Migrant Traders in South Africa:

Migrant Traders in South Africa

Pranitha Maharaj
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 SDG: 8
Sustainable Development Goals Series Decent Work and Economic Growth

Migrant Traders
in South Africa
Edited by
Pranitha Maharaj
Sustainable Development Goals Series
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 Pranitha Maharaj
Editor

Migrant Traders
in South Africa
Editor
Pranitha Maharaj
School of Built Environment
and Development Studies
University of KwaZulu-Natal
Durban, South Africa

ISSN 2523-3084 ISSN 2523-3092 (electronic)

Sustainable Development Goals Series
ISBN 978-3-031-21150-8 ISBN 978-3-031-21151-5 (eBook)
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 Acknowledgements

This work was supported by the South African Research Chairs Initiative
of the Department of Science and Innovation and National Research
Foundation of South Africa [grant number 64816].

v
 Contents

1 Introduction 1
Pranitha Maharaj
2 Migrants in the Informal Sector: What We Know So Far? 23
Shanaaz Dunn and Pranitha Maharaj
3 Hustling to Survive: Livelihood Strategies of Migrants 61
Sachin Sewpersad and Pranitha Maharaj
4 Escaping Poverty in Zimbabwe: Experiences
of Informal Traders in South Africa 85
Emma S. Chikovore and Pranitha Maharaj
5 Innovation and Flexibility: Nigerian Women
in Durban’s Informal Economy 107
Sunday I. Oyebamiji
6 Remittance Flow and Familial Relations in the Face
of COVID-19 Pandemic: Rethinking Social Ties
During the Migration Period 131
Thebeth R. Masunda and Pranitha Maharaj

vii
viii Contents

7 No Protection, No Support: Older Migrants

Operating in South Africa’s Informal Economy 159
Ganzamungu Zihindula, Pranitha Maharaj,
and Shanaaz Dunn
8 Collaboration or Competition? The Relationship
Between Locals and Migrants in the Informal Economy 183
Tronic Sithole and Pranitha Maharaj
9 Changes in Public Attitudes and Behaviour Towards
International Migrants in South Africa During
the COVID-19 Pandemic 211
Steven L. Gordon
10 The Inclusion of International Migrants
in the Informal Economy: From Policy to Practice 237
Mamokete Modiba and Thobelani N. Mdluli
 Notes on Contributors

Emma S. Chikovore is Postdoctoral Research Fellow for the South

African Research Chair Initiative in Economic Development at the
School of Built Environment and Development Studies, University of
KwaZulu-Natal, Durban. She obtained her master’s and Ph.D. from
the University of KwaZulu-Natal. She has worked in non-governmental
organisations (NGO) and research sectors, both in Zimbabwe and South
Africa. Her research interests include adolescent sexual and reproductive
health, the intersection between migration and gender, HIV and AIDS,
family well-being, and social determinants of health.
Shanaaz Dunn is a researcher at the School of Built Environment
and Development Studies, University of KwaZulu-Natal, Durban, South
Africa. She has a bachelor’s degree in Psychology as well as a master’s
and Ph.D. in Population Studies from the University of KwaZulu-Natal.
Her research interests are in the fields of demography and population
studies, specifically family demography, migration, ageing populations,
and sexual and reproductive health among the youth.

ix
x Notes on Contributors

Steven L. Gordon is Senior Research Specialist at the Human Sciences

Research Council (HSRC) of South Africa where he is a member of the
Developmental, Capable and Ethical State Programme. Dr. Gordon has
worked with the South African Social Attitudes Survey (SASAS) at the
HSRC since 2012. He has a doctorate from the University of KwaZulu-
Natal (2016) as well as a master’s degree in Global Studies (2007) from
the University of Freiburg and a master’s degree in Population Studies
(2011) from the University of KwaZulu-Natal. Dr. Gordon is a Research
Associate at the Faculty of Humanities, University of Johannesburg.
Pranitha Maharaj is Professor and South African Chair in Economic
Development at the School of Built Environment and Development
Studies, University of KwaZulu-Natal, Durban, South Africa. She has
obtained her Ph.D. from the London School of Hygiene and Tropical
Medicine in the United Kingdom. Recently, she completed a five-year
term as the editor-in-chief of the Southern African Journal of Demography.
She has worked extensively in the field of demography and has published
a number of articles on migrants in the informal economy.
Thebeth R. Masunda is a lecturer in the Department of Commu-
nity and Social Development at the University of Zimbabwe. She holds
a bachelor’s and Honours in Community and Development Studies.
She also has a master’s and Ph.D. in Development Studies which she
obtained from the University of KwaZulu-Natal. Her research interests
include migration and family studies, social and economic development,
and education and development. As an academic, development practi-
tioner and researcher she is also interested in the socio-economic welfare
of marginalised groups in society.
Thobelani N. Mdluli is a researcher and master’s candidate at the School
of Built Environment and Development Studies, at the University of
KwaZulu-Natal, South Africa. He attained his Bachelor of Social Work
degree at the University of Zululand in 2018 and has experience and
practical training in the field where he worked with individuals and
communities to address various socio-economic problems.
 Notes on Contributors xi

Mamokete Modiba is a researcher at the Gauteng City-Region

(GCRO), University of Johannesburg and University of the Witwater-
srand, South Africa. She obtained her Ph.D. in Urban Planning from
the University of the Witwatersrand. Her research interests span across a
variety of areas including inclusive economies, informal and township
economies, urban governance, poverty, inequality, social mobility and
spatial change. Her research also investigates the role and influence of
street trader leaders in urban governance.
Sunday I. Oyebamiji is Postdoctoral Research Fellow at the Univer-
sity of KwaZulu-Natal (UKZN), Durban, South Africa. He obtained his
Ph.D. in International Relations from UKZN. Dr. Oyebamiji obtained
Global Diplomacy and Moral Foundations of Politics certificates from
the University of London, England, and Yale University, United States of
America. Among others, his research interests include migration studies,
international relations, politics, African studies, economic history, and
gender studies.
Sachin Sewpersad is a researcher at the School of Built Environ-
ment and Development Studies, University of KwaZulu-Natal, Durban,
South Africa. He obtained his bachelor’s degree in Geography and Envi-
ronmental Management and master’s degree in Population studies at
the University of KwaZulu-Natal. His research and academic inter-
ests include migration, human environments, and other environmental
processes.
Tronic Sithole is a researcher at the School of Built Environment and
Development Studies, University of KwaZulu-Natal (UKZN), Durban,
South Africa. He holds a bachelor’s and Honours degree in Social
Sciences. He is currently completing his Masters in Population Studies
at UKZN. His research interests are broadly in the field of popula-
tion studies, including reproductive health, men’s and women’s health,
mortality, and health-seeking behaviour among male students.
Ganzamungu Zihindula has obtained his Ph.D. in Health Promotion
and Public Health from the University of KwaZulu-Natal, South Africa.
He is an alumnae PEPFAR Fellow, and currently an Atlantic Fellow for
Health Equity based at Oxford University, United Kingdom. He is also
xii Notes on Contributors

the Research Manager at the Institut Superieur de Development Rural

(ISDR) Kaziba, Democratic Republic of Congo. Dr. Zihindula is an
independent consultant in Public Health Epidemiology.
 List of Figures

Fig. 9.1 Overall perceptions of foreigners in South Africa,

2003–2020 214
Fig. 9.2 Public responses to the question: ‘Do you agree
or disagree that immigrants increase crime rates?’,
2008–2020 215
Fig. 9.3 Public responses to the question: ‘Do you agree
or disagree that immigrants bring disease to South
Africa?’, 2008–2020 216
Fig. 9.4 Public support and opposition against zero-sum
statements against the impact of international
immigrants, 2020 218
Fig. 9.5 Total number of shops looted during incidents
of xenophobic violence, 2005–2021 222

xiii
 List of Tables

Table 9.1 Adult population (thousands and %) who would

take part in violent action to prevent immigrants
from living or working in their neighbourhood 223
Table 9.2 Main reasons given to explain anti-immigrant violence
in South Africa (multiple response) 224

xv
 1
Introduction
Pranitha Maharaj

The informal economy is expanding in many contexts and increasingly

playing a significant role in the creation of employment and income
generation. Alcock (2018) describes the informal economy as driving
economic growth in South Africa as it is the way of life for the majority
of low-income groups. The formal sector is the main source of employ-
ment; however, this sector has failed to keep pace with the expansion
of the labour force (Davies & Thurlow, 2010). At present the unem-
ployment rate is high, with the official unemployment rate at 34.5%.
Under the expanded definition, which includes those who have given
up on looking for work, the discouraged jobseekers, the rate is much
higher at 45.5% (Statistics South Africa, 2022). South Africa has one
of the highest unemployment rates in the world and over the past few

P. Maharaj (B)
School of Built Environment and Development Studies, University of
KwaZulu-Natal, Durban, South Africa
e-mail: Maharajp7@ukzn.ac.za

© The Author(s), under exclusive license to Springer Nature 1

Switzerland AG 2023
P. Maharaj (ed.), Migrant Traders in South Africa, Sustainable Development Goals
Series, https://doi.org/10.1007/978-3-031-21151-5_1
2 P. Maharaj

years, the number of employed persons has been steadily decreasing while
the number of discouraged work-seekers has been steadily increasing.
Despite efforts to tackle high unemployment, the formal economy has
failed to absorb thousands into the workforce.
In the context of high rates of formal unemployment, the informal
economy is increasingly emerging as a major source of employment
generation. Many are seeking innovative and alternative measures to earn
an income and secure a livelihood. In 2019, there were 4,995,000 people
employed in the informal sector, accounting for 18.3% of employed
South Africans (Statistics South Africa, 2021). Despite the high unem-
ployment in South Africa, the informal sector constitutes a much smaller
total share of employment. The informal sector contributes about 6%
of the country’s gross domestic product (GDP) (Statistics South Africa,
2021). In the future, the informal sector is expected to play a pivotal
role in the South African economy amidst the growing population.
The growth of the population of South Africa has been rapid from
1950 to the present. Some analysts argue that the growing population
creates an unprecedented opportunity for economic growth, however, the
formal labour market is not able to create sufficient jobs to absorb the
majority of the labour force (Davies & Thurlow, 2010); thus, elevating
the importance of the informal economy.
International labour migration is a powerful tool for reducing poverty
for migrants, their families, as well as their host countries and coun-
tries of origin. International migrants constitute a significant share of the
informal economy and are key players in promoting economic growth.
In the context of high unemployment, the informal sector provides a
promising economic opportunity for less skilled international migrants.
While the focus on the informal economy has steadily increased, much
less research has been directed at understanding the role of international,
informal migrant traders. Mobility is essential to the operation of the
informal economy in many African cities (Crush et al., 2015). More
people are on the move today than ever before and they are increasingly
transitioning across borders. An unquantifiable number of people have
now built lives outside of the country of their birth and have experi-
enced unprecedented changes. Some move across international borders
to escape conflict, war, and political turmoil. Most international migrants
 1 Introduction 3

