S"cky Thing
Nikita Rumyantsev
Research ques"ons • Theore3cal ques3on: «What can explain the current distribu3on of the informal economy in the city and what impact does transport system have on this distribu3on?»
• Empirical ques3on: «What are the rela3onships between the type of transport infrastructure and loca3on of types of the informal economy?»
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What methods do we use? • •
Econometric models and GIS mapping
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Field studies
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Methods for New Ins3tu3onal Economics
Sta3s3cal comparisons
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Types of the informal economy we look at
Type 1
Type 2
General sectors • Informal markets • Construc3on • Gypsy taxis • Sex industry
Transport-‐specific sectors • Informal taxis • Informal trade • Informal adver3sing • Beggars • Musicians
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Informal economy s"cks to the city's infrastructure
Because the city's infrastructure is in open-‐access property regimes and serves as a plaTorm for the informal economy (cost reduc3on, access to customers, special condi3ons)
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City's infrastructure fails If public spaces in open property-‐rights regimes, there are three outcomes: • Overexploita3on when informal businesses heterogeneous and can not unite • Capture by one of groups and closing access to other when informal businesses homogeneous and can unite (e.g. on a sectoral basis: taxi) • Government decides to destroy any informal ac3vity in this space when informal business brings significant costs of local authori3es and the authori3es have the ability to control (high costs and empty space)
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Informal economy s"cks to the city's infrastructure: econometric test flea market
Parking
Number of Informal Informal units market «TCH»
Informal construc3 ons
Informal Pros3tute taxi supply
0.02*
Pedestrian tunnels
34.23***
Road crossing
0.01***
Subway sta3ons Tram stops
Pros3tute demand
0.57* 0.01
Bus stops Public buildings
0.08
Acrac3ons
0.09**
0.02
0.07*
0.02***
0.04**
0.57*
17.93***
65.04***
7.10*
36.83** Source: studio «Links» (2014)
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Two economies: hypothesis of spa"al value distribu"on Only for certain type of informal economic ac3vi3es
Economic ac3vity Formal economy Informal economy
Periphery
Centre
Periphery
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Correla"on between formal and informal economy: methodology • How: Direct observa3on and fixa3on of the informal economy • What: Study of 25 sta3ons and all exits from the underground on 1 subway line • Types of informal economy studied: • Informal taxis • Informal trade • Informal adver3sing • Beggars • Musicians 10
Examples of s"cking to urban space
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Empirical evidence of s"cking to the metro sta"ons Outside MKAD Books
vegetables
most common form of informal economy
Drugs Credits
Source: Arsenian Lusine, Rumyantsev Nikita (2014)
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Empirical evidence of s"cking to the metro sta"ons
Source: Arsenian Lusine, Rumyantsev Nikita (2014)
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City level of informality s"cking: infill construc"on (tochechnaya zastroyka)
Infill Construction = 2,565 + 0,39 SubStations – 0,085 Distance – 0,459 TrHubs Source: Ronald Wall, Arsenian Lusine, Rumyantsev Nikita (2014)
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City level of informality s"cking: informal construc"on
Informal construction = 3,673 + 1,291 TrHubs + 0,022 NumPubSer – 0,129 Distance Source: Ronald Wall, Arsenian Lusine, Rumyantsev Nikita (2014)
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In both studies hypothesis of s"ckiness of the informal economy to transport infrastructure is confirmed However, depending on the type of informal economy, the bell curve can be either posi"ve or nega"ve 16
Expansion of the Moscow transport infrastructure: all planed hubs • •
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transport infrastructure is a network inclusion of new users increases the load on the en3re network increase in load leads to increased risk of forma3on of new clusters of informal ac3vity
Source: Rumyantsev Nikita (2014)
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Expansion of the Moscow transport infrastructure: planed hubs in periphery •
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new transporta3on hubs are not in the city center but at the periphery or in the ci3es suburbs control over the crossings and infrastructure exists only in the center of Moscow and wanes to the periphery crea3on of new transport hubs will increase the risk of increased s3cking of informality to the periphery
Source: Rumyantsev Nikita (2014)
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Plans for expansion of Moscow transport infrastructure
Source: http://stroi.mos.ru/TPU-aip
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Expansion of the Moscow transport infrastructure: Odintsovo case
Due to the expansion of the transport infrastructure of Moscow and Moscow generally informal construc3on moves to the city near Moscow Source: hcp://www.odintsovo.info/news/?id=44342
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Policy advice • Planned expansion of transport infrastructure in Moscow will make informal economy grow throughout the network • Apart from poli3cal and economic measures, policymakers should account for architectural solu3ons to the phenomena • In future, architecture and planning should consciously create designs which on the one hand create designated spaces for “s3cking” but on the other hand prevent sporadic s3cking
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