Tips of the Trade: Street Vendors and the State in Barbados, West Indies

Loran E. Cutsinger, Ph.D., Assistant Professor

Department of Anthropology, Central Washington University

Published in the

International Journal of Sociology and Social Policy

Vol 21, #3/4, 2000.

(Special Edition edited by John C. Cross and Steve Balkin)

(This version is copyrighted by the author and is made available for general reference only. It is not necessarily a complete version. Footnotes and graphs or tables may not translate properly into the web format. For the full text, or to make formal citations, you must use the published version from the journal. Please ask your local library to request this issue of the IJSSP for your use.)

Introduction

The international economic community recognizes the importance of the informal economy in providing income to poor people around the globe (Maldonado 1995, Bromley 1990, Stearns and Otero 1990, Rakowski 1994), and states and international organizations are investing in development assistance to informal micro-entrepreneurs. In this light, we must consider the potentially negative impact that often accompanies "economic development assistance." My research on the informal sector in Barbados, West Indies, indicates that the imperatives of the global economy, specifically via tourism, may actually turn the "helping" of vendors into a hindrance by limiting their ability to make a living through informal street selling. I report here on ethnographic research that reveals the process by which the state increasingly seeks to control the informal sector in Barbados. Informal economic activities have a history as long as the colonial history of this island, and they provide crucial income in a nation with at least 18 percent unemployment. Although one may remain hopeful that assistance to the informal sector is a positive step in many cases, in Barbados there are signs that the assistance government offers does as much harm as good toward those who seek to make a living.

To explore the case of Barbados with respect to the informal sector and the state in a tourist economy, this paper will:

(1) Briefly characterize the informal economy in Barbados, its importance in food production and distribution, support to households (particularly female-headed households), and the linkages with the formal economy (here, tourism);

(2) Describe a recent event, the construction of a mall for vendors, that reveals state policies toward street vending;

(3) Contextualize the vendors’ mall project within the wider national and, more importantly, the global economy to demonstrate the conditions and processes in Barbados by which the global economy exerts its power on the lives of individual informal sector workers.

This paper is based on ethnographic field work in Barbados focusing on the informal sector during a period of two years (1985-1987) intensively, with follow-up field trips of four weeks each in 1988, 1992 and 1997. I will briefly describe the historical and contemporary informal economy, which has been a crucial means of survival for the poor as well as an avenue to prosperity for some.

The type of informal economic activity I am concerned with here is the street vendor of fresh fruits and vegetables, locally grown and imported, as well as street vending of imported, manufactured clothing, shoes and accessories such as belts, scarves and sunglasses. For purposes of this research, informal activity is that which is unregulated, untaxed, yet occasionally and sporadically requiring a government -issued permit. The vendors I have studied are traders, not laborers informally employed in manufacturing or other types of informal sector service providers.

Recent researchers have recognized the need for more ethnographic data to illuminate the heterogeneity of informal economic activities around the globe (Rakowski 1994:274). Some have emphasized the relationship between the global economy and informal economy, but this has usually been in the area of manufacturing and informal production/labor sources rather than the local trading aspect of informal activity (an exception is Teltscher 1994). In this paper, I consider the case of street vendors in the informal economy of Barbados. I argue, following Browne 1996, and Rakowski 1994 , that the particular historical and socio-cultural context of the informal economy must be understood to strengthen theoretical models of how informal economy works. At the same time that we examine specific ethnographic cases of informal activity, certain common themes that lend to the scope of theoretical models are starkly evident. The economic processes that led to the destruction of a public market in Chicago (Morales, et al 1995), as well as the consequences for vendors, are similar to the economic, political and policy contexts of the case I describe in Barbados. In the Chicago case, a public market was relocated to the detriment of vendors, despite evidence that the informal economy provides crucial income; also significant is the social and cultural impact of state policies.

After describing the specific context in Barbados, I attempt here to contribute some refinement of the structuralist approach to informal economy (Rakowski et al) with respect to the following points: (1) global economic forces, specifically, tourism, shape state policies and actions toward street vendors; and (2) the processes that accompany the policy priority on tourism bring economic and cultural pressures to bear upon informal sector participants.

