Informal entrepreneurs: Street vendors,

their livelihoods and the influence of

social capital

Fruit vendor in Manalili street, Cebu City, 13-6-07

Master thesis International Development Studies

Tjerk Destombes
USC UU
17-5-2010
Acknowledgements.

After my initial ideas were modified thoroughly, my research internship in Cebu was agreed
upon and after finishing the research proposal I was off to Cebu. Because the informal sector
was an area of expertise I was not familiar with in practice I needed some time getting
acquainted with it. As anticipated my insight has grown considerably during the research
internship and the subsequent thesis writing, since it was a very interesting exercise in all
angles of research, not at least the hardships. The process benefited my understanding a lot,
and hopefully will add some information to the ongoing insights in this lively side of
economy, where statistics lose their power to mutually beneficiary relations; the hardly
quantifiable rationale of social capital, which is a concept in development, while it is already
so apparent throughout the economy of Cebu and the rest of the world.

Without the support and understanding of the following people involved in my research
internship, the eventual product would not have been as it is at this present moment. In
order of remembrance: Father Theodore D. Murnane, Miss Alma Trinidad and Miss Kate
Aguilar of the Office of International Linkages. Dr. Victorina M. Zosa, and Miss Celeste S.
Villaluz of the Zonal Research centre. Mr. Adrian Boyett D. Agbon, of the economics
department of University of Cebu. The staff of and workers in SSRC, in particular Lauren
Ligaton, Edwin Tesaluna, Mr Bernie Caizares and Julie Belaniso. Also, the advice and help of
my supervisors Guus van Westen, in the Netherlands and Bram van Helvoirt both in the
Netherlands and in the Philippines was of big value to my research. Further more I want to
give credit to the research assistants, who helped me conduct the questionnaire: miss Daryl,
miss Divine, miss Joyce, miss Jelyl and mr. Louie.
Off course I am grateful to all the respondents and the interviewees, from both
governmental and non-governmental side. A special thanks goes out to the board of CCUVA,
in particular Miss Maria Pino and Miss Celia Quijoy, where I could enter at any given time,
and was welcome throughout the course of my research.
Further more, after my return in the Netherlands I benefited from the support of my mother
Saskia Destombes and father Henk van Diepen, my girlfriend Wienie Blom and friends that
helped an extra bit in stimulating the process of writing, Frank Hurkmans and Rosa
Draaisma.

Tjerk Destombes, 17-5-2010

Jeepney passengers, Cebu City, 17-4-07

2
Index.
Acknowledgements. 2

Index. 3

List of Figures, Tables and Maps. 5

Executive Summary. 7

Chapter 1. Introduction 9
1.1 Outline and research design 10
1.1.1 Hypothesis and Research Questions 10
1.1.2 Conceptual model and actor oriented approach 12
1.2 Methodology 15
1.3 Regional context 16
1.3.1 Market areas around the city 16
1.3.2 Old Downtown: the Barangay level 17
1.3.4 Metro Cebu: second largest metropolitan area of the Philippines 20
1.3.5 Region VII, Central Visayas and Cebu Province 21

Chapter 2. Theoretical Framework 22

2.1 Informal economy 22
2.1.2 Informal entrepreneurs 24
2.2 Livelihood approach 25
2.3 Social Capital 26
2.3.1 Social capital in this research 28
2.4 Conclusion for the research 29

Chapter 3. Street vendors in Old Downtown Cebu City 30

3.1 Location 30
3.2 Types of vendors 31
3.3 Basic Characteristics of fruit and flower vendors in Old Downtown Cebu 33
3.4 Livelihood 35
3.4.1 Income and profit margins 35
Conclusion 3.4.1 37
3.4.2 Initial working capital 38
3.5 Supply and value chains 41
3.5.1 Suppliers 41
3.5.2 Buyers 46
3.6 Goal achievement 49
3.6.1 Desires 49
3.6.2 Capability 51
Conclusion of 3.6 54
3.7 Image of street vendors and street vending in Cebu City 55
Conclusion of 3.7 57

3
 3.8 Conclusion of the chapter 57

Chapter 4. Local government Policy 58

4.1 Introduction: policy making to meet the street vendor situation: 1980-2007 58
4.2 Historical roots of local government policy towards street vendors 59
4.2.1 Actors in developing legislation and policy towards street vendors 59
4.2.2 History of policy towards street vendors through consecutives ordinances 62
4.2.3 Interference from CCUVA: reaction on ordinances and pressure 66
4.3 Actual execution of policy in Cebu in 2007 and relation with and attitude towards local
government policy of street vendors 68
4.3 Actual execution of policy in Cebu in 2007 and relation with and attitude towards local
government policy of street vendors 68
4.3.2 Outside Carbon Market 69
4.3.4 Stakes in relation between vendors and local government in a comparative perspective
75
Conclusion of 4.3 77
4.4 Outlook for, and direction of local policy 78

Chapter 5. Street vendor organization 80

5.1 Personal relations of street vendors 80
5.2 Street vendor organizations 87
Conclusion of 5.2 96
5.3 CCUVA and its influence on street vendor organizations 97
5.3.2 Opinion of the street vendors about CCUVA 105
Conclusion of 5.3 108
5.4 Cooperatives 109
Conclusion of 5.4 113
5.5 Local Government and CCUVA 114

Chapter 6. Conclusion of the research 117

Chapter 7. SWOT-analysis 123

Recommendations for further research 128

Bibliography 129

Annex I Questionnaire 133

Annex II Proposed resolution by CCUVA and councilor Labella 142

Annex III Official supply and value chains and identified fruit and
flower supply and value chains 146

4
List of Figures, Tables and Maps.

Figures

Figure 1.1 Conceptual Model 12

Figure 1.2 Venn Diagram of mutual influence of main actors in thesis 14
Figure 3.2 Most important source of income in household (total percentage) 36
Figure 3.3 Sufficient income for daily needs? 37
Figure 3.4 Sources of initial working capital 38
Figure 3.5 Most important source of initial working capital 40
Figure 3.6 Times of week buying stocks (total population) 42
Figure 3.7 Always same supplier (suki)? 43
Figure 3.8 Amount of suki wholesalers 43
Figure 3.9 Location of Suppliers 45
Figure 3.13 Amount of regular buyers 46
Figure 3.14 Types of buyers and spending (whole population) 47
Figure 3.15 Average spending of customers (whole population) 47
Figure 3.17 Desire to make changes in current livelihood situation 49
Figure 3.18 What change in your livelihood would you desire, RANK #1? 50
Figure 3.19 What change in your livelihood would you desire, RANK #2 and #3? 50
Figure 3.21 Do you feel that you have the ability to change your livelihood situation? 54
Figure 3.22 Are you satisfied with the fact that you are a street vendor? 55
Figure 3.23 Do you feel you are making a positive contribution to the image of street
vendors? 56
Figure 4.1 Are you satisfied with local government policy? 73
Figure 5.1 How do you rate your relations with other street vendors in general? 81
Figure 5.2 Do you cooperate with other street vendors? 82
Figure 5.3 Do you share business information and information about your credit situation
with other street vendors? 83
Figure 5.4 How often do you have contact with other vendors concerning business
matters? 84
Figure 5.5 Do you cooperate with businesses (non street-vendors) in the vicinity of your
business? 85
Figure 5.6 How often do you cooperate with non- street vendors in your vicinity? 85
Figure 5.7 Member of an organization? 88
Figure 5.9 Do you cooperate with unorganized vendors as well? 91
Figure 5.10 Do you cooperate with other vendors that you know through your
organization? 92
Figure 5.11 How often do you cooperate through your organisation? 92
Figure 5.12 Which forms of cooperation do you have through your organization? 93
Figure 5.13 Most important forms of cooperation within own organisation 94
Figure 5.14 What are the benefits of your membership? 95
Figure 5.15 What is the most important benefit of your membership? 96
Figure 5.17 How often do you cooperate with vendors through CCUVA? 105
Figure 5.18 Is CCUVA supportive in your wishes? 106
Figure 5.19 Are you member of a cooperative? 109

5
Tables

Table 1.1 Descriptive sub questions 11

Table 1.2 Analytical sub questions 11
Table 2.1 Benefits and costs of formal and informal sector 24
Table 3.1 Overview of basic characteristics of street vendors, sorted by highest frequency
33
Table 3.2 Expenses to acquire daily stock and daily income compared 35
Table 3.4 Percentages of total population (fruits and flowers combined) 40
Table 3.3 Needs for formalizing business, divided over stakeholders 51
Table 3.4 Constraints in formalizing business, divided over stakeholders 52
Table 3.5 Opportunities for realising wishes, divided over stakeholders 53
Table 4.1 Overview of Ordinances concerning the policy towards street vendors 60
Table 4.3 Unwritten Policy of Maximum Tolerance Towards the Street, Sidewalk and
Ambulant Vendors 71
Table 4.4 Local Government supportive or not supportive to vendors? 74
Table 4.5 Incentives for and against policy design towards street vendors (Roever,2005) 76
Table 5.1 Member organizations of CCUVA, june 2007 89
Table 5.1 CCUVA supportive or not supportive to vendors? 106
Table 7.1 Meso level, CCUVA and Local Government 123
Table 7.2 Micro Level, Street Vendors and Street Vendors Organizations 125

Maps

Map 1.1 Aerial view of Cebu City and parts of Mandaue City and Lapu-Lapu city 17
Map 1.2 Metro Cebu 20
Map 1.3 Central Visayas 21
Map 3.1 Map with spread of Street Vendors in Old Downtown 31
Map 4.1 Designated market areas in Cebu City 69

6
Executive Summary.

Research
In this research the main question: To what extent does organization among the street
vendors contribute to the realization of their goals and what are the consequences for their
livelihoods? Has been researched

Abstract of conclusion
Street vendors have desired goals. These goals surprisingly are not situated in the realm of
entering the formal sector. Rather they want to expand their business and carry on within
the same framework they are acting in. Street vendors are satisfied with the efforts of their
union CCUVA and with the maximum tolerance policy of local government. The main goal of
the street vendors is to improve their business and expand their business and revenues in
order to improve their livelihood. The current policy is one of status quo on the legal side,
where officially vendors are illegal, but managed within a policy of maximum tolerance, with
no priority for local government to change the situation. CCUVA and other organizations are
at the heart of negotiating a participatory process that includes local government and street
vendors represented by their organizations alike. They made progress but the goals are not
yet met.

Context
In Cebu City, the capital of the Central Visayas in the Philippines street vendors are
omnipresent. The metropolitan area of Metro Cebu, comprising 5 cities, hosts some 2 million
inhabitants. Cebu City itself fosters some 798,000 of them (NSO, 2007). Of those 798.000
city dwellers, at least 40.000 are street vendors, or informal entrepreneurs. This implies that
about 5% of the inhabitants of Cebu City are street vendors. In practice this number might
be even higher, since a, by definition, hard to measure amount of street vendors is
unorganized and thus not included into statistics. For this research, specifically the vendors
in old downtown Cebu have been researched, divided into two strata: fruit and cut-flower
vendors.

Street vendors as informal entrepreneurs

Street vendors are part of the informal sector of the economy. They enjoy the benefits of
being informal, such as savings on zoning, tax and other costs. At the same time they
experience the pitfalls such as threat of demolition, lack of legal protection and lower
efficiency of capital use. On the one hand street vendors in Cebu City face notorious
eviction, threat of demolition of their stalls from the local government, on the other hand
they can use their profits solely for improving their business or maintaining their livelihoods.
In practice they do often have a fixed working place and pay a 6 pesos fee called arcabala
every day. This illustrates the ambiguous position they are in or shady practice that street
vendors are subject of.

Social capital
An important variable in the livelihood provision of street vendors is a widely debated one:
the notion of social capital. A definition of social capital is: the expected returns to social
relationships. Or: relationships with and between others to help individuals to accomplish
goals they cannot achieve on their own. Social capital has aspects on both the individual
level (investments, relationships, reciprocity, resources) and collective level (trust, norms,
cohesion). Marginalized people suffer the most from a decline in social capital, since it
directly influences their livelihood.

7
Street vendors rely for a very important part on their individual social capital in executing
their business. They have trusted relations with their suppliers, often family or suki. A suki
is a trusted relation, with whom a regular exchange of business takes place, based on trust
and mutual agreements.

The communal version of social capital is mainly membership of a street vendors

organization. These geographically bound groups of street vendors principal task is to
negotiate the vending space for vendors. Since they are illegal by law, this form of social
capital is essential in maintaining their livelihood.

Street vendors organizations

In Cebu the overarching framework of street vendor organizations is CCUVA, the umbrella
organization that is managing all the smaller vendor organizations and acting as a permanent
representative towards the local government.
Besides CCUVA there are several cooperatives providing favorable loans to street vendors.
There are also NGO initiatives geared towards the improvement and ease of street vendors.
Finally DTI and the local government make work of easier access for business registration.
This is still problematic for street vendors since they lack a formal vending place.

Local government
The position from local government towards street vendors is ambiguous. It changes often
with every new mayor and political fashion. Generally speaking the negotiations between
CCUVA and local government authorities mean shelter for the street vendors. CCUVA is
institutionalized since its ideas and policy-influence are recorded.

Conclusion
Street vendors have desired goals. These goals surprisingly are not situated in the realm of
entering the formal sector. Rather they want to expand their business and carry on within
the same framework they are acting in. Generally speaking can be concluded that the micro-
business of street vending is more than a sponge for less fortunate dwellers, it can be a
career for people coming from poor backgrounds, and ultimately it can be a life achievement
and desired goal as well.
An important result that is achieved through the cooperation of street vendors is the fact
that their voice is now heard at policy level. This mainly is the accomplishment of CCUVA.
CCUVA is also responsible for the creation of some order in the chaotic scene of street
vendors in Cebu City. Through their stimulating efforts in creating and maintaining street
vendors organization a equal division is made of street vendors activities throughout old
downtown.
Street vendors are satisfied with the efforts of CCUVA and with the maximum tolerance
policy of local government. Their main goal is to improve their business and expand their
business and revenues in order to improve their livelihood.

Outlook
As long as there is a thriving informal sector and an ill-managed or too small formal sector
the phenomenon of street vending will be part of the informal sector of economy. The social
capital of street vendors provided by their extended family and suki networks, sense of
community and political voice through their organizations and representing umbrella
organizations such as CCUVA provides the street vendors with a framework for maintaining
and improving their situation without loosing the benefits of informality. This raises the
question whether strong institutions are the most important factor in managing economic
growth and livelihood improvement.

8
Chapter 1. Introduction
Research outline, conceptual model, methodology and regional context

This thesis tries to shed some light on the legal environment, supply chains, social networks
and political and organizational policies and incentives that influence the livelihoods of
street vendors working in the cut-flower and fruit business in Old Downtown Cebu City. The
thesis is based on interviews with relevant stakeholders and street vendors and a
questionnaire conducted among 96 street vendors in the downtown area of Cebu City,
followed by extensive literature review and data analysis. The research was executed during
a fieldwork in april-july 2007. Literature review and analysis of the fieldwork outcome have
been done in the subsequent period.

The motive to start this research project was to contribute to the research project of the
Urban Research centre Utrecht (URU) about divergent relational economies in the central
Visayas region. In the central Visayas relational economies are existent, as they are
throughout the world. Relational economies are based upon principles of the institutional
economy approach, in which is stated that the norms and relations between actors in a
region shape the transaction costs between firms. Preferences change over time and market
information is seldom complete. This creates a dependency on other actors that is
supposedly best met by institutions providing norms and help firms, or street vendors in the
light of this research, to organise their relations with other economic agents. (van Helvoirt,
2009)
This organization and the access to it is one form of social capital, that can be denominated
as an important factor in a relational economy.
The, for this research, chosen form of relational economy is present in the informal sector,
or more lyrically: the shady side of economy where statistics lose their power to mutual
beneficiary relations.
When the relational aspects of the informal entrepreneurs in Cebu are drawn, similarities to
both small and medium enterprises and also larger companies can be determined, as well as
the value of the social capital in the micro-business performance. In the case of street
vendors the social capital is probably a vital asset, since they are illegal and face eviction
posed by the local government. Besides this possibility for comparison also an insight in the
livelihoods of street vendors is given.

Relevance
The relevance of this project exists in two areas.
1) to gain insight in the informal sector in Cebu in a quantitative manner and contribute to
the research project researching the divergent relational economies in the Central Visayas,
and:
2) to identify measures and means to facilitate an improvement in the working conditions
and livelihood provision of street vendors in Cebu City.

Academic relevance is brought to bear by the fact that social capital in the informal sector is
a subject of research that has a lot of interest from the side of academe and also policy side.
It is apparent through the abundance of literature and policy design, or efforts towards
policy design that are present in this field. Street vendors have not been heavily represented
in this literature, which is why research in this field is in an early stage, but interesting
nevertheless.

9
Besides the intrinsic value this study draws on sources from almost ten years ago, when the
last serious research was done concerning street vendors in Cebu by Felisa U. Etemadi and
Giselle Yasmeen. Recommendations then made by Etemadi towards the local government
were scarcely executed and it might be opportune to see if these recommendations are still
valid and interesting for policy makers and stakeholders in the vendor situation at present.

1.1 Outline and research design

Literature review on street vendors and the importance of their organization let me to the
point of departure of a comparison between organized and unorganized vendors resulting in
the following main question: To what extent does the rate of organization among the street
vendors benefit the realization of their goals and what are the consequences for their
livelihoods?
After my initial interviews with CCUVA and Gerry Marquez, City consultant on urban poor in
april 2007 shortly after my arrival in Cebu City, I reached the apprehension that virtually the
whole population of street vendors was organized, which steered me to the belief that it
would not be a distinctive factor.
This translated, after consultation with the host organization, the University of San Carlos, to
a change in my main research question into:

To what extent does organization among the street vendors benefit the realization of their
goals and what are the consequences for their livelihoods?

In this way the focus has changed from the distinction between organized and unorganized
vendors into the benefits of being organized in street vendor associations. In the theoretical
framework (chapter 2) the main concepts 'informal sector', livelihood and social capital
are operationalized.

Although it seems to be only a slight adaptation at first sight, this altered the scope of the
research significantly, since the dichotomy of unorganized and organized vendors were a
sound basis for comparison in relation to the benefits and constraints of being organized.
With the change in focus, the emphasis became the exploration of organized vendors and
their situation, without comparing it to a significant other. To still be able to add a
comparison in the research I decided to research two different types of vendors which
represent two groups of products with different supply and demand channels. This choice
was made to be able to compare the performance of these two groups and in that way
accentuating the differences within the population of street vendors in Cebu.

1.1.1 Hypothesis and Research Questions

The research design was made using the earlier mentioned main question as point of
departure. Since the distinction between formal and informal sector seemed to be the most
interesting unit of analysis a hypothesis was formulated as well, forged out of literature
review in writing the thesis outline before leaving for the fieldwork.

Hypothesis:
Street vendors want to become part of the formal sector

The hypothesis suggests that the goal of street vendors lays in the realm of becoming part of
the formal sector. In chapter 3 this hypothesis is tested against the results from the
questionnaire.

10
Main Question:
To what extent does organization among the street vendors contribute to the realization of
their goals and what are the consequences for their livelihoods?

From this question six sub questions were derived, together composing an answer to the
main question. The sub questions are divided into descriptive questions (see table 1.1),
sketching the context and situation of street vendors, their livelihood and the influential
factors, and analytical questions analyzing these contexts (see table 1.2).

Table 1.1 Descriptive sub questions

Question: Methodologies used: Answered
in
chapter:
What are the characteristics of fruit and cut- -Questionnaire 3
flower vendors? (What is the build-up of -Transect walk (defining
their livelihood? Income? Background? location of two strata of
Relation with suppliers/buyers?) vendors)
-Interviews with street
vendors
Observation
What is the local policy on street vending -Literature review 4
and how does this affect the livelihood of -Interviews
street vendors? -Archival research

What are the goals and practices of street -Literature research 5

vendor organizations? -Interviews with key
persons and relevant
stakeholders

Table 1.2 Analytical sub questions

Question: Methodologies used: Answered
in
chapter:
What are the consequences of the strategies -Questionnaire 5
of street vendor organizations -Interviews with relevant
for the street vendors? stakeholders
How do local policy and street vendors -Questionnaire 4,5,
organizations influence each other? -Interviews SWOT
What is the role of formalization in the -Questionnaire 3,4,5,
wishes and needs of vendors, as well as in -Interview with key SWOT
the goals of street vendor organizations and persons
local government policy?

These sub-questions lead in various directions:

1. The actual way street vendors in Cebu City are executing their business: the every day
practice and its dynamics. Operationalized through observation, literature review and a
questionnaire.

11
2. .The policy towards street vendors in Cebu City and the way they adapt to and cope with
this: the political component. Operationalized through interviews, observation, literature
review and a questionnaire.

3. The role that is played by the street vendor organizations in both mediating the policy and
influencing the success street vendor businesses: the organizations as social capital
component. Operationalized through interviews, observation, literature review and a
questionnaire.

4. The identification of what street vendors want for the future of their livelihoods, and the
consequence of the influencing factors for this goal: the goal achievement.
This is operationalized by the questionnaire and interviews.

1.1.2 Conceptual model and actor oriented approach

The possibilities and constraints that are occurring in these fields relate to the conceptual
model in which it is operationalized that street vendors want to improve their situation,
either within or outside the informal sector. The goal achievement, or wishes for the future
of street vendors, is what is thus ultimately researched, with the focus on the role of their
organization membership as a strategy and influencing factor in achieving their goals.

Figure 1.1 Conceptual Model

Goals and
strategies
Street vendors
Improvement associations
livelihood

Informal sector
Formal sector
Membership of
organization:
Goals of street Social capital
vendors

Local
Street vendor
government
Livelihood
policy

12
Through this conceptual model, the main question is structured. For structuring the build up
of the sub questions in the thesis I made the main actors or stakeholders in this model be
the point of departure, which shapes the contours of an Actor oriented approach.
The main focus derived from the proposal was the influence of social networks on the
livelihoods and goal attainment of street vendors. This question is the thread that binds the
thesis. To operationalize the question through three stakeholders in the tangible and
intangible livelihood of street vendors the analytical framework becomes apparent at an
actor-oriented level.

Various actors can be identified as influencing the situation of street vendors in Cebu, the
most important ones are:
Street vendors
Local government (through policy and operated by market authority, urban poor
consultant, DTI)
Street vendors organisations.
Buyers and suppliers
Cooperatives (Kamansi, CEMVEDCO, FTMPC)
Other stakeholders: NGOs , national government (policies)

The three main stakeholders or influencing factors regarding the situation of street
vendors are the units of analysis in the thesis. They are indicated in the figure as focal points.
In the conceptual model they are represented as a Venn Diagram, since all actors influence
each other. The sub questions are designed to gain insight in the way this influence takes
shape and influences the street vendors livelihoods.

13
Figure 1.2 Venn Diagram of mutual influence of main actors in thesis

Street
Vendors

Local Street
Govern vendor
ment organiza

Unit of analysis
The analysis is based on two geographical levels (which are reviewed in chapter 7 SWOT):
Micro level: street vendors
Meso level: street vendors organizations (with CCUVA as overarching organization) and
local government

14
 1.2 Methodology
After the initial proposal was approved I aimed at three steps of research, being:

1. Obtain information about where to research the street vendors. Mapping the amount of
street vendors, their characteristics and the organizations they are member of. Why are they
street vendors? What do they want to change in their economic situation? Do they want to
become part of the formal sector (by starting a business) or do they want to stay street
vendors (informal sector)? What are the main constraints to reach their goals? What is the
policy of the local government on street vending?.
All these questions were asked in several interviews and made quantifiable through a
questionnaire among fruit and cut-flower vendors

2. Research the goals of the organizations that were mentioned in the research population.
How does the organization help the street vendors in improving their livelihood? How does
it protect their livelihood?
Interview NGOs or other organizations, stakeholders involved in this subject

3. Analyze into what extent the organizations meet the wishes of the street vendors. And
analyzing what the street vendors want to change in their situation.
Limited by time-constraints because of a late execution and processing of the questionnaire
results, the feedback on the questionnaire results has been very limited. Still triangulation is
possible because of the following methods used:

Quantitave methods:
A questionnaire (transcript Annex I), which provided quantitative data regarding the street
vendors and their livelihoods. Research population: 96 street vendors in downtown Cebu
City. Both fruit and cut-flower vendors.

Qualitative methods:
- Interview. Interviews with key persons: street vendors, local government representatives,
CCUVA leaders and street vendor organizations leaders.
Interviews with relevant stakeholders: cooperative leaders, microfinance program,
government line agencies
- Literature review. Through policy research, archival research and obtaining secondary
sources like newspapers and academic sources through desk research.
- Transect walk. A transect walk that mapped the research area and gives an overview of the
geographical spread of street vendors in the area of research.

Focus
What ultimately provides social capital are the stakeholders, the people, organizations etc.
involved in shaping the livelihood. This includes direct contacts with buyers and suppliers as
well as influencing factors such as policy makers and executers. The tension between policy
(makers) and street vendors and their organizations is what is taken as the focus of the
analysis.

15
 1.3 Regional context

The regional context gives a short but comprehensive overview of the region in which the
research was situated. It aims to give an insight in the history and economic development of
the Visayas region and Cebu City. The background of the present day situation in Old
Downtown Cebu City, where the street vendors are operating their business at a daily basis,
in that way earning their livelihoods and shaping their future goals in the meantime. They
operate both in the streets and in the market areas, mainly Carbon Market, the oldest
market in the south side of Old Downtown. The focus is put on that area, the heartland of
informal vendors in Cebu, first ( 1.3.1), subsequently zooming out to the Barangay level (
1.3.2), the City level ( 1.3.3), the Metropolitan level ( 1.3.4) and concluding with the
regional level ( 1.3.5). Location, population, history and administrative topics will be
highlighted throughout the chapter, drawing a picture of the larger regional context in which
street vendors find their livelihood.

1.3.1 Market areas around the city

Carbon market is the largest and oldest market in Cebu City. It exists for over a century
already. Where the market is located nowadays, there used to be a coal depot where trains
unloaded their coals. The depot, the railway and the coals have seized to exist in the
meantime. Carbon market is still here.
Carbon market is a thriving area where hundreds of vendors operate from their fixed stalls
and vending spaces and many ambulant vendors try to find a place as well.
It is a busy, noisy and, in the eyes of many, dirty market place with literally hundreds of fresh
foods, ranging from the core consisting of vegetables, fruits and sari-sari, via meat and dairy
products to flowers, clothing, apparel and everything in between.
Within the city and the region the market is known for its competitive prices. Still many
regard it as an unsafe area at night. It forms a big contrast with the Ayala and SM malls, the
huge modern shopping centers in other parts of the city. In a way it shows the huge diversity
and the enormous differences in both development as well as wealth-distribution in the city
of Cebu.

Carbon market may be downtown Cebus inconvenient version of the posh supermarket in
malls, but to the vendors, its their precious gem in the very heart of Cebu, concludes an
article in the Cebu Daily newspaper (Cebu Daily, 2009).

Carbon market, 17-4-07

16
 1.3.2 Old Downtown: the Barangay level

The Barangay is the smallest administrative division within the Philippines. Usually it exists of
only a few streets, and forms a little neighbourhood. Barangays date back to the communal
way of living that was in place before the Spanish conquerors entered the Philippines in the
16th century. Usually thirty up to one hundred families lived together in small villages, which
were named Barangays. When cities originated under Spanish administration, the Barangay
was incorporated as administrative division.

Barangay administration
Barangays are managed from the Barangay hall and by the Barangay Officials, headed by
the Barangay Captain. Barangays are treated as the smallest Local Government Unit, and
have legislative power. The Barangay Tanod is the policing force within the Barangay. Both
the Barangay captain and tanods are elected, usually every three years.

1.3.3 Cebu City: stage of Philippine development

Map 1.1 Aerial view of Cebu City and parts of Mandaue City and Lapu-Lapu city

Source: Google maps

Location, population, characteristics

Located in the centre of the Philippine archipelago the Queen City of the South Cebu,
famous for its sweet mangoes and hardworking people has a moderate tropical climate
without a distinct wet and dry season, on a yearly basis the average temperature is around
27. Summer reaches it peak in the months of april and may and the wettest season is

17
september. Besides for touristic purposes, this makes the city enjoyable and thriving for its
inhabitants as well. According to the latest census Cebu Cit hosts 798,809 inhabitants (NSO,
2007), with a birth rate between 2000 and 2007 of 1,46. Based on projections and birth rate
in 2010 around 812,499 people live in Cebu City (World Gazetteer, 2009)

Cebu City is situated on the eastern coastal belt of the island-province of Cebu. It is in the
core of Metro Cebu, neighboured by Mandaue City on the northwest and Talisay City on the
southeast side, in the eastern side the city faces a mountain rim and on the western side the
island of Mactan lies within shooting distance, and is bridged through the Mandaue-Mactan
and Marcelo Fernan bridges to the mainland. The core of the city is situated on a coastal
plain, which still encompasses only 15% of the land area of the municipality. 80% of the
terrain is mountainous, rising up to 800 meters. The mountainous area has become
inproductive due to the adverse effects of soil degradation and erosion. Intensive land use
by the dense population is a major contributor to this phenomenon. Besides this the weak
to the hinterland, with few feeder roads have weakened the opportunities for agricultural
use. Still many fruits and flowers find their origins in the vicinity of Cebu City. The land use in
the metropolitan core is also very intensive and ever more intensifying as the city is growing.
Land reclamation projects are one way to create more space for economic and demographic
growth.

The old districts of the city feel the demographic pressure, which is in one way represented
by the amount of street vendors present in the streets. The Central Business District of Cebu
City hosts many service-oriented businesses, alongside some international companies. Cebu
City is the largest commercial and service center of the southern Philippines (van Helvoirt,
2009).

City Government
Cebu City is governed by city hall, composed of the mayor, vice-mayor and sixteen councilors
of which eight represent the northern and eight represent the southern region of the City.
Each official is elected publicly for a three year term. The day to day administration of the
city is handled by the city administrator. At the time of the research (2007), Tomas Osmea
was Mayor (and is still to date, 2010), Michael Rama was Vice-Mayor and Francisco Bimbo
Fernandez was the city administrator. With the mayor and city administrator interviews
were conducted throughout the course of the research. In chapter 4 more information
regarding the local government and its policies towards street vendors specifically can be
found.

History and economic development

From its conception as Sugbu, until its rise to the second largest metropolitan area in the
Philippines, Cebu has always had the name of being outward oriented. Earliest recordings
identify it as a regional trading hub were the local animist and Islamic tribes traded with
Malaysia, Indonesia and Chinese merchants.

The outward from Europe entered the small natural port in the strait of Mactan for the first
time in 1521. Famous explorer Ferno de Magalhes or Ferdinand Magellan, a Portuguese in
service of the Spanish king Carlos I, sailed into the port of Cebu. Subsequently he baptised
the chieftain of Cebu Rajah Humabon and his people and presented them as a gift the Santo
Nio a replica of an image of the Holy Child Jesus. To this date, the Santo Nio is a sacred
figure in Cebu. A basilica was built on the place where the replica was found after the next
Spanish guest, and this time conqueror, Miguel Lopez de Legazpi had conquered Humabons
cousin and successor in Cebu in 1565. The first Spanish visit had ended with the death of

18
Magellan, when he acted in a dispute between Humabon and the ruler of Mactan island
Datu Lapu-Lapu.

Santo Nino, source: Flickr.com creative commons

Between the Spanish rule and today the City has grew enormously through a combination of
favourable geographical location and smart management. The natural port of Cebu today
carries 80% of domestic shipping in the region, the City serves as the commercial hub and
rally point for goods coming in from Manila and the rest of the world via its port and Mactan
International Airport. It is the educational centre of the Southern Philippines with 6
universities, and hosts the bulk of financial institutions and their supporting business, as well
as most government line institutions in the Southern Philippines. Besides that it is the hub
for tourism to the region, it hosts several large shopping malls and retail outlets, amongst
them 22 supermarkets (Colchero, 2008) which form strong competition for the street
vendors, and hosts a growing number of IT related companies, both domestic and
international. It has grown to be the socio-cultural and religious centre of the region as well
(van Helvoirt, 2009), thriving on its rich heritage, as described before, and the core function
of the city within the region.

