of the informal sector (Todoro, 1987; Williams,

1955, Mabogunje, 1980). The growth of the informal sector is linked to economic

policies failing to support increased labor force in a formal way. The experience

of many countries shows that growth of the informal sector has been largely

associated with the weak capacity of the formal private sector to generate

adequate employment and incomes (Sethuraman 1997, Tokman 1990, Charmes

1998). Conversely, informal sector employment (growth) has declined in

countries that have experienced periods of robust and sustained economic growth

(Charmes 1998). In pre-crisis Southeast Asia, on account of strong export-led

growth and industrialization, the formal sector was able to absorb informal sector

workers and new labor force entrants in increasing numbers resulting in a marked

deceleration in the growth of the informal sector (see Alonzo 1991, Lubell 1993).

The complementary empirical accounts of employment expansion during

economic downturns and employment contraction during robust economic

recoveries also testify to the counter-cyclical character of the informal sector with

East Asia being a case in point.

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The second important argument is from the growing evidence that poverty is a

key characteristic of the informal sector, proven by the positive association

between the incidence of poverty and participation in the informal sector.

Measured on the basis of consumption expenditure, evidence from India shows

that 43 percent of informal sector participants are poor compared to only 6

percent in the formal sector (Pradhan et al, 1999). Sethuraman (1997) also reports

extensive evidence for urban centers in Latin America which shows that, between

50 – 85% of the working poor are in the informal sector, and that the incidence of

extreme poverty is higher in the informal sector. Other Studies reveal the “derived

demand” character of some informal sector activities and how a downturn in the

overall economy can create incentive and as well informal sector.

Literature therefore, generally support the notion that economic growth and

poverty reduction which most developing countries grapple with cannot be

achieved without sound policies that promote growth of the formal sectors of the

economy. This is supported by development theories which post that, as

economies mature and develop, economic activity will shift from the informal to

the formal sphere. In fact, much of the economic development discourse is

centered on the notion that formalization indicates how developed a country's

economy is.

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Fig 2: Relationship between economic growth and existence of Informal sector.

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PHYSICAL PLANNING AND ECONOMIC DEVELOMENT: The

connecting Argument

The City as an Economic Resource

Most advanced economies of the world attribute their development to the

economic opportunities presented by the growth of their cities. The World Bank

has provided evidence suggesting that cities are responsible for 80% of global

GDP (World Bank, 2005) in addition to indicating that the top 100 largest cities

account for 35% of Global GDP; the top 600 for 62%; and the top 1,000 for 68%.

Country level data, shows that Tokyo with 26.8% of Japans population

contributes 34.0% of the country’s GDP; London with 20.3% population accounts

for 25.4% of UK’s GDP; and Sao Paulo with 10% of Brazil’s population

accounting for 25% of the country’s GDP. In China, 53 metropolitan regions with

cities of more than 1 million people were currently home in 2007 to 370 million

people or 29% of the country’s population, but accounting for more than 62% of

the country’s non-farm GDP. Cape Town, Durban and Johannesburg account for

50 percent of South Africa’s GDP but represent only 20 percent of the national

population (SACN, 2004). In Asia, India with a relatively early state of

urbanization has 14 major clusters of cities accounting for 17% of the country’s

total population and 35% of total GDP. Lagos accounts for 60% of Nigeria’s non-

oil GDP.

The urban dominance in economic productivity also shows up in fiscal

performance as well. For example, the Bangkok metropolitan region accounts for

about 53% of public sector revenue in Thailand, but is home to less than 20% of

the population. Cities are also proven poverty fighters with their income generally

four times higher than rural areas in many countries including China, Thailand

and some African countries (World Bank, 2005).

The growing recognition of the economic opportunities offered by cities has

provided basis for the adoption of urbanization as a global development strategy.

Many countries and international development agencies have embarked upon

aggressive programs of accelerated urbanization designed to spur economic

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growth. Through its pro-urbanization policies, China has successfully removed

220 million people from poverty in less than 25 years (Chan, 2003). The growing

acceptance of the values of urbanization guarantees that cities will remain high on

both domestic and global agendas. This hasbeen supported by renewed interest of

the UN Habitat and the World Bank on urban problems and opportunities.