Many writers on the informal economy have demonstrated the interdependence of the formal and informal sectors in a variety of situations (Browne 1996, Cutsinger 1990, Teltcher 1994). In Barbados, the tourist industry simply could not operate without the services of the informal traders who supply hotels and restaurants with fresh fruits, vegetables, and to a lesser extent, fresh meat and fish. But most forms of vending, such as street vending in Bridgetown, serve Barbadian citizens on their way to and from work. Street vending, however, is not important to the tourist economy, and it is these street vendors who have felt the impact of state intervention on their incomes. Significantly, the vending of food produce will be more adversely affected by the changes described in this paper. The majority of street vendors are women who sell fruits and vegetables. The government-built vendors’ mall will accommodate a larger proportion of Bridgetown’s male vendors who sell clothing and accessories, while more produce vendors may be forced off the streets without alternative selling options.

The Informal Economy in Barbados: 350 years in the Global Economy

Barbados is located in the southernmost Eastern Caribbean islands. Its population is approximately 290,000, about the same as the city of Madison, Wisconsin. But the island is only 14 miles wide and 21 miles long, making Barbados one of the most densely populated nations in the world (1,552 people per square mile). Barbados was part of Britain’s sugar-producing empire, built and maintained with slave labor from West Africa. An informal economy has been active since colonial settlement of the island in 1627. Slaves produced their own food and were allowed to sell surpluses in the "Sunday Market." Over 95% of Barbadians today are of African descent. In the West African tradition, most of the street vendors, called "hawkers," of food produce are women. Social networks and customer relationships create a cultural fabric that guarantees food security to poorer Barbadians. In recent years, men have joined the informal trading, but thus far, this is usually in their own niche that does not directly compete with the female hawkers. What all hawkers, male or female, agree upon is that the number of vendors is growing; there are too many sellers and not enough buyers.

Most of the arable land was planted in sugar cane during the colonial years (up to 1966) but since that time, sugar production has steadily decreased. Since the emancipation of slaves in 1838, many Barbadians have subsisted through a combination of production of food on small amounts of land and earned cash income. Beginning with emigration to work on construction of the Panama Canal in the early 1900’s, Barbadians have migrated to England and North America and have sent remittances back home. Recently, there have been reduced opportunities to obtain work visas in the US, and the official unemployment rate in Barbados hovers around eighteen percent.

Given this historical and contemporary context, it would be difficult to overstate the importance of the informal economy in all its forms to the economic and cultural survival of Barbadians. As in most other developing nations, the informal sector has been undocumented and often seen by development agents as a problem to be overcome through economic growth and export trade. However, in the wake of the 1991 economic crisis, when approximately 18 percent of government employees lost their jobs, Barbadians of all socio-economic classes recognized that the informal sector operates as an economic safety-net. In 1992, Barbadians such as former clerks as well as a police officer I met in rural areas told me they were growing produce which they planned to sell. They were learning from their mothers or other relatives about agriculture and about marketing their produce.

Tourism and Barbados’ Position in the Global Economy

Barbados has been a tourist destination throughout the 20th century, and since the 1700’s has had a colonial reputation for healthful climate and "lavish hospitality" (Husbands 1986:175). The impact of the global economy in Barbados is epitomized in tourism: it is the island’s "principal export," the largest foreign currency earner for the national economy. In 1995, over 900,000 people visited the island, including cruise-ship passengers (1997 Europa World).

As long as the economies of the wealthiest nations are doing well, tourism provides enough income to the Barbadian economy to keep the national balance of payments manageable, but declines in tourist arrivals are dramatic during cycles of world recession (Anyadike-Danes 1996). In 1991, economic recession in the global economy, along with the uncertainties of the Gulf War, led to a downturn in tourist arrivals in Barbados. By 1992, national income fell by 5%. This economic crisis was precipitated by the coincidence of low foreign reserves in the national treasury, a repayment date for a large foreign loan, and low trade performance (i.e., reduced tourist arrivals) (Anyadike-Danes 1996:728). The lower national income, combined with the existing national debt structure, forced recourse to an International Monetary Fund (IMF) stabilisation program which required the Barbadian government to cut expenditures. Under this program, the IMF provides additional loans only if the borrowing country agrees to adopt policies that will improve the nation’s balance of payments. During the early 1990’s, government reduced its payrolls and other government expenses, and pledged to maximize national income to alleviate spending deficits. The IMF stabilization program is a key to understanding the emphasis the Barbadian government places on tourism as a source of national income and, relatedly, the policies it makes on informal street vending.