The political leaders of Cebu have influenced the enormous development of the city since
the 1940s. they took maximum advantage of the favourable geographical assets of the city
(coastal plain, central node of the region, natural harbour), by investing in major
infrastructural projects that created an attractive environment for both local and external
investors. The two Special Economic Zones, the Mactan Export Processing Zone I and II draw
a considerable amount of Foreign Direct Investment towards the city (van Helvoirt, 2009).
The most recent infrastructural project however, the drymaking of a large strip of land
between Cebu City and Talisay City, known as the South Reclamation Project, did not yet
gained a lot of investment and is burdening the local government finance with an excessive
loan from the Japanese Development Bank (Van Naerssen, 2008)

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 1.3.4 Metro Cebu: second largest metropolitan area of the Philippines

Map 1.2 Metro Cebu

Metro Cebu, Source: Wikimedia Commons

Location, population, characteristics

The before mentioned highly urbanized areas within metro Cebu are: Cebu City, Mandaue
City and Talisay City. The fact that they are denominated this way is important, it means they
are classified as independent cities. Independent cities have their own legislative branch
called Sangguniang Palingsod. They have legislative powers defined by the Local
Government Code, which was enacted in 1991. Normally the legislative branch of the
province, or Sangguniang Panlalawigan surpasses this. But an independent city has two
major differences:
1. The legislation brought to bear by the Sangguniang Palingsod is no longer subject to
review by the provincial Sangguniang Panlalawigan.
2. The city stops sharing tax revenues with the province.

This is important because it underlines the power of local government in the municipalities
in Metro Cebu. Especially in Cebu City there is an odd struggle between the provincial
Governor Gwen Garcia and the Mayor of Cebu City Tommy Osmea. Because the location of
the provincial capitol is in the center of Cebu City (van Naerssen, 2008)

Economy
A large share of Small and Medium enterprises defines the biggest economic engine outside
the Export Processing Zones in the metro. These SMEs are largely export oriented and
regionally owned they produce furniture, toys, gifts, housewares, fashion, accessories,
garments and processed foods for the global market. The cities of Mandaue , Lapu-Lapu and
Talisay dominate this sector, that is the traditionally forms the backbone of local economy.
(van Helvoirt, 2009, pp86)

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 1.3.5 Region VII, Central Visayas and Cebu Province

Map 1.3 Central Visayas

Central Visayas region, source Wikimedia Commons

Location, population, characteristics

The Central Visayas are the central part of the Visayas, one of the three main island groups
in the Philippines, and therewith in the centre of the Philippines. The other two main island
groups are Luzon in the North, where the capital region of Manila is situated, and Mindanao
in the South.
The region is divided into four provinces: Cebu, Negros Oriental, Bohol and Siquijor. For
more than statistical purposes there are also three highly urbanized areas appointed. These
are: Cebu City, Lapu-Lapu City and Mandaue City. The three cities also form the main core of
Metro Cebu. The total land area is 15,875 km. The island of Cebu accounts for 4,468 km of
this area.
6,398,628 people live in Region VII, according to the census of 2007 (NSO, 2007), of which
2,314,897 live in Metro Cebu, which accounts for 20% of the land area of Cebu Province.
The region has a population density of 403/km. Between 2000 and 2007 the average
growth rate of the population was 1,59%, which is far below the national average of 2,04%.
The economy of the region is dominated by the main island of Cebu, more specifically the
metropolitan region of Cebu, which contributes a mere 80% of the Gross Regional
Domestcie Product of the Central Visayas region. All socio-economic indicators of the region
are heavily influenced by Metro Cebu (van Helvoirt, 2009).
The main language that is spoken in the region is Cebuano, commonly referred to as Visayan.
It is a regional language spoken in the Visayas region. Next to Cebuano most people speak
English as a second language, English is an official language in the Philippines and therefore
educated from primary school onwards. Early school leavers tend not to be able to speak it,
and amongst street vendors the proficiency in English is relatively low.

21
Chapter 2. Theoretical Framework
Relationships matter

In this chapter some the core concepts underlying the informal businesses of street vendors
are elaborated upon.

The two main tiers are concepts in debate: informal economy ( 2.1) and social capital
(2.3). Being a part of the informal sector street vendors rely on their social capital for an
important part of their livelihood provision. Theories and literature, more specifically aimed
at street vendors and their organizations are also taken into account. Another subject for
review is livelihood, since it is the quintessence of street vendors business. Livelihood and
the livelihood approach are discussed in 2.2

2.1 Informal economy

The informal economy has been a contested concept ever since its birth, when it was first
mentioned in the research of Keith Hart and subsequently entered into a common term by
ILO as the denominator for the way some African urban economies functioned. It has always
been a contested concept and has been in and out of fashion many times. Still today it is a
valid concept and more recognized since it covers the vast amount of economic units and
workers that remain outside of the world of regulated economic activities and protected
employment relationships.
To stress the difference: it might be useful to define the formal economy
Formal economy: comprising the regulated economic units and protected workers
Formal regulatory environment: comprising government policies, laws and
regulations
(Alter Chen, 2007)

To define the informal economy various definitions can be quoted:

A convenient and comprehensive definition comes from Portes, Castells and Benton. They
conclude there is one central feature of informal economy: it is unregulated by the
institutions of society, in a legal and social environment in which similar activities are
regulated. Because of the existence of the formal economy the notion of an informal
economy is existent. The dichotomy that is created in this way is by definition in a constant
flux, since every change in the institutional boundaries of regulation of economic activities
produces a realignment of the formal-informal dichotomy (Portes et. Al, 1989)

A more expanded definition:

Not only enterprises that are not legally regulated but also employment relationships. This
was defined by the Women in Informal Employment: Globalizing and organizing (WIEGO),
together with the International Labour Organisation (ILO).
(Alter Chen, 2007)

Restrictions
Variations in the form and effects of informalization processes reflect the character of the
specific social and economic order in which they occur. The image in flux of a specific place
or space is dependent on factors such as: economic history as well as the character of the
state authority and its interaction with private interests. (Portes et. Al, 1989)

Portes (et al., 1989) thus conclude: there is no great secret in the diversity of the formal-
informal interface. Every concrete situation has in common the existence of economic

22
activities that violate or bypass state regulation, but what these are varies according to the
history of state-society and state-economy relations.

Size of informal sector

Compiling statistics on the size, composition and contribution of the informal economy is
hampered by the lack of sufficient data. But estimates and official figures come to a
composition of about 50-75 % of non-agricultural employment in developing countries (Alter
Chen, 2007, 5)

Contested Subject
The informal sector is a contested subject according to many scholars, one of them is
Giselle Yasmeen, who did extensive research in the field of street food vendors and is in that
respect relevant for this research. In her study Workers in the urban informal food sector:
innovative organizing strategies (2001), she states: There are many disputes if formal-
informal dichotomy is useful because there are numerous overlapping enterprises that
straddle the line between formal and informal. The Informal-formal sector model might be
thought of as a conceptual continuum with many hybrid enterprises exhibiting features of
both sectors. (Yasmeen, 2001)

Change in development theories, change in view on informal sector

This contesting of the dichotomy of formal-informal sectors is widely around in development
studies literature. In a broader context it can be related to the changing paradigms in
development thinking, as is illustrated in this paragraph. Since there has been change in the
paradigms of development, so there has been change for the views on informal sector as
well. When the dichotomy formal-informal was created the modernist paradigm was the
dominant paradigm in development theories. In short this meant that less developed
countries where seen as lagging behind the developed countries, but had the possibility to
overcome this backward position by modeling themselves like developed nations and
spurring their own economic growth in that way. From that angle came the notion that
informal sector is a traditional economy that will wither away and die out with modern
industrial growth. In more recent views, where the post-modernist paradigm has taken
place, stating that development is multi-layered, site specific and multiscalar, it is observed
and taken into account that the informal economy is expanding with modern industrial
growth.
Similarly the former, modernist if you like, dichotomy of a separate formal and informal
sector is replaced by the notion of an interlinkage between formal and informal enterprises.
The informal sector produces for, trades with, distributes for and provides services to the
formal economy. Besides that it is not marginally productive, as viewed in the classical view
but it is a major provider of goods and services of lower income groups and it produces a
significant share of GDP.
The significance for the local economy is differently valued as well. Before the informal
sector was viewed as a reserve pool of surplus labour, nowadays much of the rise in informal
employment is due to decline in formal employment or to the informalisation of former
formal employment relations. Neither is it made op only of street traders and very small-
scale producers (although this is the unit of analysis for this research), but made up of a wide
range of informal occupations.
The common view of the entrepreneurs in the sector was that of entrepreneurs who ran
illegal and unregistered enterprises in order to avoid regulations and taxations. Nowadays
the view is that the informal sector is made up of non-standard wage workers as well as
entrepreneurs and self employed persons who produce legal goods and services, albeit
through irregular or unregulated means. Most entrepreneurs and the self-employed are

23
amenable to, and would welcome efforts to reduce barriers to registration and related
transaction costs and to increase benefits from regulations. And most informal wage
workers would welcome more stable jobs and workers rights.

On a policy level few attention was given to informal work since the view was that work in
the informal economy is comprised mostly of survival activities and thus is not a subject for
economic policy.
Currently in the developed world this view has changed, research shows that Informal
enterprises include not only survival activities but also stable enterprises and dynamic
growing businesses, and informal employment includes not only self-employment but also
wage-employment. All forms of informal employment are attracted by most (if not all)
economic policies.
(Alter Chen, 2007, pp 5)

In my own words informal sector is that segment of society that comprises both non-formal
workers as well as the institutions and morale that keep it going. Operatetionalized for this
thesis it serves as the basic denomination for the situation in which street vendors now
conduct their business, their status is: informal entrepreneur.

2.1.2 Informal entrepreneurs

As shown in the previous paragraph, the view on informal sector workers is shifting a lot, at
least in development thinking. The actual situation in developing countries still can be very
different, as chapter 4 shows, elaborating upon the view of the local government on
informal entrepreneurs.

In the study Informal Politics: Street Vendors and the state in Mexico City, Cross identifies a
series of benefits and pitfalls of being active in the informal sector as opposed to the formal
sector.

Table 2.1 Benefits and costs of formal and informal sector (Cross, 1998, pp. 33)

Informal Formal
Benefits Savings on labor cost Investment incentives
(insurance, pension, (Generally focused on capital
minimum-wage) levels)
Saving on zoning costs (rent Legal protection (protects
or purchase of commercial or capital investment)
industrial space)
Saving on tax costs
Savings on other costs
(health, safety, environment,
etc.)
Costs Lack of formal incentives Higher labour costs
Danger of discovery (-> Cost of zoning
lower efficiciency of capital Taxes
since it is a small business) Health, safety,
Lack of legal protection environmental regulations
(risk of harassment, eviction)

The informal sector is important to low income urban dwellers in Cebu, because large
numbers of the workforce earn their income this way. A significant area of activity is

24
informal street vending.

Street vending
Street vending can be seen as both a survival strategy and an additional form of income,
depending on the motives and livelihood situation of the particular street vendor.
Since street vending is a visible form of informal economic activity, it makes use of the public
space, namely the streets; it automatically is subjugated to formal forces, being the local
government, the maintainer of public space. (Cross. 1998)
According to Yasmeen (2001, pp 8) there are some general characteristics of informal street
vendors, it appears they are:
1. typically women
2. not included in statistics, since difficult to gather data from unregulated economic
activities and an overall lack of recognition of this sector overall
3. they come from poorer parts of the country (?)
4. revenues accruing from the enterprise (often more generous than factory world and
even some white collar jobs) are largely invested in human capital, particularly
education of kin and supporting family members in rural areas
Profits are not typically reinvested in the enterprise

Street vendors organisations

In order to better meet their needs, street vendors have organized themselves into
organizations that represent them and coordinate the streets. These organizations form the
social capital of street vendors , this is elaborated further in 2.3

Conclusion
Street vendors are part of the informal sector, the classical side of it, to put it bluntly. They
have an occupation that operates outside the legal frameworks of society and has little
interaction with it. Besides that they are informal entrepreneurs, since they have their own
business and strive for their own independent livelihood provision. The costs and benefits of
informality are more extensively researched and are looked back upon in the conclusion. The
wish of street vendors to either become part of the formal sector or stay within informality
is an important point of departure of this research and will be addressed in the conclusion as
well.

2.2 Livelihood approach

Their livelihood is the quintessential reason for street vendors to do what they do. In order
to keep their households going, and ultimately to provide a better future for themselves and
their children the sometimes risky profession of street vendor is chosen. The lack of other
opportunities is a motivator as well. In development theory there is a research approach
named: livelihood approach, that gives a framework for measuring simple but complex
groups such as informal street vendors in an urban context.

The livelihood approach offers a more dynamic view on poverty, one in which poverty is
seen as a process, rather than a static concept. It takes into account the local perception of
poverty.

The livelihood framework offers a useful multi-dimensional or participatory approach to

poverty, because it is people-centered, holistic (non-sectoral) and grounded in the
multidimensional reality of daily life. Households construct their livelihoods within a broader

25
socio-economic and physical context, using all sorts of social and material assets:
People try to gain access to five types of capital assets: natural, human, social, cultural and
produced capital. They combine and transform these in different ways in order to build a
livelihood for themselves this is the general view. Specific for the urban area Moser (1998)
identified an asset vulnerability framework. These include: labour (most important asset
for urban poor), human capital, productive assets (often housing but in the case of street
vendors market stalls), household relations and social capital.
With these assets new light can be shed on the dynamics of poverty and the diversity of
strategies and opportunities to deal with poverty in an urban context.

When looked at social, economic and political structures it is clear that street vendors hold a
vulnerable position within society. Consequently, the social context or the social and
institutional embeddedness of street vending needs to be revealed.

The importance of social networks and human capital for the activity of street vending, the
households behind the street vendors and the multi-locality of the livelihood of street
vendors can be included in this approach.
It indicates as well that work and status aspirations of vendors need to be taken into
consideration for the analysis of the socio-economic position of street vendors.
For example: street vendors may earn more than some workers in the formal labour market,
but this income does not necessarily compensate for the lower employment status.
In the research these extra factors are taken into account when the variable of goal
achievement comes to the front. The goals of vendors lay in the improvement of their
livelihood, but the factors contributing to this are broader than economic factors alone.

Conclusion
Livelihood provision is what street vending is about, it is therefore that it is at the core of the
research and part of the theoretical chapter, it comprises more than income alone.
Throughout chapter 3 an overview of the livelihoods of street vendors will be given.

2.3 Social Capital

by social capital I mean features of social life networks, norms and trust that enable
participants to act together more effectively to pursue shared objectives. (Putnam, 1996, in
Field, 2008, pp 35)
Social capital refers to connections among individuals social networks and the norms of
reciprocity and trustworthiness that arise from them. (Putnam, 2000. In Field, 2008, pp 35)

This is how eminent thinker in the field of social capital Robert Putnam describes the
concept after having done research in the field for over ten years. John Field, editor of Key
Ideas in Sociology: Social Capital is even more concise: relationships matter (Field, 2008, pp
1)
The concept of social capital, that has it origin in sociology, is growing in importance since it
has been adopted by theorists from different academic fields, such as economics and
geography. It is still a widely debated concept, that has different schools of practitioners, but
the concept has heuristic value, according to Schuller (Schuller 2007, in Field 2008). Field
concludes in Social Capital: despite important developments still more needs to be done
before the concept achieves any kind of theoretical maturity. (Field, 2008). This underlines
the fuzzyness of the concept. The relevance of the concept is acknowledged as well: what
social capital brings to social theory is an emphasis on relationships and values as significant
factors in explaining structures and behaviour. (Field, 2008)

26
Theorists in the field of social capital all seem to agree on the definition that social capital
comprises expected returns to social relationships: relationships with and between others
help individuals to accomplish goals they cannot achieve on their own. Social capital has
aspects on both the individual level: investments, relationships, reciprocity, resources and
collective level: trust, norms, cohesion, and the opportunities produced by it can occur at
different levels of social structure. (van der Gaag, 2005, pp 4)

Individual social capital

The individualist definition of social capital: a person's social skills. This can mean a long list
of contacts, a facility for dealing with others, or charisma. People's stock of social capital can
be measured by the number of organizations (clubs, charities, religious groups etc.) to which
they belong. (van der Gaag, 2005)

Communal social capital

Social capital is an additional pool of resources embedded in the social networks of
individuals, which can help to achieve individual goals in conjunction with or instead of
personal resources (van der Gaag, 2005).

Robert Putnam first mentioned the terms bonding and bridging social capital.
Bonding social capital denotes ties between alike people in similar situations; such as
immediate family, close friends and neighbours. (Woolcock, 2001, pp 13)
It provides undergirding specific reciprocity and mobilizing solidarity, while serving as a kind
of sociological superglue in maintaining strong in-group loyalty and reinforcing specific
identities.

Bridging social capital encompasses more distant ties of alike persons, such as loose
friendships and colleagues.(Woolcock, 2001, pp 13)
It is better for linkage to external assets and information diffusion (Putnam 2000. In Field,
2008, 22-3)

In this research the fellow members of street vendors organizations can be mentioned in this
respect.
Linking social capital reaches out to unlike people in dissimilar situations, such as those that
are entirely outside the community, thus enabling members to leverage a far wider range of
resources than are available within the community.
(Woolcock, 2001, pp 13)

Sabatini (Field, p 57) noticed: bridging and linking social capital are positively associated
with higher income levels, while bonding social capital is associated with lower average
incomes.

Despite the not yet unambiguous academic discourse the relevance of social capital is
important for this thesis, as becomes clear from the chosen path for shaping this thesis.

Social capital for poorer sections of society

One of the founding fathers of social capital as a sociological phenomenon is James
Coleman, he is particularly important in the application of the theory to poor and
marginalized people. Besides this he is one of the movers and shakers in the WorldBank
definition of social capital, which is the most widely used definition on policy-level, especially
towards developing countries.

27
Coleman first showed that the concept of social capital was not only limited to the powerful
but also conveyed real benefits for the poor and marginalized. According to Coleman social
capital represents a resource because it involves the expectation of reciprocity, and goes
beyond any given individual tot involve wider networks whose relationships are governed by
a high degree of trust and shared values.

Remark
If people are only linked with people like themselves, then everyone in the network pretty
much knows what everybody else knows and there is nothing very new to be learned. In
slow changing times this is fine, since a common core of knowledge can e ever refined. On
the other hand, if people or organizations are networked with diverse others, then they are
going to learn and keep learning new things, not already in their repertoire of knowledge
and skills. In a fast-changing world, the power of network links to unfamiliar people and
organizations is crucial (Gee, 2002. In Field, 2008, pp. 87)

For the situation in Cebu this might apply. One can argue that organized street vendors are a
homogenous group with a shared occupancy. At the same time there is a lot of competition
among vendors, and with other actors such as supermarkets as well.

Steel identifies in her study concerning social mobility of Street Vendors in Cusco, Peru that
social capital has its downsides for vendors as well. Street vendors have to invest in their
social network in order to be able to benefit from it. She concludes that street vendors social
capital reserves are not based on the principles of solidarity, but rather on reciprocity. When
there are unbalanced power relations between vendors or among vendors this can
negatively influence their social capital. She concludes: the most succesfull vendors are the
ones that know how to dissipate the negative aspects of social capital. The most established
vendors know how to take full advantage of the social safety net of relatives, colleagues,
suppliers and buyers. (Steel, 2008)

2.3.1 Social capital in this research

In this research social capital means the pool of human resources an individual possesses, be
it family, friends or trusted relations with buyers and/or suppliers.
For the research the concept of social capital is operationalised in three measurable ways:

- Membership of street venders association (bridging ties)

- Personal relations (bonding ties)
- links with suppliers and clients (bridging and linking ties)

Organization membership as social capital

Membership of an organization is one form of social capital. Through the membership of an
organization people can obtain more benefits, since the organization provides them with the
network of its members.
A street vendor can benefit from his membership, while it can give measurable benefits to
the participating street vendors and can lead directly and indirectly to a higher level of well-
being. An organization may provide opportunities such as the use of services, training, and
possibility for participation, information and networks.

Personal Relations
Personal relations can be seen as endemic or overarching to organization membership and
links with suppliers, but in this context it can be seen as the direct side of social capital. The

28
amount of friends among other street vendors or in general, the amount of suki (trusted
relations) a street vendor has.

Links with suppliers and clients

Street vendors mostly have trusted suppliers and clients, the term used in the Cebuano
context is suki. Vendors usually have suki. Often multiple, depending on the type of goods
they are selling. A suki is a regular supplier, or a regular buyer. Since there is a mutually
beneficiary relation, the suki can be seen as a trusted part of the network of a vendor. Often
suki are found through family or other bonds. Clients can become Suki as well, or create
opportunities before unknown to vendors, they can form linking ties to business
opportunities.

2.4 Conclusion for the research

Street vendors are informal entrepreneurs, since they operate as entrepreneurs, but without
legal backing and thus outside the formal sector. This gives them both opportunities as
setbacks, according to various literature. An important mechanism which enables them to
do their business is within the concept of social capital. Trust, norms and cooperation within
their sector enables street vendors to better defend their interests and protect their
livelihoods. In the subsequent chapters this is elaborated, with the focus on social capital in
chapter 3 , goal attainment and chapter 5, where the different ways in which street vendors
are organized are discussed.
The informality of street vendors is explained via this chapter, the chosen operationalisation
for the social capital component, and the definitions of livelihood, street vendors and street
vending in Cebu serve as a guideline throughout the thesis.

29
Chapter 3. Street vendors in Old Downtown Cebu
City
Trying hard to make ends meet

This chapters aims to shed light upon the typical street vendor in Old Downtown Cebu City.
Because the research population has been divided into two strata, fruit vendors and cut-
flower vendors, a sketch of these two types of vendors will be given, as well as the
everyday practice and the way they operate their micro-businesses ( 3.1 up to 3.4).
Besides the street vendors themselves, also the supply- and value-chains they are part of
have been researched and are discussed in 3.5. Finally the goal achievement, or what
street vendors want with their future and how they aim to achieve this is discussed in 3.6.
The important variable of their social capital, which is interwoven throughout the chapter,
will be discussed more in depth in chapter 5. In 3.7 a short insight in the image of street
vendors is given.
A complicating factor in researching the street vendor is the fact that they are not included
in statistics, since it is difficult to gather data from unregulated economic activities and an
overall lack of recognition of the sector. Therefore this chapter leans on self-gathered
statistics, obtained through a survey conducted with 96 fruit and flower vendors in
downtown Cebu City during the fieldwork for this research in 2007, it is referred to as SPSS
Data set throughout the chapter.

3.1 Location

In the city center of Cebu City street vendors are omnipresent. Located mainly in the market
area of Carbon Market, around the churches of Santo Nio and T. Padilla and alongside
Colon, P. del Rosario, Pelaez and Manalili streets.

Cut-Flower vendors are mainly located in Freedom Park, the northern tip of Carbon Market,
another, smaller, concentration is found on P. del Rosario. Fruit vendors are found on almost
every street corner with concentrations on Fuente Osmea and P. del Rosario. Where there
are concentrations of one type of vendor, they are always organized in an organization, and
every organization is a member organization of CCUVA.

30
Map 3.1 Map with spread of Street Vendors in Old Downtown

Source: map, Cebu City Planning Office. Location vendors: Transect Walk, 5-5-07

Besides the fixed stalls with regular vendors, there are also ambulant fruit vendors active in
the area.

3.2 Types of vendors

There are many types of vendors, generally they are women who seek to extend the
household income. But vendors range from men and women engaged in survival activities to
farmers who are part time vendors and are generating big profit margins as vendor and
wholesaler. Maria Pino, president of CCUVA, the street vendors union (see 5.3) said:
Some dont have jobs or are fired from their job. Some find their job doesnt earn them
sufficient income. There are also teachers, construction workers, tendiro/tendireas working
in supermarkets, guards and so forth. There are drivers whose spouse are vendors. Often
vending generates more money then operating a jeepney, so in the end the husband will
help his wife with the vending business. (interview Pino, 2007)

Cut-flower vendor in Freedom Park

Eleonora Mabini
Miss Eleonora Mabini is a flower vendor with a fixed stall, she pays a daily arcabala to the
local government (see also chapter 4) of 12 pesos. In return she is guaranteed her vending

31
space. Since she is a vendor on Carbon Market, which is a designated vending space of the
local government, she is not in a very difficult position. Negotiations about arcabala and
other related issues concerning her livelihood are done by the organization of which she is a
member: FMTPC. Miss Mabini grows flowers as well, on her farm in Busay, the mountain
Barangay just outside the city of Cebu she own a farm where she mainly grows flowers, and
some mangos and vegetables, mainly for own use as well. She is a vendor, a farmer and a
trader with wholesalers at the same time, and divides her profit margins in the most
economical way, by diversifying her activities. In this way she optimizes her suki network
(see 3.4 and 5.1 for more about sukis) and diversifies her activities, she relies on her family
for operating the whole business and providing transport and manpower.

Fruit vendor on Colon

Chariest Fuentes
Chariest Fuentes is a fruit vendor on Colon street, the oldest street in the Philippines. She
mainly sells bananas and mangos, depending on the season she varies her choices
somewhat. Perhaps the most striking (and profitable) feature of her little stall is the Banana
Q installation. With this installation she roast the bananas turning them into a sweet and
tasty snack, which is a popular type of pungko-pungko, or fingerfood provided by street
vendors in Cebu. Besides her activities as a street vendor she is also the President of the
Youth Delegation of CCUVA, and in that respect I met her during a visit to the Peoples
Forum, where different sectors of the urban poor were engaging the Candidates elections in
april 2007.Colon vendors often buy their supplies n the malls along Colon street (interview
Pino, 2007)

Flower vendor on P. del Rosario

Candelaria C. Oliveira
Miss Oliveira is a flower vendor on P. del Rosario street, she operates her business nearby
Santo Rosario church. Many people buy flowers at her place to brighten up their day or to
place them in the church. She works with orders as well, making bouquets for individual
buyers, who take them to their homes or give them away. I bought a bouquet at her stall to
visit a friend in Talisay who fell ill during the course of my research.

Ambulant fruit vendor, met at corner Sanciangko/ Junqueira

Rodemio Elano
I should have worked harder in school, is the statement of Rodemio regarding his current
status. When I met him and handed over the questionnaire this ambulant vendor was
operating a handcart, filled with Pinyas , or pineapples, he obtained them from his suki
wholesaler at Carbon Market. He sells fruits that are in the season and relatively cheap in
bulk, by working long hours he barely earns enough to support his wife and child.

32
3.3 Basic Characteristics of fruit and flower vendors in Old Downtown Cebu

Out of the 96 respondents 54 (or 56,25%) were fruit vendors and 42 (or 43,75%) were cut-
flower vendors. The fruit vendors are spread all over old downtown, as indicated in figure 1,
whereas the cut-flower vendors are mainly concentrated in Freedom Park, P. del Rosario and
around the churches.
Most important indicators: 73,5% of the vendors is female. 78,5% of the vendors is member
of an organization.
A quick glance at the highest values of several indicators derived from the survey among the
vendors in Old Downtown Cebu is given in table 3.1:

Table 3.1 Overview of basic characteristics of street vendors, sorted by highest

frequency
Indicator % Fruit % Flower % Total
population

Fruit or Flower 56.25% 43.75% 100%

vendor?

Gender Female 72.2% 73.8% 72.9%

Age 21-40 50% 45.2% 47.9%

41-60 31.5% 50% 39.8%

Educational Elementary 42.9% 40.6%

grade
Secondary / 40.7% 35.4%
Highschool

Place of birth Metro Cebu 59.3% 85.4% 70.5%

Outside Metro Cebu 40.7% 14.6% 29.5%

How long in 16 or more years 79.6% 92.7% 85.3%

Cebu?
How long street 16 or more years 46.3% 57.1% 51.0%
vendor?
Less then 5 years 18.5% 19% 19.8%

Marital Status Married 79.6% 76.2% 78.1%

Number of 4-6 42.6% 54.8% 47.9%

persons in
household
7-10 33.3% 33.3% 33.3%

Relation to Spouse 50% 50% 50%

head of
household
Source: SPSS Data set

33
The variable place of birth was found to be not a normal divide according to the Chi test.
As is visible in the output there is a significance difference between the place of birth of fruit
and cut-flower vendors. A far bigger amount of cut-flower vendors is born in metro Cebu. A
clear explanation can not be derived from the statistics. A possible explanation is the high
incidence of fruit traders coming from other parts of Cebu and even Mindanao to trade fruits
via channels that they have connections with. Another explanation can be found in the fact
that the mountain barangays of Busak and Mubay are concentrations of flower growers,
mainly for the Freedom Park vendors. This could indicate that flower vending is a family
business. This is important since it suggests that flower vendors have stronger family ties in
their business, and in that way stonger networks of bonding social capital.

Summary of average vendor in Cebu City

The typical vendor in Cebu City has not changed much since Yasmeens research in 2001,
only more young fruit vendors (Almost 20% is in the business for a period shorter than 5
years, equally divided over the two strata) found their way onto the streets of Cebu.
The typical vendor in Cebu City is female, aged 21-40 (fruit vendors) or 41-60 (flower
vendors), her highest educational grade is elementary school, although 35.4% of the
population finished secondary school as well. She is member of an organization, and enjoys
the social capital coming with that. Almost all flower vendors come from Metro Cebu, and
seem to have at least closer family ties, and probably stronger, than fruit vendors, of which
40.7% originite from outside the metro. 85.3% of the population lives in Cebu for more
than 16 years and 51% has been a street vendor for more than 16 years already.
They are married (78.1% of total), and 50% is the spouse in a family with between 4-10
children (81.2%), 20% calls themselves parent rather than spouse, cumulative almost 70%
of the vendors has children to nurture, and only 15% of the population sees themselves as
the decision maker in the household. Also 10% of total vendors lives in a family with 11 or
more persons in the household.
(Source, SPSS data set)

Carbon Market, Fruit vendor filling out questionnaire, 14-6-07

34
3.4 Livelihood

The livelihood of street vendors is basically their income and their means of support, these
are mainly of a financial nature, which is why their income and the start-up capital of their
businesses are discussed in this paragraph.

3.4.1 Income and profit margins

In order to acquire solid information about the livelihoods of street vendors an assessment
of their financial situation was part of the survey. By asking how much they spent for their
daily stock and comparing this with the daily sales an image can be sketched of the profit
margins of street vending in the two strata.

Table 3.2 Expenses to acquire daily stock and daily income compared

Daily stock Fruit Flowers Total

expenses / sales
on average
working day

less than 500 11.1% 23.8% 16.7%

13.0% 16.7% 14.6%
501-1000 14.8% 23.8% 18.8%
25.9% 35.7% 30.2%
1001-1500 16.7% 23.8% 19.8%
20.4% 14.3% 17.7%
1501-2000 7.4% 9.5% 8.3%
9.3% 9.5% 9.4%
2000+ 50.0% 19.0% 36.5%
31.5% 23.8% 28.1%
Total 96 / 100%
Source: SPSS Data set

From table 3.2 it becomes clear that a big proportion of street vendors earns less then they
spend on an average working day. This suggests that they are not at all certain of a steady
income through street vending.
Through the Chi square test it becomes clear that there is a significant difference between
the everyday spending between fruit and flower vendors. Specifically in the region 2000+ in
daily expenses fruit vendors are highly represented. This might indicate they have to buy
more goods in bulk, since they cannot rely on their own plot of land, or family.
Another indicator of this is the way suppliers are paid. The incidence of cash payment is
much higher among flower vendors (72.7% against 44.2% among fruit vendors), this can be
denominated also as another indicator of the stronger financial position of most flower
vendors, as opposed to the fruit vendors who buy more on credit (55.8% against 27.3% of
the flower vendors.

35
Main source of income
When the vendors were asked which source of income was the most important in their
household, 73 out of 90 or 80% (86.6% among fruit vendors and 72.5% among flower
vendors) of all vendors in the population answered: street vending. See also figure 3.2.
Two conclusions can be drawn from this fact. 1. Street vending is most often the most
important source of income for street vendors livelihoods
2. Since most vendors are women, they seem to be the ones responsible for the biggest
share of the income in their households, even though they do not consider themselves the
household heads. This again indicates that street vending can be a profitable form of extra
income, and that it is a rather feminine business as well.
18 vendors (or 25%) mentioned they have other sources of income. 16 of them specified
their additional incomes: among them 10 are into farming (vegetables, poultry, animals,
mangos), 1 owned a sari-sari store, 2 were flower-arranger, 2 were lenders and 1 had a
business, with no more specifications.

