Street Vending:
Threat to Social Order or Employment Opportunity? Fa’an sasán iha estrada ninin:
Ameasa ba orden sosiál ka oportunidade ba empregu? 14 October 2016 Contents of this page | Konteúdu pájina ida ne’e | Download a poster which summarizes this report: |  | Overview Revenues from oil and gas extraction pay for the majority of Timor-Leste’s state activities. Most people in formal employment either work directly for the state or for private firms that rely on government contracts, such as construction companies. However, only a third of the working-age population is employed in the formal sector. Many Timorese who lack education and professional training are forced to support themselves in the informal sector. In Dili, many of these informal workers are street vendors who sell goods such as fish, livestock, snacks, beverage, fruit, and phone credit. Although street vending was legalized in Dili through Decree Law 24/2011 five years ago, this legislation has not been socialized or implemented consistently across government departments. Most street vendors are unaware of the current licensing system, and street vending continues to be treated as an illegal activity. As a result, vendors suffer from job insecurity and violations of their legal rights at the hands of the police. La’o Hamutuk collected data from September to November 2015 to create a baseline report in order to understand and address challenges faced by street vendors in Dili. This report provides a glimpse into their living and working conditions based on quantitative data analysis and interviews with 86 vendors. It also includes policy recommendations to improve street vendors’ working conditions and increase their economic opportunities that shape their lives. | Rezumu Reseitas husi fa’an mina no gas selu ba maioria estadu Timor-Leste nia atividade. Maioria ema ne’ebé empregu iha setór formál servisu diretamente ba estadu ka servisu ba kompañia privadu sira ne’ebé domina husi kontratu husi governu, hanesan kompañia konstrusaun. Maibé, só 33% de’it husi populasaun ho idade servisu mak servisu iha setór formál. Ema Timor barak ne’ebé falta edukasaun no formasaun profisionál tenke buka saláriu iha setór la-formál. Iha Dili laran, barak husi traballadór sira ne’e servisu nudár vendedór iha estrada ninin, no sira fa’an produtu hanesan ikan, animál, snack, bebidas, ai-fuan no pulsa. Maske fa’an iha estrada ninin sai legál ona iha Dili bazeia ba Dekretu-Lei 24/2011, lejizlasaun ne’e seidauk sosializa ka implementa ho konsistente entre órgaun governu relevante sira. Maioria vendedór sira la hatene kona-ba sistema lisensamentu ne’ebé eziste ona, no ema barak nafatin konsidera fa’an iha estrada ninin hanesan atividade ilegál ida. Tanba ne’e, vendedór sira la iha seguransa iha sira nia fatin servisu, no sira mós enfrenta violasaun diretu legál husi polísia. Durante Setembru to’o Novembru 2015, La’o Hamutuk halibur dadus hodi kria relatóriu baseline ida, atu nune’e komprende di’ak liu tan dezafiu sira no hadi’ak situasaun ne’ebé vendedór estrada ninin sira enfrenta hela iha Dili. Relatóriu ida ne’e fó ideia jerál kona-ba kondisaun moris no servisu vendedór nian, bazeia ba analiza dadus kuantitativu no entrevista ho vendedór na’in 86. Relatóriu mós inklui rekomendasaun ba polítika atu hadi’ak kondisaun servisu vendedór nian no aumenta oportunidade ekonómiku ne’ebé importante tebes ba sira nia moris. | 
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| Demographics Street vending in Dili is dominated by men (81%) and young people. Over half of the surveyed vendors are below the age of 30. While the large number of young people working in the informal sector reflects the limited employment opportunities in the formal sector, it also demonstrates an increasing demand for basic goods due to the rapid growth of urban population -- 3.8% per year. Since Taibessi and Manleuana are the only formal marketplaces in Dili, many consumers who live far from them rely on street vendors to deliver goods to their neighborhoods each day. This economic environment has incentivized many young people to become street vendors. The largest proportion of surveyed vendors (28%) is from Baucau, while 16% come from Dili and 15% come from Aileu, which borders Dili on the south. As the map below indicates, street vending is a means of survival not only for residents of Dili, but also attracts people from rural areas where there are fewer economic opportunities. | Demográfiku Atividade fa’an iha estrada ninin iha Dili laran domina husi mane (81%) no foin sa’e. Husi vendedór ne’ebé partisipa iha peskiza ne’e, liu metade mak ho idade tinan 30 mai kraik. Ida ne’e hatudu katak oportunidade servisu iha setór formál la sufisiente ba joven sira, no mós hatudu katak ema ne’ebé presiza produtu báziku aumenta tanba populasaun iha area urbanu mós aumenta ba 3.8% kada tinan. Tanba iha merkadu formál rua de’it iha Dili laran (Taibessi ho Manleuana), konsumidór barak ne’ebé hela dook husi merkadu presiza vendedór sira atu lori sasán ba sira nia hela fatin lor-loron. Ambiente ekonómiku ida ne’e fó insentivu bo’ot ba foin sa’e barak atu servisu hanesan vendedór iha estrada ninin. Populasaun bo’ot liu husi vendedór iha peskiza ne’e mai husi Baucau (28%), no 16% mai husi Dili no 15% mai husi Aileu, distritu ne’ebé besik Dili iha diresaun súl. Tuir mapa iha kraik, bele haree katak la’ós de’it ema rezidente Dili nian mak sai vendedór, maibé ema barak mós mai husi area rurál tanba oportunidade ekonómiku iha ne’ebá limitadu. | 
Figure 2. Percentage of surveyed vendors coming from each district in Timor-Leste.