The Economic Crisis and the Informal Economy

The Barbadian government faces an ongoing challenge with respect to the nation’s balance of payments. In order to retain the improved budgetary position after the spending reductions of the early 1990’s, the government has redoubled its efforts to enhance income from tourism, the largest source of foreign currency. However, the description of recent events presented here shows that policies driven by the need to enhance tourism will adversely effect street vendors.

In 1997, the government implemented a policy to remove vendors from street selling locations in Bridgetown that have long been favored by street vendors: Swan Street and Palmetto Square.[Map of Bridgetown ]. The action followed the construction and official opening of a "vendors’ mall." The vendors contend that they were not consulted about the mall. Their comments here are drawn from interviews conducted during the week of the official opening of the mall, as well as from local newspaper accounts from the same days. Vendors stated that the new mall would mean "economic ruin," because "people are accustomed to shopping on the street." They complained that they would not have a choice as to where to sell, that the stalls in the mall were too small, that the heat would spoil their produce, and that the mall lacked adequate security. One of the most strident protests from vendors concerned the cost of permits to sell in the new mall; the permit fee was raised astronomically, from $25 Barbados dollars (Bds) (note: 2 Bds = $1 US) per year to a proposed $50 (Bds) per week.. Newspaper headlines reflected the sentiments I heard in interviews: "New Mall Makes Vendors Bawl" (The Daily Nation, 7-10-97) In reaction, the government proposed to revise the new fee to $25 (Bds) per week. The government called a meeting with the vendors, but police had to be called in to stop the noise coming from protesters in the street. The Barbados Advocate headline for July 7 read: "Vendors Furious: Wrangling Over Rental Fee."

The perspectives of government ministry officials illustrate the primacy of the global economy by way of tourism. This economic primacy is mandated by the IMF stabilization program. Most of the officials’ comments here are summarized from newspaper accounts from the week of June 25-July 2, 1997 surrounding the official opening of the vendors’ mall. During this period I interviewed vendors and customers on the street. At the official opening of the Palmetto Street Vendors Mall the Minister of Tourism, Deputy Prime Minister Billie Miller presented plans for the "rejuvenation" of three areas of the island that tourists frequent: She stated, "With specific reference to Bridgetown, it is proposed to undertake meaningful and positive rehabilitation projects which will appeal to the new breed of discerning tourists, who are not only interested in the sea, sun and sand, but in heritage and things which are uniquely Barbadian." (Barbados Advocate, June 26, 1997) [emphasis added] These comments reflect the cultural context within which policy emerges. Barbadian leaders assume they must provide heritage, that is, to actually construct a Barbadian heritage for tourists. The development areas will be "rejuvenated" with tourists in mind, and of course with the IMF mandate in mind as well.

Within Bridgetown, in addition to Swan Street and Palmetto Square, whose street vendors are to be relocated to the new mall, three other streets were placed under the "Special Development Areas Act," Tudor Street, Baxter’s Road and Roebuck Street. All of these streets are heavily used by street vendors, especially the older female hawkers who have sold here for decades.

Other conversations with parliament members and government officials add further indication of the policy toward Bridgetown vendors. One told me that the intent was to "tear up Swan Street the minute the vendors are removed." This is significant because the vendors reported to me in interviews that they had not been informed that no one would be allowed to continue selling in the street, even if the new mall could not immediately accommodate them for lack of space.

One member of parliament, who is also a marketing director of a Bridgetown business and president of the organization, Bridgetown Merchants and Property owners, stressed that for the mall to be successful, all vendors must be removed from the street. In a telling cultural comment, he stated that the vendors’ relocation was an "upliftment of their standards." This comment reflects the ethnocentrism of the speaker in that he assumes the superiority of the conditions that government is pushing vendors to adopt. The vendors may well believe that their previous conditions were perfectly fine, at least from the point of view of making a living.