Figure 3.2 Most important source of income in household (total percentage)

100

90

80

70

60
Percent

Fruits
50
Flowers
40

30

20

10

0
Street Vending Day Job of other household Trading Goods Other
members

Source: SPSS Data set

In figure 3.3 it becomes clear that roughly 80% of the vendors in Old Downtown receive
enough income to provide for their daily needs in different categories. The only real outlier
in the figure is the sufficiency for daily needs for education for fruit vendors, this is about
60%. Education can be seen as a secondary need, not a primary survival need.
Based on this data you can argue that roughly 20% of the population of street vendors can
not meet their primary and secondary daily needs.
According to Yasmeen education is an important asset in the Philippines. Parents preferably
send their children to private schools, since public school have a bad image and far less
quality. Education is an important policy issue related to livelihood concerns. Subsequently
large parts of the revenues gained from the enterprise are invested in human capital,
particularly education of kin and supporting family members in rural areas. Profits are not
typically reinvested in the enterprise. (Yasmeen, 2001)

36
Figure 3.3 Sufficient income for daily needs?

90.00%

80.00%

70.00%

60.00%
Percentage

50.00% Fruits
40.00% Flowers

30.00%

20.00%

10.00%

0.00%
Enough for Enough for Enough for Enough for Enough for
daily daily daily daily daily
needs of needs of needs of needs of needs of
Food Clothing Education Health Housing
Care

Source: SPSS Data set

Conclusion 3.4.1

It appears from this paragraph that the researched population in Cebu draws their
household income mainly from their street vending activities. This income on average is
sufficient to provide for the daily needs, although still roughly 20% of the vendors is seriously
poor, since they can hardly provide their daily needs. Education and health care are
expensive and more difficult to access for street vendors, which in the overall picture still
categorizes them as being marginal city dwellers.

37
3.4.2 Initial working capital

Vendors have started their business in one way or another, they all needed some sort of
start-up capital or assets. These sources of initial working capital where divided into groups
and the vendors were asked to indicate which sources they used as initial working capital,
and which they thought were the most important sources of capital to start their business
with. In figure 3.4 and 3.5 the results are visible. The different forms of initial working capital
are described hereafter.

Figure 3.4 Sources of initial working capital

60

50

40
Percent

Fruits
30
Flowers

20

10

0
Bombay Formal Lender Microfinance Friends and family Savings Other
(without interest)

Source: SPSS data set

In figure 3.4 different possibilities and strategies for the start-up of a street vending business
have been operationalised by asking the vendors what the sources for their initial working
capital were. First the different sources are elaborated upon:

Bombay
Bombay are a typical phenomenon in the streets of Cebu City. These lenders operate
through supplying credit with very little assessment of what the vendor intends with the
loan and whether he or she is able to repay the dues. The pitfall is the precondition, which is
usually 5/6, or 6 pesos back for every 5 pesos lent. In other words, the interest rate is around
20%. Besides this the period for reimbursement is often 40 days or even 1 month. Bombay
are used for small loans only in general, but can become very big burdens in a very short
time span for unlucky vendors.

Formal lender
A formal lender is an accredited business or bank that specializes in lending. In Cebu there is
a range of pawnshops that combine their business with lending activities, the most well-
known and widespread example is M.Lhuiller, which can be found throughout the city.
Besides lending small amounts of money, the premises for the due money is the collateral
of the vendor, in the form of watches and jewellery.

38
Microfinance
Becoming increasingly well-known and, especially since the inventor and first large scale
operator Grameen Bank won a Nobel peace prize for the initiative, throughout the world
viewed as a bonafide and responsible way of lending money to small businesses is the
microfinance scheme. In Cebu not many microfinance schemes are available for street
vendors, which explains the low incidence of this very favourable way of lending money
from a trustworthy party.

Friends and Family (without interest)

Perhaps the safest way of borrowing money is through family and friends. This can be seen
as an important indicator of social capital as well. Relatively risk free, since there is no rent
involved. Terms and conditions about repayment or profit-sharing are negotiated on a
personal level and based on trust. Conflict over payment may still arise, but are settled in an
informal way.
Yasmeen adds to the picture that Overseas workers have created a source of investment-
capital for the creation of micro-enterprises as well.(Yasmeen, 2003) Since the Overseas
workers, who send remittances account for a significant share of capital flow towards the
Philippines this is an important notion to be made under the category friends and family.

Savings
Savings are the most reliable source of start-up capital, since no loan or collateral is needed
in order to be able to invest it.

Other possibilities and means of start-up capital were defined by vendors in varying ways:
6 opted for lending, with an incidence of 1 lending in Carbon and 1 lending from other
vendors. 5 (or 5,4% of the total population) had received a consignment, very likely from
family members abroad. In the Philippines a big proportion of the national income is due to
consignments of workers abroad or overseas workers.
Further more 6 vendors indicate it comes from their own capital: buy and sell or net sales
are mentioned. 3 own a farm as well ,and receive income from that, consequently they can
be seen as vendors who sell their leftover fruits, perhaps because they can get a higher price
selling it directly in stead of via a trader. 1 vendor indicates he or she gets it from the owner
and pays later, this may be denominated as a suki-credit situation.
2 vendors lend money from a cooperative (which can be placed under formal lenders as
well), and 1 lender lent money from my other business

39
Figure 3.5 Most important source of initial working capital
40

35

30

25
Percent

Fruits
20
Flowers

15

10

0
Bombay Formal Lender Microfinance Friends and family Savings Other
(without interest)

Source: SPSS Data set

As figure 3.4 makes clear, the sources for the business startup capital are very diverse
among the street vendors. What does not become entirely clear out of the figure is the
division for the total population (see table 3.4).

Table 3.4 Percentages of total population (fruits and flowers combined)

% Total
Bombay 15.1
Formal Lender 17.4
Microfinance/NGO 4.7
Friends and family (without interest) 22.1
Savings 24.4
Other 16.3
Source: SPSS Data set

The incidence of relying on Bombay and Savings is significantly higher among flower
vendors. Fruit vendors are for a very large part dependent on loans from family and friends,
mostly without interest. These kinds of favorable loans can be seen as a form of social
capital, in the way that this provides them with benefits, and is due to their relations.
Another striking feature is the fact that Bombay defeat the formal lending institutions in the
case of flower vendors.
Possible explanations for these phenomena might be found in the fact that flower vendors
only avail for very short term loans, because they seek to buy extra stock in busy times.
From this figure it seems that fruit vendors have stronger forms of social capital than fruit
vendors, since they are engaged in smarter lending schemes.

Conclusion 3.4.2
Strikingly flower vendors appear to rely less on their social capital in the case of business
start-ups than fruit vendors. On the other hand they rely most on their savings, indicating
that their capital is larger already.

40
3.5 Supply and value chains

The supply and value chains of which street vendors are part span a great length and come
in a variety of ways. By means of the survey, the transect walk and interviews an insight in
the complexity and variation in these chains is given from the viewpoint, or departing point
of the street vendor, be it a cut-flower or a fruit vendor in Old Downtown Cebu City. See also
Annex III for the result of a fieldwork identifying the supply and value chains of mangos
coming from the Cebu hinterland, serving as an illustration of a typical supply and value
chain in the Cebuan context.

3.5.1 Suppliers
Vendors have different suppliers, of which some are trusted (suki), and others vary. Some
characteristics of the suppliers are being given, like the origin. Besides that the amount of
suppliers and the frequency of dealing with them are being discussed in this paragraph.

First a description of the different types of suppliers that vendors deal with is given:

Wholesaler
Wholesalers are common suppliers for big as well as small vendors. They are large buyers
of goods who sell it in smaller amounts to retailers. In Cebu there are different wholesalers
active. Most wholesalers are based on Carbon Market, where street vendors and regular
clients buy their share from the wholesalers. Some wholesalers are producers themselves,
others have trusted relations with farmers and big clients. In general they have a powerful
position towards vendors who are reliant on them, on the other hand there is competition
between wholesalers as well, that is why they position themselves as suki as well, allowing
payment in installments and varying by seasonality or sales.

Farmer
Farmers are, obviously, producers of goods that can be sold by vendors. Some farmers from
nearby Barangays are vendors themselves, because of the higher profit margins per piece of
retailed products, as opposed to selling it to wholesalers or other intermediates. Other
farmers sell their goods to wholesalers or directly to vendors.

Family
Often vendors have family that produces a certain good. In this way the supply and value
chain remains a family business, with a high relation of trust and control over the price.

Carbon Market
Some vendors, mainly the less fortunate ones, buy their stock at Carbon Market, near their
vending place. Because in Carbon Market there are more wholesalers, they sell their fruits
(and some flowers) at market price, after which the vendor cuts the fruit nicely up to turn it
into a take-away alongside Colon, or one of the other streets in Old Downtown.

Supermarkets
Supermarkets are incidentally used as suppliers when vendors are out of stock or other
suppliers did not manage to deliver. Competitor is in general a better word to describe
supermarkets, as will become apparent further on in this paragraph.

In figure 3.6 the types of suppliers and the amount of times a week vendors buy from them
is represented (for the whole population)

41
Figure 3.6 Times of week buying stocks (total population)

25

20

15 Once
Count

Twice
Thrice
10 More

0
t

rs
rs

ily
ke

ke

ie
le

m
ar

ar

pl
sa

Fa
m

up
le

on
pe
ho

s
er
rb
Su
W

th
Ca

Source: SPSS Data set

A portion of 82% of all vendors (or 79% of fruit and 85% of flower vendors) obtain their
stocks from more than one suki wholesaler. Among the other suppliers, the mountain
Barangay of Busay was mentioned 6 times among the flower vendors. 3 of them named
Freedom Park as a source for their stock, this indicates that Freedom Park serves as a
supplier for ambulant street vendors as well. 4 fruit vendors mentioned dim sum fruit
world as the supplier for their stocks. One time Mindanao was mentioned and 1 time
Dumaguete and Bacolod. This could be indicating that the vendor has family bonds within
these other provinces.

Suki
Not a type of supplier, but a type of relationship with a supplier is denominated by the term
Suki. It is very important in the Cebuan context. A Suki is a trusted supplier, with whom one
maintains a steady relationship. A vendor commits him or herself to buy regularly from the
Suki supplier, and in return the supplier provides good and steady prices and sometimes the
possibility to supply goods on credit. Since there is a mutually beneficiary relation, the suki
can be seen as a trusted part of the network of a vendor. Often suki are found through
family or other bonds. A suki is not a fixed fact. If the prices are not so favourable any
more, or if another suki comes into the picture by offering cheaper commodities or more
favourable arrangements, market force will thrive over the relation with the suki (interview
CCUVA, 8-6-2007). In figure 3.7 the use of suki suppliers is quantified by asking if vendors
always use the same suppliers, and thus suki:

42
Figure 3.7 Always same supplier (suki)?
70,00%

60,00%

50,00%

40,00%
Percent

Fruit
Flower
30,00%

20,00%

10,00%

0,00%
Yes No, scout Scout around Other
around for if credit is
best prices available

Source: SPSS Data set

The biggest share of vendors use the same suppliers always, around 30% of the total
population does not generally uses suki suppliers.
To another question in the survey directed in this way the vendors answered if they buy
different products from different suppliers. The flower vendors seem to have fewer
diversification in their supply chain, since 59,9% responded negatively to this question. Fruit
vendors were positive: 65,9% of them use different suppliers for different items they sell.

In figure 3.8 the amount of suki wholesalers is indicated, in this respect suki means, suppliers
with whom business is done on a regular basis.

Figure 3.8 Amount of suki wholesalers

70,0%

60,0%

50,0%

40,0%
Percent

Fruit
Flower
30,0%

20,0%

10,0%

,0%
2 to 5 6 to 10 more than 10

Source: SPSS Data set

Most vendors seem to have several suki wholesalers (2-5 has the highest incidence as can
be seen in figure 3.6), this indicates that there seems to be a diverse market with different

43
players, which suggests a reasonably fair market, with probably competitive pricing.

Supermarkets complain about the fact that street vendors often sell their goods with
competitive prices (Pino, 2007), this is another indication that vendors should be having
favorable prices. On the other hand, as was indicated before, sales often seem to be behind
the stock purchases, which implies there is a very strong competition going on in the streets
of Old Downtown Cebu. Besides competition between vendors there is one big competitor
to mainly fruit vendors: the supermarket. Supermarkets are the biggest competitors of the
fruit vendors. For matters of convenience, and often the possibility to offer cheap bulk
products, supermarkets take the lions share of customers from them. Since they are
legitimate these establishments are also backed by local government, and often file
complaints against vendors, maintaining a competitive stance against the informal
entrepreneurs. Besides that they learn from vendors. They see the way street vendors
handle their business and they take over certain elements. To differentiate themselves
more, vendors prepare their fruit hand ready by already slicing their fruits or offer plastic
bags, which costs them extra money and effort. At the same time they should keep their
margins below supermarket prices, which often proves to be hard for many vendors. (Pino,
2007)

Supplies underway to Carbon marke, 29-6-07

44
Origin of supplies
Where do the supplies for the vendors come from? In figure 3.9 the origins of the suppliers
are described:

Figure 3.9 Location of Suppliers

60,00%

50,00%

40,00%
Percent

Fruit
30,00%
Flower
20,00%

10,00%

0,00%

ce
ce
ty

ty

s
ty

ne
Ci

Ci

in
Ci

in

pi
ov
ov
bu

bu

il ip
eb

Pr
Pr
Ce

Ce

Ph
tC

bu
bu
s

ep

Ce

e
ay

Ce

sid
ng

xc

e
in

ut
,e

sid
ra

ith

O
Ba

bu

ut
W

O
Ce
n
ai
nt

ro
ou

et
M
M

in
ith
W

Source: SPSS Data set

Most of the suppliers for street vendors are located within Cebu City. Notable is the fact that
a very big amount of suppliers of flower vendors come from the mountain Barangays of
Cebu City. This is a known fact (see for instance, Hendriks, 1994 and Etemadi, 2001) , the
mountain Barangays of Babak and Busay are well-known for their many flower growers.
Fruit vendors mainly obtain their stocks in Cebu City. This means they retrieve it from
Carbon Market, and the there present wholesalers. This also implies that fruit vendors are
more dependent on collective sellers. Although one might easily state that the farmers in the
mountain Barangays where flower vendors obtain their stocks can be viewed as wholesalers
in their own respect. Often the flower vendors and growers are very closely linked, through
family ties for instance (Hendriks, 1994).

45
3.5.2 Buyers
Besides the upstream relations with suppliers, the downstream relations with buyers are
another essential feature of the livelihood build-up of street vendors. Are there trusted
buyers, how many buyers are there and what do they spend are questions addressed in this
paragraph.

To the question Do you have regular buyers? 84,9% of fruit and 87,8% of flower vendors
answered positively, in figure 3.13 is visible how many regular buyers the vendors indicated
they have.

Figure 3.13 Amount of regular buyers

70,0%

60,0%

50,0%

40,0%
Percent

Fruit
Flower
30,0%

20,0%

10,0%

,0%
> 10 11 to 20 21 to 30 31 +

Source: SPSS Data set

Almost 90% of the vendors have regular buyers, > 10 has the biggest proportion for both
strata: 45% for fruit-vendors and 61% for flower-vendors respectively. What is also
interesting is the fact that 21,3% of the fruit vendors (opposed to 8,3% of flower vendors)
had 31+ regular buyers.

These regular buyers form the most important source of steady income for the vendors. The
proportion of their importance for the livelihoods of vendors comes to fore when the types
of buyers are related to the amount they spend (see figure 3.14 and 3.15). To make the
division between suki buyers (regular buyers) and other buyers I let the vendors state the
amount of 1) suki buyers, 2) incidental buyers and 3) tourist buyers. These figures make clear
that the suki buyers are the most important, since they spend the most, although incidental
buyers are the most common group.

46
Figure 3.14 Types of buyers and spending (whole population)

80

70

60

50
Regular Buyers: Suki
Count

40 Incidental Buyers
Tourists
30

20

10

0
None < 10 10 to 20 21 to 30 30 +

Source: SPSS Data set

Further more it becomes apparent from these figures that on average street vendors have
less than 10 regular and incidental buyers, or suki and by-passers. This seems on the low
side, especially since the average spending per regular client is between 0 and 200 Pesos.

Figure 3.15 Average spending of customers (whole population)

70

60

50

40 Regular buyers: Suki

Incidental Buyers
30 Tourists

20

10

0
0 < 100 100 to 201 to 301 to 400 +
200 300 400

Source: SPSS Data set

47
Big time clients
In addition to the regular clients or suki clients spending a lot, the question was: Do you have
any big time clients, that buy large amounts from you on a regular basis? (see figure 3.16)

Figure 3.16 Big time clients?

80,00%

70,00%

60,00%

50,00%
Percent

Fruit
40,00%
Flower

30,00%

20,00%

10,00%

0,00%
Yes No

Source: SPSS Data set

According to the survey about 36% of all interviewed vendors in Old Downtown have one or
more regular big time clients. Out of the survey some clients became apparent: 5 were
flower shops, 2 restaurant owners, 2 office workers, 2 funeral services, 2 wedding/party
planners, a hotel, the canteen of USC, 1 fruits stockholder and the Metro Gaisano
department store were named.

Conclusion of 3.5 supply and value chains

The suki is an important factor in the livelihoods of both flower and fruit vendors. Both in
supplier as in buyer relations the trusted or suki relationship is an important cornerstone for
the street vendor business for both fruit and flower vendors.
Flower vendors have shorter and more controlled supply and value chains. For fruit vendors
it depends on the family bonds and possession of the fruit vendor if his or her supplies come
from the Cebu hinterland, or in bulk from as far as Mindanao. For the flower vendors in this
research area all flowers come from the hinterland of Cebu, mainly the known mountain
barangays Busak and Babak I and II, which implies they are more part of a closed system in
which external social capital on the supply side is less important, in regard to buyers the
situation is similar, although fruit vendors face more competition from supermarkets than
flower vendors.

48
3.6 Goal achievement

An integral part of the questionnaire was the semi-structured paragraph concerning goal
achievement. This term is also reflected in the main question of the thesis and is aimed at
the desire of vendors to improve their livelihood. The ways in which they aim to do this and
their strategies and (perceived) possibilities are taken into account in this paragraph, divided
in their desires (3.6.1) and their capability to achieve them (3.6.2).

3.6.1 Desires
It does not come as a big surprise that about 90% of all street vendors answered they would
like to make changes in the current way they are fulfilling their livelihood (figure 3.17). The
fact that 10% in both strata is satisfied with the current situation is perhaps more striking. It
underlines the fact that street vending does not necessarily is a last resort in the fight against
extreme poverty, but can be viewed as an additional or steady base for an income.

Figure 3.17 Desire to make changes in current livelihood situation

100,00%

90,00%

80,00%

70,00%

60,00%
Percent

Fruit
50,00%
Flowers
40,00%

30,00%

20,00%

10,00%

0,00%
Yes No

Source: SPSS Data set

Still most vendors do desire change in their situation. What kind of change they desire is the
interesting question. This was operationalised through asking the question: what change in
your livelihood do you desire? Three options were given, being: 1. Find another job, and exit
the profession of street vendor. 2. Register your business, start paying taxes and thus
formalize your business, and 3. Expand your current business, by making a bigger stall,
higher profit margins or other means to expand the current size of your business and
income. The respondents were asked to rank these three options in order of preference.
This resulted in the outcome as represented in figure 3.18 and 3.19:

49
Figure 3.18 What change in your livelihood would you desire, RANK #1?
90,00%

80,00%

70,00%

60,00%

50,00%
Percent

Fruits
Flowers
40,00%

30,00%

20,00%

10,00%

0,00%
Find another job Formalize (register) your business Expand your current business

Source: SPSS Data Set

Figure 3.19 What change in your livelihood would you desire, RANK #2 and #3?
#2 #3
90,00%

80,00%

70,00%

60,00%

50,00%
Percent

Fruits

40,00% Flowers

30,00%

20,00%

10,00%

0,00%
Find another Formalize Expand your Find another Formalize Expand your
job (register) current job (register) current
your business your business
business business

Source: SPSS Data set

What becomes clear from figure 3.18 and 3.19 is that there is a strong clustering of
especially flower vendors that filled out the same order of preferences. By far the most
desired form of change in the future is to expand the current business. Flower vendors have
a stronger desire for this than fruit vendors, but both strata favorite this option by far. The
fact that flower vendors are stronger in favor suggests that they in general have stronger
businesses, and perhaps as well stronger ties with suppliers and buyers, which gives them
more stability and thus more incentives to desire a future in street vending as it is.

The central hypothesis for this thesis is about the incentive for formalization of street
vendors

50
Street vendors want to become part of the formal sector

According to the answers in figure 3.18 this statement is largely falsified. Off course some
remarks can be placed by the method of asking this question, but it becomes very clear that
a large part of the respondents chooses the benefits of informality over the benefits of
formality when asked for their future desires.

3.6.2 Capability
Besides the desires or wishes of street vendors in relation to their goals for the improvement
or maintenance of their livelihood, there are also the needs as well as the possibilities and
constraints in realizing these goals.
In the survey this was operationalized by asking open questions following out of the ranking
they made for their desired goals, aimed at the formalization of their businesses. The
answers to these open questions serve as a lead on the needs, possibilities and constraints
to formalize their businesses as viewed by the street vendors themselves.
To the two open questions about the needs and constraints for formalizing all 96 vendors
gave an answer. The question about opportunities was answered by only 54 vendors (or
56,25% of the whole population). This has to do with the fact that they first had to answer
the question if they considered their goals realistic and obtainable (see figure 3.20), if they
answered positively they were asked to give their ideas about opportunities.

Figure 3.20 Do you consider your goals realistic and obtainable?

90,00%

80,00%

70,00%

60,00%

50,00%
Percent

Fruits
Flowers
40,00%

30,00%

20,00%

10,00%

0,00%
Yes No

Source: SPSS Data Set

For matters of clarity the answers were labelled in categories with more or less the same
answers.
The answers to the questions were divided into categories matching the three principal
stakeholders influencing the situation of street vendors in Cebu City, as mentioned in the
conceptual model these are: the street vendors, the local government and the street
vendors organizations headed by CCUVA.

Table 3.3 Needs for formalizing business, divided over stakeholders

Street vendors 63
Local Government 9

51
CCUVA (and own organization) 2
Other 8
Source: SPSS Data Set

To the question: If you want to formalize your business, what do you need to obtain this
goal? 8 vendors answered: hard work. 21 mentioned capital as their principal need to
obtain this goal, 3 of them mentioned savings, the others money, capital or huge
capital. 8 vendors were already satisfied with the current situation. 2 vendors explicitly
asked for support for the capital they needed, without specification were it should come
from. 2 vendors sought the capital injection from the local government. 2 others mentioned
local government as well, but with different arguments: Government should not be after us
charging and fining, instead they should give more selling hours, negotiate with local
government. 4 vendors mentioned that demolition should stop, 1 vendor expressed the
need to obey the law.
2 vendors indicated that CCUVA might be of help giving them a proper place to sell.
The other vendors mainly answered in the direction of business operation. 6 were in need of
an own stall or vending place. 4 wanted to attract more customers and increase their sales.
4 thought of better cooperation with each other and with suppliers. There were some
interesting strategies mentioned as well: technology and use the right strategies,
Entertain the customers well, so they come back again, I can export to other countries,
Good relationships and marketing strategies. 1 vendor put the hope on her children: that
all my children will graduate. And 1 vendor sought the formalizing goal in unity of prices,
a price policy thus.

What becomes clear of the answers is that most vendors see the needs for formalizing
principally in their lack of capital or in the improvement of their own business execution.
Recurring themes like no demolition and owning a stall are the most noted remarks in the
direction of the government. Relatively few vendors see cooperation, or the help of street
vendors organizations as the pathway to formalizing their business.

The question: what are the constraints in obtaining this goal? , was again mainly answered in
a personal way, thus putting the emphasis on the street vendors own business execution.

Table 3.4 Constraints in formalizing business, divided over stakeholders

Street vendors 68
Local Government 22
CCUVA (and own organization) 1
Other 5
Source: SPSS Data Set

33 vendors answered lack of capital, again no money as the biggest constraint in the
possibility to formalize their business. 3 others specified this into lending, which has a high
interest and is an unfavourable option from that risk perspective. 4 mentioned that business
was going slow or sales were bad, so no growth. 3 had problems with their products when
fruits turn overripe we cant return it to the supplier, damaged products and no flowers
to sell were the comments stated in this respect. 4 stated their health problems as a
constraint of which 3 had had an illness and 1 was an alcoholic. 3 vendors mention their lack
of education, here basic needs seem to be the obstacle.

52
2 had problems with their family, 1 with other vendors envy from other vendors. 2 sought
the problem in misfortune. 1 just needed to work harder. 3 others called it vices. 1
wanted to improve the vending space, proper ventilation should prevent customers from
transferring
Local government is for 5 vendors hindering their business or trying to capture us. 13
mention demolition as the principal constraint. 3 see the lack of vending space as the
biggest constraint, where local government could be supportive.
1 vendor mentions disunity in the cooperation as a constraint, this can be seen as a
problem considering CCUVA, since they are the maintainers of unity in the cooperation
between street vendors and their organisations.
1 vendor says lack of financial support, but does not state where it should come from. 1
vendor mentions unknown groups asks for a share of the profits. And 1 vendor puts his
trust in God: nothing if you only pray to God and ask his help is the answer to what
constraints are to be found in order to formalize.

Insufficient funds are the principal constraint for vendors when it comes to formalizing their
business. Slow business and insufficient sales are another constraints, as well as lack of basic
needs like education and health problems. The policy of the local government is also a big
constraining factor for many vendors. Demolition, lack of designated vending space and
hindering action for their businesses are stated by the vendors.

The question: what are the opportunities to realize your goals?, was less frequently
answered as explained earlier. Again the street vendors see their personal behaviour or
entrepreneurial skills as the most important factor, as shown in Table 3.5.

Table 3.5 Opportunities for realising wishes, divided over stakeholders

Street vendors (and own organization) 36
Local Government 3
CCUVA (and street vendors organizations) 3
Other 11
Source: SPSS Data Set

11 vendors state that perseverance, and hard work are the best opportunities for
realizing their wishes and goals. 10 say more money is the best opportunity. 3 want to lend
money, and 2 want to save money. 3 see good management as the best chance: proper
guidance of the business, expand the business, not just flowers and good strategies in
the business are their responses. 1 vendor leaves it to the regular clients: if our regular
clients will increase their usual order. Education for their children is seen as the best
opportunity by 2 vendors.
Local government is mentioned under opportunities with again the known arguments: 1
vendor states that stopping demolition is the best opportunity, 2 vendors see government
help as the most important.
If our leader will do something is the response of 1 vendor, meaning probably the leader
of his or her organization. 2 vendors want better coordination of the supply of goods,
something that is coordinated, among others, by CCUVA.
8 vendors rely on God himself for opportunities, God or more elaborate phrases like if
God will give me a chance to fulfill my dreams and if the Lord will have mercy on us were
found. 2 vendors do not think about opportunities: time will tell.

53
Hard work and more capital are the two, often interlinked, opportunities that street vendors
see for the realization of their goals and wishes. Local government is hardly mentioned,
neither is CCUVA or the own organizations. God sticks out as a guide to the opportunities in
this respect.

Next to the question what your desires for the future are rises the question if vendors see a
realistic perspective for that future. Do street vendors feel they have the capability to make
the changes they desire? When asked, the answer was mainly positive (see figure 3.21)

Figure 3.21 Do you feel that you have the ability to change your livelihood situation?

Totally able to
change livelihood
situation

Mostly able to
change livelihood
situation

Neither able nor Flowers

unable Fruit

Mostly unable to
change livelihood
situation

Totally unable to
change livelihood
situation

0,00% 10,00% 20,00% 30,00% 40,00%

Percent

Source: SPSS Data set

Around 35% percent of both types of vendors feels totally able to change their livelihood
situation, another 25% sees this the opposite way. Again it becomes clear that flower
vendors are a bit more positive about their future than fruit vendors.

Conclusion of 3.6
The hypothesis made for the research is largely falsified by the statements of the street
vendors. They do not prefer to be part of the formal sector, rather they prefer to expand
their business and become more successful entrepreneurs within their current situation. If
this proves one thing it is that first and foremost street vendors are entrepreneurs and enjoy
the benefits of street vending more than the pitfalls. Further more the largest part of the
vendors seems to feel capable of realizing her or his wishes. In both cases flower vendor
state their case stronger, which again points in the direction of a stronger position in the
market, and a stronger stock of social capital for flower vendors in old Downtown Cebu.

54
3.7 Image of street vendors and street vending in Cebu City

Street vendors have the image of being a contribution to the regular selling points for
groceries and other goods. The Carendaria and other street foods- sellers even enjoy a
reputation of providing cheap and good dinner.
The uniformity that is given to street vendors through the fixed measurements of the stalls
and the identical parasols that are spread among the street vendors population by the local
government gives an organized and colorful image in the streets of Cebu.
At policy level there is a different image of street vendors. Legally speaking they are, with
the exception of stall owners in Carbon Market, illegal encroachers of the city streets (see
also chapter 4 for more information about local government policies concerning street
vendors). Off course it is recognized that street vending is a source of income for urban poor,
who might have no other option than selling goods in the street. Alongside with Trisikad
drivers and Jeepney-drivers they form the appearance of small scale informal entrepreneurs
in the streets of Cebu City.

What is important in the way they are perceived might be of influence on the image in City
Hall and has an effect on future policies and approach to street vendors. Especially since
there is a tight rope between a maximum tolerance policy and the expulsion of street
encroachers, which is in the hand of the local government to be executed.

In order to get insight in the self-image of street vendors the satisfaction with their job was
measured (figure 3.22), this shows that 65,9% of the street vendors is either satisfied or very
satisfied with their current job. A little bit more then 20 % is very dissatisfied with what they
are doing to provide for their livelihood.

Figure 3.22 Are you satisfied with the fact that you are a street vendor?

Very satisfied

Satisfied

Neither satisfied nor Flowers

dissatisfied Fruit

Dissatisfied

Very dissatisfied

0,00% 10,00% 20,00% 30,00% 40,00% 50,00%

Percent

Source: SPSS Data set

55
The street vendors were asked to reflect on their role in the streets. Do they see themselves
as contributing to a positive image of street vendors in the streets of Cebu? The question
proved to be provoking, only 39 out of 96, or 41% of the respondents answered the question
(see figure 3.23). The result is the only question that is exactly in balance between the two
strata of street vendors in the research area: 84,6% of the fruit- and flower vendors in Old
Downtown Cebu City considers him- or herself to be making a positive contribution to the
image of street vendors. That means no case of low self-esteem at all.

Figure 3.23 Do you feel you are making a positive contribution to the image of street
vendors?

90,00%

80,00%

70,00%

60,00%

50,00%
Percent

Fruit
Flowers
40,00%

30,00%

20,00%

10,00%

0,00%
Yes No

Source: SPSS Data set

Most vendors that left comments to this question said their support existed out of helping
the poor. We can help the poor and those who cant afford to buy expensive fruits
especially in the market, was one of the comments that fits this category of answers. Out of
the 24 responses, 5 were similar to the stated comment.
3 vendors mentioned keeping the stalls and the street clean as an important factor
contributing to the image of street vendors. 7 gave varying answers that can be
denominated under the category proper business execution, like it should be at the right
price, give assistance to buyers and selling properly. Good and honest vendors was
the downright comment of one vendor.

Other comments were diverse, varying between: following the rules of government to
making the customers satisfied and just hard work. Cooperation was only mentioned
once. Finally one vendor stated: I am lucky enough.

There were also some negative responses to the question: do you contribute to the image of
street vendors? 5 vendors commented negatively to the question. 2 of them put the blame
on local government: Arresting us and I cant help it, because I have no right in City Hall
were the comments. 2 sought the fault in themselves: because there are a lot of carts in the
streets and I lacked determination were their respective comments.

56
Conclusion of 3.7
Street vendors do not like to answer questions about their image, if they do so hey see
themselves generally as a positive contribution to the streets of Cebu City. Especially in their
role of providing poor citizens with affordable goods is their positive image visible, according
to themselves. The ongoing difficult relation with local government is seen as a negative
contribution to their image. Vendors are in general satisfied with the fact that they are
performing their occupation in the informal sector. 65,9% is either satisfied or very satisfied
with the fact that they are an informal entrepreneur.

3.8 Conclusion of the chapter

Street vendors in Cebu City have very different characteristics making them a heterogenous
group, still they can be denominated a homogenous group in economic and legal terms,
since they operate more or less in the same informal way. They can also be divided by
product group, based on the items they sell, which has been done in this research. Fruit
vendors in general seem to have a harder time buying and selling their stocks on the street.
Flower vendors are more accepted and established and have less competition from
supermarkets for instance. Fruit vendors find innovative service oriented strategies to still
maintain their businesses. Suki relationships are vital to all vendors, be it with their
suppliers, clients, family, farmer, wholesaler or colleague, this will be elaborated more in
chapter 5, where the social capital of street vendors is elaborated upon.
General remarks regarding the goal achievement are: vendors like to expand and optimize
their businesses, generally like what they are doing and strive to improve the image of street
vendors , since they are proud of their businesses.

57
Chapter 4. Local government Policy
They give us the opportunity to sell
This chapter aims to give an overview of the role the local government, more precisely the
Cebu City Government, fulfills in the livelihood provision of street vendors in Old Downtown
Cebu. The Cebu City Government has a great influence on the livelihoods and goal
attainment of vendors in the city since it operates the policies designed towards vendors,
and consequently is creating policies to solve the vendor problem.