move to improve their lives and that of their families; however, they
often have to rely on the informal economy to better themselves while
for others it is a desperate attempt to combat poverty and hunger.
The informal sector is not easy to navigate, especially for international
migrants. Amidst competition for scarce resources, low job security,
high job dissatisfaction, and inadequate social security regulation, the
informal sector has also been trying to grapple with the novel coron-
avirus. Migrants, like locals, have suffered serious setbacks as a result of
the COVID-19 pandemic.
In late 2019, a deadly virus was discovered in Wuhan City, China, and
was later identified as COVID-19. The virus quickly spread and claimed
the lives of many people globally. As the virus spread throughout the
world, countries began closing borders and restricting trade and move-
ment in a frantic effort to contain the spread of the virus. In 2020,
COVID-19 was declared a global health emergency by the World Health
Organisation (WHO). The first case of COVID-19 was identified in
South Africa on the 5th of March 2020 (Broadbent et al., 2020). As the
number of COVID-19 infections surged in the country, the government
implemented a 21-day national lockdown. This was one of the most
stringent lockdowns in the world including stay-at-home orders, the
closure of non-essential businesses, the prohibition of the sale of alcohol
and tobacco, and severe restrictions on travel and movement, including
bans prohibiting people from exercising outside their homes. In addi-
tion, in order to ensure compliance, the police and defence force were
deployed to enforce strict lockdown regulations. The intention of these
stringent early measures was to flatten infection levels, avert deaths and
protect the country’s health sector. These measures were implemented to
give the country an advantage in containing the pandemic. During this
period, violation of human rights, particularly for traders working in the
informal sector, was rife as law enforcement agents brutally assaulted and
confiscated the goods of those engaged in trading during the lockdowns.
The first wave of the pandemic had been particularly disruptive
resulting in major restrictions that severely interrupted economic activi-
ties causing limited operation of both formal and informal businesses. In
terms of the regulations that were passed under the Disaster Management
Act (Act No. 57 of 2002) informal traders were allowed to operate so that
4 P. Maharaj

people could buy food at the nearest shops, but they had to first obtain
permits. The intention was to limit movement as far as possible. Despite
this, statements by a government minister, which implied that only
South African-owned shops would be allowed to operate, and confusion
around the varied municipal licensing systems, prevented many small
traders from continuing with their economic activities (Wegerif, 2020).
International migrant informal traders were adversely affected because
they did not have the means to continue trading, specifically because
many did not have the appropriate documentation to be living and oper-
ating in the country. In addition, they had limited or no access to support
and assistance, and were often excluded from social relief measures.
The COVID-19 pandemic led to restrictions on movement, closure of
non-essential businesses, and widening economic inequalities, which all
threaten the realisation of the Sustainable Development Goals (SDGs).
The SDGs provide a framework for the action roadmap for attaining
a better and more sustainable future by targeting global issues such as
poverty, inequality, climate change, environmental degradation, peace,
and justice. The 2030 Agenda, which is a universal framework for
sustainable development, recognises for the first time the contribution of
migration. Migration is a cross-cutting issue of relevance to all of the
SDGs but special reference is made to migration in Target 10.7 to
‘facilitate orderly, safe, regular and responsible migration and mobility
of people, including through the implementation of planned and well-
managed migration policies’. With the 2030 Agenda for Sustainable
Development and its guiding premise, ‘leave no one behind’, the inter-
national community has set itself the target to better the lives of the most
impoverished and marginalised including migrants. The social implica-
tions of COVID-19 have threatened to reverse many gains which have
been achieved over the past few years through progressive and inclu-
sive policy and initiatives. This book acknowledges the shared vision of
the 2030 Agenda by exploring the adverse impact of the COVID-19
pandemic on international migrant informal traders who often operate
on the fringe of the economy. This book focuses on international migrant
informal traders who are key to attaining SDG 8 and 10, aimed at
promoting inclusive and sustainable economic growth, full and produc-
tive employment, and decent work for all. A primary goal of the SDGs
 1 Introduction 5

is to ‘leave no one behind’ . This is best attained through delving into new
and emerging insights in a country like South Africa which is undergoing
rapid change and transformation.

Migrants on the Fringe of the Economy

Migration is one of the major defining features of the twenty-first
century, and some argue it is vital, inevitable, and potentially advanta-
geous for countries (Kalitanyi & Visser, 2010). While migration from
less to more developed regions is common, migration in the African
region is predominantly intra-continental with approximately 70% of
sub-Saharan African migrants choosing to relocate to another African
country (IOM, 2020). Over the past three decades, South Africa has
received an influx of migrants from a number of African countries
including Somalia, the Democratic Republic of Congo (DRC), Nigeria,
Kenya, Sierra Leone, and Zimbabwe. The majority of international-born
migrants are African (75%), with approximately 68% coming from the
southern African region, mostly Zimbabwe (Moyo, 2021). While most
migrants come from sub-Saharan Africa, South Africa also receives a size-
able number of migrants from Asian countries including India, Pakistan,
and Bangladesh, among others (Statistics South Africa, 2016).
In South Africa, as is the case in many parts of the African continent,
statistics are often incomplete and unreliable, mainly due to shortcom-
ings in the collection of migration data and the laxity of border control
regulations in the country which sometimes makes it easy to evade border
controls (Dinbabo & Nyasulu, 2015). Estimates suggest that there is a
large number of undocumented migrants in the country. However, it is
difficult to obtain reliable information on the exact number of undoc-
umented migrants in South Africa. Some people that enter into South
Africa have valid travel documents such as passports and visas but they
continue to live in the country even after their permits have expired.
Some people also enter the country without valid documents (either a
valid passport and/or visa that fits their purpose of travel and/or length of
visit). An undocumented migrant refers to a person who is in a country
6 P. Maharaj

without having been granted official authorisation to do so. Undocu-

mented migrants, according to the United Nations (2014), are people
who live and work in the shadows, afraid to complain, often denied basic
rights and freedoms, and particularly vulnerable to discrimination and
marginalisation.
There are many reasons why so many international migrants have
left their home countries to come and settle in South Africa in search
of a better life. Among the various factors responsible for their depar-
ture are civil wars, environmental disasters, armed conflict, and a lack
of economic prospects. The peaceful transition to democracy in South
Africa inspired much hope in many people throughout Africa. The deci-
sion to migrate to South Africa is also influenced by social networks
that are currently in the country. Social networks including friends
and family have an important effect on migration. For many migrants,
social connections in both informal and formal economies are useful
in securing a job and earning a living (Awumbila et al., 2017). Social
networks also provide emotional support, making the migration process
easier to tolerate emotionally, and consequently making it more bearable
for migrants to extend their stay indefinitely (White & Ryan, 2008).
Social networks may also serve as a safety net to cushion migrants against
negative events. Migrants may also rely on social capital for accommo-
dation, food, and basic services such as water and electricity when they
initially arrive, especially relatives and friends who are already present at
the migration destination (Awumbila et al., 2017).
South Africa has been a popular destination for those escaping perse-
cution and human rights violations in their home countries. Migrants are
attracted to South Africa because of its commitment towards protecting
individual and constitutional rights, including dignity, equality, and
freedom. South Africa also has the second largest economy in the conti-
nent and has a more favourable economic outlook than many of its
neighbours. Despite the high levels of unemployment in South Africa,
it is comparatively slightly lower than many of its neighbouring coun-
tries, such as Zimbabwe (Dinbabo & Nyasulu, 2015). South Africa is
also well known for the high standards of its public universities. The
top five universities in Africa, according to global rankings, are in South
Africa. All these factors combine to improve the allure of South Africa.
 1 Introduction 7

In contrast with much of Africa, South Africa is seen as having better

economic prospects as well as modern infrastructure. Thus, for a long
time, many perceived the country as an attractive destination to settle
in order to improve their prospects. Migrants move across borders to
improve their living conditions; however, they quickly realise that the
reality does not match their expectations. Confronted with the high
unemployment in South Africa, they rely on the informal economy to
earn an income.
Increasingly, international migrants are playing an important role
in the informal economy. Worldwide, informality is a key feature of
labour markets with almost 2 billion workers presently employed in the
informal sector, accounting for approximately 60% of the global labour
force (ILO, 2018). The sector is the largest in many developing countries
in Africa, Asia, and Latin America and smaller in magnitude in regions
with a higher level of socio-economic development, such as the Americas
and Europe (ILO, 2018). Over the past several decades there has been a
steady growth of the informal economy in developing countries because
the formal labour market has not been able to generate sufficient jobs to
absorb the continuously growing youthful workforce.
Although the informal economy is a global phenomenon, there
is great variation within and across countries of what it constitutes.
For our purposes, the term ‘informal economy’, ‘informal work’, and
‘informal sector’ are used interchangeably. In some instances, the
informal economy is seen as part of the hidden or underground economy
and therefore all who work in the sector are frequently mistakenly
stigmatised and depicted as ‘dishonest entrepreneurs’ and ‘tax evaders’
(Juergens-Grant & Alfers, 2021). Of course, there are some activities that
may fit into these categories. However, the informal economy is far more
complex and heterogeneous. The International Labour Organization
(2015) explicitly states that the term refers to ‘to all economic activi-
ties by workers and economic units that are—in law or in practice—not
covered or insufficiently covered by formal arrangements’. According to
this definition, the informal economy does not cover any illegal or illicit
activities. Often informal workers including migrants do not pay taxes in
the same way as the formal sector. This is mostly because their earnings
fall below the national income threshold for the payment of personal
8 P. Maharaj

income tax. Thus, researchers argue that labelling them as tax evaders
is harmful and misleading (Rogan, 2019). However, informal workers
contribute to the tax base by paying value-added tax on purchased goods
sourced in the country.
The informal economy is vast and large sectors of the population form
part of it, encompassing a variety of economic activities, ranging from
self-employed entrepreneurs or unpaid family labour to street vendors
trading in a range of goods and services, and waste collectors (Chen,
2012). The informal economy is characterised by ease of accessibility,
with limited requirements for education, technology, and capital. There
are also minimal restrictions regarding access and the sector is open
to all forms of trading activities. Informal workers operate in small or
undefined workplaces, they often have lower levels of education, work
irregular hours, and do not receive a stable income (ILO, 2002). Often
their activities occur on the streets, in central business districts where it
is best to attract customers.
Informal sector entrepreneurs make a valuable contribution to South
Africa’s economy. The type of work that is carried out in the informal
economy is diverse. In South Africa, there is an often mistaken belief that
the informal economy mainly constitutes street traders and small retail
or ‘spaza’ shops, but in reality, it consists of a variety of trade and indus-
tries, not just informal retail and fast food outlets, but alcohol retailers,
tailors, mechanical and electronic repairs, transportation services, and
hair styling (Bernstein, 2020). While some businesses are located on
fixed sites, others are more mobile. Traders operate on the streets, and
at formal markets, as well as transport systems such as light delivery
vehicles, and special events. A notable feature of the informal economy
is the feminisation of the workforce (Rogan & Alfers, 2019). Women
are disproportionally concentrated in the informal economy after strug-
gling for many years to secure formal sector employment. Now the
sector serves as a means for them to exercise some economic indepen-
dence by earning an income to support their families; thus reducing
the poverty and inequality gap. Limited employment opportunities in
the formal labour market in South Africa also often result in migrants
being forced into the informal economy. Thus, the informal economy
offers some promise for improvement and plays a significant role in
 1 Introduction 9