Increased and sharper policy focus upon urban issues is therefore expected in

subsequent years.

Many theories have explained the factors responsible for the economic relevance

of cities. Integral to industrialization is rapid income growth which arises from the

benefits of Scale and agglomeration economies (Henderson and Davis, 2003).

Efficiency gains generally are associated with large number of firms locating in

the same place and from labor pooling (Nakamura, 1985). Levy (1985) observes

that manufacturing and services production in cities creates savings in travel and

distribution costs. Firms located in cities are also able to more readily copy best

practices in technology and management from more advanced firms; and they

more easily hire skilled workers (Duraton and Puga, 2004; Rosenthal and Strange,

2004). Big cities also allow for more efficient distribution of social services such

as government assistance and health care (Levy, 1985). They also create large

markets for business and attract international investment and tourism. The

diversity and face-to-face interactions cities facilitate is what leads to cross-

cultural mix and the formation of new ideas and knowledge collaborations

necessary for economic development (Lucas, 1988).

The World Bank’s recent diagnostic survey of Nigeria’s growth potential has

shown how cities, when adequately reformed can provide the required transition

from oil dependence, and to drive economic growth and poverty reduction. For

decades, Nigeria’s growth and revenue has been dependent on oil which now has

unsustainable with the collapse of the oil market. From 1980 to 2010, oil revenue

contributed over 75% of federal government revenues and almost 95% of exports.

Oil dependence and poor governance has led to underdevelopment of other

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sectors and left cities with limited job creation abilities and access to basic

services.

Urbanization traditionally has been associated with structural transformation

toward manufacturing and services. Cities are also central to improving

agricultural output as the efficiency of farm production is tied to consumption

system in urban areas. Enabling the transition of cities from passive role to being

active agents of economic growth requires addressing the interrelated

shortcomings of the urbanization process through effective planning.

Planning and Economic Growth of Cities

Environment, prosperity and economic development are foundation arguments of

physical planning. Most literature refers to the creation of conducive living

conditions for work, living and leisure, and the need for sustainable and inclusive

growth and development as its primary objectives. At inception, the concern for

economic development was influenced by social ideals including the response to

improving environmental quality, reducing poverty and improving access to

housing and social services. Physical planning generally has indirect relationship

wealth creation through the orderly use of space at both the urban and regional

levels. Land generally is an economic resource and its efficient use for productive

enterprise bores down to the quality of physical planning. At the regional level,

growth is linked to the ease by which production and market centres are

effectively connected. The physical, infrastructural and demographic

considerations that guide location decisions and how they are integrated over

space to facilitate growth are also primary considerations of physical planning.

Mabogunje (1980) observes that efficiently and cost effectively integrated spatial

units accelerate economic growth.

Within cities, the availability of employment opportunities is the primary driver of

growth which is determined by quality of infrastructure, ease of access to land and

housing, and physical security. Relating to this, the upgrading of poor

neighborhoods is known to have direct link to the retention of jobs and the

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attraction of new industries. Older industrial districts and inner cities are generally

less attractive to investment due to crime, congestion and parking problems, poor

infrastructure, housing deficit, commuting problems, and a poor working

environment. In recent times, evidence to the economic contributions of cities to

national and global GDP’s has re-kindled interest on the notion that planning, by

creating basis for productive urbanization has important value to economic

growth management beyond the traditional notions of physical controls.

The Value of Planning Tools in Economic development

The primary tools of planning have traditionally included the Comprehensive

Urban Master Plan, the Regional Master Plan and the National Physical

Development Plan. The Urban Master Plan provides basic guidance to physical

development of cities that is maintained with regular revisions. The plan defines

the spatial framework which permits the best outcomes from the location of

population, industry, businesses, open spaces and publicly built facilities. It also

addresses physical, economic and social problems and the opportunities available

for growth, and correlates development with the provision of transportation, water

supply, schools, etc. Many cities have favorable economic ratings based on the

physical development and economic policy attractions they offer to industries and

businesses.

The Regional Development Plan defines the spatial framework for promoting

growth and development for city systems. It ensures that locational decisions take

advantage of natural resource distribution, population clusters and market centres

towards economic growth; and the provision of networks of infrastructure

between production and consumption centres to create economic growth. The

National Physical Development Plan has similar purpose as the Regional

Development Plan.