4.1 Introduction: policy making to meet the street vendor situation: 1980-2007

In Cebu, where the urban economy is viable enough to sustain ongoing construction, and
where property is therefore a valuable commodity, access to space is the number one issue
facing sidewalk vendors. Many of their mobilization efforts are geared towards securing
access to space by employing a strategy of forming associations that have validity under
Philippine law. (Yasmeen, 2003).

Street vending is illegal by law in the Philippines. The Department of Justice has expressed its
opinion and the Supreme Court has ruled that public streets and sidewalks are property for
public use, which means they are not to be used for commerce. It may not be subject of
lease or other contract. This is embodied in Cebu City Ordinances 1186 and 1085.
In practice there is a different situation. The Local Government has been implementing a
policy of maximum tolerance towards the street vendors from Mayor Osmea's first term
(1988- 1995) onwards. Maximum tolerance can be described as the unwritten regulations
or guidelines that must be followed by vendors instead of outright demolition or eviction
(Etemadi, 2001, pp147). City officials in Cebu have come to accept the reality that this sub
sector of the informal economy provides an alternative livelihood to the unskilled labour
force and to those who could not be absorbed by formal employment. It is recognized that
instead of depending on government welfare or resorting to theft, the street vendors try to
earn a decent living. (Etemadi, 2001)

Since the situation of street vendors on the streets of Cebu has been acknowledged as a
problematic development, as early as 1948 (see also 4.2), local government has tried to
design policies to deal with vendors. From the principal conception of the word street
vendor in policies onwards there has been a negative attitude towards street vendors.
Consecutive ordinances have all stated the illegality of vendors activities.

In recent years the institutionalization of street vendor representatives, most tangibly

stimulated by CCUVA and the forming of cooperatives, has accelerated a process of creating
more of a legal framework that actually acknowledges the fact that there are street vendors
and they do have a function and stake in the inner citys economy.

Vision of local government

The principal viewpoint of Local Government, as articulated by Bimbo Fernandez, City
Administrator, to the vendor situation nowadays, (paraphrased): when the effects of the
economic policies start to take effect the economic development will solve the vendor
problem. Taking into account the current trends in population growth and economic
development, this can be viewed as a very optimistic statement.

58
The notion presented by Fernandez is close to the official vision of the Cebu City
Government, as stated on their website. The Cebu City government proclaims the vision
during their mandate as: a financially dynamic, pro-active and self-reliant City Government
responsive to the needs of its constituents.(website: www.cebucity.gov.ph)

City consultant of the Urban Poor Gerry Marquez elaborated on the policy of the local
government of Cebu City concerning street vendors. Sidewalk vending is an illegal activity in
Cebu. But there is a policy of maximum tolerance as long as there are no significant
complaints of companies in the vicinity or pedestrians that get obstructed by the presence of
sidewalk vendors in the streets.

These sidewalk vendors are the most in need to be organized as they do not have access to
stalls from which to sell their own wares. They are, therefore, the most frequently harassed
and displaced by police and municipal officers (SPEED, see also 4.3) because they are
defined as encroachers of public space. At the same time, however, many of the vendors
occupying the footpaths pay a daily fee called arcabala to the Local Government Unit (LGU)
for which they receive a receipt. This makes the status of encroachers ambiguous, since they
are in a way- tenants. (Yasmeen, 2003)

4.2 Historical roots of local government policy towards street vendors

Since the decentralization policy in the post-Marcos era became a fact through the Local
Government Code of 1991 much has changed for municipalities or Local Government Units,
as they are called in the Philippines. Broadly speaking, decentralization is the transfer of
power, authority, responsibility or the discretion to decide from the central institution to the
lower or local levels of a government system. The decentralization process is interesting in
this context, since it underlines the fact that the Cebu City local government is the single
most important institutional party involved in the situation of street vendors in downtown
Cebu City.
Despite this fact, the national legislation is still leading in the design of local policy. Therefore
the national government and national legislation is still an important actor in policy
development towards street vendors.

4.2.1 Actors in developing legislation and policy towards street vendors

The most important official policies on national and municipal level, shaping the politics
towards the situation of street vendors are discussed in this paragraph.

National Government

In 1997 Executive order No. 452 was installed. The Executive order, issued on the national
level was entitled: Providing for the guidelines that will ensure the security of registered
vendors in the workplace.
It covers all cities and municipalities nationwide and is intended apply to all ambulant

59
vendors and street vendors, with and without stalls. It foresees in the marking of designated
vending spaces where fees can be asked from vendors selling their stock. All vendors in a
municipality should be listed in order to be subject to fee-charging and to ensure their legal
position in order to be able to govern the issuance of business permits for fixed stall
holders to operate their businesses. Ambulant vendors are subject to a simplified version of
registration. Vending space may be assigned to vendors with a business permit, according to
the local government.
Next to this, vendors are encouraged to organize themselves into organizations for their
mutual aid, benefit and protection for other legitimate purposes. Assistance to the Vendors
Association is given by local government agencies, financial institutions and local
government units. And LGUs shall include in their plans, programs and activities efforts that
are supportive of the concerns of vendors associations.

Important cornerstones of this executive order where, according to Etemadi, the fact that
public streets and sidewalks are property for public use; hence, outside the commerce of
man. Further more that obstruction or interference with the free passage on any public
highway is nuisance per se and may be summarily abated without judicial proceedings.
Also it provides for the adoption of the guidelines that will ensure the security of registered
vendors in the workplace (although the implementation of rules and regulations are still
pending, in 2001) (Etemadi, 2001).

This means that on a national level the policy insist that work is made of formalization of
vendors, since they are registered in their workplace. Outside these registered vendors, it is
wild west for vendors, since they are breaking the law by obstructing free passage in areas
outside the commerce of man. Strictly juridical this order does not provide any security of
livelihood provision for the unregistered vendors at all.

Cebu City Government (local government)

On the local level there is an ample history of consecutive ordinances having a say about the
street and sidewalk vendors of Cebu. See Table 4.1 for a concise overview. In 4.2.2 the
most important ordinances will be discussed.

Generally speaking, in Cebu, the local government exercises full power over the situation of
vendors in legal terms, since they are operating illegal businesses. Practically there are so
many of them, and there are not enough other opportunities for them, thus a policy of
tolerance is practiced. The policy incentives and ordinances executed over the course of the
last 60 years, from the first official policy until the most recent, towards the vendors are
discussed in this paragraph. Since the mayor has an important role in decision making and
manages the governing of the chartered city Cebu (see 1.3), their names are included in the
table as well.

Table 4.1 Overview of Ordinances concerning the policy towards street vendors

Ordinance Year of Acting Contents in 1 sentence

No. issuance Mayor
74 1948 Miguel Prohibits use and obstruction of passage ways below the

60
 Revithan arcade
211 1956 Refines prohibition to: for the purpose of storage, selling
merchandise, parking space, or to open or place anything
that will be an obstruction to pedestrians
1017 1979 Florentino permitting and regulating the business of sidewalk and
Solon ambulant vending in certain designated places in the City
of Cebu. Imposing arcabala fee for using space
1085 1981 Ronald Prohibition of the use and obstruction of the passageways
Duterte below the arcades by sidewalk vendors
1186 1985 Ronald Repealed everything from ordinance 1017, and made
Duterte sidewalk vending illegal by law.
henceforth, it shall be unlawful for any person whether
natural or juridical, to sell or vend in retail or otherwise,
any goods, articles, merchandise or commodities or engage
in any business or trade in any sidewalk or portion of the
streets within the City of Cebu
1222 1986 Ronald Abolished parking area in Freedom Park in favor of street
Duterte vendors clogging space in Carbon Market
267 1990 Tommy First step in participatory approach.
Osmea The Cebu City Integrated Vendors Management Study
Committee is tasked to study and determine the effects and
impacts on:

a) designating vending areas

b) issuance of business permits and other pertinent
business documents;
c) regulations on health and cleanliness;
d) revenue generating rules and regulations
pertaining to the activities of the hawkers,
sidewalk and ambulant vendors;
e) prosecution of violators in accordance with
relevant regulations, rules and ordinances.
1481 1993 Tommy Demolition of illegal building, structures or contraption
Osmea erected in any public place within Cebu
96-09 1996 Tommy Creation of the Cebu City Regulatory Body on Street,
Executive Osmea Sidewalk and Public Vending (RBSSPV), which is primarily
Order (Office responsible in the regulation, management, control,
of the Mayor) supervision and monitoring of street, sidewalk and public
vending activities in Cebu City
1999 Alvin Cebu City Integrated Vendors Management Study
Garcia Committee
00-003 2000 Alvin Creation of Technical Working Committee to Study the
Executive Garcia Plight of the Street, Sidewalk and Public Vendors, to
Order (Office regulate street vending
of the Mayor)
00-1229 2000 Alvin Suspension of Ordinance No. 1186 (which was still official
Garcia policy)
01-3718 2001 Tommy
Osmea It cannot be denied that for valid economic reasons, some
people are engaged in street or sidewalk vending as a
means of livelihoods as it is one of the simplest form of
businesses since one does not need a big amount of
capital. In fact, in several big cities all over the world, it is
not uncommon to see the existence of street and sidewalk
vendors.
(Etemadi, 2001, and Ordinances obtained at City Hall)

61
 4.2.2 History of policy towards street vendors through consecutives ordinances

The most important ordinances are discussed in greater detail in this paragraph.

Ordinance number 74, 1948

This was the first ordinance to regulate the removal of persons displaying items on the
streets and thereby disturbing passer bys. The name street vendor or sidewalk vendor
was not yet plotted:

An ordinance prohibiting the use and obstruction of the passage ways below the arcades.

Section 1. Prohibition.

It shall be unlawful for any person or group of persons or persons to utilize the passage
way below the arcades for purposes of storage, parking space, or to open or place
anything that will be an obstruction to pedestrians passing through the space below the
arcade.

Section 2. Penalty.

Any person or persons violating this ordinance shall be fined not exceeding P200,00 or
shall be punished by an imprisonment not more than six months, or both such fine and
imprisonment at the discretion of the court.

Ordinance 211, 1956

In 1956 an amendment was made instigated by Florencio s. Urot, the same Uriot who was
president of the Philippines when ordinance 74 was installed.

This amendment took place under the rule of Mayor Sergio Osmea Jr., who is the father of
the current Mayor Tommy Osmea.
The first section of ordinance 74 was changed into ordinance 211:

62
 Section 1. Prohibition

It shall be unlawful or any person or group of persons to utilize sidewalks and the passage
way below the arcades for the purpose of storage, selling merchandise, parking space, or
to open or place anything that will be an obstruction to pedestrians passing through the
sidewalks an/or the space below the arcades.

This statement is quite close to the root of the policy as it is still executed nowadays.
It implicitly qualifies the street- and sidewalk vendors as encroachers, a designation still
used nowadays.

Ordinance No. 1017, 1979

In 1979, ordinance number 1017 was issued. This was the first ordinance to acknowledge
sidewalk- and street vendors as a part of the streets of Cebu and provided a regulatory
framework, and thus an actual policy towards them. It is therefore useful to cite certain
parts of it:

An ordinance permitting and regulating the business of sidewalk and ambulant vending in certain
designated places in the City of Cebu.

Whereas, sidewalk and ambulant vending has become a way of life to many poor inhabitants of
the City of Cebu;

Whereas, while the City of Cebu is cognizant of the constitutional guarantee affording all citizens
irrespective of their social standing in society equal opportunity to earn their livelihood by and
through lawful means, it is likewise cognizant of its duty to preserve, maintain, uphold, and
promote te safety, health, order, and peace of its communities and inhabitants;

Whereas, it has been observed that sidewalk and ambulant vendors proliferating different areas in
the City of Cebu are engaging in their businesses and trade in a manner affecting and prejudicing
the safety, health, order and peace of the communities and inhabitants of the City of Cebu, thus,
necessitating regulatory matters;

The Sangguniang Bayan of the City of Cebu by virtue of the powers vested upon it by the law do
hereby ordain that:
()
Section 7.
Persons covered by this ordinance and engaging in their business and trade pursuant hereto shall
be subject to the payment of daily alcabalas at the rate now being imposed; except on days
when said persons do not ply their trade.
Section 8.
For the issuance of a mayors permit the applicant shall pay a fee in the sum of thirty pesos per
annum.
Section 9.
For violation of any of the provisions (..) the following penalties are herby imposed:
(a) First offense, an administrative fine of Ten Pesos
(b) Second offense, an administrative fine of Twenty Pesos
(c) Third offense, the cancellation of the permit, and, a fine of not less than Fifty Pesos nor
more than One Hundred Pesos or imprisonment of not more than fifteen days, or both, at
the discretion of the Court.
Section 10.
All ordinances, rules and regulations, orders or memoranda inconsistent with or contrary of this
ordinance are hereby repealed and of no effect whatsoever.

Signed by Mayor Florentino Solon, jan. 25, 1979

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Ordinance No. 1186, 1985
In 1985, the Sangguniang Panlungsod of the City of Cebu, on motion of Member Renato
Osmea, the uncle of Tommy Osmea, approved ordinance No. 1186.

The ordinance repealed everything from ordinance 1017, and made sidewalk vending illegal
by law. The most important parts:

Whereas, Ordinance No. 1017 allows sidewalk and ambulant vendors to sell, vend,
display, or engage in their business or trade in certain designated places in the City of
Cebu;

Whereas, implementation of said ordinance has only resulted in congestion and clogging
of streets thereby affecting public safety, health, and peace and order of the community;

Whereas, it is the duty of the City of Cebu to preserve, maintain, and promote the safety,
health, and peace and order of the community and its inhabitants.

Now, therefore, the Sangguniang Panlungsod of the City of Cebu, in a regular session
assembled, hereby ordains that:

Section 1. Ordinance No. 1017 permitting and regulating the business of sidewalk and
ambulant vending in certain designated places in the City of Cebu is hereby entirely
repealed and rendered of no effect whatsoever; henceforth, it shall be unlawful for any
person whether natural or juridical, to sell or vend in retail or otherwise, any goods,
articles, merchandise or commodities or engage in any business or trade in any sidewalk
or portion of the streets within the City of Cebu.

Section 2. All existing sidewalk and ambulant vendors () shall desist from selling or
vending or from engaging in their business or trade in these areas after thirty (30) days
from notice of this repealing ordinance.

Section 3. The Market Committee is hereby empowered to designate appropriate areas

at the Carbon Public Market, T. Padilla Public Market, Warwick Barracks Market,
Freedom Park, Taboan Public Market, and other places in the outskirts of the City of Cebu
as places where the persons mentioned in Section 2 hereof may be permitted to engage in
business or trade, subject to the approval of the City Mayor.

(..)

Section 5. This ordinance shall take effect upon its approval.

CARRIED UNONIMOUSLY (member Aballa abstained)

Attested by Mayor Ronald R. Duterte and Acting Presidential Officer Rodolfo Y. Cabrera

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Ordinance No. 1222, 1986
Issued in 1986. Abolished a parking area in Freedom Park and designated the space to
accommodate ambulant vendors that were causing clogging in Carbon Market by displaying
their goods in the streets.

Executive Order No. 267, 1990

In 1990, after President Marcos had left the Presidential Office due to the Peoples Uprising.
Tomas Osmea was elected and serving his first term as acting Mayor of Cebu. He made an
effort in promoting dialogue and co-creation in policy for the vendor issue. Resulting in
executive order No. 267 in which The Integrated Vendors Management Study Committee is
created.

To solve the ongoing issues around vendors a Study Committee was set up, consisting of City
Government representatives such as the coordinator of the City Planning & Development
Council, the commander of the Cebu City Police Station, the City Attorney, the City Health
Officer and a Mayors representative. But also with four vendors representatives, including
Felicisimo Rupinta (currently Barangay Captain of Ermita and founder of CCUVA) and Maria
Pino-Buanghug, co-founder and acting president of CCUVA.

This was a premiere: consulting representatives in a official study group that was aimed to
advice the Mayor on the following issues, and thus the first time that a participatory
approach was chosen by Local Government represented through Mayor Osmea.
Important parts:

Section 2. DUTIES AND RESPONSIBILITIES.

The Cebu City Integrated Vendors Management Study Committee is tasked to study and
determine the effects and impacts on:

a) designating vending areas

b) issuance of business permits and other pertinent business documents;
c) regulations on health and cleanliness;
d) revenue generating rules and regulations pertaining to the activities of the
hawkers, sidewalk and ambulant vendors;
e) prosecution of violators in accordance with relevant regulations, rules and
ordinances.

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Resolution No. 00-1229 Creation of the Cebu City technical Working Committee for the
recognition and security of street traders in the workplace, 1999
Suspending Ordinance No. 1186, awaiting the results of the study committee to implement
a regulatory ordinance concerning street vendors.
In response to the ever growing amount of street vendors, especially during the economic
crisis of the mid-1990s the City Government created the Cebu City Regulatory Body on
Street, Sidewalk and Public Vending in 1996. With the aim to regulate, manage control,
supervise and monitor street, sidewalk and public vending activities in Cebu City
(Etemadi, 2001)

One of the recommendations of the regulatory body was the conduct of a study on street
vending for evaluation purposes. In order to base policy on these findings. In 2000 the Cebu
City Technical Working Committee to Study the Plight of the Street, Sidewalk and Public
Vendors was created.

Resolution No. 01-3718, 2001

It cannot be denied that for valid economic reasons, some people are engaged in street or
sidewalk vending as a means of livelihoods as it is one of the simplest form of businesses
since one does not need a big amount of capital. In fact, in several big cities all over the
world, it is not uncommon to see the existence of street and sidewalk vendors.

This conclusion of the Technical Working Committee was Another step in recognizing, on a
policy level, the existence and value of street vendors in the streets of Cebu.

4.2.3 Interference from CCUVA: reaction on ordinances and pressure

During the beginning until the mid-eighties, when CCUVA was formed, the situation for
street vendors became increasingly difficult. The regime of acting Mayor Duterte was hostile
towards vendors, stalls were regularly demolished and his mandate ultimately resulted in
the notorious ordinance No. 1186, which to date is still officially in place.

In the following years CCUVA became experienced in resisting demolitions, although often
unsuccessfully. This prompted the leaders to take a more cooperative role towards local
government. Strategy and negotiation with local government became more important for
CCUVA. When Tomas Osmea entered the City Offices for his first term as mayor in 1988,
CCUVA had a few years of pro-active negotiation in its experience.

Osmea began his term by proposing the complete phasing out of street vendor activity in
the city. The vendors responded by strengthening their lobbying efforts with the
administration. Progress was made by CCUVA and in 1990 The Cebu City Integrated Vendors
Management Study Committee was installed, which was made up of representatives from
local government as well as CCUVA.

The Committee concluded that street vending activities should be legalized in some areas of
the City (Carbon market, and the public market areas). The Supreme Court repealed this
decision. The City Government then installed the maximum tolerance policy which
encompasses that a vendor shall not be removed unless an official complaint is filed by
another public space user. Meanwhile ordinance 1186 remained the official policy.

Resulting from the ongoing difficulties between vendors and local authorities, accompanied
by intensive lobbying by CCUVA, at some point in 1997 even supported by an initiative of

66
CARE and USAID to increase their lobbying and organizational skills, finally in 2000 the Local
Government agreed to install a technical working committee to recommend new practices
regarding the policy towards vendors. The Technical Working Committee to Study the
Plight of the Street, Sidewalk and Public Vendors was installed and made its
recommendations.

In July 2000, CCUVA organized a large demonstration of street vendors outside City Hall to
demand an end to demolitions of their premises. The Mayor agreed to meet the leaders who
presented him with a petition. He explained that he did not order demolitions except where
street vending was in clear breach of the regulations, such as vending on the highway rather
than the sidewalk, and vending after permitted hours. He agreed to endorse the petition,
subject to those limitations. The street vendors left, feeling that they had scored a victory,
whilst the Mayors view was that he had not agreed to anything which was not already the
current policy. This raises questions about whether the Mayor is actually in a position to
deliver on his promises, and is able to control the activities of the city government officials
who may be carrying out demolitions which contravene the stated policy. (Etemadi, 2001)

Conclusion of 4.2
It appears that street vendors were never very popular among the city government officials,
only through coordinated cooperation between vendors association, resulting in the
foundation of the Cebu Citys Vendors Association (see 5.3 for more about CCUVA) a
dialogue was started, but to date still frustrated by demolitions. The regulations are clear
and the bottom line seems that city mayors to date do not want to make concessions to that
basic rule.

In paragraph 4.3 the actual everyday policy and its dynamics are further explained.

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 4.3 Actual execution of policy in Cebu in 2007 and relation with and attitude
towards local government policy of street vendors

In practice, the policy concerning vendors is one of maximum tolerance. Within the
designated market places vendors are legitimate ( 4.3.1), outside they are encroachers
and subject to the unwritten policy of maximum tolerance ( 4.3.2).

4.3.1 Market Areas

There are five designated market areas throughout Cebu City, where vendors are allowed to
vend their goods paying only arcabala to the city government and the Barangay. The
arcabala is usually around 6 pesos depending on the size of the stall or vending place, the fee
for the barangay varies per barangay.
The designated market areas within Cebu are: Carbon market, which is composed of 5 units:
Unit I to III, Warwick barracks and Freedom Park. Outside of these designated areas there
are 5 additional market places throughout the city: Lahug public market, Taboan market,
Ramos market, Banawa public market and the Pasil fish market. In these markets there is no
threat for demolition.

Carbon Market
The Carbon market area is closely monitored by the Market Administrator. Arcabala is
collected everyday, and the fixed stall holders in this area, are taxed and licensed, so
monthly fees are collected, varying in their installments. Records are kept of this initiative.
Daily an amount of 16.500 pesos is collected in the Carbon market area. An official record of
this is kept, as to which vendors the fee is collected from. The rent for a fixed place on the
market is dependent on the size of the stall, ranging from 2m up to 7,5 m, costing a fee of
3p to 27p per day. (Interviews Market Administrator, 27 and 29-6-2007)

Map 4.1 Designated market areas, Cebu City

Legend
A= Carbon Market (with Freedom Park)
B= Taboan Market

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C= Banawa Public Market
D= Ramos Market
F= Lahug public Market
H= Pasil Fish Market

(E,G, J are in Mandaue City and I in Talisay)

A tripartite agreement has given way to the latest policy on street vending in the Carbon
Market area as of 27-1-2006. The market authority uses this policy as a guideline for
managing the Carbon Market complex.
The treaty was signed between: Cebu City Market Authority (LGU), CCUVA (see also 5.3)and
the cooperative CEMVEDCO (see also 5.4).

Frame 4. Tripartite agreement on regulation of Carbon Market

POLICIES
1. Twenty-four hour vending allowed at selected areas
2. At these selected areas, vending space shall only be one meter from the gutter towards
the middle of the street from 6am up to 6pm
3. One and a half meters to two meters wide passage ways are to be provided for the stalls
or business establishment at the back, at all times
4. Permanent and closed structures are not allowed
5. Umbrellas are to be used only when there is rain or if it gets too hot
6. Street and sidewalk vendors displays must not exceed four feet from the ground or in
height
7. Only merchandise display are allowed and no mini-bodegas allowed in the streets and
sidewalks
8. cleanliness and orderliness are to be maintained at all times
9. ID system shall be implemented
10. Only registered voters of Cebu City are allowed to vend in designated market areas
11. Vendors are to sign a deed of undertaking
12. Respective association presidents attention shall be called upon in the event of any
violation by any member vendor
13. Sanitation and garbage, drainage, orderliness and physical arrangement, parking and
traffic management, peace and order and security shall be for every vendor, stallholder
and business establishment owner and worker concern
14. Street/sidewalk vendors where allowed/regulated should pay daily prescribed arcabala
and secure special business tax
15. Any violation of the above mentioned policy shall be dealt with sanctions that will be
determined by the council.

Besides arcabala, vendors can also be subject to special business taxes. These taxes are
usually imposed on stall owners and collectively met by the street vendors organizations.
The management of this regulation is done by both the market authority of City Hall and
teams from CEMVEDCO and CCUVA checking on these and their own regulations.

4.3.2 Outside Carbon Market

Ordinance no. 1186, issued in 1985 to this date still cornerstones the official City Policy
regarding street vendors. The ordinance states the following: It shall be unlawful for any
person whether natural or juridical, to sell or vend in retail or otherwise, any goods, articles,
merchandise or commodities or engage in any sidewalk or portion of the sidewalk or portion
of the streets within the City.

69
Maximum Tolerance
In practice there is a policy if maximum tolerance which means that street vending is
allowed, as long as there are no major problems with encroaching of the street, obstructing
pedestrians and traffic and causing problems with establishments in the vicinity (Interview
Marquez, 3-5-2007). This maximum tolerance policy (see table 4.3) leaves room for Local
Government to maintain control over the vendor population, while at the same time
granting them vending space and room for self-control. Still it can lead to demolition
operations without proper consulting. Such as during the ASEAN summit in January 2007,
when hundreds of vendors were expulsed from Colon street in order to give the street a
cleaner look and install decorative street lights.

In general the execution of policy by the City Government regarding street vendors although
is one of acknowledging they are there, but managing them within the illegality of this
ordinance, which gives the power to still demolish the vendors at will (Interview Fernandez,
20-6-2007).

Zero Growth
Another policy concerning street vendors is that of zero growth. The master list of street
vendors provided by the research done by professor Etemadi for the Technical Working
Committee to Study the Plight of Street Vendors serves as the basis for this policy. The list
was drafted after a study conducted under her lead. The master list was intended to serve as
input towards drafting a regulatory ordinance concerning street vendors. This has not been
realized to this date.

For the policy towards street vendors the list has a major importance, since the list is used as
the official document of registered vendors in Cebu City. If a vendor is not on list, they are
not viewed as a listed vendor, which mean they are not considered to be eligible for the
maximum tolerance-policy. They can be evicted without prior notice. In practice this is
seldom enforced. The in- and outflux of new vendors is very big and the capacity of SPEED,
the local vendor police (see box 4.1) is not big enough to maintain control over every change
(Interview Marquez, 3-5-2007).

Box 4.1 SPEED

Definition of SPEED
SPEED (Squatters Prevention Encroachment Elimination Division) is the vendors police
servicing the local government. It seeks to support areas in remaining tidy and acceptable
for other users of the public space. Often vendors see them as patronizing and
disrespectful. SPEED conducts 24-hour monitoring and surveillance on illegal vending. It is
authorized to seize, gather and keep the construction materials of the demolished
structures subject to redemption; demolish stop and curtail recent and new violations of
existing laws, ordinances and regulations versus illegal vending, illegal structures,
obstruction and encroachment of public places and waterways. On the whole, the
relation between the vendors and SPEED has remained distant but cordial. Although in
different cases vendors have protested against the absence of a due process in
demolition activities by SPEED. (Etemadi, 2001, Yasmeen, 2003)

70
In effect the maximum tolerance policy thus leaves momentum for vendors to be replaced
through informal systems. CCUVA will sometimes keep an eye closed, and City Hall will never
know (interview M.C. Briones vendor, 14-6-2007). Some vendors without a vending space
will get the space of a vendor that leaves. The recommendation for the replacing vendor is
made by the organization that operates within that area (interview CCUVA, 29-6-007)

Table 4.3 Unwritten Policy of Maximum Tolerance Towards the Street, Sidewalk and
Ambulant Vendors
One-side Vending Vending on one side of the street only; permitting the vendors to sell in
designated areas
Zero Growth - No new vendors are allowed after the master list is finalized by
February 9, 2001
- Each vendors is limited to one stall or structure
Time From 6.00p.m. to 6.00 a.m
Stall, structures - Light and temporary structures
- Uniform color
- Size of table 2x3ft, 3x2ft, 3x6ft, depending on the area
- Edges of the table should not extend beyond allowable distance
- No new structures or extension
Distance from the street 1.5 metres from the gutter of the street

Off limits - Danger Zone

- No encroachment on the main streets
- Entrance of buildings or establishments
Traffic - No obstruction of traffic
- Clear passageways for pedestrians
Clearing of the area or -No demolition unless there is a formal complaint filed at the Office of
Demolition the Mayor, City Attorney, SPEED, or any other government agency
- Process of clearing the street/sidewalk/public places of illegal vending:
- Complaint is received by the Office of the Mayor, City Attorney,
RBSSPV or Speed.
- The Mayor or Attorney refers the complaint to the RBSSPV
(Regulatory Board on Street, Sidewalk and Public Vending) or
SPEED (Squatter Prevention Encroachment Elimination Division)
- RBSSPV or SPEED deliberates on the complaint during their
weekly meetings
- SPEED conducts field inspection and makes initial remarks
addressed to the concerned vendor; and prepares report to
RBSSPV, the Mayor, the City Attorney, as the case may be, for
their information and guidance.
- The RBSSPV / SPEED invites the respondents to a meeting and
asks them to comment on the complaint, making them
understand the rationale of the complaint and advising them to
do something before it is too late;
- When negotiation fails, RBSSPV calls the complainant and the
respondents to a meeting for dialogue;
- When negotiation fails, RBSSPV recommends the eviction of the
vendors, their vending paraphernalia and the confiscation of
goods, especially when vendors refuse to vacate the place
voluntarily.
- The Mayor issues notice of removal, clearing of demolition to
SPEED for appropriate and immediate action;
- The SPEED, as a matter of procedure, issues First, Second, Third

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 and Final Notice. When the affected vendors ask for
reconsideration, they are usually referred to the Mayor for
decision. When the Mayor acts favourably, then demolition is
not carried out; but when the Mayor rejects any further
negotiation, demolition is carried out after processes had been
exhausted by the SPEED/RBSSPV;
- Affected vendors usually comply voluntarily, especially when
the SPEED personnel already position themselves in the area
after various measures had been exhausted;
- When vendors object and stand their ground, SPEED conducts
the demolition, and confiscates vending paraphernalia and
commodities. These are deposited at the SPEED office and are
released to claimants upon payment of penalties.

- keep surroundings clean, arrange structures orderly

Cleanliness / Sanitation - Dispose garbage properly
- Stalls or structures are not to be used as sleeping quarters

Relations - Courtesy to customers

- Discipline among members

Fees - Arcabala: Average 5 pesos, highest 15 pesos, lowest 2 pesos

- Arcabala can be both an entrance fee (for commodities brought
into the public markets and its immediate surroundings) an a
space rental for the use of an open space within the immediate
surroundings of the markets, streets, sidewalks and public
places.
- The amount of Arcabala is legislated by the city council.
However, the amount to be charged is computed by the Market
Appraiser based on the approved measurement provided for in
the Market Tax Code. An increase in the amount of arcabala is
done through a public hearing. During the public hearing, the
vendors will bargain as to the amount of arcabala and other
fees of the market.
- Collection of arcabala is based on the rates that are provided
for in the City Ordinance No. LXXIII. An appraiser conducts an
appraisal of the commodity or space and issues an appraisal slip
(white copy, original) to the payee (supplier, consignee, vendor)
and to the Market Collector (pink copy, duplicate) which guides
him or her in the collection. The collector issues a Cash Ticket to
the payee, then makes a collection report for the submission to
the City Treasurer or his or her authorized representatives.
- Proper accounting is based on the collection report prepared
and submitted by the collector to the City Treasurer.
Accountability of the collector is being audited or checked
through the Cash Tickets issued and the Actual Remittance

Penalties - 500 pesos for violating anti-loitering ordinance

- 300-350 pesos redemption of confiscated goods

(Etemadi, feb. 2001. In: Profile of Street and Sidewalk Vendors in Cebu City, report for Cebu City
Technical Working Committee to Study the Plight of Street, Sidewalk and Public Vendors)
Source: Etemadi, Felisa U. (2001) Urban Governance, Partnership and Poverty: Inclusive and Pro-Poor
Governance in Cebu (draft), UK: University of Birmingham

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The policy of maximum tolerance does not leave much room for, for instance, formalization
of street vendors or for growth of their business, since every vendor is limited to one stall,
and growth of stalls or hiring of additional employees is not allowed. Still vendors do enjoy
more security since the process of demolition is slightly more institutionalized and CCUVA is
there to keep an eye on local government. But, do they object against the policy as it is laid
out at present? This is answered in the next paragraph.

4.3.3 Role of street vendors

Street vendors have an important stake in the situation on the streets of Cebu. Since they
enjoy both pitfalls and benefits of informality (as argued in chapter 2), in the Cebuan context
this means they are recognized but not formalized (outside the market areas), this implies
both constraints as benefits for their situation.

Satisfaction with and meaning about local policy of street vendors

When asked, cut-flower and fruit vendors in downtown Cebu City state they are very
satisfied with the local government policy towards them. 84,3% of the fruit vendors and
92,3% of the flower vendors expressed their satisfaction with current policy. An explanation
for the differences between the two groups could be found in the clustering of flower
vendors in Freedom Park, where daily arcabala fees are in place and no demolition took
place in recent years. Whereas in Colon street just six months prior to the research a big
demolition action had taken place.