the entrepreneurial landscape by stimulating job creation, strengthening

economic trade, and alleviating persistent social ills in society such as
hunger, homelessness, and unemployment (Akintola & Akintola, 2015;
Peberdy, 2016).
It is important to reflect on the contribution of international migrants
to the economy of South Africa, especially the informal sector. The
ability to provide employment is one of the biggest ways that interna-
tional migrant informal traders contribute to the economy. Migrants
have served as agents of change in a range of sectors, often offering a
means for locals to earn an income. This is an important step towards
improving the daily living situation of locals who are confronted with
the prospect of unemployment. Migrants also contribute to the economy
in other ways. Migrants sell products in places convenient for the urban
poor at lower prices than other outlets. In addition, they are sometimes
preferred because their shops are better stocked and also have longer
operating hours than local shops (Charman & Piper, 2012). Another
contribution is in the form of payment of rent mostly to South Africans.
Besides their economic contribution within this country, migrants have
also contributed to improving the lives of their families and communi-
ties in their home countries through the transfer of skills and remittances.
Remittances to low- and middle-income countries surpassed official aid
flows by three times in 2021 (Smith & Floro, 2021). The cash influx
from remittances may be used for educational expenses, such as books,
tuition, and school uniforms, increasing job opportunities, reducing
food insecurity, and accessing health care (Ajaero et al., 2018; Smith &
Floro, 2021) In this way migrants are powerful drivers of sustainable
development.
As much as the informal sector presents itself as an opportunity
for growth and prosperity for migrants, it is not without challenges.
Migration may contribute to problems of over-urbanisation and poverty
especially where there is shrinking economic opportunities in a country
like South Africa, with unemployment affecting more than 30% of the
labour force (Statistics South Africa, 2021). Local and migrant traders
are, in many instances, in competition for the same market share and
this may manifest in deep-seated conflict. To complicate matters further,
language serves as a major obstacle to integration as many migrants
10 P. Maharaj

find it difficult to communicate with locals. South Africa is a multi-

lingual country with eleven official languages as well as many more
languages, often as a result of the influx of people from various coun-
tries. The inability of migrants to communicate in the local language
identifies them as non-South African and hence, reinforces their unequal
social position. The visibility of migrants in the sector and their success
may also attract unwarranted resentment from locals, sometimes even
resulting in violent attacks. Violence has been a key defining feature
during the apartheid era in South Africa but since the rise of a new demo-
cratic era, many were hopeful of a renewed opportunity of cultivating a
peaceful existence in the country. However, over the past two decades,
there has been an escalation in the number of violent attacks against
the homes and businesses of migrants, and even the senseless murder of
foreign nationals, especially those from other African countries.
Crime is rife in South Africa and migrants often feel particularly
vulnerable. South Africa has a high crime rate and this is a concern
because it impacts negatively on their businesses. Not only do interna-
tional migrants fear becoming a victim of crime but they are afraid to
seek assistance from the police. Most often, they do not report the crime
because they do not have the necessary permit to operate their busi-
nesses. Since migrants are reluctant to seek assistance from the police,
they become easy targets for criminals. Migrants also become victims
of crime because of their lack of access to banking services. This means
that they have to carry their money on them or leave it at home. Crim-
inals often are aware of this and prey on migrant traders for this reason.
However, there is also a tendency to blame international migrants for the
escalating crime in the country. Some writers like Jacobsen (2007) have
portrayed migration negatively and have attributed the crime to interna-
tional migrants. Jacobsen (2007) argues that South Africa as a country
was not afflicted by crime, and was relatively peaceful, and orderly, before
the perceived influx of migrants. The view is also widely shared by some
sectors of the population but without data to support these claims. The
narrative, however, has fuelled tensions between locals and migrants.
In recent years, there have also been growing tensions between
locals and migrants in South Africa. Attitudinal surveys suggest that
anti-immigrant feelings are highly prevalent and deeply entrenched in
 1 Introduction 11

society (Gordon, 2020). Some tension exists between locals and migrants
because of competition for resources. Migrant traders are seen as more
entrepreneurial and locals struggle to compete effectively against them
because of their more favourable pricing and responsiveness to changing
customer preferences. Other challenges experienced by migrant traders
include the harsh treatment by the police and the lack of support for
informal traders by the municipality. It is not uncommon for the police
to confiscate their products and demand bribes from them. According to
Moyo et al. (2018), the police harass and threaten foreign street traders
to obtain bribes from them, and detentions and arrests are frequently
accompanied by incidents of abuse. The police are known to demand
bribes from migrant traders in return for not arresting them for trading
without a work permit. Sometimes they are even arrested and not given
any explanation or justification (Moyo et al., 2018). There have been
a number of reports of international migrant informal traders being
forcibly prevented from continuing with their economic activities. In
some instances, informal businesses are forced to shut down. In this
context, international migrants who continue to operate their businesses
are worried about their ability to secure their livelihoods in the future.

Trading in the Era of COVID-19

The COVID-19 pandemic has contributed to the worsening economic
situation in the country, especially for migrant traders who operate on
the fringe of the economy. Informal traders are critical to ensuring food
security for the urban poor. They were not only adversely affected by the
stringent lockdown measures when the COVID-19 pandemic brought
the economy to a standstill, their low-income customers were also unable
to obtain readily available and affordable food sources. The first wave
of the pandemic has been particularly disruptive resulting in major
restrictions that severely interrupted economic activities causing limited
operation of both formal and informal businesses. In terms of the regula-
tions that were passed under the Disaster Management Act of 2002 (Act
No. 57 of 2002) informal traders were allowed to operate so that people
could buy food at the nearest shops, but they had to first obtain permits.
12 P. Maharaj

The intention was to limit movement as far as possible. Despite this,

statements by a government minister, which implied that only South
African-owned shops would be allowed to operate, confusion around the
varied municipal licensing systems, prevented many small traders from
continuing to work (Wegerif, 2020).
International migrant informal traders were left destitute because
many did not have the documentation required to be living and oper-
ating in the country. In addition, they had limited and in some instances,
no access to support and assistance, and were often excluded from social
relief measures. The restrictions on movement also meant that they did
not have the freedom to move around and thus they had no chance of
leaving the country. Even if they could, they were reluctant as they would
have limited options to return. Therefore, they were forced to remain in
the country and endure these conditions without any social and financial
support. In the absence of support, many migrants likely felt ‘trapped’,
‘alone’, and ‘abandoned’.
The stringent lockdown measures have had a devastating impact on
livelihoods, especially for informal migrant traders. Informal workers
are often unable to save even a minimal amount of their earnings and
as a result, even a few days of not working can make them extremely
vulnerable to poverty, especially those who need to work daily in order
to earn an income. Many traders lost their only source of livelihood
due to disruptions in informal market activities. This resulted in a loss
of revenue and wastage due to informal traders being forced to stop
working so they had to either give away their products or their prod-
ucts, especially fresh produce, go to waste due to the lack of customers
and the inability to trade (Babalola et al., 2021). The restrictions on their
economic activities placed traders and their households in an extremely
vulnerable situation; threatening their livelihoods and access to food.
Informal traders were reported to have been without the ability to
earn an income during lockdowns and unable to provide for them-
selves and their families. Stringent measures to curb the spread of
COVID-19 adversely affected informal workers, because of the nature
of their income, which is heavily dependent on daily earnings. Further-
more, small traders depend heavily on face-to-face interaction with their
customers in order to sell their goods and if they are not able to do so,
 1 Introduction 13

money is not made, and their situation is severely compromised. As many

informal workers are involved in the provision of face-to-face services, the
risk of infection is also higher. In addition, for most informal traders,
remote working or other measures that allow for social distancing are
often not an option. Traders struggle to maintain social distancing in the
crowded environments where they work, and they have limited access
to water and sanitation, or protective equipment to stop the spread of
infection (Bamu & Marchiori, 2020). Unlike some of the workers in the
formal labour market, informal traders are most disadvantaged, as they
are not given paid leave or the opportunity to work from home. In addi-
tion, they do not have the freedom to strike or protest against their poor
working conditions. Informal traders often work long hours in physically
and emotionally demanding conditions for little pay, without any social
security or insurance coverage (Moyce & Schenker, 2018). The lack of
social security meant that they did not have any means of mitigating the
impact of the lockdown measures.
The pandemic exposed the job crisis facing the country. Even in
the best of times, the labour market in South Africa is characterised
by high levels of economic inactivity. Over the last decade, there have
been some clear indications that South Africa is on a download spiral
which is not only evident by the high unemployment rates, but also
the persistent power outages, lack of regular water supply, and poorly
maintained infrastructure. Also, increasing hostile treatment of inter-
national migrants has meant that South Africa is no longer seen as a
safe and attractive destination for international migrants. South Africa’s
perpetual rising unemployment rates, along with declining economic
opportunities, have created a crisis that has been exacerbated by the
COVID-19 pandemic. These conditions have resulted in a resurgence of
anti-migrant sentiments, fuelled by the populist rhetoric that foreigners
are stealing the jobs of locals. Political leaders who benefit from anti-
immigrant sentiments have fuelled this resurgence. These sentiments are
used as a strategy to mobilise the crowds who are desperate for a solu-
tion to the pre-existing social ills, such as unemployment, inequality,
declining service provision, and chronic poverty (Matema & Kariuki,
2022). Widespread corruption in South Africa’s asylum and migration
14 P. Maharaj

systems have also added to the dangerous situation, resulting in a very

hostile environment for migrants.
As a result of the restrictions, many traders and their households
became vulnerable to poverty and food insecurity, thus increasing the
demand for food relief assistance. The lack of valid documentation has
also meant that many migrants have not been able to access benefits,
which may have been put in place to cushion others against the impacts
of the pandemic. Furthermore, the temporary closures of homeland
administration during the pandemic have effectively prevented migrants
from obtaining or renewing residence permits, or processing of asylum
claims. Some are even afraid to obtain their vaccination because of fear of
detection. Vaccines are important in curbing the spread of COVID-19
in the country. This is because they provide protection at the individual
level by reducing the risk of infection or the severity of symptoms, and
also at a population level by providing population immunity. In 2021,
the South African government extended its vaccination programme to
include undocumented migrants but some might be reluctant to get
their vaccinations because of fear of detection (Cassim, 2021). Undoc-
umented migrants do not want to unnecessarily attract the attention of
law enforcement agencies. The reluctance of undocumented migrants to
visit vaccination sites is likely to mean that the proportion of unvac-
cinated adults in the country remains high which increases the risk of
further waves of infection.
The consequences of the COVID-19 pandemic have been major and
far-reaching for the informal economy. As the country struggled to
contain the spread of COVID-19, much of the focus was on protecting
their own citizens, ignoring the plight of foreign migrants living within
their border. Despite the prominent role of migrants in the informal
economy in South Africa, their contribution to the economy is not
widely recognised. The dire effects of the pandemic on migrants have
not been adequately considered in any successful response to the socio-
economic issues brought on by the COVID-19 epidemic. Participating
in the informal sector is not always ideal and offers as many chal-
lenges as opportunities, especially for migrants. Earning a daily income
does not necessarily guarantee the opportunity to escape from poverty;
however, it may serve as a short-term measure to alleviate hunger. Due to
 1 Introduction 15

this, researchers, policymakers, development practitioners, and govern-

ment institutions will need to rethink and plan on how best to enhance
the ever-expanding informal sector to improve livelihoods and increase
economic growth for all including migrants. Given the long-term impact
of the COVID-19 pandemic, there is a need to take into account the
situation of migrant traders that operate on the fringe of the economy.

