Resume

Carmen:

Informal outpatient commerce is gaining increasing importance in the streets.

Unauthorized street commerce is a threat to public order and produces unfair competition to
formal businesses, which must comply with existing regulations. The above means a
relativization of the norm, which implies the risk of the tendency to illegality, rather than the
acceptance of the regulations, this being the greatest risk that is faced.

Chile is a country that, like many others, has problems regarding informal trade. Last year, it
was on the subject of the municipal ordinances of Concepción, Santiago and Estación Central,
after fines were imposed not only for sellers, but also for those who were caught consuming
products in unauthorized commerce. In an economic context of low performance and strong
deceleration, the employment figures revealed how the informal outpatient world became a
work alternative for more and more sectors.

According to the World Bank, informal companies can be a source of unfair competition for
formal companies, while at the same time they mean less tax revenue and less capacity for
supervision and regulation.

Goals

Remove from the market street vendors who do not have their papers up to date.
Order and not eradicate outpatient trade.
Achieve that 69% of illegal street traders achieve formalization.

Vision
Our project aims to show the situation of the country chosen in this case Chile, a country that
compared to Peru has managed to overcome the problem of ambulatory trade which brings
citizen insecurity and disorder in the cities. The figures confirm that between 2002 and 2012
several Latin American countries saw an increase in formal employment of 60% (Argentina and
Brazil) and up to 70% (Chile).
Action plan :
Phase I: Specialized municipal team

This team will grow in number as more resources are found during the year.
Phase II: Coordination with police to monitor

They sought to coordinate the work of police and inspectors to carry out seizures
Phase III: Territorial strategy

The priority in this first stage will be to combat the illegal street vendors in different cities.

Phase IV: Fines to customers of illegal trade:

The fines range between 0.5 UTM and 3 UTM, in force on the date of payment.

Phase V: Reinsertion of merchants

We support the different informal street vendors to regularize themselves through DIDEL (Plan
Remprende).
Phase VI: Review of precarious permits granted to established itinerants:
The idea was to order and normalize those legal street traders.

Phase VII: Educational campaign

The aim was to educate passersby about the dangers they are exposed to when buying in illegal
trade.

Phase VIII: Allies of established commerce

KARINA AMANDA

Statistics
Identify in which communes there is a greater incidence of itinerant traders.

Although in most of the communes, street vendors of Chilean nationality predominate, a

percentage of immigrant street vendors are found who are located with greater presence in the
northern zone of the country. Among the most mentioned nationalities are: Peruvian, Bolivian
and Ecuadorian.

Identify if informal street vendors have extra income.

According to the results that can be seen in the survey, for the greater proportion of the
interviewees, the income generated in the itinerant activity is the main economic source of the
household.

Examine how many informal street vendors seek formalization

The proportion of street vendors who declare that they have offered or had the opportunity to
formalize their work is small in all the communes.

Issues

Poverty indexes rose, bringing increase in outpatient trade.

This increase in poverty is due to the fact that in 1987, according to the INE, it was established
that the Remuneration Index was a very considerate increase, but it excluded those who worked
in the agriculture, fishing, and hunting sectors, thus leading to the exclusion a large segment of
workers who possibly lived with the legal mínimum

Limitations to becoming a formal street trader

To work as a street trader in Chile, you need certain permits to work without problems, but
many of the people who work in this job are low income, so they need the money and prefer
not to go from informal to formal because it brings them certain disadvantages.

Advantages of being a formal street trader:

➢ People trust in the guarantee of the products that are offered.

➢ They have a specific place that is adequate and hygienic

-Both sellers and customers have a safe environment.

➢ Sellers are not at risk as they are protected by law.

Disadvantages of being a formal street trader:

➢ The products that they offer are of a slightly higher cost

➢ They must pay taxes.

➢ They have to constantly compete with informal street traders.

Absence of education
Many of the street vendors have opted for this job, because they have not received the
necessary education, which prevents them from getting a job where they feel comfortable and
do not have to go through many problems

Importance

At the economic level:

For street traders, both formal and informal (with higher incidence), whether Chilean or not, this
work serves them as an alternative to support their families, a form of self-employment, which
they can maintain or advance, creating their own micro-enterprises

From the social aspect:

The informal outpatient trade develops in different public spaces, without any control, so it
represents a disorder in society, as Matthei says, this disorder has brought the state more
interested in the order and hygiene of the city, sending patrols to constantly control the different
zones