Figure 4.1 Are you satisfied with local government policy?

100,00%

90,00%

80,00%

70,00%

60,00%
Percent

Fruits
50,00%
Flowers
40,00%

30,00%

20,00%

10,00%

0,00%
Yes No

An overwhelming 87,8% (Fruits 84,3%, Flowers 92,3%) of all vendors stated they are satisfied
with the Local Government policy.

No
11 vendors explained why they answered no to this question.
3 mentioned demolition. 3 vendors speak of harassment: sometimes we are harassed,
their people are always after us and give charges without any reason and they are always
after us and ask fines, we are tired of it were the comments.
1 speaks of inconsistent rules: there are rules that cannot be applied to others
organizations. Some rules are not followed by other member of our groups.

73
1 is just not content with the way things are organized: no proper organization of the stall
owners, snatchers around the area greatly effect our income, overload vendors (many
competitors). 1 calls the local government thrifty on its spending for street vendors.
1 speaks about corruption: I don't want to register, because there will still be corruption

Supportive in desired goals

Another issue handled in the questionnaire was the extent into which local government is
supportive towards the wishes of vendors in fulfilling their desired goals. In Figure 4.2 it
becomes clear that a minority considers the local government to be a positive influence on
their desired goals. Again flower vendors are more positive in this respect, 42,1% thinks LG
has a positive influence on their future. Of the fruit vendors 39,5% shares this opinion. The
fact that the vendors seem overwhelmingly positive about the policy of local government,
while they are far more negative about the impact it has on their future goals might be
explained from the idea that the bad policy is a given fact, and vendors have some sort of
fatalistic attitude towards government policies concerning them.

Figure 4.2 Do you consider the local government to be supportive in your desired
goals?
70,00%

60,00%

50,00%

40,00%
Percent

Fruits
Flowers
30,00%

20,00%

10,00%

0,00%
Yes No

Source: SPSS Data set

With an open question in the survey: In what way is local government supportive or not
supportive in reaching your desired goals?, this is further researched.
62 vendors (or 65% of the research population) answered the question. The results are
classified in table 4.4

Table 4.4 Local Government supportive or not supportive to vendors?

Local Government supportive (freq.) Loc. Gov. not supportive (freq.)

Providing vending space (9) They benefit from vendors, do not support
them (5)
Help during, or preventing demolition (4) Demolition (5)
Setting rules (4) Hardly present (5)
Lend money (2) No help (4)
Give things (2) Self-reliance, no pro-active mentality (3)
Consultation (1) Pressure to work harder (2)
Negotiation with CCUVA (1) Bad policy (1)
Coordination with CCUVA (1) Broken promises (1)

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Protection (1) Safety situation bad (1)
Self esteem (1) Arrest vendors (1)
Provide education (1) Only organized vendors supported (1)

Total 27 Total 29
Source: SPSS Data set

In table 4.4 answers to the question that were similar have been grouped. It is interesting to
take out some quotes from the questionnaire in order to elaborate on certain aspects.

Supportive
The fact that local government reserves and provides places for vending is the most
important reason local government is seen as beneficial for the vendors situation: they
provide us space and a place to sell our products. At the same time demolition takes place,
but sometimes with mild consequences: they give help during demolition.
The responsiveness of local government comes to bear in its consultancy of the vendors:
hearing all the things that we wanted, says one vendor. Also the coordination with CCUVA
is mentioned: alignment with the CCUVA for protection from demolition.
The acceptance and pride for street vendors sounds through in the next comment: they
give importance to the vendors in the nearby streets.

Not supportive
From the vendors that criticized local government most mentioned something that directs to
local government only demanding things from vendors without giving anything in return,
which is according to the law the logical position of local government. Given the situation off
course it is not. Arcabala can be a burden for instance: they make us pay 5 pesos when we
can barely make ends meet, as well as demolition and business licenses: we are
sometimes demolished and the expenses for getting our business permit is getting higher
every year. local government are selfish is a blunt statement which nicely puts the
opinion into words.
Another side is the negative perception of the governments responsiveness: If you ask
them they will support you but if you dont they wont, coz they wouldnt know your
problems. This shows that local government is not actively involved in catering the
problems of vendors. An explanation for this might be found in the analysis of a vendor:
Because if a big-time business will complain against us, we will be demolished

The image rises from this paragraph, that the policy of the local government is not geared
towards the benefit of all vendors, but rather, like officials put it in interviews as well:
keeping the status quo (interview Fernandez, 2007). At the same time, the vendors do not
seem to be overwhelmingly negative about this situation, which leaves room for questions.
In the next paragraph an analysis is made of this status quo in comparison with a similar
study.

4.3.4 Stakes in relation between vendors and local government in a comparative

perspective
It has been argued in chapter 2 that street vendors have benefits from the absence of a
coherent policy towards them, besides the obvious adverse effects on their situation. Both
parties, street vendors and local government have stakes in formulating certain policies.

75
As Roever put it in her analysis of street vendors and state intervention Negotiating
Formality: Informal Sector, Market and State in Peru, there are incentives for and incentives
against different forms of policy-making for local government as well as street vendors. In
this table, some of those incentives are identified for the Peruvian situation, and generalized
in table 4.5. Arguably they can be compared to the Cebuan situation as well, which is done in
this paragraph to add a comparative perspective in order to create a broader view on the
situation in Cebu.

Table 4.5 Incentives for and against policy design towards street vendors
(Roever,2005)

(Roever, 2005, pp. 8)

Compared to Cebu this overview of issues between state officials (local government in this
case) and street vendors underlines the two policy situations present in Cebu. In the
designated market areas there is a situation of taxation and licensing and authorization,
generating revenue for the local government and legitimate rights for vendors to occupy
their space. Just around market areas there is a system of licensing in place, generating some
income and administrative costs for local government and moreover for CCUVA. Because in
comparison to the situation in Peru, in Cebu CCUVA plays the role of negotiating space with
local government and as a consequence regulating the space of the organized vendors with
local government. The issue of inducements and concessions is thus settled between CCUVA
and the local government, which leaves a new role for CCUVA and an incentive for local
governments to occupy themselves with other priorities. For the vendors it means that the
negotiating is done through a voicing channel, being CCUVA. CCUVA then is busy with
licensing and authorization of its member organizations, legitimizing their claims to occupy
certain parts of the streets, but only in the agreement reached with local government, being

76
the maximum tolerance policy. The third party in this table should be CCUVA in the case of
Cebu, which at the same time leaves question marks as to whose stakes are best met in this
relation. It appears as though the entity of CCUVA outweighs the formalization possibilities
for vendors and leverages this responsibility from local government. Vendors then are either
not aware of adapted to this situation and opt for the only useful option: maximizing their
profits within the maximum tolerance policy.

Conclusion of 4.3
The maximum tolerance policy leaves room for local government to impose its will, and it
does not guarantee street vendors a secure livelihood provision, unless they have a vending
spot in one of the designated market areas. Still the vendors seem rather positive about the
policy of local government. This might partly be explained from the fact some interviewees
sell their products at markets, and partly because in the course of time the position of local
government towards vendors has improved, with less frequent demolitions. If this is only a
blindfold presented by a smart policy of maintaining the status quo, until economic growth
will solve the problem seems a probability. It is thanks to organization amongst street
vendors that they are taken into account in the first place, the power of one vote, directed
by CCUVA seems to be an important tool in securing their livelihood. Support from local
government is very scarce.

The role of CCUVA is important in voicing the demands of vendors, but at the same time it is
granting the local government incentives to leave the situation as it is, and again maintain
the status quo.

CCUVA members supporting candidate-mayor Tommy Osmea in rally, Cebu-City, 9-5-07

77
 4.4 Outlook for, and direction of local policy

In a short interview, Mayor Osmea said this with regard to the vendor problem: vendors
are endemic to the streets, economic progress will solve the problems concerning them.
(interview Osmea, 30-6-2007)
At the Peoples Forum 2007 he said, following the informal arrangements that were arising
between shops and vendors: We can not allow stores to rent out space to street vendors.
In other words, city government wants to keep the policy towards street vendors (dying out
policy) in their own hands.
In april 2007, in the midst of the electoral struggle between acting Mayor Tomas Osmea
and his adversary Mary Ann de los Santos, a Peoples Forum was organized to let different
sectors from within the city of Cebu consult the candidate mayors and let them comment on
their interests. It was announced: a multi-sectoral consultation with various sectors with
representants of children, youth, elderly persons, urban poor, farmers, fisher folks, informal
labour, business, academe, NGOs and media. Osmea won the elections a month later,
supported by CCUVA amongst many others. Interesting during this Forum were the
comments of Osmea regarding the reconstruction of Carbon Market, which sheds some
light on the reasons for not realizing the proposed Carbon Market complex just yet.
Osmea : Public markets are losing their purpose, they should focus on wholesale rather
than retail. Besides that downtown Cebu is dying because of the traffic. We should allow
different markets to sprout out. In other words, according to Osmea Carbon Market has
lost its importance and is more like a roadblock inside the city than a thriving market area.

Statements like these illustrate the vision of City Hall and Mayor Osmea as the principal of
it. If it were to choose so it seems, not much is to hope for the vendors in receiving legal
recognition anytime soon.

Future Carbon Market Complex

As stated by the city planning and development coordinator Paul Villarete vendors are not
taken into account in the city master plan. The South Reclamation Project, which is aimed at
creating 80.000 jobs for the economy of Cebu is closer to a solution while it is aimed at
creating more formal employment. (Interview Villarete, 29-6-2007)

For several years there is a proposed plan to build a big parking building combined with a
roofed market space on the grounds of what now is Carbon Market. The project proposal
aims to cover up roughly the area of Carbon Market that is now known as Warwick Barracks
with a four-storey market-building, where vendors that are now licensed to sell in Carbon
Market will get a new vending space. On what is now Freedom Park, a parking building will
arise next to the new market area. Due to lack of funds the project will not be realized in the
near future, but it remains a projected plan in addressing the vendor problem (Interview
Reston, 27-6-2007)

Besides the vendors, there would be formal shops, possibly occupied by wealthier vendors,
room for the cooperatives such as CEMVEDCO and Kamansi, and off course the office of
CCUVA would get an upgrade.

Lack of funding and political priority already slows down the implementation of this plan for
years. CCUVA would embrace the proposed future Carbon Market complex, since it will
provide better shelter and location for the vendors in Carbon Market.

78
Proposed future Carbon Market complex, CCUVA office (own collection, 22-6-2007)

79
Chapter 5. Street vendor organization
Problems in the sidewalk, they will face it, and solve it

In this chapter the organization of street vendors is discussed. As became clear in chapter 2
the type of social capital central to this research is operationalized as organization
membership of street vendors. There are two types of street vendor organizations: the
smaller geographically organized street vendors organizations (5.2) and the overarching
organization managing the smaller ones and negotiating with local government CCUVA
(5.3). Both are measured in terms of the social capital they provide to street vendors,
combined with the other relations street vendors have in providing their livelihood, being
cooperatives (5.4). Then the relation between two important actors in the livelihood of
street vendors is reviewed from the standpoint of CCUVA: CCUVA and local government
(5.5). Ultimately this chapter compares the actors that shape the social capital, and
therewith the livelihoods, of street vendors, working towards a conclusion regarding the
main question: to what extent does organizations among street vendors benefits the
realization of their goals?, which will be answered in the subsequent conclusion.

To measure social capital is not an easy nor a completely measurable challenge. In the
theoretical chapter the elements that are chosen for this research are elaborately explained.
Referring back to chapter 2 then, it is clear that street vendors possess different forms of
social capital as operationalized in this research, which are:
- membership of associations
The membership street vendors have with their local street vendors organization, but also
the overarching federation CCUVA (discussed in. 5.2 and 5.3)
- Personal relations.
Street vendors know their fellow vendors, often have extended families for whom they are
operating and who help them in executing their businesses. (5.1)
- Links with suppliers and clients. (already discussed in 3.5)
The amount of suki buyers and suppliers, the trust between those parties and the stability
this generates.

5.1 Personal relations of street vendors

In the personal sphere of street vendors three pivotal elements can be identified: the suki
relations with family, clients and suppliers. The trust that is the central element of these
relations and the stability that is sought by entering and maintaining these relations. All
three elements are elaborated upon in this context.

Suki
The term suki is central in the social capital of street vendors when it comes to the personal
level. Suki refers to the relationship itself, but also to both the trading partners involved,
buyer and seller. Producers, retailers, wholesalers and consumers alike can all be suki. The
relationship has to be developed over time since both parties have to show mutual trust,
sukis are an important part of the social capital of vendors as well. The main purpose to
establish suki relationships is to secure regular supply and disposal of products. Suki implies
living up to cultural factors, norms and values, as well. Utang na Loob, the debt of gratitude
and pakkisama, the maintenance of smooth interpersonal relations are important cultural
traits in this respect. (Hendriks, 1994)

Stability

80
Stability is a good common denominator of what social capital means for the average street
vendor. His or her relations are at the core of executing their businesses in a manner in
which both can be anticipated on the future and where the present can be met with more
ease. In this way, their social capital is of great importance.

Trust
Trust is the main thrust in the social capital scheme. Relationships are based on trust, when
they are not monetarised, put in a contract or written down in any other way. Thus trust is a
pivotal element among the social capital of street vendors.
Good relations with other vendors are a different way to measure the concept of trust. In
the questionnaire the vendors were asked to which amount they trust their colleagues, by
rating their relationships with them and asking if they share important matters with each
other. In Figure 5.1,

Figure 5.1 How do you rate your relations with other street vendors in general?

Very good

Good

Flowers
Neutral
Fruit

Bad

Very bad

0% 20% 40% 60% 80%

Source: SPSS Data set

Good was the rating with the highest frequency, 70% of the vendors indicated this (Fruit
66%, Flower 75%), fruit vendors were even more positive because 28,3% of them indicated
very good (Flowers 17,5%), only 2,2% of the total population had a negative response to
this question, those two were ambulant flower vendors.

It appears from these answers that there is a great deal of good fellowship among the street
vendors in Cebu City. It seems that they do not live in a very competitive atmosphere in
which they are fighting each other off the streets. This is illustrated by the fact that most
vendors are in the position of being a member of a street vendors organization and/ or a
cooperative. The cooperative attitude is thus institutionalized. But if it is entirely true what
they stated, is hard to say for sure. Although the joyful nature of Cebuanos can have
something to do with at, combined with other cultural factors that are commonly associated
with the Philippine people such as the Banayihan, social spirit to help your community. The
strong family ties and the social drivers such as Pakkisama, meaning harmony, Hiya meaning

81
shame, Amor propio or concern for the self image, delicadeza or sense of honor and Utang
na Loob which is a mechanism in which one is indebted to someone who has helped him or
her. Its literally translation is a debt of ones inner self. These are at the core of
accommodative values in the Philippines, and might explain certain answers and traits. At
the core of these self values is the kapwa, which means shared person hood or shared self. A
Filipino, in this case a Cebuano, always operates from the family bonds, and sees a problem
as not only his or her own, but one of the family.

These cultural factors are of importance. What is of most importance for the livelihood is off
course the income of street vendors. This income is jeopardized by the attitude of the local
government to them which is capricious. In order to withstand local governments
inconsistency, there is a need for cooperation.

Need for Cooperation

Street vendors have a need for cooperation, because of their special position towards the
local law, as well as to other endeauvours that take place in the streets. The most obvious
form of cooperation is the fact that they form street vendors association and become a
member of CCUVA or a cooperative, this is further elaborated in the subsequent paragraphs
of this chapter. Their cooperation on an individual level is elaborated upon in this paragraph.

In Figure 5.2 the amount of vendors that have some form of cooperation with other vendors
is shown:

Figure 5.2 Do you cooperate with other street vendors?

100,00%

90,00%

80,00%

70,00%

60,00%
Percent

Fruits
50,00%
Flowers
40,00%

30,00%

20,00%

10,00%

0,00%
Yes No

Source: SPSS Data set

An amount of 90,3 % of all vendors said they cooperate with other vendors (Flowers 95%,
Fruits 85%).

The vendors were asked why there was no cooperation with other street vendors, when
they answered no to the question. 7 vendors responded, of which 2 indicated that they sold
different goods. 1 indicated that there were not much vendors around. Another said he or

82
she was only occupied with her own vending place and 1 vendor said just ok, because they
are selling in the evening, so no business was harmed and no need for cooperation.

Sharing knowledge through cooperation

Most vendors cooperate on a regular basis with each other, interesting in the case of their
livelihood provision is to see whether they share business and credit information, so
essential information about their business with other vendors. In figure 5.3 is the response
to this question given:

Figure 5.3 Do you share business information and information about your credit
situation with other street vendors?

80,00%

70,00%

60,00%

50,00%
Percent

Fruit
40,00%
Flowers

30,00%

20,00%

10,00%

0,00%
Yes with all Yes with some No

Source: SPSS Data set

Yes, with all, answered 71,9%, with some 13,5% (Fruit 11,5%, Flower 16,2%) and no 14,6%
(Fruit 17,3%, Flower 10,8%)

No
10 vendors elaborated upon the reason why they did not share business and credit
information with other vendors. 2 of them state because business is a competition. 3 have
a lack of trust in other vendors: they might be jealous, I dont boast what I got, I might get
a hold-up and I dont know the character of the other vendors. 1 only shares information
about income, not about lent money. 1 thinks its just a waste of time, it is personal
matter, 1 states not important. 1 is an outlier, stating: they already knew, underlining
the fact that he or she is actually very open about the business.

Again the trustworthiness of fellow vendors seems to be high in the opinion of the individual
vendors. If this trust is operated on a daily basis becomes clear from figure 5.4

83
Figure 5.4 How often do you have contact with other vendors concerning business
matters?

50%

45%

40%

35%

30%
Percent

Fruit
25%
Flowers
20%

15%

10%

5%

0%
Daily Weekly Monthly Very Never
Incidentally

Source: SPSS Data set

45,6% indicated they very incidentally have contact with other vendors concerning business
matters. 30% stated they have daily contact with each other (Flowers 27,5%, Fruits 32%).
Never was the case for 6% of the fruit vendors and 2,5% of the flower vendors.
Some patterns seem to be revealed here. Almost halve of the vendors, with no important
difference between fruit and flower vendors, have daily contact with each other concerning
business matters. This indicates that they share their knowledge and information with their
neighbours on a daily basis. Another big group states they share this kind of information
very incidentally which implies it is either not their priority, or other vendors are not that
directly involved in the business. Only a very small percentage never shares any information.
It seems as though a high level of trust is present among the vendors in general.

Cooperation with other businesses

Street vendors are mostly organized in groups and organizations. Their direct competitors or
buyers and suppliers are companies in the vicinity of their stall or vending place. The amount
of cooperation with non street vendors was measured, see figure 5.5:

84
Figure 5.5 Do you cooperate with businesses (non street-vendors) in the vicinity of
your business?
70%

60%

50%

40%
Percent

Fruit
Flowers
30%

20%

10%

0%
Yes No

Source: SPSS Data set

44% of the vendors (Fruits 49%, Flowers 37,5%) cooperates with nearby businesses. Fruit
vendors do it significantly more, which can be explained by the fact that they occasionally
buy some extra stocks at supermarkets, or sell their items to offices and restaurants. Flower
vendors do the same, but in a more widespread area, not necessarily with nearby stores
alone.

The frequency of these activities are described in figure 5.6:

Figure 5.6 How often do you cooperate with non- street vendors in your vicinity?

60,00%

50,00%

40,00%
Percent

Fruit
30,00%
Flowers

20,00%

10,00%

0,00%
Daily Weekly Monthly Very
incidentally

Source: SPSS Data set

85
Only the 44% of the vendors (N=37) that indicated they do business with companies in the
vicinity answered this question.
26,1% of the fruit vendors cooperates with other businesses on a daily basis, 14,3% of the
flower vendors as well. 21,4% of the fruit vendors does it either weekly or monthly, opposed
to 8,7% of the flower vendors. 51,4% of the vendors (Fruits 56,5%, Flowers 42,9%) very
incidentally cooperates with companies in the vicinity.

Conclusion of 5.1
It appears that there is a very high level of trust among the vendors in the streets of Cebu
City. The explanation appears to be situated in both cultural as organizational factors. The
cultural traits of Philippine people make cooperation and mutual respect a logical factor in
daily behaviour for their livelihood. What is notable is the fact that most street vendors have
good relations with other businesses in the vicinity of their stall as well.
In the following paragraphs more attention will be paid to the organizational structures of
street vendors, which basically forms their social capital in relation to their livelihood in an
measurable way.

86
5.2 Street vendor organizations

The principal reason for organizing into a street vendors organization is twofold: the need
to work together and unite so that they can resist the continuing harassment and demolition
attempts against them on the one hand, and from that: to be able to negotiate with the local
government as a group. (Etemadi, 2001, pp 68)

Organization
Street vendor organizations in Old Downtown Cebu City are often organized on a
geographical scale, mostly a street or part of a street. Some groups are composed on one
particular commodity sold by all vendors. For instance the Juan Llorente Fruit Vendors,
organized in the JLMPC. But most organizations cater to a variety of types of street
vendors. Under the umbrella of CCUVA, 69 street vendor organizations are present in Cebu
City. The main reason for starting an organization is empowering the vendors in preventing
the City government from demolishing establishments. Through CCUVA a lot of matters from
the Street Vendors organization are being addressed. The board of street vendors
organizations is democratically elected yearly, monitored by CCUVA. Negotiations with the
SPEED team, the demolition team of City Government, are done firstly with the organization
leader, and if deemed wanted supported by CCUVA. In accordance with City government
and the organizational policy of CCUVA every Street vendors organization agrees upon
specific policies regarding size of stalls, distance from separate stalls, distance from the
sidewalk and companies in the vicinity and the maintaining of cleanliness in the surrounding
area.
Although every organization has some specific rules depending on the geographical setting
they are based, roughly said the policy is nearly the same throughout all street vendors
organizations (CCUVA, 30-6-2007).

The Cebu City Master list of Organized Street Vendors, drafted by scholar Felisa Etemadi in
2001 and adopted as the official database of organized and unorganized vendors in Cebu
City states there are 4.915 street vendors in total in Cebu City, of which 3.923 or 79,8% is
organized into a street vendors organization. 80% of these organizations are a member
organization of CCUVA, that catered 65 organisations (in 2007 there were 68 member
organizations).
(Etemadi, 2001)

This number is still valid for the situation in 2007, in response to the question if they were
member of an organization (see figure 5.7) 77,9% of the vendors answered Yes( Fruits
79,6%, Flowers 75,6%). Far more striking is the fact that 22,1% of the vendors (Fruits 20,4%,
Flowers 24,4%) indicated they were not a member of any organization. This contradicts very
much with the information that comes from government line officials (see chapter 4).
6 vendors mentioned why they were not member of an organization. 3 stated they seldom
sell goods here, 2 stated they were just new here and 1 said I dont like it, I dont join.

87
Figure 5.7 Member of an organization?

90,00%

80,00%

70,00%

60,00%

50,00%
Percent

Fruit
Flowers
40,00%

30,00%

20,00%

10,00%

0,00%
Yes No

Source: SPSS Data set

Internal Organization
Within street vendors organizations there is a mixed experience in organizational
development (Devas, 2004). Leadership struggles often mean that groups come together,
and become a member of CCUVA, but only to break up and leave some years later.
The grouping into an organization has nevertheless proved itself with positive outcomes,
most importantly greater security for street vender organizations.
For instance TVA (Tobacco Vendors Association) and LVA (Lahug Vendors Association) are
succesfull examples. In the case of CPATODA (Cebu Port Authority Trisikad Drivers
Association), leaders have been vulnerable to pressure from local politicians, who made
agreements with individual members that provoked division within the membership of the
association and weakened their unity and capacity. Despite these deliberate attempts to
divide the members, the association had some success by resisting repressive enforcement
and winning some concessions of the Cebu Port Authority. (Devas, 2004)

CCUVA policy
CCUVA has a standard policy for all its member organizations.
Unfortunately it is not written down according to CCUVA board members, when asked for it
at their office. This has to do with the fact that CCUVA creates a specific policy per street
vendor organization, in cooperation with the organization. After a meeting with all its
members the policy is agreed upon.

The standard policy in general comprises these rules.

Maximum number of vendors in designated area

6 am to 6 pm market hours
size of stalls - checherias, 2ft-3ft
- fruits, 2ft- 4ft

21 vendors indicated which organization they are a member of. 40 vendors of a total of
N=96 indicated that they were member of CCUVA. The vendors that indicated they were

88
member of a street vendors organization, in general are also a member of CCUVA, since
their organization is affiliated with CCUVA. The majority of street vendors Group are
affiliated with CCUVA.

Table 5.1 Member organizations of CCUVA, june 2007

Org. Name No. of 47 LARSIAN

No. respondents 48 FOBVA
in survey 49 RSVA
1 LAVO 50 SSVA
2 SIVA 51 TVA
3 TSBVA 52 JOIPUVA
4 FREESVA 2 53 CWJRGPA
5 ZVA 54 UCMVA
6 MVG 55 TESVA
7 LLOFVA 2 56 MAMNTM
8 VEAVA 57 SIMOVA
9 AFVA 1 58 PPRVA
10 OBVAI 59 CDSVA-I
11 CASAVA 60 CDSVA-II
12 ADFVA 61 TSVA
13 MTVA 62 PPVA 1
14 FIMEVA 63 SNFVA 2
15 UVOC-M 64 BESTMVA
16 UCPSTA 65 NAMASATO
17 NBVA 66 CSVA
18 WBSVA 67 ESVA
19 CIFCA 68 SURPLUS
20 FPCSVA
21 FIMEVA-E
22 MSVO 3
23 PDSVA 2
24 PUSVA 2
25 MAVO
26 MACSVA
27 MAVTA
28 TPVA
29 AMCVV
30 MFVA 1
31 SNAVA
32 JAVA 3
33 LVA
34 PVO
35 PAVA
36 ROSVA
37 SNSVA
38 UCPVA
39 UPSVA
40 CCSACTA
41 RCSVA
42 FFVA 2
43 FEVA
44 AVO-II
45 GICI
46 LESVA

89
Natural tendency to become member of a s.v.a
In order to see if there is a natural tendency to become member of a street vendors
organization when vendors start vending in Cebu, the question was asked when they first
entered an organization, at the start of their business or in a later stadium (see figure 5.8)

Figure 5.8 When did you become a member of an organization?

80,00%

70,00%

60,00%

50,00%
Percent

Fruit
40,00%
Flowers

30,00%

20,00%

10,00%

0,00%
When I started my business Later

Source: SPSS Data set

44% of the vendors (Fruits 51,1%, Flowers 33,3%) became member of an organization when
they started their business. 56% (Fruits 48,9%, Flowers 66,7%) became a member in a later
stadium. The time it took for them to become a member was not measured. Especially the
low incidence of registering at starting their business is remarkable.

90
To see if the organization excludes vendors that are not organized, the vendors were asked if
they cooperate with unorganized vendors as well:

Figure 5.9 Do you cooperate with unorganized vendors as well?

45,00%

40,00%

35,00%

30,00%

25,00%
Percent

Fruit
Flowers
20,00%

15,00%

10,00%

5,00%

0,00%
Yes, often Incidentally No never

Source: SPSS Data set

The cooperation with unorganized vendors is fairly evenly distributed between the two
strata. 39,2% of the vendors states that they never cooperate with unorganized vendors,
which leaves 60,8% that does, of which 31,8% often. This indicates that there are still many
unorganized vendors present in the streets of Cebu City, and they are omnipresent as well.

Cooperation through organization

The interesting part of being organized is if it gains the vendors extra benefits. The principal
reason for organization is clear, but do vendors have other benefits and reasons for being a
member of their respective organization? Figure 5.10 shows the number of vendors that
have some form of cooperation through their organization:

91
Figure 5.10 Do you cooperate with other vendors that you know through your
organization?

100,00%

90,00%

80,00%

70,00%

60,00%
Percent

Fruit
50,00%
Flowers
40,00%

30,00%

20,00%

10,00%

0,00%
Yes No

Source: SPSS Data set

89,5% of the Fruit vendors answer positively, opposed to 58,3% of the Flower vendors
(77,4% of the total population). This indicates that flower vendors seem to operate more
through their direct suki than through an organization. The reliance on the organization is
higher among fruit vendors. In figure 5.11 the incidence of different forms of cooperation is
stated:

Figure 5.11 How often do you cooperate through your organisation?

40%

35%

30%

25%
Percent

Fruit
20%
Flowers

15%

10%

5%

0%
Daily Weekly Monthly Very
incidentally

Source: SPSS Data set

92
The division between fruit and flower vendors in the incidence of cooperation is rather
equal, except that 20% of the fruit vendors meets each other through the organization daily
(12,5% of Flowers) and 25% of the Flower vendors meets weekly (13,3% Fruits). Monthly
(26,1% of total) and very incidentally (34,8% of total) are the most stated answers.
The outcome is noticeable since the vendors answer the question Do you cooperate with
other street vendors? ( see figure 5.2 in 5.1) far more positively and the frequency (figure
5.3 in 5.1) is much higher. This might have to do with the fact that vendors see the
cooperation through their organization more specific as the cooperation with other vendors,
and they might only refer to official meetings and such.

In figure 5.12 the types of cooperation are elaborated upon, the vendors indicated that
sharing business operation matters is the most common topic to share information about
with fellow members of their organization. Information is often shared, when it comes to
lending each other credit, only 30% of the vendors has experienced it, probably due to
personal financial situations and also to the fact that other solutions are present.

Figure 5.12 Which forms of cooperation do you have through your organization?

80,00%

70,00%

60,00%

50,00%
Percent

Fruit
40,00%
Flowers

30,00%

20,00%

10,00%

0,00%
Sharing Information Lending Setting Other
business about each other prices
operation suppliers credit
matters

Source: SPSS Data set

Big differences between the two strata occur in information sharing about suppliers (Fruits
51,9%, Flowers 44,4%) and credit lending (Fruits 35,8%, Flowers 30,5%). In both cases fruit
vendors seem more willing to share.

Other
6 vendors answered the question which other forms of cooperation they have through their
organization. 2 stated cleaning of our area, 1 said it depends, they will inform us, 1 was
just new.

93
1 mentioned: through attending rallies with regard to our situation. An interesting remark,
since it underlines the function of the organization to meet the political needs of vendors as
well.
1 said no competition, which is an interesting observation, since it becomes clear from the
other information that for a large part of vendors the business is harsh, so the organization is
doing a good job in this case.

Figure 5.13 Most important forms of cooperation within own organisation

70,00%

60,00%

50,00%

40,00%
Percent

Fruit
Flowers
30,00%

20,00%

10,00%

0,00%
Sharing Information Lending Setting Other
business about each other prices
operation suppliers credit
matters

Source: SPSS Data set

The most important form of cooperation within the organization they are a member of is for
both fruit vendors and flower vendors the sharing of business operation matters. 61% of all
vendors choose that option. Remarkable is the fact that fruit vendors choose significantly
more for information about suppliers (Fruits 12,5%, Flowers 3,7%) and flower vendors for
setting prices (Fruits 21,9, Flowers 29,6%) .
This result underlines the fact that business operation and market prices setting are the
most important matters that are discussed through the organization, aside from the obvious
goal of preventing demolition. In a way it can be said that the organization mainly serves as a
sort of business club, in which information is shared and agreements about pricing are
made, in order to keep an eye on the steady income of all vendors in the organization.

Benefits of membership
Information sharing and price setting thus are the most used forms of cooperation, but what
are the benefits of being a member of a street vendors organization? In figure 5.14 this is
visualized and ranked in figure 5.15:

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Figure 5.14 What are the benefits of your membership?

90,00%
80,00%
70,00%
60,00%
Percent

50,00% Fruit
40,00% Flowers
30,00%
20,00%
10,00%
0,00%

rs
t

n
rs

er
rs
en

itio

io
do
te
te

th
nm

at
at

O
at

ol

en

uc
m

em
m
er

rv

Ed
ov

y
d

he
lic
te
lg

r
po
la

fo

ot
ca

re

th
n
on
lo

tio
ss

wi
ith

ec
ne

ts
vic
w

ot

ac
si

Ad

Pr
bu
s

nt
st

Co
re

on
te

e
in

vic
g

Ad
tin
t ia
go
Ne

Source: SPSS Data set

Protection for demolition is by far the most named benefit out of the options given in the
questionnaire (85% of total). The respondents could fill in as many options as they liked. 60%
of the vendors found Negotiating interests with local government a benefit and around 50%
opted for advice on business related matters and advice on policy matters.