Summary and Organisation of the Volume

This book explores entrepreneurship among diverse groups of inter-
national migrants in the informal economy in South Africa. Globally,
migration has been increasing in pace and magnitude as many seek to
improve their standards of living. Many migrants move across interna-
tional borders to improve their living conditions, escape political turmoil
or war, and for employment opportunities. Migrants that come to South
Africa in search of better economic prospects often have to rely on the
informal sector as a result of limited employment opportunities in the
formal labour market. Chapter two reviews past and current literature
on the situation of migrants in informal trading in Africa, with a special
focus on South Africa. For many migrants, informal trading is a way
of life and a critical income generation strategy. The informal sector
contributes to local and economic development but their operations are
also critical for many individuals and families who have minimal social
support.
The emergence of the global coronavirus pandemic has led to
economic loss and devastation in South Africa as in many parts of the
world. However, there were other accompanying difficulties that were
also experienced. Public healthcare systems became overburdened; food
insecurity and levels of hunger became more pronounced and economic
and social disruption became widespread. Even though the informal
economy is a safety net for many, the adverse effects on migrant informal
traders have been heightened by the COVID-19 pandemic. Chapter
three provides a portrait of the current landscape of the economic activi-
ties of migrant informal traders in the midst of a pandemic. A key focus
16 P. Maharaj

of the chapter is on the impact of the ongoing COVID-19 pandemic on

the livelihood strategies of migrants.
Migrants moved to South Africa many years ago. They were hopeful
about their future and dreamt of starting afresh. However, securing
employment was a struggle. Migrants adopted informal trading as a
survivalist strategy in the face of unemployment. Their trading activities
are varied, with many relying on the existing skills that they acquired
in their home country to make a living. Often they have to use any
other available means of securing an income to ensure that they are able
to survive. Most do not become informal traders by choice, but rather
they are forced by circumstances. Chapter four focuses on the economic
situation of Zimbabwean informal migrant traders. Zimbabweans consti-
tute a large proportion of the migrant population in South Africa. Their
trading activities are characterised as volatile due to fluctuating returns
and uncertainty which results in them always being on the periphery of
the economy. Migrants struggle to live a dignified life in the host country,
as they are not able to earn a decent living wage that gives them access
to suitable accommodation, cover their daily living expenses, and remit
money back home. In addition, the stringent lockdown measures to curb
the spread of COVID-19 adversely affected informal workers, because of
the precarious nature of their income which is often dependent on daily
earnings.
Women often constitute the bulk of workers in the informal economy.
Participation in the economy by women is key to expanding their
choices, improving livelihoods, and advancing gender equality. An
important focus of this book is on understanding how female migrants
navigate their journey into the informal economy. Traditionally men
migrated while women assumed responsibility for the family in their
absence. This is changing as more women move in search of opportu-
nities. Chapter five explores the experiences of migrant Nigerian women
trading in the informal sector. As the population of Nigeria is on the rise,
women also make relentless efforts to secure better sources of income and
explore new opportunities for a better life. Nigerian migrants, especially
women, are present in many parts of South Africa. Increasingly, women
are migrating independently from men, and this is attributed to contin-
uous global recession and changing dynamics in gender roles. Migrant
 1 Introduction 17

women are important role players in society and they have the potential
to significantly contribute to sustainable economic development.
International migration is also adopted as a risk aversion strategy to
improve family well-being. Not only does it reduce poverty for migrants
themselves, but also for their families and communities at large. As such,
when a member migrates and earns an income in the host country, it is
often expected that they will send remittances to the other members left
in the country of origin. Remittances sent back to their home countries
by migrants have become a major feature of contemporary migration.
Sometimes the decision to migrate is a family, and not, an individual
decision. The benefits of remittances have been extensively documented
as a poverty reduction strategy. However, the flow of remittances is likely
to be negatively impacted as many migrants struggle to deal with the
economic devastation caused by the pandemic. Chapter six explores the
impact of the COVID-19 pandemic on familial relations and the flow of
remittances between migrants in South Africa and their respective family
members in their home country. Restrictions on mobility, supply chains,
and trading activities ground much of the economy to a halt, with a
particularly heavy impact on migrants in the informal sector.
Chapter seven focuses on the experiences of migrants aged 50 years
and older operating in the informal sector. In Africa and most
other developing countries, international migrants move when they are
younger and so they are not ageing in the country of their birth but in
a foreign country. Migrants ageing in a host country brings forth new
challenges because as people age, they become more reliant on others for
their care and support. It offers them the opportunity to secure a liveli-
hood and plays a vital role in maintaining their economic well-being.
However, there is widespread concern about decent working conditions
and quality of life particularly for older migrants. South Africa is one
of the few countries in the African region that provides social protec-
tion in the form of an old age grant to those aged 60 years and over.
However, older migrants, especially those without documentation, are
not eligible for this social grant. As a result, older migrants do not have
income security and have no other choice but to continue to trade in
the informal economy. Older people’s labour force participation is often
18 P. Maharaj

unrecognised; however, they make a significant financial contribution to

both their households and communities.
Among the endless challenges they encounter, establishing a relation-
ship with locals remains paramount. Trading opportunities have to be
negotiated and compromised, often to maintain peace and ensure that
all are able to participate in informal trading without conflict. In chapter
eight, the relations between local and migrant traders are explored in
detail. Informal trading activities have been at the centre of ongoing
conflicts between impoverished migrants and locals. This relationship has
been especially strained during the pandemic when opportunities were
more limited and many subject to harsh conditions. However, it would
seem that the pandemic has not changed public attitudes towards inter-
national migrants. Using data from a nationally representative survey,
public attitudes towards international migrants are explored in chapter
nine of this book.
Throughout the book the importance of the informal sector as a
significant segment of the economy that provides livelihoods, work, and
income for many is continually highlighted yet, it still operates in the
shadows. The final chapter of the book reviews the inclusion of migrants
in the informal economy in policy and practice in South Africa. While
the country has a progressive and inclusive Constitution, this theory is
rarely translated into practice. Thus, we need to renew our commitment
to upholding and advancing not only national and regional efforts but
on a global scale such as the SDGs to ensure safer peaceful spaces for all.

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 2
Migrants in the Informal Sector: What We
Know So Far?
Shanaaz Dunn and Pranitha Maharaj

Introduction

Living in rampant poverty; exploited, with no place to go for protection;

ill from not having access to clean water or basic social services; maimed,
or worse, as there aren’t even basic safety conditions at work; holding
little or no hope that life can be better; struggling on a daily basis just to
survive: this is the existence of informal workers.
—International Labour Organization

S. Dunn (B) · P. Maharaj

School of Built Environment and Development Studies,
University of KwaZulu-Natal, Durban, South Africa
e-mail: ShanaazDunn@gmail.com
P. Maharaj
e-mail: Maharajp7@ukzn.ac.za

© The Author(s), under exclusive license to Springer Nature 23

Switzerland AG 2023
P. Maharaj (ed.), Migrant Traders in South Africa, Sustainable Development Goals
Series, https://doi.org/10.1007/978-3-031-21151-5_2
24 S. Dunn and P. Maharaj

Migration has become a topic of interest across the world as it has been
termed a ‘megatrend’ that will have a global impact in the decades to
follow (McAuliffe & Triandafyllidou, 2021). In 2020, there were approx-
imately 281 million international migrants in the world, constituting
approximately 3.6% of the global population. This equates to about
128 million more than 30 years earlier, in 1990 (153 million), and over
three times the estimated number in 1970 (84 million) (McAuliffe &
Triandafyllidou, 2021). A broad spectrum of migration studies, which
we draw on in this chapter, largely suggests that people move to improve
their living conditions, escape political turmoil or war, and for employ-
ment opportunities. Thus, migration has often served as a catalyst for
development, in both the home and host countries. However, migrants
often experience many challenges in accessing formal employment and
securing an income, irrespective of their level of education and skills.
Securing work in the formal sector is particularly challenging in contexts
where unemployment is high, and opportunities are scarce. In addi-
tion, many do not possess the relevant documentation to secure work
in the formal sector. To escape the social and economic burden of unem-
ployment many migrants turn to the informal economy, drawing on
their own skills to create employment and earn a living. Thus, there
has been much interest in the size and performance of the informal
sector (Benjamin et al., 2014). A large share of the global workforce is
engaged in the informal economy, which is growing in many contexts
and appearing in new places and forms. Across much of Africa, low-
skilled individuals who struggle to secure formal employment dominate
the informal economy, including migrants who constitute a significant
share of this sector. The informal economy, also known as the informal
sector, has been commonly referred to as a ‘survival’ sector for many who
are impoverished and unemployed (Blaauw, 2017).
The informal economy is increasing in magnitude and size across
the world and is frequently appearing in many debates and discussions
which focus on development and progression; for instance, the Sustain-
able Development Goals (SDGs). Thus, the aim of the chapter is to
profile studies on migrants in the informal economy in the African
region, specifically focusing on the South African context. Particular
 2 Migrants in the Informal Sector: What We Know … 25

attention is given to the magnitude and pace of migration for employ-

ment and the increasing presence of migrants in the informal sector. This
chapter also reviews the literature on the opportunities and constraints
of migrant entrepreneurship in the informal economy. The chapter
begins by focusing on labour migration which is a key feature of the
historical context of many regions, including South Africa. Thereafter
this chapter focuses specifically on the informal economy by presenting
the background and origin and later providing the available statistics
on the sector. The latter part of the chapter specifically focuses on
South Africa and the prominent challenges, which many international
migrants encounter in the country including discrimination, crime and
xenophobia. The last part of the chapter explores the impact of the
COVID-19 pandemic on migrants in general and those operating in the
informal economy. This section also highlights their resilience in contin-
uing to operate despite the adverse conditions that they encounter in the
host country.

Migration for Employment: Stock and Flow

Migration is the movement of people from one place to another and it
can be either permanent or temporary. Migrants either move within a
country or across international borders. An internal migrant is an indi-
vidual who moves from one region to another within the same country;
whereas, an international migrant refers to a person that changes their
country of usual residence. In this chapter, when we refer to migrants we
are specifically focused on international migrants, or immigrants, unless
otherwise stated. While many people move for a number of reasons, most
do so for employment or work opportunities. For decades, labour migra-
tion has been pivotal for growth and development (Crush & Williams,
2010). While migration statistics are difficult to capture for a number
of reasons, the estimates suggest that the magnitude and pace of move-
ment have been increasing over the years. Understanding changes in
emerging trends and shifting demographics are closely related to global
social and economic transformations. While we may not be able to
estimate the exact number of migrants, recent estimates suggest that
26 S. Dunn and P. Maharaj

there were approximately 169 million migrant workers across the world
in 2019, accounting for nearly two-thirds (62%) of the global stock
of international migrants (African Union Commission, 2020; IOM,
2021; McAuliffe & Triandafyllidou, 2021). When compared with the
global population of international migrants of working age—regarded as
15 years and older (245.6 million)—migrant workers account for 68.8%.
In 2019, 67% of migrant workers were residing in high-income coun-
tries, constituting an estimated 113.9 million people. An additional 49
million migrant workers (29%) were living in middle-income countries,
and 6.1 million (3.6%) were in low-income countries (African Union
Commission, 2020). Labour migration is a key feature in Eastern and
Southern Africa as there are a sizeable number of migrant workers in
this region. Intra-regional migration in these regions has increased over
the years, driven mainly by the rise in migrant workers (IOM, 2021).
Traditionally, Northern America and Europe have been major destina-
tions for emigrants from East African countries such as Kenya. In 2020,
the largest Kenyan diaspora resided in the United States (nearly 157,000)
and the United Kingdom (around 139,000) (IOM, 2021). The Gulf
States have also become a major destination for a growing number of
Ugandan, Kenyan and Ethiopian migrant workers (IOM, 2021).
In Africa, as the population rapidly increases, inter-continental migra-
tion has become a key feature. South-south migration is important
in terms of remittance flow and substantially contributes towards the
welfare of the home country of migrants (Ratha & Shaw, 2007). African
countries with high immigrant populations as a proportion of their total
population include Gabon (19%), Equatorial Guinea (16%), Seychelles
(13%) and Libya (12%) (IOM, 2021). South Africa remains the most
popular destination country in Africa, with around 2.9 million interna-
tional migrants residing in the country, which accounts for more than
5% of the total population (Moyo, 2021). This is a decline of more
than 9% since 2015 when the country had over 3.2 million international
migrants (IOM, 2021), a changing trend that we will explore in detail
later in this chapter. However, these estimates should be interpreted
with caution because of the presence of large numbers of unautho-
rised migrants, particularly from neighbouring countries (Moyo, 2021).
Migration has increased over the last decade with most migrants coming
 2 Migrants in the Informal Sector: What We Know … 27

from other parts of the African continent. Most migrants entering South
Africa were from neighbouring countries including Zimbabwe, Mozam-
bique, Lesotho and Malawi (Moyo, 2021) Using data collected from
over 600 respondents in the Gauteng province of South Africa, Peberdy
(2016) observes that less than 5% of these migrants had arrived in South
Africa in 1994 or before. Around 80% of these migrant respondents had
arrived since 2000, with a third arriving between 2000 and 2004, 30%
between 2005 and 2009, and 15% between 2010 and 2014.
The changing geography of economic growth and development in
the African region is one of the major factors, which impact south-
south migration patterns (OECD, 2010). In addition to this, it may be
easier for those from neighbouring countries to cross over land borders
in search of peace, safety and a renewed future. However, later in this
chapter, the focus is on exploring the causal effect of immigration on the
local labour market and its contribution to rising anti-immigrant senti-
ment in a country with high levels of unemployment. Immigration has
a negative and significant effect on the employment outcomes of locals
and the total income earned (Biavaschi et al., 2018). In addition, there
is competition for limited resources and opportunities. Thus, driven by
the determination to survive, many search for alternative means to make
a living.

