Urban informal economies in peacebuilding: competing perspectives and implications for theory and praxis

Informal economic activity is often a defining feature of the political economy of conflict and post-conflict cities. Despite its prevalence, however, its implications for peacebuilding remain largely under-theorised. This article draws on the extensive literature on informal economic activity more generally, with a focus on cities, to outline three contrasting perspectives on its significance for peacebuilding: first, that informal economies can support peacebuilding efforts by providing crucial livelihood support and access to essential goods and services in the absence of functioning formal markets; second, that they are a manifestation of resistance to unpopular top-down peacebuilding processes that fail to cohere with local understandings of economic justice; and third, that they can reproduce the conditions that led to conflict by re-establishing socio-economic hierarchies and systems of marginalisation. It argues that each of these perspectives has important implications for the theory and praxis of peacebuilding and raises conceptual challenges that remain unresolved. It then claims that any effort to incorporate urban informal economies into peacebuilding processes must prioritise democratic inclusion, grassroots organisation and formal employment creation if they are to have a meaningful impact on the lives of the urban poor.