The two strata of vendors seem to agree on most benefits, noticeable differences are advice
on business related matters (Fruits 47,8%, Flowers 57,1%), contacts with other vendors
(Fruits 26,1%, Flowers 39.3%) and the option other, which was chosen by 39,1% of the fruit
vendors and 17,9% of the flower vendors.

Other
With regards to the other benefits of their membership 25 vendors responded to the open
question. 10 named lending as another benefit of their membership.
4 mentioned insurances. 2 were satisfied with the provision of a clean vending space:
collection of 5 pesos for the collection of thrash and proper place were the comments.
1 argued for the basic needs: giving clothes to the members. 1 did not see the benefit. 1 is
interested in buying a lot: could receive a lot to sell, and can borrow money from the
cooperative to buy a lot. This is interesting, since it proves that cooperatives serve as
moneylenders in the case of business expansion as well.

95
Figure 5.15 What is the most important benefit of your membership?

60,00%

50,00%

40,00%
Percent

Fruit
30,00%
Flowers
20,00%

10,00%

0,00%

rs
t

n
rs

er
rs
en

itio

io
do
te
te

th
at
nm

at

O
at

ol

en

uc
m

em
m
er

rv

Ed
ov

y
ed

rd

he
l ic
lg

at

po

ot
l
ca

f
re

th
n
on
lo

tio
ss

wi
ith

ec
ne

ts
vic
w

ot

ac
si

Ad

Pr
bu
s

nt
st

Co
re

on
te

e
in

vic
g

Ad
tin
t ia
go
Ne

Source: SPSS Data set

Again the main goal of the street vendors organizations existence is reinforced by the
answers of the street vendors: Protection for demolition is by far the most important benefit
of organization, 45,3% of the total population (75 vendors answered the question) considers
it to be most important (Fruits 42,5%, Flowers 50%). Negotiating interests with local
government comes in second, with 20,3% of the votes (Fruits 17,5%, Flowers 25%). Advice on
business related matters is most important for 11% of the vendors. In third place is the
category Other, with 22,5% of the fruit vendors opting for, most likely, lending as an
important benefit. Probably these vendors mean kamansi, the cooperative of CCUVA or a
smaller cooperative, formed out of the members of their organization (see 5.4 for more
about cooperatives) .

The negotiation process with local government is mainly done by CCUVA, and is more
elaborately discussed in 5.3.

The policy that is used by street vendors organizations in order to service and discipline their
members is usually determined by CCUVA in consultation with the chairman of the vendors
organization. Examples of this policy are given in 5.3

Conclusion of 5.2
Street vendors organizations are of moderate importance for the vendors in terms of social
benefits and cooperation. They gain access to fellow members of the organization easier,
but they do cooperate with unorganized vendors and other companies as well. The main
reason for becoming member of an organization seems to be the classic one: secure
assistance in preventing demolition, and support the negotiations of the organization with
local government. It is thus an important source of extra information and the mediator of
individual vendors. Basic income is still foremost an individual target.

96
5.3 CCUVA and its influence on street vendor organizations

Perhaps one of the most creative, successful, and impressive strategies to organize street
vendors is in Cebu City where the micro-entrepreneurs have endeavored to organize
themselves on their own terms. Here, vendors have formed associations, sometimes
cooperatives and federated these associations to form CCUVA. (Yasmeen, 2003)

5.3.1 CCUVA
CCUVA, Cebu City United Vendors Association, is a Non Governmental Organisation that was
founded in 1984. Initially it was an organization formed out of 13 vendors organizations in
the Carbon market area, with the objective to form a federation of sidewalk and street
vendors in order to be able to effectively protect their human rights against government
maltreatment. The basis for the cooperation was to mutually defend their interests and
resolve problems related to the vendors livelihoods. (CCUVA, 2007)

CCUVA is registered with the Security and Exchange Commission of the Philippines(SEC)
since 1996. Registration with the commission is one of the first indicators of
institutionalization and makes the member organizations of CCUVA legal bodies and the
members legal members. SEC registration in Philippines is reasonably straightforward and
does not involve taking a company public or selling shares on the market (like it does in
western countries). (Yasmeen, 2003)

Composition and size

In the meantime CCUVA has grown gradually into a big organization and nowadays caters 68
(2007, red.) member street vendor organizations in Metro Cebu. The amount of individual
members is roundabout 10.000 members, representing roughly 25% of the street vendor
population in Cebu. Besides that it is the main negotiating partner for local government.
The majority of the members of CCUVA are women. This is reflected in the board as well: 17
of 34 board members are women, and the chairperson is a woman, Maria Pino-Buanghog.
Women occupy therefore a prominent leadership function in the organization.
(Yasmeen, 2003)

Mission and Vision

Nowadays negotiating vendors rights with local government still is the vocation of CCUVA,
as stated in their organizational profile CCUVA is working for the recognition of rights and
welfare of the sector.

Their mission is statement is: to unite all sidewalk and ambulant vendors in Metro Cebu and
the whole archipelago
This is further elaborated by the other goals:
To uplift the economic condition among its members and develop their sense of
responsibility for their family, working place and society as a whole
Empowerment of the members by raising awareness to their rights
Linkaging and networking with NGOs, organizations and LGUs who understand the
plight of street vending
To enlighten the public to understand the root cause of street vending

The vision behind these goals is: Sidewalk and Street Vending will be recognized as part of
our economic society free from harassment and demolition and protected by the
fundamental law of the Philippines. (organizational profile CCUVA, obtained 11-4-2007)

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Operational goals are:
To have security in the workplace of street and sidewalk vendors
To empower the members of the federation to secure the workplace on which their
livelihoods depend
To develop competent and dynamic leaders that will pursue the ultimate vision of
the federation
To see to the financial independence so that the federation can stand with its own
internal resources
Cooperative and active members that selflessly contribute tot the success of the
federation
(organizational profile CCUVA, obtained 11-4-2007)

The principal founders of the organization are Maria Pino-Buanghug and Felicisimo Rupinta,
currently respectively still the chairwoman and the honorary chairman of CCUVA and
chairman of Kamansi Cooperative, the financial branch of CCUVA (see also 5.4), besides
that he is also the barangay captain of Ermita.
CCUVA has a council existing of the presidents of the member organizations, and an
executive committee. These both hold regular meetings, monthly or bi-monthly.

Support to street vendors organizations

One of the main tasks of CCUVA is the support and training of the member organizations.
The specific support to the different organizations within CCUVA is mainly formed by
monthly meetings with every member organization, registering problems, enforcing the
rules of CCUVA and keeping track of the organizations functioning (CCUVA, 8-6-2007).
There is a monthly meeting with CCUVA for every organization (see frame 5.1 for an
impression of such a meeting). Each street vendors organization has its own organization
policy. CCUVA links different organizations together as well, in order to create a more
homogenous street vendor community, with a low conflict incidence. It is a big
responsibility for CCUVA to guide the street vendor organizations. (Maria Pino, 2007)
in 2007 there were 68 organizations federated in CCUVA.

Frame 5.1 Meeting at CCUVA office of JAVA

Meeting with JAVA (Jones Avenue Vendors Association)

9-6-07, 17.00 -18.20
Gloria from CCUVA is the meeting leader

10 members of JAVA are present, 18 members in total, so 8 are absent.

According to CCUVA policy there will be punishment if there is a low presence at the
meeting next time. CCUVA is monitoring this group through the VAF, Vendors Action
Force. After the 3rd warning you will be expelled from the organization.

CCUVA will decide when the meetings take place from now on, since there is a very low
attendance.

From now on there will be a monthly meeting.

Comment Rosie (daughter Gloria). They are just quarreling during the meeting. It is
not so constructive. Probably that is a reason why the attendance is so low.

CCUVA designs the policy and the organization agrees upon that policy. This happens in

98
accordance with the elected leader of the street vendors organization, after the
organization wants to join CCUVA. CCUVA then sends a letter of approval to the organization
and notifies the local government, in the person of Gerry Marquez, the Urban Poor
Consultant. This is elaborated in Frame 5.2. CCUVA from then onwards supports the member
organization, most importantly in negotiations with local government, Frame 5.3 illustrates
an attempt to solve an imminent threat of demolition for a member organization. These
types of negotiations take place directly with the Mayor.

Two cases obtained from CCUVA: case 1

Street vendors organization: UPSVA (United Peaceful Sidewalk Vendors Association), that
operates from the corner Osmea Blvd with Colon street up to Gazini Plaza, has become a
member of CCUVA, and set out its policy in accordance with the guidelines provided by
CCUVA. This letter serves as the official contract between USPVA and CCUVA and grants the
organization the support and training of CCUVA and CCUVA the income and extra political
voice. See frame 5.2 for the contents.

99
Frame 5.2 Policy of CCUVA for USPVA

Policy of USPVA in order to become a member of CCUVA

1. UPSVA members have to pay fee for the association, the barangay and the Cebu
City Government
2. Conform the standards for size of stalls: fruit vendors and checherias, 2x3 ft.
rubber stamp makers and watch repair 2x2 ft., height of stall maximum 4ft.
3. One vendor one stall policy
4. An umbrella should be used during hot weather and the rainy season
5. The stall and the area around the stall must be maintained clean, following the demands
for cleanliness. The litter should be segregated, bio degradable from non bio-degradable
garbage.
6. Respect must be paid to pedestrians and customers and you have to help to maintain
peace and order in the area.
7. Selling or leasing your stall to others is prohibited
8. If you are not selling anymore, you have to surrender your stall to the association.
A vendor should send a notice to the association if he or she wants to stop vending.
a) with a maximum of 6 months rest
b) his stall should not be replaced by another stall
c) if there is not a valid reason to be away longer than six months, the association will not
give back the vending space

(dying out policy,red.)

9. Zero Growth
10. Drinking and gambling in the working place is prohibited.
11. Arguing or fighting with other vendor is prohibited.
12. There has to be at least 1 meter of space between the vendors stall and the road
13. Vendors have to stick to the CCUVA regulation #003-series 2005
14. Always wear your ID
15. One side vending (on one side of the street)

If there is a problem with one of the vendors in one of the aforementioned rules, the chairman of
the association will report this to CCUVA, and CCUVA will take immediate action.

If the member is acting not according the rules of the federation a penalty follows
1. First offence. Official warning
2. Second offence. Suspension
3. Third offence. Recommendation for demolition and expulsion to the City Government
When you commit a third offence, you are no longer a member of the association and you can be
demolished by the City Government (SPEED).

Signed November 2005 by

Benjamin Dela Cruz, UPSVA Chairman and Maria Pino Buanghug, CCUVA Chairman

Noted by
Gerry Marquez, Urban Poor Consultant, Office of the Mayor

Case 2
In frame 5.2 an example of the cooperation between CCUVA and the member organizations
in order to try and prevent demolition of its members is given:
In june 2006 three vendors associations operating on Escao street received notice that they
would be demolished after complaints from the adjacent stores. Shocked as they were an
official letter was sent back through CCUVA in an attempt to let the City Government undo

100
its decision.

Frame 5.2 CCUVA Letter to Mayor Osmea to prevent demolition

June 15, 2006

Hon. Tomas R. Osmea, City Mayor, Cebu City
Thru: Mr. Gerry Marquez, Urban Poor Consultant, Cebu City

Dear Mayor Osmea,

On june 13, vendors of the Muslim Traders Sidewalk Vendors Association (MTVA), Tobacco
Sidewalk Vendors Association (TSVA) and F.Escao Vendors Association (FEVA), all members of
CCUVA, have received notice that they will be demolished in the course of the coming month.
All organizations have committed themselves to voluntarily show that they want to cooperate with
the Cebu City Government.
They are now left without income, since the only source of their livelihood is vending.
Please let us go back.
We will follow the following rules, as stated with CCUVA:

1. 1.5 metres distance from the gutter, stalls no bigger than 2x3 ft. with max. 4ft height.
2. Keeping a distance of at least 3 metres from the stores, being: Lapu Lapu Merchandising,
Kings Quality Foods, Celtex Hardware and Grand Cebu Commercial
3. There will not be any cars inside the stall anymore
4. Plastic screens will be at the back of the stalls as usual
5. The sellable items will be arranged properly and presentable
6. There will be cleanliness and order in the surroundings of the stalls, garbage will be
disposed properly
7. No drinking and gambling will take place at the stalls
8. Sleeping or cooking at the stalls, or using it as a house is prohibited
9. Officials of the organization, customers and fellow vendors will be respected.
10. Zero Growth, no new vendors in the area through the associations.
11. The associations will collect membership dues, arcabala for the City Government and
the Barangay.

Accept this statement and the governing rules for the peace and cleanliness of the area.

Sincerely,

Abdhul Kadhir Mohammad, MTVA Chairman

Norma Catay, TSVA Chairman
Aloma Andaya, FEVA Chairman

Noted by:
Maria Pino Buanghug, CCUVA Chairman

This is an example of both the way CCUVA works for its members, how the members work
together through CCUVA and how City Government responds to complaints of legal
businesses.

101
Activities and regulation
The exact regulation of CCUVA I could not obtain. The guidelines are written down, but
applied specifically for every member organization: CCUVA operates by its Federational
policy. That is the most important policy guiding the organization. CCUVA does not have a
lawyer. CCUVA works on their own and try to be a lawyer on their own. (Pino, 2007)
Individual vendors can become a member of CCUVA as well: You need to write a formal
letter to CCUVA in order to be accepted. It is the vendors own will to become a member.
They are after that associated based on geographical location. (Pino, 2007)
So after you become a member, you are placed in one of the organizations, if you are to
vend in a certain territory.

CCUVA distinguishes 4 categories of street vendors:

Ambulant street vendors; moving around

Street vendors; sell in the streets
Sidewalk vendors; are staying in a fixed place
Stall holders; are legitimate, they have a contract for the tenure
of their stall, a legal permit and are registered with
BIR, the Bureau of Internal Revenue.

In the designated market areas, mostly in Carbon Market, where the office of CCUVA is
located in the Unit III Market Building, CCUVA has an important role in maintaining order
and cleanliness, with positive results for all parties. In the words of Maria Pino (2007): It is
now more orderly then before. Before it was a chaos. The orderliness is a result of the
cooperation between the Local Government, CCUVA, the vendors and the Barangays. The
market is much better organized now.
In that process all stakeholders were consulted. There is a smooth understanding between
implementers of policy and violators. Markers are put in all areas where there are CCUVA
members, so they have the right to occupy that space. These areas are recognized as vendor
areas by the local government. CCUVAs vendor action team (CVAT) are present in Carbon
Market, they implement the policies of CCUVA. Different organizations monitor each other,
they work hand in hand and establish a good working relationship in this way. Another
benefit of this streamlining of organization is the fact that competition between vendors will
be minimized. (Pino, 2007)
Outside Carbon Market there is a different situation, the maximum tolerance policy is in full
force there, and vendors are encroachers, supported and regulated but hardly protected by
CCUVA, since local government can easily decide it is time for demolition after receiving a
complaint. CCUVA has control over the dying out policy in the way that they suggest vacant
spaces to vendors without a proper vending space, without always notifying local
government that a member has left the city.
In the words of a vendor: If there is a vacant space some vendors without space will get the
left open space of a vendor that has left an organization and the city. This person is usually
recommended by one of the local organizations.

Training of vendors skills

Besides raising awareness and negotiating the vendors interest with local government,
CCUVA also provides trainings and seminars to their members in topics such as: leadership
skills, simple book keeping and accounting, advocacy skills, media skills and values
education, amongst others. (CCUVA, 11-4-2007) They started with that after CCUVA was a
beneficiary of USAID, the organization was offered trainings in leadership and promotion of
family planning in the mid-nineties.

102
Income
CCUVA collects dues from its members for administrative purposes and to help support the
programs and projects. The monthly dues towards CCUVA will depend on the size of the
organization. Every organization collects daily fees from their member, the organization
then pays a monthly due to CCUVA.
The amount every organization has to pay, is varying, and not very clearly stated. From an
interview with Maria Pino (2007) these rough figures were obtained: The organization
thrives on an income of 42.000 pesos a month, gathered from the monthly fees from the
member organizations, which are between 300-500 pesos, depending on size of the
organization.

Regulatory Ordinance
One of the principal efforts CCUVA has been active with is an ordinance repealing the
infamous ordinance no. 1186. A fully prepared proposed resolution is in place since 1999
(Cebu Daily, 20-5-1999), aiming at giving the street vendors a legal status and a business
permit. Bound by a zero growth policy in vending spaces, and with the requirement that the
stalls wont grow and stay in the spaces they are as of issuance. (Proposed Resolution,
CCUVA) The proposed ordinance was supported by several Barangay leaders and City
Councilors, up until now City Hall however refused to implement the proposed ordinance.
(CCUVA, 11-4-2007). In 5.5 the proposed ordinance is discussed in more detail.

State of organization
Since the first rise of the organization it is now an established party with close links to local
government and its member organizations. It is not a very prosperous, given the fact that
there are 12 staff members to pay and the way the office is equipped, but very active and
influential organization.

Political influence
Being such a large organization, with influence to a very large portion of informal sector
workers, CCUVA is a force to be reckoned with for local politicians. Because of this stake, the
network that CCUVA represents is supported in the security of tenure and possibility to
maintain their livelihood.
Besides the voters it represents CCUVA has a track record with the government and is now a
trusted party, or a suki, of the local government.
Maria Pino describes this: Politicians are very interested in CCUVA and the voters united via
the street vendors organizations. Many politicians say: we are with you (Pino, 2007)
A close observation of this is the fact that during the election campaign Bando Osmea and
Senate candidate Magsaysay were collectively supported. During the official gathering of BO
candidates CCUVA rallied hundreds of members to march along with the barangays
supporting Mayor Tomas Osmea and his party.

Future Outlook and direction of CCUVA

According to the organizational sheet, these are CCUVAs future plans

1. Engaging in policy development and advocacy activities to support legislative and

executive measures to address street vendors problems.
2. Organizing, strengthening and coalition-building among street vendors associations. Also
on a national level
3. Facilitating access of street vendors to credit and social services

103
4. Developing system for children that are street vendors.
(Organizational Sheet CCUVA, obtained 2007)

To what extent CCUVA is willing to cooperate with many partners is not entirely clear.
A remark on that matter was made by Giselle Yasmeen: The group appears to be quite
politicized and participates frequently and quite vociferously in mobilizations and groups on
the left. (Yasmeen, 2003)

From the interviews with chairwoman Maria Pino-Buanghug the word collaboration came
to the fore: Collaborating with other groups is a big goal. To cut across with women groups,
urban poor groups, nationalist group for welfare. Sometimes they have the same agenda.
Also centrist groups are in the picture, we would like to have more say in the national level
as well. Another principle of CCUVA, according to Pino is: You have to have more friends
along the way. Then more people understand and cooperate.

CCUVA logo

104
5.3.2 Opinion of the street vendors about CCUVA
To obtain information about the amount of cooperation and the extra benefits of this
cooperation for vendors they were asked similar questions about the forms and specific
benefits of cooperation via CCUVA, their own organization and their own business. In the
next few figures and overview of their opinion about CCUVA in this respect.

Cooperation through CCUVA

Do vendors think they gain extra cooperation through CCUVA?:

Figure 5.16 Do you cooperate with other vendors that you know through CCUVA?
100,00%

90,00%

80,00%

70,00%

60,00%
Percent

Fruit
50,00%
Flowers
40,00%

30,00%

20,00%

10,00%

0,00%
Yes No

Source: SPSS Data set

85,7% (Fruit 82,5%, Flowers 90%) of the respondents states that they cooperate through
CCUVA. This implies that CCUVA is an extra platform for cooperation, as its strives to be.
Do the vendors use the CCUVA connection on a regular basis (figure 5.17)

Figure 5.17 How often do you cooperate with vendors through CCUVA?

70,00%

60,00%

50,00%

40,00%
Percent

Fruit
Flowers
30,00%

20,00%

10,00%

0,00%
Daily Weekly Monthly Very
incidentally
Source: SPSS Data set

105
48,3% of the vendors (Fruits, 40,6%, Flowers 57,7%) cooperates very incidentally through
CCUVA. 12,5% of the fruit vendors engages via CCUVA on a daily basis, opposed to 3,8% of
the flower vendors. 17,2% does it weekly and 25,9% on a monthly basis.

Wishes and desired goals

In chapter 3,3.6, the individual wishes and goals of street vendors were analysed. It
appeared that street vendors in both researched strata were very much keen on expanding
their business, and saw their own behavior and responsibility as the main driver in reaching
these goals. Some weight was given for the civil society in which vendors operate as well.
The next few questions try to shed light on the influence of the actions of CCUVA on the goal
achievement of flower and fruit vendors in Cebu, by asking if CCUVA is indeed perceived to
be supportive in meeting their wishes (Figure 5.18):

Figure 5.18 Is CCUVA supportive in your wishes?

80,00%

70,00%

60,00%

50,00%
Percent

Fruit
40,00%
Flowers

30,00%

20,00%

10,00%

0,00%
Yes No

Source: SPSS Data set

It shows in figure 5.18 that the opinion among street vendors about CCUVA is quite positive,
but still around 30% of fruit vendors and even 40% of flower vendor consider CCUVA not to
be supportive in their wishes. In the survey an open question followed this question: in
which way is CCUVA supportive in your wishes? The following overview gives some insights
in the reasons for vendors to appreciate or disapprove the added value of CCUVA for their
livelihoods.
53 vendors (or 55%) in Total responded to this open question. The most relevant and
frequent responses were put in table 5.1.

Table 5.1 CCUVA supportive or not supportive to vendors?

CCUVA Supportive (freq.) CCUVA not supportive (freq.)

Protection from and during demolition (8) Inconsistency (3)
Helping each other, stimulating cooperation Pay rent, ask for fees (2)

106
(5)
Organizing amenities and having control Strict, no help when you dont obey (1)
over street vendors (5)
Support in time of hardships (4) No help during demolition (1)
Negotiating with local government, No help in handling business (1)
representing street vendors (4)
Organize member organizations (2)
Improvement business (1)
Consulting vendors, understanding problems
(1)
Opportunity for betterment in services (1)

Total 31 Total 8
Source: SPSS Data set

Among the other responses 4 vendors did not know if CCUVA was supportive or not. 5
vendors indicated they were no member of CCUVA. 1 said: it depends, without
specification. 1 said: I just dont mind others.
There were two interesting responses. 1 vendor stated: It depends on the law, which can
be interpreted in two ways: either the law that CCUVA prepared and is not yet implemented,
or the law as practiced by the local government.
Another vendor stated: I can not ever see the support of CCUVA for the vendors. This can
be denominated as an outlier, on the other hand he or she might be the voice for the 45% of
the population that did not answer the question. That is not visible from these results.

In the table similar answers have been grouped together. It is noteworthy to elaborate on
some individual responses as well.

Supportive
Demolition, which is the biggest fear and problem of vendors comes to forth as being an
important issue on which CCUVA brings relief: It is only them that help us. No other than
and in times of crisis they are there are statements that underline this position. For a lot of
vendors CCUVA is an important ally in problematic times.
As well the role of CCUVA as the coordinator and umbrella organization of the smaller street
vendors organizations is part of CCUVAs supportive role: If there are problems, they are
the one to solve it, if there are meetings, they provide food underlines the mediating role
that the organization plays within organizations. Another quote emphasizes this: through
extensive conversation and understanding for the problems among its members. This gives
credit to the participatory approach of the organization.
There is also another view of CCUVA from the vendors: To approve the plans of the
organization underlines the more hierarchic attitude that is another function of CCUVA in
getting the organizations in one harness.
Another viewpoint comes to bear in the fact that CCUVA influences the selling methods of
vendors: if we talk about selling products, if we cooperate we can do our business in
peace, seems to be another strategy of CCUVA promoting equity and cooperation among
vendors. CCUVAs power within this realm is emphasized by the notion that they have
influence on the prices of products sold by vendors: help in controlling the prices of the
good. One vendor sees an opportunity rather than a fixed quality: there is a huge
possibility that CCUVA would support its members for its betterment.

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Not supportive
Some vendors made notice of the inconsistency in the support of CCUVA for its members:
but not all the times, is a quote that puts it best in words. Another vendor pointed out the
fact that CCUVA mainly supports the vendors facing problems: because if I will be renting a
good place already, they would not support me anymore. Whether this is negative is
disputable, since CCUVAs mission is to support vendors in need primarily.

Conclusion of 5.3
CCUVA is successful as an organization, it met some of its goals and grew considerably since
the start of its forming into a federation in 1984. It is now an established party, and
underwent some degree of institutionalization by becoming the first representative of
vendors for the local government, and even being a partner in disciplining and regulating the
vendor population in Cebu. The vendors are in general positive about the efforts CCUVA is
making to meet their needs. Still, on a legislative level CCUVA did not reach a real result to
date, since the notorious ordinance no. 1186 is still in place as the official city policy. The
support for Mayor Osmea did not yet realize this much desired goal. Still CCUVA is viewed
in the scholarly world as an successful example of a bottom-up approach of uniting the
informal sector, which it can be certainly named, although the work is far from done.

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5.4 Cooperatives

An important ally for street vendors are the cooperatives that are formed to ensure more
financial stability and options for street vendors. These cooperatives can be divided into two
groups.
- the small cooperatives ran by single street vendors organizations. Examples of this type
are: BBSTM and FTMPC
- Bigger cooperatives that cater the needs of street vendors in general. Examples are
Kamansi and CEMVEDCO.

Figure 5.19 illustrates the amount of vendors that are involved in a cooperative. Only 30
vendors answered this question because it was added only during the second day of the
survey, when already 66 surveys had been done. An important note is that of these 30
vendors, 22 were flower vendors and only 8 were fruit vendors.

Figure 5.19 Are you member of a cooperative?

80%

70%

60%

50%
Percent

Fruit
40%
Flowers

30%

20%

10%

0%
Yes No

12 vendors (or 36%) answered they are member of a cooperative, out of these vendors 8
mentioned which cooperative they were a member of being:

Kamansi , 3 vendors
MPC, 1 vendor
BBSTM, 1 vendor
Coop, 2 vendors
Cooperative of St. Nio Barangay, 1 vendor

1 said in the area, forgot the name.

Forming cooperatives is a way to strengthen vendors businesses, besides that it is lucrative

for the vendors too, since in the smaller cooperatives they are shareholders, which means
they will gain a dividend share if profit is made.

The bigger cooperatives are not aiming at dividend sharing, but mainly at providing a safety
net for the unstable businesses and raising funds through collectiveness.

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10 % of the declared dividend goes to BIR, the Bureau of Internal Revenue plus an additional
yearly fee of 500 pesos. There is no VAT (Value Added Tax, BTW) for cooperatives (Inquirer,
2009)

Cases
As mentioned, cooperatives can be roughly divided into two types. Both of these types will
be discussed with a case. A small cooperative servicing only flower vendors is FTMPC, and
two big cooperatives servicing any type of vendor: Kamansi, Inc. and CEMVEDCO. All three
cooperative are based in or near Carbon Market.

FTMPC
A small cooperative, consisting only out of flower vendors is FTMPC. The FTMPC office is
located in the middle of Freedom Park, the Northern part of Carbon Market, between the
vendors stalls of the Freedom Park Flower Vendors.

Factsheet FTMPC
Name FTMPC Freedom Traders Multi-Purpose
Cooperative
Foundation 7-8-1996 by Flower Vendors
Board 7 members
Members 300, all flower vendors
Financing of organisation Members are shareholders

Lending scheme 5.000P initial, up to 10.000P, only to

members
Almost 50% of the members have a loan,
the others share in the dividend

Loan:
2.5% interest per month, when payments
are not met, the fine is an extra 2% per
month. After 6 months the membership is
terminated.

After 4 months is the maturity date.

Payments can be made daily or monthly.

The interest will be cut of from the dividend

share.
Extra services Use of comfort room (3p, with paper 4p)
Selling telephone cards
Interest Cooperatives are exempted from income
taxes

(interview FTMPC office, 2007)

Kamansi, Inc.
Kamansi, Inc. is a cooperative operating from Ermita, Cebu and services many vendors, with
the lions share around Carbon Market. In Carbon Market 16.500 vendors are present on a
daily basis. Kamansi is closely linked with CCUVA, its president is Felicisimo Rupinta, also co-
founder of CCUVA and barangay-captain of Ermita.
The cooperative has a twofold mission:
1. Meet the interest of vendors to vend on a daily basis, despite whatever juridical issue
might come up . In short, to protect the livelihood of vendors, maintain the vendors interest

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to sell on a daily basis.
2. Provide financial assistance in terms of capital. Mainly in the form of fixed daily payments,
that form a deposit for rough times.
According to Ramon Aboitiz Foundation, that is gearing programs towards urban poor in
Cebu, the survival of street vendors is facilitated by Kamansi and CCUVA. Some critical
remarks are made as well: Kamansi has it own systems and mechanisms, they are not very
transparent in that way. Kamansi really tries to steer using its power. (Dignadice, 2007)

Factsheet Kamansi
Name Kamansi, Inc.
Kaming Ambulanting Manindahay Sa Sugbo,
Inc.
Translated: We ambulant vendors of Cebu
Foundation 1990
Board Felicisimo C. Rupinta
General assembly yearly
Objective Service the vendors
- stall owners
- sidewalk vendors
Members 6.000 members
Financing of organisation 2.4million Pesos net profit 2006
Lending scheme Individual loans to vendors
Since capital surplus also to 300 others
Repayment within 90 days. If you are a good
Interest rate 3%

- 40-50 million Pesos capital stock

Extra services Hospitalization and burial assistance

Interest No. 1 interest is to sustain cooperative
(interview Rupinta, 2007)

CEMVEDCO
Cemvedco considers itself as one of the successful cooperatives in Cebu. It is located
centrally in Carbon Market.
Cemvedco officers said they will fight for the continued existence of Carbon, since some
members of the political elite in Cebu opt for a dismantling of the market.

Instead of pooling the money of small vendors the more well-off Carbon vendors put
together money to lend to the smaller ones
President of the cooperative Erwin Gok-Ong said: We are running the cooperative like a
business enterprise. We see to it that those who need money are not the people who handle
the cooperatives money because that can lead to graft and corruption, (Inquirer, 2009).
The cooperative is currently involved in financing and marketing business. Marketing is done
through Cemvedcos hog stall inside the market. The cooperative also provides lending
services to members. Alongside with money-making Cemvedco is also spending at least
600,000 Pesos per year to maintain peace and order, while spending another P600,000 per
year to take care of the markets sanitation and drainage concerns.
Carbon market may be downtown Cebus inconvenient version of the posh supermarket in
malls, but to the vendors, its their precious gem in the very heart of Cebu. (inquirer, 2009)

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Factsheet CEMVEDCO
Name Carbon Market Vendors Development
Cooperative (CEMVEDCO)

Reason for foundation Threat of phasing out Carbon Market by City

Authorities (according to Gok-Ong, former
chairman). A need to strengthen the
economical and political voice of Carbon
Market vendors.
Foundation 2002
Consolidation of:
Carbon Market Unit One Vendors
Multipurpose Cooperative, Unit 2 Carbon
Stallholders Multipurpose Cooperative and
Alliance of Third Unit Carbon Market
Multipurpose Cooperative

Board CEMVEDCO consists of 4 chapters with each

a board of 5 directors
Chapters:
1. Meat and fish vendors (Kamovenco)
2. Grocery items
3. Vegetables and fruits
4. Cut-flower vendors from Freedom Park

The first Chairman was Erwin Gok-Ong, who

is a big rice and corns retailer and
wholesaler
Big board of directors with lots of capital
Objective Threat of phasing out Carbon Market in
1990s united vendors and stakeholders to
form cooperative
Members 1.800 (2009)
Ambulant vendors mainly, and vendors on
Carbon Market
Financing of organisation 70millionP total assets
300Pesos entrance fee
Lending scheme a 2-day seminar, pre membership
education where the working of a
cooperative is teached
the shared capital must have a minimum of
5.000
or: your loan times 2
Extra services insurance for members and cooperative life
insurance
Interest
(Interview, Jescelle Sato, 2007 and Philippine Inquirer, 2009)

A successful cooperative should have good leaders, who have principles and the integrity to
stand by. We are fortunate in Cemvedco that we dont have corrupt and opportunistic
leaders. Money from the cooperative will not go to your pockets. Most cooperatives fail
because they have corrupt leaders. In Cemvedco, we are vigilant to take notice of this,
Arien Good, Director of Cemvedco (Inquirer, 2009)

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Conclusion of 5.4
Cooperatives are important for vendors, they can provide stability and financial backing for
the fluctuate nature of street vending. It is also a form of social capital, since it is about
mutually benefiting and reciprocity, but this time not so much based on trust, but on debt.
So the social capital in this scheme lies within the fact that cooperatives are based on a form
of exclusion, the smaller ones only serve certain types of vendors, and the big ones mainly
serve street vendors. Besides your profession, you will still have to bring some collateral
though. The conditions are much more favorable than other forms of lending nevertheless,
and that is part of the reason of their existence and success.