Alternatives to Formal Employment

Over the years, many countries have seen an increase in international
migrants because of various economic, political and environmental crises
in the continent which are contributing to an increase in movement.
Many flee to escape the precarious conditions in their country and often
relocate to nearby countries in the hope of a better future. They try to
adapt to their new environment and securing employment is a priority in
order to build their lives. However, the number of jobs created every year
in Africa is not sufficient to absorb the growing working-age population.
Thus, many people leave their home country in search of employment
opportunities elsewhere (African Union Commission, 2020). Labour
migration has traditionally been used as a strategy to protect families and
28 S. Dunn and P. Maharaj

households from economic difficulties through remittances (Schrieder &

Knerr, 2000). However, securing opportunities in the formal labour
market is challenging for those who are unskilled, especially international
migrants, therefore, many decide to create their own employment as a
means to secure a livelihood and improve the lives of not only themselves
but also that of their family (Moyo & Yeros, 2015). Thus, the informal
economy provides an opportunity to create a sustainable income for
many individuals and the income generated aids in supporting many
families.
In many countries, migrants are increasingly visible in the informal
economy and they constitute a significant proportion of informal
workers. The connection between international migrants and the
informal economy is profound. Migrants are more likely to create
entrepreneurial and business enterprises in destination countries to
generate income and construct livelihoods, especially where opportu-
nities are scarce (Mbatha, 2020). For instance, informal economies
typically emerge in contexts with high incidences of poverty and severe
decent work deficits, where the formal labour market is unable to create
employment for the workforce, such as that which is experienced in
South Africa (Crush & Tawodzera, 2014). Thus, many are forced to
seek alternative means to secure a livelihood. The informal economy is
also a means to survive and evade hunger (ILO, 2018). The activities
that occur within the informal economy can operate from specific loca-
tions whereas others are mobile and business is conducted in different
parts of the city, often where customers can be easily attracted (Crush
et al., 2015a). However, navigating the informal economy is not easy as
many international migrants experience xenophobia and crime as well as
limited access to public health and social services (Crush & Tawodzera,
2014; Idemudia & Boehnke, 2020; Moyo, 2020).

The Informal Economy: Origin and Overview

The concept of the informal economy dates back to the 1900s and
has remained largely unchanged in definition. The term was coined by
Keith Hart (1973) almost four decades ago. Over the years a number
 2 Migrants in the Informal Sector: What We Know … 29

of terms have been used interchangeably with the informal economy

namely the irregular economy, the black market economy, and the under-
ground sector (Ferman & Ferman, 1973; Losby et al., 2002; Simon &
Witte, 1982). More recently, it has appeared in the literature as the
informal economy or the informal sector. It is part of the economy
which remains largely unregulated by the government and because of
this, it is commonly recognised as problematic and unmanageable. The
historical roots of the informal sector appeared in the development realm
in the 1950s and 1960s, and conceptually developed through to the
1970s (Bangasser, 2000). Many historical events, specifically the Cold
War, provided political motivation to aid Third World countries in the
development process. Many poorer countries with stagnant economies
that were not progressing wanted to transform into growing, dynamic
and modern ones. Thus, the birth of the informal economy became
significant in many contexts because of the lack of employment, which
could not be ignored. This is the major reason that the informal economy
thrives in many lower income countries, especially in Africa, where there
are elevated levels of unemployment and poverty (Bangasser, 2000).
By the 1960s unemployment became a serious concern despite signif-
icant development efforts which were geared towards creating employ-
ment (Bangasser, 2000). By the 1970s, the Kenyan mission attracted
considerable attention and was documented as the first comprehen-
sive approach to the problems of employment, poverty and inequality;
emphasizing the importance of the informal sector (Singer & Jolly,
2012). According to the International Labour Organization (ILO)
(1972), the informal sector played a key role in improving the unem-
ployment situation. In the 1980s and 1990s, the term informal economy
gradually dispersed into the evolving development agenda (Bangasser,
2000). Decades later, the informal economy continues to appear in
many debates, discussions and national priorities and still constitutes
an important part of the economies of many developing countries. For
instance, Chen (2001) suggests that 93% of newly created jobs in Africa
during the 1990s were part of the informal sector. A few years later
studies indicate that the informal sector represents approximately 43%
of the official gross domestic product (GDP), thus being almost equiv-
alent to the formal sector (Lesser & Moisé-Leeman, 2009; OECD,
30 S. Dunn and P. Maharaj

2007; Schneider, 2006). Comparing the performances of the formal and

informal sectors in terms of job creation, Xaba et al. (2002) suggest
that the informal sector is experiencing remarkable growth. For some,
it is a short-term solution to alleviate the burden that poor households
experience (Lesser & Moisé-Leeman, 2009), whereas for others it is
a significant means to improve their living conditions (Fourie, 2018;
Fourie & Leibbrandt, 2012).
Informal employment refers primarily to activities which occur in
businesses and employment that lack registration and social security
for their employees (OECD, 2002). In much of Africa, the informal
labour market mainly includes casual day labourers, domestic workers,
industrial outworkers, undeclared workers, and part-time or temporary
workers without secure contracts, worker benefits, or social protection
(ILO, 2002). The ILO (2002) suggests that the informal economy
was formulated for those who were not officially working but were
engaged in some form of economic activity, resulting in the term informal
employment. Gasparini and Tornarolli (2007) characterise the informal
sector as mostly constituting unskilled labourers in low-productivity
jobs, engaging in marginal and small-scale activities which are usually
under conditions that increase their vulnerability to social and economic
challenges because of the lack of protection against health and unem-
ployment shocks (Gasparini & Tornarolli, 2007). Migrants engage in
a number of economic activities including hairstyling, taxi driving,
carpentry, welding and shoe repair (Maharaj & Moodley, 2009). The
informal economy constitutes economic activity, which is usually outside
the framework of the official employment sector and takes many forms.
It also refers to self-employment and trading activities that are not
governed by laws and regulations. Hence, it is a highly precarious and
vulnerable sector which is sometimes even associated with illegal and
unethical activity (Chambwera et al., 2011); closely related to what is
termed the black market, because of the lack of governance defining and
regulating its operations (Schrieder & Knerr, 2000). However, for many
others it is a means of making an honest living; a term that appeared in
the literature since the early 1990s (see Austin, 1994), referring to a legit-
imate small business activity with entrepreneurs offering goods for sale
to the general public. The concept of the informal economy has been
 2 Migrants in the Informal Sector: What We Know … 31

increasing in popularity over time. The informal sector differs substan-

tially from that of the formal sector. A multi-country study conducted
in Botswana, Kenya, Malawi and Zimbabwe found that approximately
two-thirds of informal businesses in these countries consist mainly of
a sole entrepreneur (Haan, 2006). This is similar to other parts of
the world with a similar socio-economic status such as Latin America
(Maloney & Mendez, 2004). Gatti et al. (2011) finds that 20–40% of
workers in the Middle East are informal, working mostly for small firms.
However, despite decades of scrutiny, the informal sector continues to
elicit diverging views (Bangasser, 2000). The informal economy is not
always an appealing sector as incomes can be low and working conditions
are inadequate (Institute for Economic Justice, 2018).

Magnitude and Size of the Informal Economy

Africa is a largely under-developed region; thus, the informal sector
serves as an opportunity not only for survival but also as a success
measure. It is an opportunity to start a business and grow and develop
it into a larger enterprise. Measuring the size of the informal economy
is important given the benefits and challenges (Medina et al., 2017);
however, there are a number of issues in doing so. In general, it appears
that the informal economy has been growing in size. Internationally,
there has been a growth in the numbers of people working in the
informal economy, either self-employed in unregistered businesses or
casual workers. The first-ever global estimates on the size of informal
employment, published by the ILO in 2018, shows that 61% of all
workers are informally employed, equating to 2 billion workers world-
wide (ILO, 2018). According to the ILO (2018), more than 60% of
the world’s employed population earn their livelihoods in the informal
economy. The informal sector has emerged in all regions and countries
regardless of the level of socio-economic development. Estimates indi-
cated that developing countries account for 82% of the world’s total
employment and has higher portions of informal employment than
developed countries. More than two-thirds of the employed popula-
tion in emerging and developing countries are in informal employment
32 S. Dunn and P. Maharaj