Figura 2. Persentajen husi vendedór ne’ebé partisipa iha peskiza dívida entre distritu 13 iha Timor-Leste.
| Education A majority of surveyed vendors (52%) reported receiving no formal education. Of the age-group 24 years old or under, ten had never been to school, while only four respondents in this age group had completed primary school (Figure 3). Although the enrollment rate for grades one to six has improved from 64% in 2005 to 94% in 2010, this study shows that many students leave school for informal work to address immediate financial needs. Due to the limited number of jobs in the formal sector, 15% of surveyed vendors have resorted to street vending even after completing high school. This situation highlights the need to create more jobs in the agricultural, manufacturing, and tourism sectors in order to harness the abilities of youth and to increase economic options for Timorese workers. 
| Edukasaun Maioria vendedór ne'ebé partisipa iha peskiza ne'e (52%) hatete katak sira nunka atende edukasaun formál. Husi grupu ho idade tinan 24 mai kraik, ema na'in sanulu (10) mak nunka ba eskola, no na'in haat de'it mak kompleta eskola primária (Figura 3). Maske númeru labarik entre class 1 ho 6 sa’e husi 64% iha 2005 to’o 94% iha 2010, peskiza ne’e hatudu katak estudante barak la kontinua eskola to’o remata tanba sira tenke tama iha ekonomia la-formal hodi responde ba nesesidade finanseiru urjente iha família. Tanba oportunidade servisu iha setór formal mak limitadu, 15% husi vendedór iha peskiza ne’e sai hanesan vendedór maske sira kompleta ona eskola sekundária. Situasaun ne’e hatudu katak presiza duni oportunidade servisu tan iha setór agrikultura, fábrika no turizmu atu utiliza di’ak liu tan rekursu umanus ne’ebé mak iha, no mós atu aumenta opsaun ekonómiku ba traballadór Timor sira. 
| Livelihood Almost half of the surveyed vendors (48%) rely on their street vending profits for day-to-day survival (Figure 4). Only 1% of surveyed vendors manage to save some of their earnings, demonstrating the difficulty of using income from street vending for anything other than daily survival. 
In addition, street vending is a vital source of support for many people other than the individual vendors: 45% of surveyed vendors use their income to cover school fees for themselves or a family member. | Livelihood (vida-moris lor-loron) Kuaze metade husi vendedór sira (48%) sustenta sira nia moris husi lukru ne’ebé sira hetan husi fa’an iha estrada ninin (Figura 4). Só 1% de’it mak konsege atu rai osan husi rendimentu, no ida ne’e hatudu katak maioria uza rendimentu husi fa’an iha estrada ninin ba subsisténsia lor-loron, susar tebes ba sira atu uza rendimentu ba buat seluk. 