Llorente Fruit Vendors Multi Purpose Cooperative, 15-6-07

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5.5 Local Government and CCUVA

Inclusiveness means integrating groups, which have been excluded due to either physical,
social or economic deprivation or discrimination, into the mainstream by providing them
access to services and participation in decision-making in urban governance.
(Etemadi, 2001, pp 69)

Embededdness of CCUVA in local affairs

CCUVA is the face and voice to street vendors. Face in the sense that it is the chief
negotiator towards local government, and it is the institutional partner in consultations of
urban poor groups. CCUVA has its own voice, participates in a weekly radio show and
conducted a press conference under the title Recognition no demolition with 7000 people
attending. The message of that press statement was: let there be no more demolition. Let
the pedestrians and traffic problems caused by street vendors be dealt with by CCUVA. Due
to all these activities Government officials know CCUVA is here, and here to stay (Pino,
2007)

CCUVA has relations with churches and lobby with local governments, there they have
friends and enemies. Other publicly known and respected organizations recognize and
affiliate with CCUVA as well, for instance the Rotary Club, people in advocacy, DTI and Social
Security System. In this way CCUVA also provides social capital by supporting organizations
and representing vendors with many other organizations in a decent manner.

CCUVA is striving to develop itself further. Maria Pino-Buanghug is dreaming of having an

own political voice for the organization. Until now only barangay Ermita, with Felicisimo
Rupinta as barangay captain, is completely willing to accept CCUVA as an institution.
CCUVA has a consultant in Osmeas office, this costs a fee. Pino does not want to become a
councilor herself: If you are in the council they own you.

Interaction CCUVA and local government: contacts, interdependencies,

institutionalization, agenda-setting
It is clear that there are still many tensions between the objectives of the Cebu City
Municipal Government and CCUVA with respect to the policies and procedures related to
street vending.The city is at times seen as trying to reach compromises with vendors over
the use of public space. Many vendors accuse the local government officials of duplicity in
still demolishing vendors stalls, or threatening to do so, even after so-called compromises
have been reached. (Yasmeen, 2003)

Etemadi concluded in her study covering the vendor situation in 2001 that there were 3
issues which where of utmost importance:
vendors
1. Government regulation of the vendor sector with clear rules and guideline (fair
regulatory ordinances) together with appropriate services.
2. Construction of the Carbon buildings (particularly Unit 2) and the Ramos Public
Market
3. Recognition of the public market/vendors as partners in the socio-economic-cultural
development of society rather than solely as a source of revenue.
(Etemadi, 2001)

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On all three issues promises have been made by the City Government. Until 2007, they were
not met, even though Mayor Tomas Osmea was the first that encouraged street vendors to
organize and institutionalize. An executive order from his hand during his first period as
acting Mayor installed the Cebu City Vendors Management Council (in 1990, see chapter 4
1). This council prepared a proposed regulatory ordinance, which was ready to change the
situation and prospects of street vendors. Two versions were prepared. One about
stallholders in the designated market areas, the other met concerns such as: limitation of
time, space and number of vendors
Under the reign of the subsequent mayor Alvin Garcia the regulatory ordinance was studied
again, but was not implemented. The opinion of the Mayor was that the streets will flood
with CCUVAs proposed regulatory ordinance. Another committee was installed, consisting
also of scholar Felisa Etemadi, this resulted in the unwritten policy of maximum tolerance,
and a master list of street vendors on which the zero growth or dying out policy was based.
(see also chapter 4CCUVA thought it needed to find another councilor to meet their desires.
When Mayor Osmea was re-elected in 2001 he agreed upon reviving the wishes of CCUVA,
until 2007 the regulatory ordinance is not yet in place.
In the words of Maria Pino, who is a strong advocate of the installment of a new regulatory
ordinance the current policy has some positive and negative aspects.
Positive aspect: the problem for the vendor gets delayed, the shop or so has to send a letter
to Urban Poor Consultant Gerry Marquez, which is needed to take the step towards eventual
demolition. CCUVA has time to intervene and mobilize their contacts within City Hall (see for
example Frame 5.3 in 5.3).
Negative aspect: members of CCUVA think that CCUVA has reached the goal, which is not
the case. Because there still is no legal policy, it is all unwritten.
Gerry Marquez, local governments principal executor of the maximum tolerance policy is
gambling with the policy, Pino says. Right now the local government is afraid of giving
away some of its power. They impose formal restrictions about size of stalls and uniformity
of vending places. In the national policy it says: the sidewalk is beyond the commerce of
man. (Pino, 2007)

Proposed Ordinance
In 2002 CCUVA proposed an ordinance to the City Council that surpassed regulatory
ordinance No. 1186, which to date is still the official policy towards street vendors.
In 2007 CCUVA was, during election time, again trying to implement this proposed
ordinance, and made it part of their support for candidate Mayor Osmea. He refused to
make a strong commitment towards the proposed ordinance, which was supported by
councilor Labella, who is a supporter of CCUVA in the City Council.

As Annex II, the largest part of the Proposed Regulatory Ordinance, the version that was
made in 2002, and failed to be implemented then and in 2007 is described.

115
The order was ready made and supposed to be implemented. But mayor Osmea refused in
the end. Until now the situation is a status quo.

Conclusion of 5.5
CCUVA has established itself as a party which is taken seriously by local government; at the
same time they are not willing to meet the demands of CCUVA. Political opportunism and
some form of power use or abuse are being thrown in in order to maintain the status quo in
the legislative position of street vendors.

Street vendors are not very much into the power distribution between CCUVA and the local
government, while trying to stay afloat. They do rally together if CCUVA asks them to
support BOPK, such as was the case in the may 2007 elections, which shows the power of
both CCUVA and the current regime in Cebu City.

Street vending has, nevertheless, become more accepted within Cebu City over the last 15
years. Traders are able to find niches in the city from which to make a living without the
immediate threat of harassment. The negotiation and organizing skills of the street vendors
organizations and CCUVA are much stronger than before. Nevertheless the situation remains
far from easy and did not yet come to a satisfying solution for all parties involved.

Demolitions continue, creating immense difficulties for street vendors that are reliant on
their only source of income. This still creates uncertainty and unstable situations, from which
it is hard to build a future.

CCUVA members supporting candidate-mayor Tommy Osmea in rally from Colon to Fuente Osmea,
9-5-07

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Chapter 6. Conclusion of the research
Informal entrepreneurs

The first part of the conclusion reflects on the conclusions of the research regarding the
main themes from the theoretical context: informal sector, livelihood and social capital. The
second part answers the sub questions, comments to the hypothesis and answers and
discusses the main question, followed by a short outlook based on the results of the
research.

The point of departure of the research was a clear question: To what extent does
organization among the street vendors benefit the realization of their goals and what are the
consequences for their livelihoods?, surrounded by some very large question marks. Three
actors were identified contributing the most to the goals of street vendors: street vendors,
the local government and street vendor organizations. Within these three categories there
is an enormous variation in background, agendas, means and goals as well, which shape a
myriad of stakeholders, shareholders and actors on many levels. It is most easily condensed
into the notion: informal sector dynamics, which contains but not explains the contents.
An important conclusion attached to this short analysis is that the sector of street vendors is
intrinsically heterogenous, in the sence that every vendor knows or is one of the actors in
the myriad of stakeholders. Clearly some homogenous variables such as economic and legal
position can be attributed to the population as a whole. This fact makes them, nevertheless,
even more vulnerable to the quirks of the surrounding influential factors, such as desires of
their organizations, the desires of the local government and unforeseen macro-economic
developments. It can thus be said that street vendors develop individual strategies to
become successful vendors, but they develop these strategies within the possibilities and
limitations of the broader social context they are living in.

Informal sector
The fact that street vendors are part of the formal sector gains them, drawing from theory,
opportunities combined with uncertainties. These were both reflected in the outcomes of
my research, since vendors seem to have benefits from being informal, in the sense that
they do not pay taxes, except for arcabala, and can reserve their income for other purposes.
Besides this they do not express the wish to become a part of the formal sector. If this is
because of the income or the absence of knowledge of possible benefits did not become
entirely clear, but the incentive to become part of the formal sector is not a top priority for
vendors in Cebu. The pitfalls of being an informal entrepreneur, such as possibility of
demolition and lack of social security are factors that prevent a steady capital accumulation.
The abundance of cooperatives and other legal partners such as CCUVA imply that there is a
growing infrastructure present on which vendors can rely, which makes life easier in the
informal sphere to some extent.

In the case of Cebu it can be argued that the economic situation prevents the informal sector
from diminishing due to problems on a macro-economic scale, combined with lack of
funding for the local institutions on a meso-level scale. The regime of Mayor Osmea has
brokered a status quo between different actors on an institutional scale, which leaves a large
informal sector that is neither capable nor interested in finding its way into formality.

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Livelihood
Street vendor are for 80% of the population dependent on their income from the street
vendors activities regarding their livelihood. For 20% it still is not enough to provide for daily
needs. This indicates that street vendors are part of a survival economy. Education and
health care are expensive and more difficult to access for street vendors, which in the overall
picture still categorizes them as being marginal city dwellers. In the broader view of
livelihood it appears that vendors are satisfied with their profession, see themselves as a
positive contribution to the image of the city and feel capable to decide over their own lives,
which suggests that in many cases street vending has a positive contribution to their status.

Social Capital in form of organization membership

Street vendors benefits from their social capital on all three levels: personal, suppliers and
buyers relations and organization membership. The most important form of social capital in
this research is organization membership. The research shows that the benefit hereof for
vendors is mainly the negotiations with local government, and it shows some hints that large
organizations also have some pitfalls. Referring to chapter 2, Steel identified possible
negative influences if there is a power imbalance between vendors. It appears from the
research that this might be the case in the relation between CCUVA and street vendors,
since CCUVA exercises some sort of overall influence on the population in order to succeed
in its goals. Individual vendors are forced to comply with CCUVAs rules, risking eviction from
their organization and get cut-off from vital social capital. It is clear that CCUVA is a union,
with its own goals and practices, geared towards the big picture, not to individual vendors
alone.

Comparison between fruit and flower vendors.

It is clear throughout the research that flower vendors are richer, better connected and
more locally oriented. They enjoy the benefits of informality more than fruit vendors. This
can be attributed to the nature of their product. It comes from close by (the mountain
barangays) and is traded via suki that are personal relations, or parts of their bonding social
capital often. Equal to this fruit vendors have opportunities in becoming successful to the
same extent if they have similar conditions as the flower vendors. In general this is not the
case, and fruit vendors face more competition, earn less profit and feel less capable of
changing their livelihood situation. They are more open to entering the formal sector as well,
probably originating from the previous mentioned factors.

Answers to sub questions

In the introduction of the research 6 sub questions following out the main question:
To what extent does organization among the street vendors benefit the realization of their
goals and what are the consequences for their livelihoods?, were formulated. These six
questions can be divided into descriptive questions (1 to 3) and analytical questions (4 to 6),
in the previous chapters all questions have been answered by touching different aspects of
the research questions. For the sake of clarity question 1 to 3 are summarized, drawing from
the conclusions made in every chapter. The answers to question 4, 5 and 6 are shortly
discussed on main points, since they are more elaborately described in their respective
chapters.

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Descriptive sub questions:

1. What are the characteristics of fruit and cut-flower vendors? (What is the
build-up of their livelihood? Income? Background? Relation with
suppliers/buyers?)
Addressed in: chapter 3

The average fruit vendor in Cebu City turns out to be a middle aged woman with a family
and a husband, already a street vendor for over 16 years and living for at least the same
period in Cebu City. Street vending is for most vendors the most important source of income
in their household. 20% of vendors state they do not earn enough to meet their daily needs.
Suki relations are of vital importance for street vendors, since competition is strong.
But although the average street vendor can be described, the main conclusion is that street
vendors are not a homogenous group. They are a heterogeneous group with shared
characteristics such as a large share of ingenuity, and pride in their jobs.
The street vending business offers street vendors personal freedom and independency from
both a day job and in other cases their family and house. Absence of fixed costs such as the
rent of a vending spot and taxes are important factors. As far as their goals vendors
generally like what they are doing to provide for their livelihood and desire to expand and
optimize their micro-business of which they are proud.

2. What is the local policy on street vending and how does this affect the livelihood of
street vendors?
Addressed in: chapter 4

The Cebu City government has the freedom to decide over the legislation towards street
vendors. Since the first legislation was made more than 60 years ago there is a tension
between the policy and the actual situation. Official policy states that vending is illegal by
law. In practice there is a policy of maximum tolerance active, in which local government
allows registered vendors to sell their items complying to a written agreement maintained
by SPEED and CCUVA, this master list is part of a dying out policy, since vendors that leave
the city are not allowed to be replaced with other registered vendors. In the designated
market areas the situation is different, vendors are allowed to vend if they pay arcabala. The
practice is that local government is in its right to remove vendors in almost every situation,
leaving the vendors insecure about possible demolition.

3. What are the goals and practices of street vendor organizations?

Addressed in: chapter 5

Street vendor organizations are researched in two forms: the geographically bound
smaller member organizations of CCUVA and the union and organization in its own respect
CCUVA. Street vendor organizations fulfill a role in respect to the control over the small
segment they are occupying. Besides that they are the legal entity, through their
membership with CCUVA . Through this membership local government contacts the vendors
and retrieves information about them.

CCUVA is a federation uniting and representing these street vendor organizations and strives
to augment the influence of street vendors on a policy level, and harvested success in that
respect, it is the voice of street vendors towards local government and is consulted and

119
institutionalized in that way. At the same time it strives to augment its own influence by
managing the street vendor organizations and retrieving fees from them. The objective of
CCUVA is security in the workplace, an other objective is to unite all vendors. It appears to
have a political goal as well in this respect.

Analytical sub questions:

4. What are the consequences of the strategies of street vendor organizations for the
street vendors? Or (What is the role of membership of street vendor organizations in
the maintaining or improving of the livelihoods of street vendors?)
Addressed in chapter: 4,5

For street vendors the membership of an organization has one clear goal: to secure their
livelihood by uniting their voices through organizations in preventing demolition by local
government. Other cooperation like exchanging information within the organization and
price setting are benefits as well, but shadowed by the main purpose. The structure of
membership of organizations that are members of CCUVA fulfills this role clearly. CCUVA has
made clear progress in the situation between demolitions for the vendors. CCUVA is more
than just an umbrella organization, being involved in policy making and maintaining, by
disciplining and empowering their constituent members. An important result that is
achieved through the cooperation of street vendors is the fact that their voice is now heard
at policy level. This mainly is the accomplishment of CCUVA.

5. How do local policy and street vendors organizations influence each other?
Addressed in chapter: 4, 5

The mayor has the final say in the case of demolition, as is stated in the unwritten policy of
maximum tolerance, which serves as the guideline for policy towards street vendors, apart
from official legislation. This provides for an awkward situation of dependent relations. Just
viewed from a logical standpoint: the mayor is in control, but the voters are in control of the
mayor, so the mayor needs to be responsive to some wishes, since the vendor population is
about 40.000 and CCUVA has an important voice in representing these vendors, in fact they
are an important ally in election time. At the same time, vendors are not popular in policy
terms, as far as the outlook for policy is concerned. This implies a complicated situation of
relational economy. In which the clients of the patronage system found a way to exercise
some power through democratic ways. To make things more complicated: vendors seem to
have a stake in keeping the status quo to some extent as well. So it appears that there are a
lot of power imbalances in the informal sector in Cebu City.
In the words of Osmea: economic progress would solve the vendor problem, this
underlines the main concern of the local government is maintaining the status quo, until job
creation will hopefully diminish the population of vendors. Exactly how the progress will take
place has not yet blossomed.

6. What is the role of formalization in the wishes and needs of vendors, as well as in the
goals of street vendor organizations and local government policy?
Addressed in chapter: 3, 4 and 5

On a policy level this is clear: the dying out policy is in place. Other stakeholders have to
make efforts to alter this. CCUVA does this, and came as far as suggesting a proposed
ordinance that would legalize street vendors and set out clear rules for them. Nevertheless
street vendors themselves do not prefer to be part of the formal sector, rather they prefer

120
to expand their business and become more successful entrepreneurs within their current
situation. If this proves one thing it is that first and foremost street vendors are
entrepreneurs and enjoy the benefits of street vending more than the pitfalls. Further more
the largest part of the vendors seems to feel capable of realizing her or his wishes.

This conclusion is also expressed in the outcomes of testing the hypothesis:

Street vendors want to become part of the formal sector

The hypothesis made for the research has been largely falsified by the statements of the
street vendors. They do not prefer to be part of the formal sector, rather they prefer to
expand their business and become more successful entrepreneurs within their current
situation. If this proves one thing it is that first and foremost street vendors are
entrepreneurs and enjoy the benefits of street vending more than the pitfalls. Further more
the largest part of the vendors seems to feel capable of realizing her or his wishes. In both
cases flower vendor state their case stronger, which again points in the direction of a
stronger position in the market, and a stronger stock of social capital for flower vendors in
old Downtown Cebu.

The sub questions all set light on a part of the main question, which is analysed to finalize
the conclusion of this research.

Main Question

To what extent does organization among the street vendors benefit the realization of
their goals and what are the consequences for their livelihoods?

Street vendors have desired goals. These goals are not situated in the realm of entering the
formal sector as has come to forth in this research. Rather they want to expand their
business and carry on within the same framework they are acting in. Whether this is because
of habitual reasons or intentional reasons is beyond the scope of this research.

Organization
What is in the scope of this research is the extent to which they benefit from their
organization degree, operationalized as being an important part of their social capital. It
appears from the research that the organizations provide stability for their livelihood. The
street vendors organizations, headed by CCUVA have established a working relation with
local government, and a stake in executing the maximum tolerance policy. CCUVA is also
responsible for the creation of some order in the chaotic scene of street vendors in Cebu
City. Through their stimulating efforts in creating and maintaining street vendors
organization a equal division is made of street vendors activities throughout old downtown.
Since the goals of street vendors are identified as expanding their business, attention
towards that goal needs to be given more by the organizations. At the moment the local
government dying out policy is still in place, although it is evaded by the street vendors
organizations in a frequent manner. At the same time there is, as identified through the
research a status quo situation that is cherished by the local government, while they are
busy facing very different issues that are more opportune in their view. Organizations
provide by complying with this policy a deadlock to this status quo, since they give the
opportunity to local government to remain deaf for their complaints. More progress for the

121
livelihood situation of street vendors is made through other initiatives such as cooperatives
and informal lending schemes to gain capital assets in order to fulfill their expanding dreams.

The remark made here is that the organizations provide a framework which generates
shelter and a representation of their interests, but maximal results are not yet reached.
In the next chapter, a SWOT analysis, some possible directions into which the main
stakeholders can get closer to each other are identified. Meanwhile, street vendors remain
the lively and visible side of informal economy in Cebu City, and are a colorful endemic part
of the city of Cebu, likely for the coming decades still so, even though no official plans
include their legal existence just yet.

Indivual street vendors

Street vendors are satisfied with the efforts of CCUVA and with the maximum tolerance
policy of local government. Their main goal is to improve their business and expand their
business and revenues in order to improve their livelihood.
Every individual street vendor tries and will keep on trying to reduce his or her pitfalls and
will look out to expand his or her social networks: by developing their own saving strategies
and methods to cope with regular demolition, by developing human capital, and also by
improving their social skills in the streets.
Still they can be supported more in their struggles of dealing with the structural restrictions
and dynamics that cause their insecure livelihood-provision. Local government seems the
first actor that could make a move in this respect, providing street vendors with more legal
security, not just unwritten policy. The proposals from CCUVA are in place, it is upon the
institution ruling the city to decide whether the informal sector remains informal or
becomes institutionalized, and becomes subject for providing statistics on the one hand and
a secure working place and livelihood provision for street vendors foremost.

Outlook
As long as there is a thriving informal sector and an ill-managed or too small formal sector
the phenomenon of street vending will be part of the informal sector of economy. The social
capital of street vendors provided by their extended family and suki networks, sense of
community and political voice through their organizations and representing umbrella
organizations such as CCUVA provides the street vendors with a framework for maintaining
and improving their situation without loosing the benefits of informality. This raises the
question whether strong institutions are the most important factor in managing economic
growth and livelihood improvement.

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Chapter 7. SWOT-analysis
Street vendor livelihoods and their prospects

In this SWOT-analysis the three main actors shaping the livelihoods and goal achievement of
street vendors in Downtown Cebu City, being Street Vendors, Local Government and Street
Vendors Organizations (which can be divided into CCUVA as the overarching organization
and the geographically organized local street vendor organizations) are analysed on the,
Macro, Meso and Micro-level. In this way Strengths, Weaknesses, Opportunities and Threats
are identified on different scale levels and search fields are identified in which directions
improvement of the situation could be established. Next to the room for improvement, the
way in which the three actors can work together on certain issues is made clear as well
through this analysis and suggestions in this direction are included in the analysis as well.
The point of departure is the improvement of street vendor livelihood.
The ideas are ordered on two system levels and by actor. The aim is to draw out search fields
directed at improving the situation for street vendors, the research object of this thesis.
Some ideas are inspired by the peoples Forum I attended in april 2007, in which the Ramon
Aboitiz Foundation, a local NGO supporting different sectors of the urban poor and
stimulating participatory approaches presented results of their consultations with street
vendors, subsequently followed by an interview with representatives of the Microfinance
program and the programme officer in charge of the urban poor consultancies (interview
Dignadice and interview Catipay, 19-6-2007). Other recommendations in the analysis are
based on interviews with the Department of Trade and Industry (interview Cabagnot, Soria,
8-6-2007). Most are based on findings on the research and ideas formed in the research
area.

Macro level
The macro level encompasses the circumstances that create a stable market. Since these
circumstances are beyond the scope of this research no SWOT is made on this level,
nevertheless factors such as demographic change in the Philippines, macro-economic
developments such as crises and technological development are off course important
influencing factors resonating on the meso and micro levels.

SWOT analysis in figure 7.1 to 7.2 Divided by actor

Street Vendor
Local Government
Street Vendors Organization

Table 7.1 Meso level, CCUVA and Local Government

Strengths Strong organisational structure

- CCUVA as an umbrella and local organisation, street level
organisations for street vendors in your niche or vicinity, cooperatives
for financial backing on an equitable basis

Uniformity
- regulated size of stalls and carts, umbrellas provided by local
government in matching colours

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Weaknesses Weak legal background
- official ordinance states that street vending is an illegal
activity, therefore a policy of maximum tolerance is in place

Fluctuating local government intervention policies

- demolition, still to often at will

Large debts of local government because of SRP-project, no means to

invest in urban poor development

Weak position of street vendors in the socio-economic and cultural

picture of Cebu in the realm of policy makers
- for instance not one remark concerning street vendors in the city
development plan. No attention for the touristic or service-delivering
qualities of street vendors.

Competition of supermarkets, other market parties

- supermarkets are not fond of vendors and lobby for demolition and
removal of street encroachers

Opportunities Stronger legal empowerment

- CCUVA has cooperated in making a draft text for a
replacement of the current ordinance, only political will is needed to
implement it

Cooperatives
- Cooperatives operate successfully (CEMVEDCO as biggest
success story), when they keep operating in an accountable way more
financial stability can be provided which catalyses positive changes in
the livelihoods and future of street vendors

Business registration made easier through streamlining programs (for

instance from Department of Trade and GTZ, the German government
programme on stimulating small and medium entrepreneurs in the
Philippines)
- With easier access to business registration and shorter
procedures it becomes more attractive to formalize the business and
benefit from legal status in terms of capital investments and the legal
protection of those investments for vendors. For local government it
means a more steady tax income and a ground to define a more sound
and encompassing policy.

Provide benefits for registering businesses of micro-entrepreneurs

- Street vendors should see (and receive) benefits of registration. Such
as: access to credit, access to prime market space and access to
education for their children and themselves in areas as business skills
and credit management. The social mobility of street vendors could be
enhanced and spurred in this way

124
 Recognition on policy level for socio-economic and cultural value of
street vendors
- designing policies regarding street vendors in long term city
development plans. Recognize the value of street vendors in order to
improve their image and dignity.

Policy that concerns street vendors should be a participatory process

- this thesis already implies this direction, but the policy that is created
towards vendors should be made in a responsive and transparent way,
consulting the vendors, both through CCUVA as open Fora.
- street vendor associations should be supported by local government,
and given a voice, not only through CCUVA but as well through local
committees, so they can participate in defining local policy concerning
them.
Threats
Influx of vendors
- With demographic change and a weakening economy more
and more people will try to resort on street vending as an additional or
main source of income. This can put a burden on already crowded
streets and might become a reason for local government and present
street vendors organisations to take unpleasant measures in preventing
the streets to get flooded.

Change of government
- With the current weak legal status a harsher government has
many possibilities to make the policies towards street vendors stricter
in order to meet demands of more powerful actors, such as
supermarkets

Growing debts of local government (South Road Property debts)

preventing any investment in urban poor

Corruption among street vendors organisations and / or CCUVA

Table 7.2 Micro Level, Street Vendors and Street Vendors Organizations

Strengths Quality of goods sold

- fresh fruit and fresh flowers, either bought from a cooperative
or through own connections with hinterland or even own farm

Competitive pricing
- Goods sold are cheaper then in supermarkets, amongst others
because of evaded retail taxes and zoning costs

Order and discipline and strong social capital through organizational

structure

125
Weaknesses Weak legal background
- official ordinance states that street vending is an illegal
activity, therefore a policy of maximum tolerance is in place

Fluctuating local government intervention policies

- demolition, still to often at will

Competition from each other - there are many vendors, so

competition is strong, organisations level some income

Possibility of patron-client relations between organizations and

vendors because of power balance strongly with CCUVA

Opportunities Diversify the supply chains more

- although supply chains are fairly diverse already, the traders in
between ask considerable mark ups to the farm gate price

Provide materials and collateral support to vendors

- to improve the quality of items sold and the livelihood of vendors,
local government could invest (together with other parties for instance)
to upgrade the quality of stalls or carts, in order to improve sanitation
and quality of the goods sold by the vendors

Make work of micro finance schemes and control over microfinance

providers
- In order to let more vendors slowly expand their collateral or invest in
their micro business microfinance seems an ideal change agent. Since it
is
- Besides credit: micro-insurance and other social services that are
needed (child care, clean environment in markets, education) should be
provided in cooperation with CCUVA, other NGOs, cooperatives and
social services of the local government.

Vendor cooperation with supermarkets and shopping malls

- where possible vendors should gain a position within food courts and
shopping malls to have a good vending spot and cooperate with local
supermarkets, this could generate extra income for supermarkets by
asking a fee from the vendors, and bringing extra service to the
customer

Threats Influx of vendors

- With demographic change and a weakening economy more
and more people will try to resort on street vending as an additional or
main source of income. This can put a burden on already crowded
streets and might become a reason for local government and present
street vendors organisations to take unpleasant measures in preventing
the streets to get flooded.

A few important search fields for improvement of the situation of vendors:

126
On the Macro level
Positive or revaluation of locality of economic development, emphasis on local
development, next to globalisation of certain areas of economy in a multiscalar,
postmodern world.

On the Meso level

The strong organisational structure of vendors that are member of a street vendors
organization provide a strong informal system that provides support. This system
can grow in importance and organisational strength through development from
within. As long as there is strong and accountable leadership and transparency
among its constituents.
In particular the cooperatives and their lending schemes provide structural support
to the financially weaker groups of vendors. By performing some influence in the
market, control over the vendor market is maintained and provides stability. This
good example could be backed by local government by supporting and stimulating
more of these lending schemes and creating independent control mechanisms
towards them.
Local government can put more focus on registering business from micro
entrepreneurs, solve the unclear situation by supporting cooperatives and granting
stability towards vendors that obide the law. Legalize the encroaching of the street
with an expansion of the arcabala system and make it an official installment or tax in
order to create clarity for both parties involved

On Micro level
Competitive pricing in combination with the quality of the sold products of street
vendors can increase the market share for vendors when demand is growing.
A positive attitude towards the entrepreneurial spirit of street vendors and the
quality and authenticity of sold goods will eventually improve the image and
therewith the pride of street vendors. The gross national happiness rate will rise as a
consequence, maybe even spreading the idea of a service based economy where
large amounts of people all contribute to local systems of trade and agriculture. A
sustainable way to provide means of existence and livelihood to a people under
strong demographic pressure and with possibly destabilizing economic problems on
the rise.
On a more practical basis: if vendors are used with their advantages and positive
images in shopping malls or other formal outlets with their specific qualities a so
called win-win situation could develop. Prerequisite is a sound policy and clear
contracts between vendors and private parties. Local government and street vendor
organizations have an important role in this. It would expand income for all three
parties involved, and most importantly it would contribute to the social mobility of
street vendors in Cebu City.

Concluding remark
This SWOT analysis was based on information obtained throughout the course of this
research. It is a combination of analysed facts, interview excerpts and ideas of the author in
which direction opportunities for improvement can be sought after. This in order to give
some recommendations on a policy or practical level related to the outcomes of the
research and stimulating a participatory process which is transparent and accountable, two
key factors that are sometimes blurred in the reality of the informal sector and the different
stakeholders surrounding it as have become clear in this research.

127
Recommendations for further research
In this short chapter some recommendations are made concerning possible further research
towards the actors in informal sector in Cebu and elsewhere.

On a theoretical notice:

Some questions that come to the fore while writing the thesis can serve as input for further
research concerning street vendors in Cebu, many more questions can be drawn from the
research, but these are highlighted from the authors view:

Are flower vendors indeed richer because of their favourable geographical proximity
of their supply lines combined with their stronger social capital?

Which implications do the increase of access to cooperatives and other semi formal
possibilities to lend have for street vendors and their livelihood provision?

How can street vendors be pursued to opt for a formal career? Where are the
possibilities for that in respect from the preferences and objectives of the three
main actors in that process: street vendors, local government and the organizations
representing street vendors?

On a practical notice:

Stemming from the research results it seems to be very opportune to make more work of
actually creating policies and various forms of cooperation between different stakeholders
on a more intensive scale. To carry on with that trend is the main recommendation that can
be made coming from this research a possible search field distilled out of the SWOT analysis
which seems interesting is the following, and final recommendation:

In this research some search fields have been identified in the direction of
participatory processes concerning street vendors, their representatives and the
local government. Possibly current competitors of street vendors such as malls and
supermarkets could be included in a participatory process resulting in more
cooperation and incentives for business registration or just loose contracts for
vendors, augmenting their income as well as that of malls and tax receivers. A
feasibility study towards this goal, identifying concerning possibilities and
constraints is an interesting option towards this possibility.

128
Bibliography
Literature

Cross, J.C. (1998), Informal politics street vendors and the state in Mexico City. Stanford,
California: Stanford University Press

Devas, N. (2004), Urban Poverty, Voice and Governance in the Developing World. London:
Earthscan

Gaag, M. van der, (2005), Measurement of individual social capital. RUG dissertations.
Available at: http://irs.ub.rug.nl/ppn/275106985

Guha-Khasnobis, B., Kanbur, R. and Ostrom, E., (2006). Linking the Formal and Informal
Economy: Concepts and Policies. London: Oxford University Press

Guha-Khasnobis, B., and Kanbur, R., (2006). Informal Labour Markets and Development.
London: Palgrave MacMillan

Helvoirt, B. van (2009), Regions, Institutions and Development in a Global Economy

divergent regional business systems in the Philippines. Utrecht: A-D Druk

Portes, A., Castells, M. and Benton, L., (1989). The Informal Economy: Studies in Advanced
and Less Developed Countries. Baltimore: John Hopkins University Press.

Steel, G. (2008), Vulnerable Careers: Tourism and Livelihood Dynamics among Street Vendors
in Cusco, Peru. Amsterdam: Rozenberg Publishers

Scientific articles

Etemadi, F. (2001), Towards inclusive urban governance in Cebu. University of Birmingham

working paper. Available at: http://www.idd.bham.ac.uk/research/Projects/urban-
governance/resource_papers/stage2_casestudies/wp25_%20Cebu.pdf

Etemadi, F. (2001), Profile of street and Sidewalk Vendors in Cebu City. CCTWC study.
Obtained via CCUVA.