whereas less than one-fifth of the employed population are in developed

countries (ILO, 2018). Regions with a higher level of socio-economic
development, such as the Americas, Asia and the Pacific, and Europe and
Central Asia have lower portions of informal employment (ILO, 2018).
The share of the informal economy in sub-Saharan Africa remains
among the largest in the world (Medina et al., 2017). In sub-Saharan
Africa, the informal sector constitutes 72% of non-agricultural employ-
ment, which is the highest in the world in comparison to 65% in Asia,
51% in Latin America and 48% in North Africa (Devey et al., 2006).
Years later, these estimates remain largely unchanged. The majority of
employment in Africa is informal, which accounts for 85.8%. In other
parts of the world, these estimates are approximately 68.2% in Asia
and the Pacific and 68.6% in the Arab States while in the Amer-
icas it accounts for 40%. Interestingly, in Europe and Central Asia
informal employment only accounts for 25% (ILO, 2018). Setsabi and
Leduka (2008) argue that there is a persistent economic crisis in the
African region, fuelled by high levels of unemployment and poverty.
These challenges generally manifest across the continent’s largest cities.
Thus, many have turned to the informal sector, especially street trading
as an important source of livelihood, while to others, street trading
supplements meagre formal sector incomes (Setsabi & Leduka, 2008;
Skinner, 2008). According to Nguimkeu and Okou (2020), the informal
economy accounts for 80.8% of jobs and is the foundation of economic
activity in urban Africa. The presence of the informal economy is strong
in many African cities where street vendors are key in ensuring food secu-
rity and the transport sector is vital in ensuring movement for economic
gain (Nguimkeu & Okou, 2020). While the informal economy hosts a
range of employees and entrepreneurs, it is a key source of livelihood
for migrants, especially those who have moved within the continent
of Africa. It is difficult to measure the size of the informal economy;
however, in South Africa, Rogan and Skinner (2018) suggest that there
were over 2.4 million people in the sector in 2015. Migrants constitute
a significant share of the informal economy. While it is not possible
to count every migrant in the sector in the country, data from the
2017 South African Quarterly Labour Force Survey suggests that 47%
of migrants are employed in precarious and unregulated environments,
Another random document with
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that he might be lacking in the executive faculty. His disposition of
business was orderly and rapid. His power of analysis, and his skill in
classification, enabled him to despatch a vast mass of detail with
singular promptness and ease. His Cabinet meetings were admirably
conducted. His clear presentation of official subjects, his well-
considered suggestion of topics on which discussion was invited, his
quick decision when all had been heard, combined to show a
thoroughness of mental training as rare as his natural ability and his
facile adaptation to a new and enlarged field of labor.
With perfect comprehension of all the inheritances of the war, with
a cool calculation of the obstacles in his way, impelled always by a
generous enthusiasm, Garfield conceived that much might be done
by his administration towards restoring harmony between the
different sections of the Union. He was anxious to go South and
speak to the people. As early as April he had ineffectually endeavored
to arrange for a trip to Nashville, whither he had been cordially
invited, and he was again disappointed a few weeks later to find that
he could not go to South Carolina to attend the centennial
celebration of the victory of the Cowpens. But for the autumn he
definitely counted on being present at three memorable assemblies
in the South, the celebration at Yorktown, the opening of the Cotton
Exposition at Atlanta, and the meeting of the Army of the
Cumberland at Chattanooga. He was already turning over in his
mind his address for each occasion, and the three taken together, he
said to a friend, gave him the exact scope and verge which he needed.
At Yorktown he would have before him the associations of a hundred
years that bound the South and the North in the sacred memory of a
common danger and a common victory. At Atlanta he would present
the material interests and the industrial development which
appealed to the thrift and independence of every household, and
which should unite the two sections by the instinct of self-interest
and self-defence. At Chattanooga he would revive memories of the
war only to show that after all its disaster and all its suffering, the
country was stronger and greater, the Union rendered indissoluble,
and the future, through the agony and blood of one generation, made
brighter and better for all.
Garfield’s ambition for the success of his administration was high.
With strong caution and conservatism in his nature, he was in no
danger of attempting rash experiments or of resorting to the
empiricism of statesmanship. But he believed that renewed and
closer attention should be given to questions affecting the material
interests and commercial prospects of fifty millions of people. He
believed that our continental relations, extensive and undeveloped as
they are, involved responsibility, and could be cultivated into
profitable friendship or be abandoned to harmful indifference or
lasting enmity. He believed with equal confidence that an essential
forerunner to a new era of national progress must be a feeling of
contentment in every section of the Union, and a generous belief that
the benefits and burdens of government would be common to all.
Himself a conspicuous illustration of what ability and ambition may
do under republican institutions, he loved his country with a passion
of patriotic devotion, and every waking thought was given to her
advancement. He was an American in all his aspirations, and he
looked to the destiny and influence of the United States with the
philosophic composure of Jefferson and the demonstrative
confidence of John Adams.

THE POLITICAL CONTROVERSY.

The political events which disturbed the President’s serenity for

many weeks before that fatal day in July form an important chapter
in his career, and, in his own judgment, involved questions of
principle and of right which are vitally essential to the constitutional
administration of the Federal Government. It would be out of place
here and now to speak the language of controversy, but the events
referred to, however they may continue to be source of contention
with others, have become, so far as Garfield is concerned, as much a
matter of history as his heroism at Chickamauga or his illustrious
service in the House. Detail is not needful, and personal antagonism
shall not be rekindled by any word uttered to-day. The motives of
those opposing him are not to be here adversely interpreted nor their
course harshly characterized. But of the dead President this is to be
said, and said because his own speech is forever silenced and he can
be no more heard except through the fidelity and the love of
surviving friends. From the beginning to the end of the controversy
he so much deplored, the President was never for one moment
actuated by any motive of gain to himself or of loss to others. Least of
all men did he harbor revenge, rarely did he even show resentment,
and malice was not in his nature. He was congenially employed only
in the exchange of good offices and the doing of kindly deeds.
There was not an hour, from the beginning of the trouble till the
fatal shot entered his body, when the President would not gladly, for
the sake of restoring harmony, have retraced any step he had taken if
such retracing had merely involved consequences personal to
himself. The pride of consistency, or any supposed sense of
humiliation that might result from surrendering his position, had not
a feather’s weight with him. No man was ever less subject to such
influences from within or from without. But after the most anxious
deliberation and the coolest survey of all the circumstances, he
solemnly believed that the true prerogatives of the Executive were
involved in the issue which had been raised, and that he would be
unfaithful to his supreme obligation if he failed to maintain, in all
their vigor, the constitutional rights and dignities of his great office.
He believed this in all the convictions of conscience when in sound
and vigorous health, and he believed it in his suffering and
prostration in the last conscious thought which his wearied mind
bestowed on the transitory struggles of life.
More than this need not be said. Less than this could not be said.
Justice to the dead, the highest obligation that devolves upon the
living, demands the declaration that in all the bearings of the subject,
actual or possible, the President was content in his mind, justified in
his conscience, immovable in his conclusions.

GARFIELD’S RELIGION.

The religious element in Garfield’s character was deep and earnest.

In his early youth he espoused the faith of the Disciples, a sect of that
great Baptist Communion which in different ecclesiastical
establishments is so numerous and so influential throughout all
parts of the United States. But the broadening tendency of his mind
and his active spirit of inquiry were early apparent and carried him
beyond the dogmas of sect and the restraints of association. In
selecting a college in which to continue his education he rejected
Bethany, though presided over by Alexander Campbell, the greatest
preacher of his church. His reasons were characteristic: first, that
Bethany leaned too heavily toward slavery; and, second, that being
himself a Disciple and the son of Disciple parents, he had little
acquaintance with people of other beliefs, and he thought it would
make him more liberal, quoting his own words, both in his religious
and general views, to go into a new circle and be under new
influences.
The liberal tendency which he had anticipated as the result of
wider culture was fully realized. He was emancipated from mere
sectarian belief, and with eager interest pushed his investigations in
the direction of modern progressive thought. He followed with
quickening step in the paths of exploration and speculation so
fearlessly trodden by Darwin, by Huxley, by Tyndall, and by other
living scientists of the radical and advanced type. His own church,
binding its disciples by no formulated creed, but accepting the Old
and New Testaments as the word of God, with unbiased liberality of
private interpretation, favored, if it did not stimulate, the spirit of
investigation. Its members profess with sincerity, and profess only,
to be of one mind and one faith with those who immediately followed
the Master, and who were first called Christians at Antioch.
But however high Garfield reasoned of “fixed fate, free will,
foreknowledge absolute,” he was never separated from the Church of
the Disciples in his affections and in his associations. For him it held
the ark of the covenant. To him it was the gate of Heaven. The world
of religious belief is full of solecisms and contradictions. A
philosophic observer declares that men by the thousand will die in
defence of a creed whose doctrines they do not comprehend and
whose tenets they habitually violate. It is equally true that men by
the thousand will cling to church organizations with instinctive and
undenying fidelity when their belief in maturer years is radically
different from that which inspired them as neophytes.
But after this range of speculation, and this latitude of doubt,
Garfield came back always with freshness and delight to the simpler
instincts of religious faith, which, earliest implanted, longest survive.
Not many weeks before his assassination, walking on the banks of
the Potomac with a friend, and conversing on these topics of
personal religion, concerning which noble natures have an
unconquerable reserve, he said that he found the Lord’s Prayer and
the simple petitions learned in infancy infinitely restful to him, not
merely in their stated repetition, but in their casual and frequent
recall as he went about the daily duties of life. Certain texts of
scripture had a very strong hold on his memory and his heart. He
heard, while in Edinburgh some years ago, an eminent Scotch
preacher who prefaced his sermon with reading the eighth chapter of
the Epistle to the Romans, which book had been the subject of
careful study with Garfield during his religious life. He was greatly
impressed by the elocution of the preacher and declared that it had
imparted a new and deeper meaning to the majestic utterances of
Saint Paul. He referred often in after years to that memorable
service, and dwelt with exaltation of feeling upon the radiant promise
and the assured hope with which the great apostle of the Gentiles
was “persuaded that neither death, nor life, nor principalities, nor
powers nor things present, nor things to come, nor height, nor depth,
nor any other creature, shall be able to separate us from the love of
God, which is in Christ Jesus our Lord.”
The crowning characteristic of General Garfield’s religious
opinions, as, indeed, of all his opinions, was his liberality. In all
things he had charity. Tolerance was of his nature. He respected in
others the qualities which he possessed himself—sincerity of
conviction and frankness of expression. With him the inquiry was
not so much what a man believes, but does he believe it? The lines of
his friendship and his confidence encircled men of every creed, and
men of no creed, and to the end of his life, on his ever lengthening
list of friends, were to be found the names of a pious Catholic priest
and of an honest-minded and generous-hearted free-thinker.

THE ASSASSIN’S BULLET.

On the morning of Saturday, July 2d, the President was a

contented and happy man—not in an ordinary degree, but joyfully,
almost boyishly happy. On his way to the railroad station to which he
drove slowly, in conscious enjoyment of the beautiful morning, with
an unwonted sense of leisure, and a keen anticipation of pleasure, his
talk was all in the grateful and gratulatory vein. He felt that after four
months of trial his administration was strong in its grasp of affairs,
strong in popular favor and destined to grow stronger; that grave
difficulties confronting him at his inauguration had been safely
passed; that troubles lay behind him and not before him; that he was
soon to meet the wife whom he loved, now recovering from an illness
which had but lately disquieted and at times almost unnerved him;
that he was going to his Alma Mater to renew the most cherished
associations of his young manhood, and to exchange greetings with
those whose deepening interest had followed every step of his
upward progress from the day he entered upon his college course
until he had attained the loftiest elevation in the gift of his
countrymen.
Surely, if happiness can ever come from the honors or triumphs of
this world, on that quiet July morning James A. Garfield may well
have been a happy man. No foreboding of evil haunted him; no
slightest premonition of danger clouded his sky. His terrible fate was
upon him in an instant. One moment he stood erect, strong,
confident, in the years stretching peacefully out before him. The next
he lay wounded, bleeding, helpless, doomed to weary weeks of
torture, to silence and the grave.
Great in life, he was surpassingly great in death. For no cause, in
the very frenzy of wantonness and wickedness by the red hand of
murder, he was thrust from the full tide of this world’s interest, from
its hopes, its aspirations, its victories, into the visible presence of
death—and he did not quail. Not alone for one short moment in
which, stunned and dazed, he could give up life, hardly aware of its
relinquishment, but through days of deadly languor, through weeks
of agony, that was not less agony because silently borne, with clear
sight and calm courage, he looked into his open grave. What blight
and ruin met his anguished eyes, whose lips may tell—what brilliant,
broken plans, what baffled, high ambitions, what sundering of
strong, warm, manhood’s friendship, what bitter rending of sweet
household ties! Behind him a proud, expectant nation, a great host of
sustaining friends, a cherished and happy mother, wearing the full,
rich honors of her early toil and tears; the wife of his youth, whose
whole life lay in his; the little boys not yet emerged from childhood’s
day of frolic; the fair, young daughter; the sturdy sons just springing
into closest companionship, claiming every day and every day
rewarding a father’s love and care; and in his heart the eager,
rejoicing power to meet all demand. Before him, desolation and great
darkness! And his soul was not shaken. His countrymen were thrilled
with instant, profound, and universal sympathy. Masterful in his
mortal weakness, he became the centre of a nation’s love, enshrined
in the prayers of a world. But all the love and all the sympathy could
not share with him his suffering. He trod the wine-press alone. With
unfaltering front he faced death. With unfailing tenderness he took
leave of life. Above the demoniac hiss of the assassin’s bullet he
heard the voice of God. With simple resignation he bowed to the
Divine decree.
As the end drew near, his early craving for the sea returned. The
stately mansion of power had been to him the wearisome hospital of
pain, and he begged to be taken from his prison walls, from its
oppressive, stifling air, from its homelessness and its hopelessness.
Gently, silently, the love of a great people bore the pale sufferer to
the longed-for healing of the sea, to live or to die, as God should will,
within sight of its heaving billows, within sound of its manifold
voices. With wan, fevered face tenderly lifted to the cooling breeze,
he looked out wistfully upon the ocean’s changing wonders; on its far
sails, whitening in the morning light; on its restless waves, rolling
shoreward to break and die beneath the noonday sun; on the red
clouds of evening, arching low to the horizon; on the serene and
shining pathway of the stars. Let us think that his dying eyes read a
mystic meaning which only the rapt and parting soul may know. Let
us believe that in the silence of the receding world he heard the great
waves breaking on a further shore and felt already upon his wasted
brow the breath of the eternal morning.