In recent times, the City Development Strategy (CDS) concept has become a

useful tool for improving the quality of urban growth management. The CDS is

premised on the position that good urban management has synergy with national

development goals of sustainable economic growth and poverty reduction. Well

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positioned and well timed public, private, and civil society strategic interventions

through the CDS help to alter the development trajectory of cities by making them

competitive and resilient. Competitiveness and resilience are dependent on the

internal and external environments of a city,both of which are essential to

facilitating economic growth. In 2005, emerging economies grew by $1.6 trillion,

more than the industrialized countries, and most of the increment linked to cities

with well-prepared CDS reports.

PLANNING THE FUTURE OF THE FCC FROM STRATEGIC

ECONOMIC GROWTH

Background and Basis for the informal sector of Abuja

Comprehensive statistics on the actual size and composition of the informal sector

of the FCC is lacking. Various projections however suggest the informal sector to

be responsible for more than 85% of the production base of the city. Like other

major cities, the sector consists of various enterprises but especially of artisans,

construction workers, domestic servants and hawkers. Most of the informal sector

activities occur around the vicinity of the capital but also at strategic locations

close to activity centres with the objective of reaching the maximum number of

customers. The largest concentration of informal activities is in the satellite town

and the Municipal Council areas. This is also where the largest concentration of

informal housing exists. As expected, informal housing in these allocations are

temporary and poorly built. Nearly 75% of informal workers live in these shanties

from where they commute daily to the FCC.

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As found elsewhere, the inability of the formal sector to generate jobs in the

required quantities has been the primary reason for the growth of the informal

sector. But in Abuja, this also particularly has link to marginal industrial activity

and the original conception of the status of the city as the administrative Capital

of the Nigeria. Other factors that help account for the size, physical and locational

characterization of the informal sector include inadequate housing, large

infrastructural deficits and difficulties in accessing land. Inappropriate

resettlement policies add up to the constraints just as the unrealistic policies and

proposals of the FCC master plan, most of which have become not only expensive

to implement but generally also socially and economically unrealistic. The very

high standard of infrastructure envisaged by the plan and the high quality of

construction demanded by the building code have increased both land and

property development cost. The disciplined implementation of the plan itself has

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been compromised both by corruption and political high handedness of the FCT

leaderships.

The Choices available to the FCC for Inclusive Development

1. Need for Economic development strategy.

New thinking regarding the economic value of cities requires that much deeper

consideration be given to policies for enhancing productivity of the FCC. This

will require transcending the preparation of Physical Master Plans as standalone

tools to complementing the process with the formulation of a City Development

Strategy (CDS). The focus of the strategy would be to agree to a broader vision of

economic development for the City to deliver continuous growth, prosperity and

inclusion. This implies putting the regional economy of the Federal Capital City

on a trajectory of growth based on the productivity of firms and workers, and one

that raises the standards of living for all. That is, suggesting growth that is robust,

shared and enduring. This will extend to emphasis on building strong business

ecosystems for industries, improving the productivity of firms and people and

facilitating external trade which together constitute the market foundations from

which the required growth, prosperity and inclusion can emerge.

Further to this, growth of the economy would need to be stimulated from internal

competencies which will come from creating the necessary incentives to attract

firms and industries based on the existing quality of infrastructure in the city, and

to invest in the ecosystem of innovation, trade, talent, further infrastructure and

governance to support globally competitive firms and enable small businesses to

grow in the market. Deriving from this, export growth and trade with major local

international markets would develop to further deepen local industrial

specializations and bring in further new income and investment. Growing the

economy of the FCC would not only create formal jobs but rather also eliminate

the incentives for growth of the informal sector.