Aleinde ne’e, vendedór nia atividade fa’an iha estrada ninin mak rekursu importante ida hodi apoia ema seluk, la inklui vendedór individual rasik: 45% husi vendedór sira uza sira nia rendimentu atu selu ba eskola ba sira nia-an ka membru família ida. | Income levels Despite sometimes strenuous work and long hours, vendors earn little profit after their costs are deducted (Figure 5). At first glance, 24 out of 86 surveyed vendors reported receiving more than US$41 a day in income, while about eight vendors stated a daily income of less than $5. However, when costs (purchasing goods and operating the business) are subtracted from their daily income, actual take-home profits are much lower. Only three surveyed vendors reported earning $41 a day in profits, while many vendors earn less than $5 and some often earn zero. 
| Nivel rendimentu Maske sira servisu maka’as no kleur, vendedór sira nia lukru mak ki’ik tanba tenke selu kustu (Figura 5). Iha inísiu, vendedór na’in 24 husi 86 dehan katak sira manán liu $41 kada loron, no na’in 8 dehan katak sira hetan $5 ka menus kada loron. Maibé, depois sira selu ba sasán foun no kustu operasaun seluk, lukru reál mak ki’ik liu. Só vendedór na’in 3 dehan katak sira manán lukru $41 kada loron, no vendedór barak manán $5 ka menus no balun zero dolar. 
| Challenges According to Article 18.5 of Decree-Law 24/2011, business permits for vendors are issued by the Ministry of Tourism, Commerce and Industry (renamed as Ministry of Commerce, Industry and the Environment in 2012). Permits are valid for a year, and permit holders are required to conduct commercial activity under the terms of the Law. Despite the government’s effort to increase business activity through the permit system, various problems have hampered its effectiveness. Awareness of the permit system appears to be nearly non-existent among vendors and even government officials. Before undertaking this survey, the researcher met with a representative from the Dili District Administration and was directed to an earlier law (Decree-Law 33/2008 on Hygiene and Public Order, Article 5), which is no longer applicable. Since this research was done without knowledge of the legal status of street vendors and permit system, the question to vendors was presented as hypothetical: Would you be willing to pay monthly for a permit to ensure your rights to sell goods legally? Figure 6 shows that the majority of surveyed vendors (75%) do not feel a need to pay for a permit, likely because they are unaware of this option and the benefits it may offer. 
Weak internal communication between different ministries has led to inconsistent implementation of street vending regulations, as well as abuse of authority. 34% of vendors reported regular harassment and forced evictions by state authorities. Confrontations occasionally become violent, and such incidents have been reported in local media. Low wages for public employees also mean that police and other security forces are more likely to ask for bribes as a way of supplementing their income. 
19% of vendors reported paying out of pocket every day to state actors to avoid bigger fines or the confiscation of equipment. This situation demonstrates the urgent need to socialize the current business permit system, increase protection for street vendors, and improve police accountability to create a safer and more stable environment for people to earn a living. | Dezafiu Tuir Dekretu-Lei 24/2011 Artigu 18.5, Ministériu Turizmu, Komérsiu no Indústria (dezde 2012, sira bolu Ministériu Komérsiu, Indústria no Ambiente) mak bele autoriza lisensa empreza ba vendedór. Lisensa sira mak válidu ba tinan ida, no lisensa na’in sira tenke halo sira nia atividade komérsiu tuir Lei nia termus. Maske Governu koko aumenta atividade komersiál liu husi sistema lisensamentu ne’e, problema oi-oin kauza sistema la’o ladún efetivu. Koñesimentu kona-ba sistema ne’e iha komunidade vendedór no mós governu besik la iha. Antes ha’u fahe survey ne’e, ha’u hasoru malu ho reprezentativu ida husi Administrasaun Distritu Dili, no sira refere ha’u ba lei antigu ida (Dekretu-Lei 33/2008 kona-ba Hygiene no Orden Públiku, Artigu 5), maibé lei ida ne’e la aplika ona. Bainhira ha’u halo peskiza ne’e, ha’u seidauk hatene kona-ba status legál vendedór nian no sistema lisensamentu nian. Tanba ne’e, ha’u husu pergunta ‘hypothetical’ ba vendedór sira: Karik ita bo’ot bele selu lisensa kada fulan atu garante diretu atu bele fa’an sasán ho legál, ita bo’ot sei prontu atu selu ka lae? Figura 6 hatudu katak maioria vendedór sira sente katak sira la presiza selu lisensa, karik tanba sira la hatene kona-ba opsaun ida ne’e no la komprende benefísiu ne’ebé sistema ne’e bele fó sira. 
Komunikasaun internal ne’ebé fraku entre ministériu oi-oin signifika katak implementasaun regulasaun atividade vendedór mak la konsistente, no ofisiál balun mós abuza sira nia pozisaun. 34% husi vendedór sira relata katak sira enfrenta harassment no eviksaun regular husi autoridade estadu. Dala ruma mós violénsia mosu entre polísia no vendedór sira, no media lokál halo reportajen. Traballadór estadu nian mós hetan saláriu ne’ebé ki’ik, no tanba ne’e polísia no seguransa seluk dala ruma buka meius seluk (hanesan osan sigarru) atu aumenta sira nia rendimentu. 