AFTER THE ORATION.

The eulogy was concluded at 1.50, having taken just an hour and a
half in its delivery. As Mr. Blaine gave utterance to the last solemn
words the spectators broke into a storm of applause, which was not
hushed for some moments. The address was listened to with an
intense interest and in solemn silence, unbroken by any sound
except by a sigh of relief (such as arises from a large audience when a
strong tension is removed from their minds) when the orator passed
from his allusion to differences existing in the Republican party last
spring. Benediction was then offered by the Rev. Dr. Bullock,
Chaplain of the Senate. The Marine Band played the “Garfield Dead
March” as the invited guests filed out of the Chamber in the same
order in which they had entered it. The Senate was the last to leave,
and then the House was called to order by the Speaker.
Mr. McKinley, of Ohio, offered the following resolution:
Resolved, The Senate concurring, that the thanks of Congress are
hereby presented to the Hon. James G. Blaine for the appropriate
memorial address delivered by him on the life and services of James
A. Garfield, late President of the United States, in the Representative
Hall, before both houses of Congress and their invited guests, on the
27th of February, 1882, and that he be requested to furnish a copy
for publication.
Resolved, That the Chairman of the Joint Committee appointed to
make the necessary arrangements to carry into effect the resolution
of Congress in relation to the memorial exercises in honor of James
A. Garfield be requested to communicate to Mr. Blaine the foregoing
resolution, receive his answer thereto and present the same to both
Houses of Congress. The resolution was adopted unanimously.
Mr. McKinley then offered the following:
Resolved, That as a further mark of respect to the memory of the
deceased President of the United States the House do now adjourn.
The resolution was unanimously adopted, and in accordance
therewith the Speaker at 1.55 declared the House adjourned until to-
morrow.
CIVIL SERVICE.
 Improvement of the Subordinate Civil
Service.

Speech of Hon. George H. Pendleton, of Ohio, in the Senate of the

United States, Tuesday, December 12, 1882.
On the bill (S. 133) to regulate and improve the civil service of the
United States.
Mr. Pendleton said:
Mr. President: When I assented yesterday that this bill should be
informally laid aside without losing its place, I had no set speech to
deliver, nor had I the intention of preparing a speech for to-day. I did
not intend to hold up the bill here as an obstruction to any business
before the Senate, or as an aid in passing any measure that might
receive my approbation, as my good Friend, the Senator from Kansas
[Mr. Plumb], so politely intimated. The bill providing for a bankrupt
law was very speedily, and to me unexpectedly, disposed of
yesterday, and this bill was called up several hours earlier than I
supposed it would be, and I thought the convenience of the Senate as
well as of myself would be subserved if I had an opportunity to
condense what I had to say on the subject.
The necessity of a change in the civil administration of this
government has been so fully discussed in the periodicals and
pamphlets and newspapers, and before the people, that I feel
indisposed to make any further argument. This subject, in all its
ramifications, was submitted to the people of the United States at the
fall elections, and they have spoken in no low or uncertain tone.
I do not doubt that the local questions exerted great influence in
many States upon the result; but it is my conviction, founded on the
observation of an active participation in the canvass in Ohio, that
dissatisfaction with the methods of administration adopted by the
Republican party in the past few years was the most important single
factor in reaching the conclusion that was attained. I do not say that
the civil service of the Government is wholly bad. I can not honestly
do so. I do not say that the men who are employed in it are all
corrupt or inefficient or unworthy. That would do a very great
injustice to a great number of faithful, honest, and intelligent public
servants. But I do say that the civil service is inefficient; that it is
expensive; that it is extravagant; that it is in many cases and in some
senses corrupt; that it has welded the whole body of its employès into
a great political machine; that it has converted them into an army of
officers and men, veterans in political warfare, disciplined and
trained, whose salaries, whose time, whose exertions at least twice
within a very short period in the history of our country have robbed
the people of the fair results of Presidential elections.
I repeat, Mr. President, that the civil service is inefficient,
expensive, and extravagant and that it is in many instances corrupt.
Is it necessary for me to prove facts which are so patent that even the
blind must see and the deaf must hear?
At the last session of Congress, in open Senate, it was stated and
proven that in the Treasury Department at Washington there were
3,400 employès, and that of this number the employment of less
than 1,600 was authorized by law and appropriations made for their
payment, and that more than 1,700 were put on or off the rolls of the
Department at the will and pleasure of the Secretary of the Treasury,
and paid not out of appropriations made for that purpose but out of
various funds and balances of appropriation lapsed in the Treasury
in one shape or another, which are not by law appropriated to the
payment of these employès. I was amazed. I had never before heard
that such a state of affairs existed. I did not believe that it was
possible until my honorable colleague rose in his place and admitted
the general truth of the statement and defended the system as being
necessary for the proper administration of the Treasury Department.
Mr. President, we see in this statement whence comes that
immense body of public officials, inspectors, detectives, deputies,
examiners, from the Treasury Department who have for years past
been sent over the States for the purpose of managing Presidential
conventions and securing Presidential elections at the public
expense.
 I hold in my hand a statement made before the committee which
reported this bill, showing that in one of the divisions of the Treasury
Department at Washington where more than nine hundred persons
were employed, men and women, five hundred and more of them
were entirely useless, and were discharged without in any degree
affecting the efficiency of the bureau. I read from the testimony taken
before the committee. Every gentleman can find it if he has not it
already on his table. The statement to which I refer I read from page
121 of report of committee No. 576:
The extravagance of the present system was well shown in the examination of
the Bureau of Engraving and Printing by a committee of which I was chairman. Of
a force of nine hundred and fifty-eight persons five hundred and thirty-nine, with
annual salaries amounting to $390,000, were found to be superfluous and were
discharged. The committee reported that for years the force in some branches had
been twice and even three times as great as the work required. In one division—
I beg Senators to listen to this—
In one division a sort of platform had been built underneath the iron roof, about
seven feet above the floor, to accommodate the surplus counters. It appeared that
the room was of ample size without this contrivance for all persons really needed.
In another division were found twenty messengers doing work which it was found
could be done by one. The committee reported that the system of patronage was
chiefly responsible for the extravagance and irregularities which had marked the
administration of the bureau, and declared that it had cost the people millions of
dollars in that branch of the service alone. Under this system the office had been
made to subserve the purpose of an almshouse or asylum.
In consequence of this report the annual appropriation for the Printing Bureau
was reduced from $800,000 to $200,000, and out of the first year’s savings was
built the fine building now occupied by that bureau.
And again, on page 126, this same gentleman says:
My observation teaches me there is more pressure and importunity for these
places—
That is, the $900 clerkship—
and that more time is consumed by heads of Departments, and those having the
appointing power, in listening to applications for that grade than for all the other
places in the Departments combined; and that when it is discretionary with a
Department to appoint a man or a woman the choice is usually exercised in favor
of the woman. I know a recent case in the Treasury Department where a vacancy
occurred which the head of the bureau deemed it important to fill with a man. It
was a position where a man’s services were almost indispensable; but the
importunity was so great that he was compelled to accept a woman, although her
services were not required. In consequence of this importunity for places for
women a practice has grown up in the Treasury Department of allowing the
salaries of the higher grades of clerkships to lapse when vacancies occur, and of
dividing up the amount among clerks, usually women, at lower salaries. In the
place of a male clerk at $1,800 a year, for instance, three women may be employed
at $600. Often the services of a man are required in its higher grade, while the
women are not needed at all; but as the man can not be employed without
discharging the women he can not be had. The persons employed in this way are
said to be “on the lapse.” Out of this grew the practice known in Departmental
language as “anticipating the lapse.”
In the endeavor to satisfy the pressure for place more people are appointed on
this roll than the salaries then lapsing will warrant, in the hope that enough more
will lapse before the end of the fiscal year to provide funds for their payment. But
the funds almost always run short before the end of the year, and then either the
“lapse” appointees must be dropped or clerks discharged from the regular roll to
make place for them. In some instances, in former administrations, the employès
on the regular roll were compelled, under terror of dismissal, to ask for leaves of
absence, without pay, for a sufficient time to make up the deficiency caused by the
appointment of unnecessary employès “on the lapse”. Another bad feature is that
these “lapse” employès being appointed without regard to the necessities of the
work, for short periods and usually without regard to their qualifications, are of
little service, while their employment prevents the filling of vacancies on the
regular roll and demoralizes the service.
In one case thirty-five persons were put on the “lapse fund” of the Treasurer’s
office for eight days at the end of the fiscal year, to sop up some money which was
in danger of being saved and returned to the Treasury.
Mr. Maxey. Do I understand the Senator to say that that
testimony was taken by the Senate Committee on Civil Service and
Retrenchment?
Mr. Pendleton. Yes sir. This testimony was taken in the month of
March, I think, of the present year.