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2. Need for Effective Urban Governance

Stronger legal and administrative frameworks are required that allow for the

seamless and effective governance of the FCC. The progress recorded between

2003 -2007 with the creation of the Abuja Municipal Management Agency, has

been gradually eroded, but requires restoration and legal backing to become

effective. In almost the whole country, responsibility for managing cities has

belonged to nobody. Urban governance therefore consisted of fragmented

authority located in multiple of agencies often with primary focus on land use and

development control. An effective governance framework will also imply creation

of new working frameworks with the municipal councils and the private sector for

efficient services delivery. In particular, the private sector culture of organization

can be embedded for quality delivery, prompt access, accountability, and

transparency. Other related governance issues would include building capacity for

civil servants and strengthening tax collection. The functions envisaged for the re

- structured Municipal Management agency should be purely that of monitoring

and coordination of various aspects of service delivery by the development and

service agencies of the FCC.

3. Provide Support for the Informal Sector.

The literature has generally underscored the variety of constraints (technology,

credit, capital, and education and training) that the informal sector face that are

also applicable to the FCC situation. As acknowledged globally therefore, the

challenge is how to design polices to systematically and consistently address these

issues. The few interventions that exist have been disappointing because they did

not prioritize on the critical needs of the informal sector which include problems

of access to credits and the lack of flexible rules and guidelines for the sector.

Uncoordinated policies across agencies like for instance the AEPB, the URP

Department and the Development Control Department have undermined

effectiveness of strategies, suggesting a need for a coordinated and multi-sectoral

approach to policy and management. That is, suggesting that individual policy

“silos” be replaced in the design and implementation of policies and programs. Of

fundamental importance is the need to re – consider the incentive of formulization

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by government away from the tax arguments, to programs of facilitation and

concessions. To make people want to become legal, it will be necessary to discuss

advantages of formalization and to eliminate cost of being becoming ‘legal’. As

De’Soto observes, the root cause of poverty is the legal system which limits

ability of the poor to own titles and rights. That is, the ease by which the

formalization process occurs will determine how the poor are able to access credit

to increase the value of the assets.

4. Need for comprehensive urban development policy

A comprehensive urban development policy is required for the FCC to define the

context within which the FCT will develop. This should particularly address

existing challenges including the creation of economic prosperity and

employment; protection and improvement of the urban environment; promoting

good urban governance; and facilitation of Integrated urban &regional

development. As argued previously, urban issues are increasingly a prominent

feature of the national agenda of cities globally and this should be the case for the

FCC. An urban development policy for the FCT should not only facilitate

coordinated development of the settlement system but also lead to the emergence

of a competitive and dynamic regional system to achieve economic, social and

environmental objectives.

5. Care and Due-Diligence in the forthcoming Review of the FCC Master

Plan

Previous attempts to review the FCC Master Plan have not been successful even

when the need for doing so had long been established. As the intention for the

review is now becoming a reality, it would be important that the errors of the

existing master plan be kept in view in ensuring that such are not carried over or

are allowed to re – occur. Several studies have referred the shortcomings to the

inadequacies of proposals on housing, transportation, services, land use and the

economy. Master plans are more than physical artifacts, and are therefore required

to be responsive to both socio economic and political exigencies within the short

and long term horizon.

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CONCLUSION: Getting Inspiration from from Dubai

Dubai is a classical example of what vision, planning, leadership and discipline

can do for a city, that the Federal Capital City, Abuja can learn from. Dubai

started as a local township with very humble credentials. It had a modest economy

and population but a determined mindset, and a clear vision to achieve

international excellence and a global city standing. Most literature refer to Dubai

as epitome of entrepreneurial spirit, good planning and determination for success.

Through an ambitious plan, Dubai has successfully positioned itself as a central

hub providing various services for transportation, logistics, tourism, media,

education and financial services to more than 2 billion people. The city has

recently developed a comprehensive long term and detailed socio – government

agenda called ‘the Dubai strategic plan’ focusing on challenges related to the

economy, infrastructure, human development, environment and society. Dubai’s

Gross Domestic Product as at 2008 was $ 82.11 billion. Although its economy

was initially built from revenue from the oil industry, revenue from oil and gas

now accounts for less than 20% of its Gross Domestic Product. Dubai’s economy

is supported by manufacturing, banking and financial services. It also serves as a

major trade hub and a tourism destination. In the recent times Dubai has been

classified as the top business gateway for the Middle East and Africa. The story of

Dubai is a testimony to the fact that the ‘future is open to suggestions’, one that

should inspire and define the future possibilities for growth and development of

Abuja.

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