Ghate, P. (1994), Lending to Micro Enterprises through NGOs in the Philippines. Chapter 8 in:
Bouman, F. and Hospes O. (1994), Financial Landscapes Reconstructed: the fine art of
mapping development. Available at
http://library.wur.nl/way/catalogue/documents/Financial%20Landscapes%20Reconstructed
%20TOC.htm

Hendriks, M. (1994), Trade Arrangements and Interlinked Credit in the Philippines. Chapter
13 in: Bouman, F. and Hospes O. (1994), Financial Landscapes Reconstructed: the fine art of
mapping development. Available at
http://library.wur.nl/way/catalogue/documents/Financial%20Landscapes%20Reconstructed
%20TOC.htm

129
Naerssen, T. van, Kampen, M. van, (2008). Globalization and Urban Governance in Two Asian
Cities: Pune (India) and Cebu (Philippines). European Planning Studies Vol. 16, No. 7, August
2008
http://web.ebscohost.com/ehost/pdf?vid=3&hid=8&sid=03a99b56-5823-47bb-8785-
b9107ab70da1%40sessionmgr11

Nirathron, N., (2006). Fighting Poverty from the Street A Survey of Street Vendors in
Bangkok. ILO. Available at: http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-
bangkok/documents/publication/wcms_bk_pb_128_en.pdf

Roever, S., (2005), Informal governance and Organizational Success: The Effects of
Noncompliance among Limas Street Vending Associations. University of California at
Berkeley

Roever, S., (2005), Negotiating Formality: Informal Sector, Market and State in Peru.
University of California, Berkeley

Tinker, I., (2003), Street Foods: Traditional Microenterprise in a Modernizing World.

International Journal of Politics, Culture and Society, Vol 16, no. 3

Yasmeen, G. (2001), Workers in the urban informal food sector: innovative organizing
strategies. FAO, Available at: http://www.fao.org/DOCREP/004/Y1931M/y1931m05.htm

Newspaper articles

Cebu Daily, various articles. Obtained via archive of Cebuano Studies Center, obtained 10-5-
2007
Cebu Sun Star, various articles. Obtained throughout research from street vendors. April-july
2007
Philippine Inquirer, publish date 26-1-2009 in Cebu Daily News. Coop Helps Vendors in
Carbon market. Via:
http://globalnation.inquirer.net/cebudailynews/enterprise/view/20090126-185627/Coop-
helps-vendors-in-Carbon-market

Websites (portals)

www.wiego.org Women in Informal Employment. Portal with research

concerning women in the informal sector

www.socialcapitalgateway.org Up to date portal about social capital research

www.streetnet.org.za Portal about street vendors worldwide

www.cebucity.gov.ph Official site of Cebu City local government

www.smedsep.ph Small and medium enterprise program private sector

promotion program of GTZ, German government
development cooperation with Philippines

www.dticebu.net.ph Department of Trade and Industry of Cebu

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Presentation

Colchero, A. (2008). Food Availability and Changes in Weight among Women in

Metropolitan Cebu, Philippines (1982-2002). National Institute of Public Health, Johns
Hopkins Bloomberg School of Public Health

Interviews

City Hall, office of City Mayor

Gerry Marquez, City consultant for urban poor 3-5, 11-5, 16-5 2007
Bimbo Fernandez, City Administrator 20-6-2007
Paul Villarete, City Planning & Development Coordinator 29-6-2007
Raquel B. Arce, City Market Administrator 27, 29-6-2007

NGOs

CCUVA
Maria Pino, 11-4, 29-6-2007
Celia Quijoy, 8-6, 9-6 2007

Ramon Aboitiz foundation

Anthony Dignadice - Program Officer 19-6-2007
Tess C. Catipay - CMEDF,inc. 19-6-2007

Government line agencies

DTI
Maynard Soria 8-6-2007
Mark Cabagnot

Dept. of Agriculture
Christopher Lucero 5-6-2007

NEDA
Lorna Manila - Senior Economic Member 20-6-2007
Raphael Tagalog - Supervising Economic Development Specialist
Madelin Estandor -Macro economic Development Specialist

City Planning & Development

Gigi de la Serna -planning officer 27-6-2007
Joel Reston -zoning administrator 27-6-2007

Cooperatives

CEMVEDCO, through Jescelle Sato - manager 29-6-2007

FTMPC, Anonymous 29-6-2007
Kamansi, through Felicisimo C. Rupinta -founder 13-6-2007

Vendors

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Members of Llorente Multi Purpose Cooperative 16-6-2007
Vendors in M.C. Briones street 14-6-2007
Vendors in Calderon street 15-6-2007
Vendors in P. del Rosario street 13-6-2007
Chariest Fuentes - CCUVA Youth chairman, vendor in Colon 23-4-2007
Meeting with JAVA, Jones Avenue Vendors Association,
venue: CCUVA office 9-6-2007

Suppliers in mountain Barangays

Barangay Guba. Several fruit farmers, beneficiaries of CMEDFI

(during a meeting) 26-6-2007

Barangay Babak II. Leonella Mabini, Cut-flower grower/trader 26-6-2007

Empirical research concerning this thesis

Questionnaire, processed in SPSS, referred to as SPSS Output

Concerning: Basic facts, livelihoods, organization, suppliers and buyers, goals of street
vendors. See subsequent Annex I for a transcript of the questionnaire.

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Annex I Questionnaire

This is a transcript of the questionnaire that was conducted in old downtown Cebu among
96 street vendors, it was conducted over the course of two days 14-62007 and 15-6-2007.
The questionnaire is bi-lingual, with a Visayan translation added to it.

Tjerk Destombes, 0255602. Graduate researcher

UU USC, april- july 2007

Questionnaire

Livelihood, organization and prospects of cut-flower and fruit vendors in Cebu City

This questionnaire aims to get an overview of the livelihood situation of street vendors in two
specified sectors, namely the flower vendors and the fruit vendors. Besides the livelihood situation
and future prospects and goals, the influence of social capital on the performance of the micro-
businesses is being researched with this questionnaire.

This questionnaire will take approximately 30 minutes of your time and is aimed at giving insight in
the livelihoods of street vendors and their businesses. Following out of the research some
recommendations will be made aimed at improving the situation of street vendors. If you fill in this
questionnaire in a sincere and sound manner, you are benefiting both the research and the ongoing
insight in your situation, which will help accommodate proper handling of your situation.

Your anonymity is guaranteed.

1. Household and livelihood characteristics

(Personal)
1.1 Age: (Unsa man ang imong edad?)
< 20
21-40
41-60
61 and above

1.2 Gender: ..
Female (Babaye)
Male (Lalaki)

1.3 Highest educational degree: (Pinakataas na naeskwelahan nimo)

Primary
Elementary school
Secondary/ highschool
University
Technical/ vocational courses
Other, please specify:..

1.4 Where were you born? (Asa ka natawo/gipanganak)

Metro Cebu
Other place, please indicate
If not from Cebu:
How long have you been living in Cebu (in years)? (Pila naka ka tuig nagpuyo diri sa Cebu?

<5 6-10 11-15 16 or more

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1.5 How long have you been a street vendor (Pila naka katuig nagbaligya dinhi?)

<5 6-10 11-15 16 or more

Household (Kabahin sa imong panimalay)

1.6 Are you single, married/living with partner, separated or widowed?

(Ikaw ba ulitawo/dalaga, minyo/ga-live-in, separada/do o balo?
Single (Dalaga/Ulitawo)
Married (Minyo)
Separated (Bulag sa bana/asawa)
Widowed (Nabalo)

1.7 How many persons does your household consist of (including yourself)? (Pila man mo
kabuok sa inyong panimalay apil naka?)
<3 4-6 7-10 11 or more

1.8 What is your relationship to the household head (decision-maker of the house)? (Unsa ang
imong relasyon ngadto sa ulo sa panimalay?)
I am the decision maker
Spouse
Parent
Child
Grandparent
Other relative
Other, namely:...

Livelihood (Kabahin sa imong panginabuhi)

1.9 What kind of items do you sell?

(Unsa ang imong ginabaligya?)

Fruits (Prutas)
Cut-flowers (Buwak)

1.10 Where did the money for the initial working capital come from? (Aha gikan ang kwarta
nga imong gigamit nga capital aning imong negosyo?)
[RANK according to size]
Borrowing from informal lender
(Tinantuhan sa Bombay)
Borrowing from formal lender
(Hulam sa pormal nga institusyon)
Microfinance initiative (NGO project)
(NGO proyekto)
Borrowing from friends and family without interest
(Hinulam sa mga kaila ug membro sa pamilya)
Savings ( Tinigum nga kwarta)
Others (uban pa)

1.11 How much do you spend for you daily stock (on average)?
(Pila man sa imong bana-bana ang gasto sa imong pag kompra kada adlaw?)
< 500
501 1000

134
 1001-1500
1501- 2000
2000 +

1.12 How much is your estimated sales on an average day of vending?

(Pila man sa imong bana-bana ang halin kada adlaw?
< 500
501 1000
1001-1500
1501- 2000
2000 +

1.13 What are the sources of income in your household? (Unsa man inyong panginabuhi-an?)
Kun daghan palihog ko ug marka sugod sa pinaka importante, 1-pinaka-importante, 4-dili
importante) If more than one, please rank them in order of importance.1- most important 4-
least important)
Rank:
Street vending (Pamaligya daplin sa kalsada)
Day job of other member(s) in the household
(Pagpanarbaho sa ubang myembro sa pamilya)
Trading goods
(Pamaligya sa lain, gawas diri sa imong nahimutangam)
Other, indicate which: Uban pa, palihog ko ug sulat

1.14 Does your income provide for your daily needs in terms of;
Paigo ra ba ang imong income para sa adlaw na kinahanglan sa;
Food: Yes (Oo) Clothing: Yes (Oo) Education Yes (Oo)
Pagkaon No (Dili) Sinena No (Dili)Pag-paeskela No (Dili)

Health Care: Yes (Oo) Housing: Yes (Oo)

Pagpatambal No (Dili) Panimalay No (Dili)

Organization membership (Pagka myembro sa organisasyon)

1.15 Are you member of a street vendors organization?

Myembro kaba sa organisasyon?
Yes (Oo)
No (Dili)
If not, indicate why not: Kun dili, ngano man?

If yes: Kun Oo
How long have you been a member? (Kanus-a ra ka nagpa myembro?)
Since I started the business (Sukad pagsugod sa pagpaninda)
Since years ( Sukad ______ tuiga

1.16 What is the name of your organization? (Unsay pangalan sa inyong organisasyon?)
..

1.17 What are the most important benefits of your membership?

Unsay mga importante nga benipisyo nga imong nakuha isip myembro sa organisasyon?
Indicate the squares that apply to your situation and rank them 1 to max.6

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 Palihog ko ug tsek sa mga benipisyo nga imong nadawat ug i-rank sugod sa pinaka
importante sa imong tan-aw.
Negotiating your interests with local government
Pakigdayalogo sa lokal nga gobyerno
Advice on business related matters
Tambag/sugyot kalabot sa pagnegosyo
Advice on policy matters
Tambag/sugyot kabahin sa balaod
Protection for demolition
Proteksyon sa demolisyon
Contacts with other vendors
Pagkontak sa ubang tigpamaligya
Education
Kabahin sa Edukasyon
Other , namely (Uban pa, palihog ko ug sulat)
.

Local government policy (Lokal na Pamalaod)

1.18 Are you satisfied with the policy of the local government that regulates your business at this
moment?
Kontento ka ba sa lokal nga pamalaod kabahin sa inyong pagpaninda sa pagkakaron?
Yes (Oo)
No (Dili)
If not satisfied: Explain why you are not satisfied with the current policy
Kun dili ka kontento: palihog ko ug sulat sa imong mga rason nganong dili ka kontento sa
lokal na pamalaod.

2. Networks
2.1 Do you cooperate with other street vendors? (Mo kooperar ka ba sa lain nga mga vendor?)
Yes (Oo)
No (Dili)
If no: Why? (Kun dili, Palihog ko ug sulat sa imong mga rason)

2.2 How often do you have contact with other street vendors concerning business matters?
(Kapila man ka makig sulti sa lain nga mga vendor kabahin sa pag negosyso?)

Daily (Kada-adlaw)
Weekly (Sinenama)
Monthly (Kada bulan)
Very incidentally (Panagsa )
Never (Wala gyud)

2.3 Do you cooperate with other street vendors that you know via:
(Mo kooperar ka ba sa uban nga vendor sa pamaagi sa
CCUVA: Own organization:
Yes (Oo) Yes (Oo)
No (Dili) No (Dili)
If yes, How often: Kun Oo, kapila man? If yes, How often:

136
 Daily (Kada-adlaw) Daily (Kada-adlaw)
Weekly (Kada semana) Weekly (Kada semana)
Monthly (Kada-bulan) Monthly (Kada-bulan)
Very incidentally (Panagsa) Very incidentally (Panagsa)

2.4 What does this cooperation consist of (indicate and rank 1 most important, to least
important) (Unsa man nga pakig kooperar ang inyong gibuhat? (Palihog ko ug tsek sa mga
pili-anan ug i-rank- 1 pinaka importante 4 dili importante.)
Rank:
Sharing business operation matters
Pakig sulti sa mga pagnegosyo
Information about suppliers
Inpormasyon sa kabahin sa suplayer
Lending each other credit
Pagpahulam ug kwarta sa mga kauban (dili ang hulam sa
Pagpa nukli)
Setting prices
Pakig-sabot sa presyo
Other, indicate (Uban pa)
..

2.5 Do you have any form of cooperation with the vendors that are not part of any organization?
Adunay pa bay kooperasyon sa lain nga mga vendor nga dili myembro sa inyong
organisasyon?
Yes, often (Oo, kasagaran)
Incidentally (Panagsa lang)
No, never (Wala gyud)

2.6 Do you cooperate with companies (non-street vendors) in your vicinity?

Adunay ba moy kooperasyon/pakig alayon sa mga kompanya o mga negosyante sa inyong
lugar?
Yes (Oo)
No (Dili)
If yes, how often (Kun Oo, kapila man?)
Daily (Kada adlaw)
Weekly (Kada semana)
Monthly (Kada bulan)
Very incidentally (Panagsa lang)

2.7 How would you rate your relationships with other street vendors?
Unsa man ang inyong relasyon sa uban nga naninda/vendor?
1. Very bad (Dili gyud maayo)
2. Bad (Dili maayo)
3. Neutral (Wala lang)
4. Good (Maayo)
5. Very good (Maayo kayo)

2.8 Do you share information about your business income and your credit situation with fellow
street vendors? (Mag sulti-anay ba mo kabahin sa inyong income ug pagpangutang sa inyong
mga kauban?

Yes (Oo)
___ With all street vendors I am acquainted with
Sa ako lang mga kaila

137
 ___ Only within my street vendors organization
Sa mga vendor lang sa among organisasyon
No (Dili)
If no, why? Kun dili, ngano man?

...

3. Supply chain
Suppliers

3.1 How many times in a week do you buy your products from these suppliers?
Kapila man ka sa usa ka semana mopalit sa imong mga suplayer?

Zero Once Twice Thrice More

Wholesalers
Supermarket
Carbon market
Family
Other suppliers
Please specify which other suppliers you have: (Palihog isulat ang uban pang suplayer?)
..

3.2 Do you obtain your stocks from more than one wholesaler (suki)?
Nakuha ba nimo ang imong gibaligya sa lain-lain nga wholesaler/tigbaligya?

Yes (Oo)
No ( Dili)
If yes: How many? Kun Oo, pila man?
2-5
6-10
more than 10

3.3 Do you always buy from the same suppliers? (Pirmi ka bang gapanggompra sa mao ra
gihapon nga tigbaligya[nga supplier]?)

Yes , all the time (suki)

Oo, kanunay
No, scout around the market for the best prices
Dili, mangita pa ug medyo mayo nga presyo
Scout the market if there is credit; else go to regular supplier
Mangita kun naay magpa utang, kun wala mobalik sa naandan nga supplier
Other (Uban pa)

3.3 By which means will you obtain your products from your suppliers?
Sa unsa nga pamaagi nimo gi kompra ang imong ginabaligya gikan sa supplier?
Cash
On credit (Pautang)

3.5 Where are your suppliers based?

Asa man dapit ang nahimotangan/nag base sa imong mga suppliers?
Within Cebu city (urban) Diri ra syudad sa Cebu
Within Cebu city (mountain barangays) Sa Cebu pero gkan sa bukid nga barangay

138
 Within Metro Cebu except Cebu City (Diri lang sa Metro Cebu e
Within Cebu province (Gikan sa probinsya dinhi sa Cebu)
Outside Cebu province (Gikan sa lain nga probinsya gawas sa Cebu)
Outside the Philippines (Gikan sa gawas sa Pilipinas)

3.6 Do your suppliers sell other products, other than the ones you get from them?
Namaligya ba ang imong supplier ug laing produkto gawas sa imong gi kompra nila?
Yes (Oo)
No (Wala)
If yes, please enumerate
Kun Oo, Palihog ko ug sulat________________________________
3.7 Do you buy different products from different suppliers?
Mopalit ka ba sa lain-lain nga produkto sa lain-lain nga suppliers?
Yes (Oo)
No (Dili)

Buyers
3.5 Do you have regular buyers? Naa ba kay regular nga kostomer o suki?
Yes (Oo)
No (Wala)
If yes, how many? Kun Oo, pila man kabuok
less than 10
10-20
21-30
31 and above

3.6 Which type of customers buy at your vending place?

Mark the squares concerned and indicate how many on average per day
Kapila man kaha mopalit ang imong mga customer nga;
<10 10-20 21-30 30+

Regular buyers (suki)

Incidental buyers (passing by)
Lumalabay lang
Tourists (Turista

3.8 How much do the following customers spend on average?

Pila man ang gastoon sa mga imong customer nga;

Less than 100 100-200 201-300 301-400 400+

Regular buyers (suki)

Incidental buyers
(passing by)
Tourists

3.9 Do you have regular big timeclients? Naa ba kay mga matawag nga big-time nga kliyente?
Yes (Oo)
No (Wala)
If yes, What kind of businesses do they engage? (Kun Oo, unsa man kaha ang ilang negosyo?

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4. Goals
4.1 Do you want to make changes in your current livelihood? Gusto ka ba nga naay kausaban sa
imong panginabuhian karn?
Yes (Oo)
No (Dili)
If yes; rank the following options: Kun Oo, palihog ko ug rank sa mga mosunod
(1- pinaka-importante -3 dili importante)
___ Find another job (Mangita ug lain nga trabaho
___ Formalize your business (be registered and pay taxes and own property rights)
(Pagpahimong pormal sa negosyo)
___ Expand your business (Pagpalambo sa among negosyo)

4.2 If you want to formalize your business. (Kun gusto kang mahimong pormal ang imong
negosyo, unsa man kaha ang mga pamaagi para matuman ang imong mga pangandoy?)
What do you need to be able to obtain this goal?

4.3 What are the constraints in obtaining this goal? (Unsa man kaha ang mga makababag sa
pagkab-ot sa imong mga pangandoy?)

4.2 Do you consider your goals to be realistic and obtainable? (Nag-tuo kaba nga ang imong mga
pangandoy matinoud ug posibling makab-ot?
Yes (Oo)
No (Dili)
If yes, What are the opportunities to obtain your goals?
Kun Oo, unsa man kaha ang mga oportunidad para makab-ot ang imong mga
pangandoy? ____________________________________________

4.4 Do you think the city government is supportive in your wishes?

Sa imong tan-aw, suportado ba sa lokal nga pang gobyerno ang imong mga pangandoy?
Yes (Oo)
No (Dili)

In what way are they supportive / not supportive? Sa unsa man nga pamaagi nga maka sulti
ka nga mosuportar ug dili mosuportar ang lokal nga gobyerno?

4.5 Do you think CCUVA is supportive in your wishes? Sa imong tan-aw mosuportar ba sad ang
CCUVA sa imong mga pangandoy?

Yes (Oo)
No (Dili)

In what way is CCUVA supportive / not supportive?: Sa unsa man nga pamaagi nga maka sulti
ka nga mosuportar ug dili mosuportar ang CCUVA?

5. Image.

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5.1 Do you believe you have the possibility to make important decisions that can change your
livelihood situation? Rate yourself on a scale of 1 to 5. 1 means totally unable to change your
life and 5 means having full control over your life.
(Sa imong pagtuo,aduna bay posibilidad nga makahimo ka ug desisyon nga mausab ang
dagan sa imong panginabuhian? Gradohi ang imong kaugalingon basi;
1. Totally unable to change livelihood situation
Dili gyud mausab ang dagan sa akong panginabuhian
2. Mostly unable to change livelihood situation
Mura ug dili mausab ang dagan sa akong panginabuhian
3. Neither able nor unable
Dili ko kahibalo kun mausab ba or dili
4. Mostly able to livelihood situation
Mausab siguro ang dagan sa akong panginabuhi
5. Totally able to livelihood situation
Mausab gyud ang dagan sa akong panginabuhi

5.2 Please rate how much you like the work you are doing?
Palihog gradohi ang imong kaugalingon sa kasamtangan nga imong gibuhat?
1. Very dissatisfied (Dili gyud kontento)
2. Dissatisfied (Dili kontento)
3. Neither satisfied nor dissatisfied (Wala lang)
4. Satisfied (Medyo kontento)
5. Very satisfied (Kontento pag-ayo)

5.3 Do you feel yourself contributing to improve the image of street vendors?
(Sa imong tan-aw aduna ka bay natabang para mo taas ang imahe sa mga naninda daplin sa
kalsada?)
Yes, explain your answer (Kun Oo, unsa man kini?)

No, explain why( Kun dili, ngano man? .

6. Comments
Please leave your comments on the questionnaire. Feel free to add any information that you think is
interesting and useful for the research. (Kun sa imong kabahin adunay ka pay importante nga
impormasyon nga angay mahibaloan nako, komento o mga sugyot isip usa ka vendor, palihog lang ko
ug sulat.)

Thank you for your cooperation!!

Daghang salamat sa imong paghatag ug panahon pag-tubag sa akong mga pangutana!

141
Annex II Proposed resolution by CCUVA and
councilor Labella, 2001
The Sangguniang Palingsod of the City of Cebu, on motion of Member Labella

Proposed Ordinance

An ordinance repealing ordinance No. 1186 otherwise known as an ordinance repealing

ordinance No. 1017 entitled an ordinance permitting and regulating the business of
sidewalk and ambulant vending in certain designated places in the city of Cebu.

Whereas, survival is a moral force to live for a meaningful life, thereby inducing the
poor to engage in street trading and sidewalk vending to support their families;

Whereas, sometime on 18 February 1985, the Sangguniang Palungsod of the City of

Cebu approved Ordinance No. 1186, which among other things, banned street trading
and /or sidewalk vending on any street network of the said metropolis except on areas
designated by the Market Committee of the same for the purpose of decongesting
and/or declogging the metropolitan streets of said informal traders;

Whereas, it appears that the deterring force of the aforesaid ordinance seems to have
been dulled by the more compelling economic realities which reportedly tend to push an
increasing number of people belonging to this economically challenged sector to vend
and/or trade on the streets of Cebu City;

Whereas, street trading does not only broaden the economic base of the
underprivileged but also serves as a vital link in the social distribution and consumption
of goods attuned to Article XII, Section 1 of the fundamental law of land which
stipulates, ot wit;

Section 1. the goals of the national economy are more equitable distribution of
opportunities, income, and wealth, A sustained increase in the amount of goods and
services produced by the nation for the benefit of the people; And an expanding
productivity as the key to raising the quality of life for all, especially the
underprivileged..

Whereas, under Section 16 of R.A. 71690 otherwise known as the Local Government
Code of 1991, the City Government if Cebu may, for enhancing economic prosperity as
well as public safety and welfare, enact an appropriate legal measure designed to
regulate the operation of street trading and/or sidewalk vending on the said metropolis;

NOW THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED BY THE

SANGGUNIANG PALUNGSOD OF CEBU, in session duly assembled:

Section 1. Ordinance No. 1186 otherwise known as An Ordinance Repealing

Ordinance No. 1186 otherwise known as an ordinance repealing Ordinance No. 1017
entitled An Ordinance Permitting and Regulating the Business of Sidewalk and Ambulant
Vending in Certain Designated Places in the City of Cebu is hereby repealed,
henceforth, it shall be lawful for any person whether natural or juridical, to sell or vend
in retail or otherwise, any goods, articles, merchandise or commodities in selected
areas in Cebu City subject to the prescribed guidelines and regulations of this
Ordinance.

142
Section 2. Definitions

Hawker refers to any person whether adult or minor who regularly or occasionally sell
and/or vend any goods, articles, merchandise or commodities in selected streets, roads,
sidewalks or open spaces owned and /or administered by the City Government of Cebu;

Sidewalk/Street Vendor refers to any person who vend and/or sell any goods, articles,
merchandise or commodities on designated areas in the City of Cebu.

Registered Vendor refers to any street trader/sidewalk vendor registered directly to

the City government of Cebu or a member of good standing of a local organization of
the same recognized by the LGU

Unregistered Vendor refers to any vendor not registered directly with the City
Government of Cebu or not a member of any organization of the same recognized by
the LGU.

Business permit a permit issued by the Office of the City Mayor to any vendor upon
the recommendation of the committee.

Section 3. Designation of Vending Areas/Sites

3.1 All existing vending areas occupied by the vendors which have not caused
obstruction to traffic, pedestrian and passageways of any establishments.

3.2 No vendor is allowed to occupy two or more areas nor a vendor allowed to use
a dummy for the same purpose

3.3 There will be no additional vendors aside from the existing ones nor extension
of any stall or areas allowed to the vendor.

3.4 No vending site shall be designated on the sidewalk portion leading to a

pedestrian lane or walkway.

3.5 Loose vendors shall be given a portion of the remaining designated unoccupied
areas for their permanent vending.

3.6 The committee shall consider looking for an open market for a specific period of
time to sell within the area.

Section 4. Issuance of Mayors Permit

4.1 A business permit shall be issued to any applicant street trader/sidewalk vendor
who shall comply with the following requirements to wit:

4.1a Filipino Citizen

4.1b member of good standing of their organization/association registered or
recognized by the City Government of Cebu.

4.2 Any applicant shall submit to the Committee the following documents:
4.2a A duly accomplished application form
4.2b A health or Sanitation Certificate to those engaged in food vending
4.2c A Barangay Clearance duly signed by the Brgy. Captain
4.2d Police Clearance

4.3 The Mayors permit shall be based upon the recommendation of the committee
or local organization or federation of vendors

4.4 Any issuance of a Mayors Permit shall be based upon the recommendation of
the committee or local organization or federation of vendors.

4.5 The rate of the Mayors permit shall be determined by the Mayor upon the
recommendation of the committee or local organization and federation vendors.

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 Section 5. Terms and Conditions

5.1 Permittee shall in no case be entitled together with the immediate or direct
member of his/her family to have more than one (1) vending space.
5.2 Permittee shall personally conduct the vending business specified in the permit.
5.3 Permittee may alter his/her vending days and hours and even the items for sale
as long as this will be duly approved by the local organization or federation of
vendors.
5.4 Permittee shall at all times wear the ID issued by the local organization or
federation while conducting business. In case of closure of business, suspension
or revocation of permit the same shall surrender the permit to the issuing
organization.
5.5 Permittee shall maintain the cleanliness of the street, road, avenue,
passageway, alley and/or space occupied by the same through the use of
appropriate cleaning paraphernalia.
5.6 Permittee shall dispose and/or deposit the feruse or rubbish accumulated in the
course of business operation either in plastic bags or any other similar
receptable and place the same on a designated area.
5.7 Permittee shall be prohibited to throw or dispose any liquid and/or solid waste
on the street or floor allotting his/her business area
5.8 Permittee shall be disallowed to lease and/or transfer the area allotted to
him/her or a portion thereof to any person.
5.9 Permittee shall display the original copy of the business/peddlers permit on a
conspicuous place within the premises of the business establishment.

Section 6. Supervision

A committee or Body shall be created known as the Cebu City Integrated Vendors
Management Council tasked to supervise and regulate the operation of street traders
and sidewalk vendors, as well as, ensure compliance and enforcement of the terms and
conditions stipulated herein.

The Council shall be composed of the following, to wit:

City Mayor Chairman

ABC- President Vice-Chairman
City Attorney Member
CITOM Representative Member
City Health Dept. Representative Member
Business Sector Representative (2) Member
Vendors Representative (4) Member

6.2 Duties and responsibilities

The Cebu City Integrated Vendors Management Council shall have the following duties
and responsibilities, to wit:

6.2a To designate appropriate site or area for vending

6.2b To supervise the clearing of city streets, sidewalks, alleys, government right of
ways, open spaces, and other vending premises.
6.2c To supervise and control the activity of vendors/hawkers in consonance with the
provisions in this ordinance.
6.2d To determine the processing and issuance of temporary permits to
vendors/hawkers whose business may allowed for economic and social reasons
6.2e To recommend prosecution of illegal vendors found violating this Ordinance
6.2f To develop and prescribe rules and procedures pertaining to the internal
operation and management of the Cebu City Integrated Vendors Management
Council
6.2g To perform such related functions as may be necessary to ensure effective
supervision and control of vendors and/or hawkers pursuant to the provisions of
this Ordinance and other related laws.

()
Deputization

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6.4 Deputization

The Committee or Body shall deputize members of organized vendors in specific

vending areas and establish a Task Force which shall have the following
functions, to wit:

6.4a To regulate the business activities of the vendors in accord to the provisions of
this ordinance
6.4b To apprehend violators of the cleanliness program and other policies of the
vendors organization within its area of responsibility
6.4c To coordinate with the law enforcers in the implementation of peace and order
in their area responsibility.
6.4d To instill discipline among vendors in the area.
Composition:
1. Barangay Tanods in every Barangay where there are street trading and/or
sidewalk vending activities.

Section 7. Fees and Charges

7.1 On sidewalk vending areas: two pesos (P.2.00) per square meter per day.
7.2 The flea market or Talipapa vending areas shall have the following rate: five
pesos (P5,00) per day.

Section 8. Utilization of Fees

8.1 All fees and charges levied and collected shall be used to finance the City
Governments Program in delivery of basic services particularly to the vendors
and peddlers sector.
8.2 The local organization or federation of vendors shall be provided with a copy of
the quarterly collection of the same to ensure transparency and efficiency in
collection of revenues.

Section 9. Penalty

Willful violation on the part of street traders and /or sidewalk vendors against the
provisions of this Ordinance shall subject the same to the following, to wit:

First Violation Repriand and Stern Warning

Second Violation P500 (Pesos) Fine
Third Violation P1.000(Pesos) Fine and revocation of business permit of
license

Section 10. Saving Clause.

Should any part or parts of this Ordinance be declared invalid or unconstitutional, the
other parts not so declared shall remain in force and effect.

Section 11. Repenting Clause

Any other Ordinance or parts thereof inconsistent herewith are hereby repealed or
modified accordingly.

Section 12. Effectivity.

This Ordinance shall take effect after four (4) consecutive weeks of posting in all offices
and departments of the City government of Cebu and at the public posting places of the
Sangguniang Panlungsod.

Respectfully submitted:

Edgardo C. Labella
City Councillor

145
 Annex III Official supply and value chains and
identified fruit and flower supply and value chains

Figure A1 The supply chain of Mango traders as identified by the department of

Agriculture (as of 2005)

Purchased Farm Logistics

Inputs Logistics Production (To Carbon Market) Trader Market

Cost: Cost:
P18. /kg Selling Price:
P0.10/kg P18/19 P1.90/kg P20.09/kg
P30/35kg

Farm gate Traders

Price: Price:
P25 P40/kg

Yield:
10,000
kgs/Ha

Figure A2 Identified supply and value chain from Mango traders from mountain Barangay
Guba (26-6-2007)
Purchased Farm Logistics
Inputs Logistics Production (To Carbon Market) Trader Market

Selling Price:
Cost: Cost:
P30/35kg
P18. /kg P0.10/kg P16 P1.90/kg P20.09/kg

Farm gate Traders

Price: Price:
P18/19 P22/kg

Yield:
10,000
kgs/Ha

146
 The identified supply and value chains of Mangos from the hinterland (see figure A2),
received through interviews with mango growers and sellers during a fieldwork with CMEDFi
officer (micro finance program form RAFI foundation)26-6-2007, of Cebu City suggest that
the margins that are made on the market price are a lot bigger as opposed to the
information from the Department of Agriculture (see figure A1). The exact reason for this
remains unclear. Possibly the seasonality, the case specificity or the price for fertilizer or
seeds has an impact on this matter. Further research could make this clear. During the same
field research a flower vendors were interviewed, they explained the typical supply and
value chain of cut-flowers from the Cebu hinterland (see figure A3).

FigureA3. Supply and value chain of a typical mid-sized farmer/trader in Babak II,
mountain barangay (26-6-2007)

Purchased Farm Logistics

Inputs Logistics Production (To Carbon Market) Trader Market

P10.5/doze Cost: Cost:

n P20 P20.09/kg Selling Price:
P0.10/doz P0,20/dozen
en P35/dozen

Farm gate Farmer

Price: trader s
P40 for Price to
traders Freedom
Park:
P20/dozen

Yield:
40
dozens/Ha
/day
up to 200
in season

Source: Interview Babak II

147