The Senior Superintendent of Markets told reporters, "Most of Bridgetown will be cleared of vendors." The Minister of Public Works, whose ministry built the new mall, added further to the state’s cultural and policy vision. At the mall’s opening ceremony, he announced that the Ministry of Trade and Industry would be providing help to vendors to "improve their record keeping, business planning and business skills." Under a newspaper headline, "Vendors to get tips of the trade," the model of informal work as an avenue to formal economic participation was echoed: "Government also envisages that as a result of the facilities provided and the assistance lent, that the level of growth would be such that some vendors move on to establish themselves in a bigger way, perhaps property owners, and other vendors take their place." (Daily Nation, July 1, 1997).

During a meeting with irate vendors who face removal from the streets (and uncertainty about whether there will be space for them in the mall), the government’s Director of Markets told the crowd, "The Ministry of Agriculture will encourage and control street vending to make it fruitful. The mall at Palmetto Square is one step taken in this direction...the mall will mean an increase in your business. With proper marketing and advertising, the mall will be lucrative business. People will find you wherever you are. You must operate as business people.... you must get items for tourists to come around and purchase. You must have a strong vendors association." [emphasis added]. The economic and cultural pressures are explicit. Officials convey a message that catering to tourists is preferable to selling food produce and clothing to Barbadians. Being a hawker in the Barbadian tradition is assumed to be less desirable, while reconstructing vendors in a mall setting with tourist items for sale is preferable.

Concurrent with the construction of the vendors’ mall and Swan Street renovation, Barbados has undertaken a nation-wide survey of the informal sector, with funding from the International Labour Organization (ILO) and support from Inter-American Development Bank (IDB), and the Caribbean Development Bank. The survey is part of a major IDB-sponsored study of poverty in Barbados. In an interview with one of the designers of the survey, I inquired of the policy directions that will be informed by the survey . He replied that there is a realization that people are getting income, "livelihood," from informal work, and the government cannot push them aside. The survey is designed to gauge how much the informal economy is contributing to the alleviation of poverty. The interviewee felt that a potential outcome of the survey may be to establish a "real" vendors association with formal leadership and representation toward government. At present they have an informal association, but disagreements over representation surfaced with the latest vendors’ mall initiative, in which vendors claimed their own views were not represented.

Cultural change, tourism and global economy

While state officials, the elite in Barbados, thwart vendors’ attempts to make a living, they are at the same time making their own cultural interpretations as to the demands of "the new breed of discerning tourist...". Policies emerge in relation to what policy-makers imagine tourists value and demand for their dollar. And while the same state officials encourage vendors to "operate as business people," they also apparently endorse the production of tourist items depicting simulacra of "Barbadian heritage." One of the most ubiquitous cultural images one sees for tourist consumption is the hawker. The commodification of traditional female hawkers is manifest in post-cards, place mats, salt and pepper shakers, key rings, posters and t-shirts. These developments indicate how at the local level, elite pressures to change cultural values accompany the economic imperatives of the global economy.

Another irony in this situation has deeper economic implications. We know that the informal sector operates as an economic safety net in the face of the vagaries of the global economy, yet in the ethnographic case I have explored here, state policies make it more difficult for many vendors to gain income. This suggests that even where it may appear that government is supporting informal sector enterprises, the structures of the global economy are primary in shaping the state’s policies, and the local impact on the informal sector may be negative.

Conclusions

The first priority of government officials in Barbados in shaping policies toward informal traders is tourism. This is because tourism is the crucial foreign currency earner for the nation. Where the informal economy serves tourism, such as in supplying hotels and restaurants, the state will not interfere. But where government elites perceive a need to remove vendors from the street in the interest of what the Minister of Tourism called "the new breed of discerning tourist," then the informal economy will be regulated more stringently. It is too early to say whether the incomes of vendors have suffered in the new mall, but this research indicates that vendors were not consulted, they do not support the new policies, and they have valid concerns about their future economic security, based on their own knowledge of their trade. If the government succeeds in removing not only the Swan Street vendors who were assigned space in the mall, but also the mostly female vendors from several adjacent blocks, as is the stated intent, then it is clear that many will be on their own to find other selling locations on other streets.

With concern for the impact of economic development policies on the poorer citizens, we need to be aware of specific dynamics of government programs that purport to "assist" informal vendors, but may in reality reduce their ability to make a living from their trade. Trager suggested this eventuality when she pointed out the need to examine "state policies...aimed at incorporating, or co-opting, rather than confronting those in the informal sector" (1989:1055).

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