Says this gentleman further—

I have no doubt that under a rigid application of this proposed system the work
of the Treasury Department could be performed with two-thirds the number of
clerks now employed, and that is a moderate estimate of the saving.
Mr. President, a Senator who is now present in the Chamber and
who will recognize the statement when I make it, though I shall not
indicate his name, told me that the Secretary of one of the
Departments of the Government said to him, perhaps to the
Committee on Appropriations, at the last session, that there were
seventeen clerks in his Department for whom he could find no
employment; that he did need one competent clerk of a higher grade,
and if the appropriation were made for that one clerk, at the proper
amount according to the gradations of the service and the
appropriation for the seventeen were left out, he could, without
impairing the efficiency of his Department, leave those seventeen
clerks off the roll; but if the appropriation should be made the
personal, social, and political pressure was so great that he would be
obliged to employ and pay them, though he could find no
employment for them.
Need I prove, Mr. President, that which is known to all men, that a
systematic pressure has been brought upon the clerks in the
Departments of the Government this year to extort from them a
portion of their salary under a system which the President himself
scouts as being voluntary, and that they are led to believe and fairly
led to believe that they have bought and paid for the offices which
they hold and that the good faith of those who take from them a
portion of the salary is pledged to their retention in their positions?
I have said before upon the floor of the Senate that this whole
system demoralizes everybody who is engaged in it. It demoralizes
the clerks who are appointed. That is inevitable. It demoralizes those
who make the appointment. That also is inevitable. And it
demoralizes Senators and Representatives who by the exercise of
their power as Senators and Representatives exert pressure upon the
appointing power.
I repeat that this system, permeating the whole civil service of the
country, demoralizes everybody connected with it, the clerks, the
appointing power, and those who by their official position and their
relations to the executive administration of the Government have the
influence necessary to put these clerks in office.
Mr. President, how can you expect purity, economy, efficiency to
be found anywhere in the service of the Government if the report
made by this committee to the Senate has even the semblance of
truth? If the civil service of the country is to be filled up with
superfluous persons, if salaries are to be increased in order that
assessments may be paid, if members of Congress having friends or
partisan supporters are to be able to make places for them in public
employment, how can you expect Senators and Representatives to be
economical and careful in the administration of the public money?
I am sure there is no Senator here who will forget a scene which we
had upon the last night session of the last session, when the Senator
from Iowa [Mr. Allison], the chairman of the Committee on
Appropriations, the official leader of the Senate, rising in his place
with the last appropriation bill in his hand, and the report of the
committee of conference, made a statement to the Senate of the
result of the appropriations. He stated that the appropriations that
were made during that session amounted to $292,000,000—I throw
off the fractions—and he felicitated the Senate and himself as the
organ and mouthpiece of his party, that this was an excess of only
$77,000,000 over and above the expenditures of the year before.
Instantly the Senator from Connecticut [Mr. Platt] rose in his place
and reminded the Senator that there would be a deficiency in the
Pension Bureau alone of $20,000,000 or $25,000,000. The
honorable Senator from Georgia, who now occupies the chair [Mr.
Brown], inquired of the chairman of the Committee on
Appropriations whether there would be any deficiencies in the
expenses of the current year, or whether the statement was supposed
to cover probable deficiencies in addition to the appropriations, and
the honorable Senator from Kentucky [Mr. Beck], certainly as
familiar with all these subjects as any member of this body, rose in
his place and said that notwithstanding the utmost scrutiny of the
Committee on Appropriations, undoubtedly at the end of the fiscal
year the ordinary deficiencies would be found.
Two hundred and ninety-two millions of dollars of regular
appropriations; $20,000,000 of deficiency in one bureau alone, the
usual deficiencies occurring during the course of the year of
$20,000,000 more! As if this were not enough, my honorable
colleague arose in his place and took up the tale and called attention
to the fact that the permanent appropriations amounted annually to
one hundred and thirty-seven or more millions of dollars. According
to his statement made in that speech, which I am sure nobody will
forget, the expenditures of the Government during this present fiscal
year would amount to $402,000,000 or $403,000,000—nearly $9 a
head for every man, woman, and child in the United States—more
money than was appropriated for all the expenses of the Government
during the first forty years of its existence, I will venture to say,
though I do not speak by the book.
Harbor and river appropriation bills of $18,000,000! Thirty-two
new buildings commenced in the States, almost every one of which
has had buildings before! Two million five hundred thousand dollars
appropriated for the commencement of those buildings, for laying
the foundation! Before they are finished $25,000,000 more will be
needed to complete them! While these enormous appropriations
were being made there came up from the country a demand for a
revision of the tariff, which was confessedly greatly needed; for a
revision of the internal-revenue laws, which was equally necessary;
for a reduction of taxation pressing so heavily upon all the interests
of the country. Our honorable friends upon the other side of the
Chamber chose to answer that demand by a bill repealing the taxes
upon perfumery and cosmetics and bank checks, and met with a
sneer of derision and ridicule every effort that was made on this side
of the Chamber for a reduction of taxation.
Mr. President, it was these methods of administration, it was these
acts of the Republican party, which made it possible for the
Democratic party, and other men who prized their country higher
than they did their party, to elect in Ohio a Democratic ticket by
eighteen or twenty thousand majority, and elect sixteen out of the
twenty-one members of Congress assigned to that State. I say elected
sixteen, perfectly conscious of the fact that thirteen of them only
have received their certificates at present. If three of them, against
whom the aggregate majority is only sixty votes, do not receive
certificates under the action of the returning board or under the
powers of our judiciary which have been invoked, they will be seated,
as they ought to be, at the beginning of the next session of Congress
in the other house.
Under the impulse of this election in Ohio, upon these facts and
influences which I have stated as being of great importance there, it
became possible for the Democratic party and its allies, whom I have
described, to elect a Democratic governor in New York, in
Massachusetts, in Kansas, in Michigan, and various other States in
which there has been none but a Republican governor for many years
past. The same influences enable us, having accessions to our ranks
from Iowa and Wisconsin and Michigan and Pennsylvania, to have at
the beginning of the next session of Congress an aggregate of
perhaps sixty or more Democratic majority in the House of
Representatives.
Mr. Hale. Will the Senator from Ohio let me ask him a question
right here? As he is confining himself very closely to the civil service
of the Government, I should like to ask him one question here
relating to that. He has appealed directly to the Chairman of the
Committee on Appropriations, who was not present at the time,
although he has just come in. The Senator from Ohio has alluded to
the remarkable speech made by the chairman of the Committee on
Appropriations upon the expenditures of the Government at the last
session, and the wonderful scene that was exhibited there at that
time. In that speech on the expenditures of the Government, by the
chairman of the Committee on Appropriations, was the admission
that the aggregate expenditures were seventy-odd millions of dollars
more than the year before—remarkable when in that speech of the
Senator from Iowa, the chairman of the Committee on
Appropriations, he showed that every dollar was accounted for by
deficiencies on the part of the previous Democratic Congress and by
the increase of pensions and some other matters.
Mr. Pendleton. I remember the speech of the Senator from Iowa
very well; I have quoted it repeatedly from the Record, in which I
found it. I did him no injustice; I know he will not believe I would
intentionally do him injustice at any time. I stated then, I stated a
moment ago, I have stated it on the stump, I repeat it now, that the
Senator from Iowa in that speech said that the appropriations for the
current year were $292,000,000, and that they were $77,000,000 in
excess of those made for the last year: and I might have added if I
chose to make it a partisan affair, that the last Congress was under
Democratic control.
Mr. Hale. And did he not account for every dollar of that
$77,000,000 increase? But I think I will leave it to him, as he is
present now.
Mr. Pendleton. Undoubtedly he accounted for it, for he gave all
the items that went to make up the $77,000,000.
I am confining myself more closely, Mr. President, to the
discussion of the reform of the civil service of the Government than
the Senator seems to apprehend. I was showing to him the causes of
this very remarkable revolution in public sentiment which we have
seen as exhibited by the last election. I attributed that result in great
measure to the defects in our civil-service system and to the
demoralization which, arising there and in its practices, has reached
the other departments of the Government.
Mr. President, I was about to say when the Senator from Maine
interrupted me that I begged gentlemen on this side of the Chamber
and I beg the Democratic party throughout the country not to
mistake this result of last fall as a purely Democratic triumph. It was
achieved by the Democratic party with the assistance of men of all
parties upon whom their love of country sat heavier than their love of
party. It was a protest made by an awakened people who were
indignant at the wrongs which had been practiced upon them. It was
a tentative stretching out of that same people to find
instrumentalities by which those wrongs could be righted.
The people demanded economy and the Republican party gave
them extravagance. The people demanded a reduction of taxation
and the Republican party gave them an increase of expenditure. The
people demanded purity of administration and the Republican party
revelled in profligacy; and when the Republican party came to put
themselves on trial before that same people the people gave them a
day of calamity.
I beg that my colleagues on this side of the Chamber may
remember, I desire that our party associates throughout the country
shall remember, that the people will continue to us their confidence
and increase it, that they will continue to us power and increase it,
just in the proportion that we honestly and fairly and promptly
answer to the demands which the people have made, and which were
thus responded to by the Republican party. They asked revenue
reform and they received none. They asked civil-service reform and
they obtained none. They asked that the civil service of this
Government should not either as to its men or its expenditures be
made the basis upon which political contests were to be carried on,
and they received for answer that that was an old fashion and a good
method of political warfare.
I beg gentlemen upon this side of the Chamber to remember that if
they desire to escape the fate which now seems to be impending over
their adversaries they must avoid the example which those
adversaries have set them.
Mr. President the bill which I have the honor to advocate to-day,
and which is reported by a committee of the Senate, is the
commencement, in my humble judgment, of an attempt to answer
one of the demands which the people have authoritatively made. I
speak advisedly. It is the commencement of an attempt to organize a
system which shall respond to one of the demands which the people
have made.
I suppose the most enthusiastic supporter of this bill will not
pretend that it is perfect. I suppose he will not pretend that upon the
adoption of this bill a system will immediately spring into life which
will perfect and purify the civil service of the Government. But it is
the commencement of an attempt to lay the foundations of a system
which, if it shall answer in any reasonable degree the expectation of
those who by experience and faithful study have framed it, it will in
the end correct the abuses to which I have alluded, and which have
been delineated by no enemy of the Republican party or of the
Administration in the report which I have read to the Senate.
The bill has for its foundation the simple and single idea that the
offices of the Government are trusts for the people; that the
performance of the duties of those offices is to be in the interests of
the people; that there is no excuse for the being of one office or the
paying of one salary except that it is in the highest practicable degree
necessary for the welfare of the people; that every superfluous office-
holder should be cut off; that every incompetent office-holder should
be dismissed; that the employment of two where one will suffice is
robbery; that salaries so large that they can submit to the extortion,
the forced payment of 2 or 10 per cent. are excessive and ought to be
diminished. I am not speaking of purely voluntary contributions.
If it be true that offices are trusts for the people, then it is also true
that the offices should be filled by those who can perform and
discharge the duties in the best possible way. Fidelity, capacity,
honesty, were the tests established by Mr. Jefferson when he
assumed the reins of government in 1801. He said then, and said
truly, that these elements in the public offices of the Government
were necessary to an honest civil service, and that an honest civil
service was essential to the purity and efficiency of administration,
necessary to the preservation of republican institutions.
Mr. Jefferson was right. The experience of eighty years has shown
it. The man best fitted should be the man placed in office, especially
if the appointment is made by the servants of the people. It is as true
as truth can be that fidelity, capacity, honesty, are essential elements
of fitness, and that the man who is most capable and most faithful
and most honest is the man who is the most fit, and he should be
appointed to office.
These are truths that in their statement will be denied by none,
and yet the best means of ascertaining that fitness has been a vexed
question with every Administration of this Government and with
every man who has been charged with the responsibility of its
execution. We know what is the result. Pass examinations have been
tried; professions have been tried; honest endeavors have been tried;
a disposition to live faithfully up to these requirements has been
tried; and yet we know and the experience of to-day shows it, that
they have all made a most lamentable failure. We do now know that
so great has been the increase of the powers of this Government and
the number of officers under it that no President, no Cabinet, no
heads of bureaus, can by possibility know the fitness of all applicants
for the subordinate offices of the Government. The result has been,
and under the existing system it must always be, that the President
and his Cabinet and those who are charged with the responsibility
have remitted the question of fitness to their own partisan friends,
and those partisan friends have in their turn decided the question of
fitness in favor of their partisan friends. The Administration has
need of the support of members of Congress in carrying on its work.
It therefore remits to members of Congress of its own party the
questions of appointment to office in the various districts. These
gentlemen, in the course of their political life, naturally (I do not find
fault with them for it) find themselves under strain and pressure to
secure a nomination or a re-nomination or election, and they use the
places to reward those whose friends and families and connections
and aids and deputies will serve their purpose.
I put it to gentlemen, particularly to my friends on this side of the
Chamber, because you have not the opportunity to exercise this
patronage as much as our friends on the other side, whether or not