Monday, September 17, 2007

Gulzar Natarajan on Urban Poor

Vijayawada Municipal Commisoner, Gulzar Natarajan in his recent posts considers some points discussed inThe Economic Lives of the poor by Abhijit Banerjee and Esther Duflo. Banerjee and Duflodescribe how some of the poor earn money in several countries. In one example from A.P. :
"Walking down the main street of the biggest slum in the medium sized Southern Indian city of Guntur at nine in the morning, the first thing one notices are the eateries: In front of every sixth house that directly faced the road, by our count, there was a woman sitting behind a little kerosene stove with a round cast-iron griddle roasting on it. Every few minutes someone would walk up to her and order a dosa, the rice and beans pancakes that almost everyone eats for breakfast in South India. She would throw a cupful of the batter on the griddle, swirl it around to cover almost the entire surface and drizzle some oil around the edges. A minute or two later, she would slide an off-white pock-marked pancake off the griddle, douse it in some sauce, fold it in a newspaper or a banana leaf and hand it to her client, in return for a rupee (roughly 15 cents, at PPP).
When we walked back down that same street an hour later, the women were gone. We found one inside her house, filling her daughter’s plate with lunch that she had cooked while making the dosas. She told us that later that day, she was going out to vend her saris, the long piece of decorative cloth that Indian women drape around themselves. She gets plain nylon saris from the shop and stitches beads and small shiny pieces on them, and once a week, she takes them from house to house, hoping that women would buy them to wear on special occasions. And they do buy them, she said confidently. All the other dosa women we met that day had a similar story: once they are done frying dosas, they do something else. Some collect trash; others make pickles to sell; others work as laborers."
Gulzar Natarajan in his post "Alternate lives of the Urban Poor" describes describes some of their main customers (I remember eating in such places with my father):
"Typically houses in urban slums are very small and do not have full fledged kitchens. Most often there is a single room which has a makeshift kitchen in one corner. Most slum dwellers have to get up early and go for work, and therefore have limited time available for cooking the morning breakfast. Further, South Indian breakfasts are inherently difficult in preparation and takes inordinately long preparation time. Early morning hours are valuable for slum residents for a number of reasons. Apart from their personal tasks, the women have to catch and store water (which is typically released for a couple of hours in the morning), wash vessels and clothes, get children ready for school, and also prepare lunch for the entire family (typically both husband and wife work during the daytime).

Further, a majority of slum households have atleast one tenant. The houseowner rents out a portion, generally a room, to supplement his income. (They get around Rs 500-1000 every month from this). The tenants generally do not have the space for establishing a kitchen and invariably rely on these eateries for their breakfast. These tenants are a substantial customer base for these food vendors. "
In an earlier post "Lottery Bonds", Natarajan discusses the relevance of Tufano's ideas to help the poor in saving.

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