19% husi vendedór sira dehan katak sira tenke selu kada loron ba ajente estadu nian atu evita lakon ekipamentu ka selu montante bo’ot liu. Situasaun ne’e hatudu katak presiza sosializa sistema lisensamentu atuál hamutuk ho governu, polísia no vendedór, no mós tenke aumenta protesaun ba vendedór sira no aumenta kontabilidade polísia nian atu kria ambiente ne’ebé estavel no seguru liu ba povu atu manán osan hodi sustenta sira nia moris. | Policy recommendations - Stop the bribing and illegal seizures of vendors’ goods through careful monitoring and improving accountability of public officials interacting with vendors. The government should strengthen inter-ministerial coordination to ensure that all government officials understand and comply with the laws regulating street vending activities.
Under current conditions, street vendors pay a hefty penalty in order to retrieve equipment confiscated by law enforcers. Faced with regular bribes, fines, and low income, street vendors struggle to generate a steady income or expand their business. Therefore, vendors should also be informed of different mechanisms for them to file complaints if officials treat them unfairly.
- Promote dialogue and collaboration between the government, street vendors, and consumers. The government should guide vendors through the permit application process and provide an accessible checklist for vendors to obtain the required documents. As many vendors are illiterate, assistance should be offered for filling out the application forms.
Therefore, ongoing dialogue between vendors and the government, as well as proper implementation of the current law would provide the opportunity to assess and improve the permit registration process. As the map below indicates, street vending is a viable business practice that not only ensures vendors’ survival but also meets consumer needs beyond the two formal marketplaces. Prior to developing future marketplaces, the government must conduct in-depth analysis to determine if proposed market locations have the potential to meet the needs of consumers in Dili. Consultation with vendors and their customers can lead to the creation of new markets in more strategic locations with proper facilities to increase hygiene, storage capability and safety.
| Rekomendasaun polítika - Prevene autoridade estadu sira hodi husu subornu no foti vendedór nia sasán ho ilegál, liu husi monitorizasaun efetivu no aumenta kontabilidade ofisiál públiku ne’ebé envolve ho vendedór sira. Governu tenke haforsa koordenasaun entre ministériu sira atu garante katak ofisiál governu nian komprende no tuir lei sira ne’ebé regula atividade vendedór estrada ninin nian.
Agora daudaun, vendedór sira tenke selu multa bo’ot atu hetan fila fali ekipamentu ne’ebé autoridade legál sira foti. Tanba sira enfrenta subornu, multa no rendimentu ne’ebé ki’ik, susar ba vendedór sira atu manán rendimentu ne’ebé sufisiente ka investe no aumenta sira nia empreza. Tanba ne’e, ami rekomenda katak vendedór sira tenke hetan informasaun kona-ba mekanizmu ba hato’o keixa karik ofisiál estadu nian halo tratamentu la justu ka kontra lei.
- Promove diálogu no kolaborasaun entre governu, vendedór no konsumidór sira. Governu tenke ajuda vendedór sira ho prosesu aplikasaun ba lisensa no mós tenke fó informasaun ne’ebé klaru (checklist) ba vendedór sira atu hetan dokumentu sira ne’ebé mak presiza. Vendedór barak la bele lee ka hakerek, tanba ne’e governu tenke fó ajuda hodi prienxe formuláriu.
Tanba ne’e, ami rekomenda katak tenke iha diálogu entre vendedór sira no governu, no implementasaun lei atuál ne’ebé regula lisensamentu vendedór, atu fó oportunidade atu avalia no hadi’ak liu tan prosesu rejistrasaun lisensa. Mapa iha kraik hatudu katak vendedór iha estrada ninin mak negósiu ne’ebé garante vendedór nia abilidade atu sustenta sira nia moris, no mós bele prienxe konsumidór sira nia nesesidade di’ak liu merkadu formál rua (Manleuana no Taibessi). Antes kria merkadu foun iha futuru, governu tenke halo avaliasaun kle’an atu determina se karik fatin ba merkadu foun bele garante katak konsumidór nia nesesidade sei prienxe. Konsultasaun ho vendedór no sira nia kliente bele ajuda governu atu kria merkadu foun iha fatin ne’ebé estratéjiku liu, ho fasilidade ne’ebé adekuadu atu hadi’ak padraun ijieniku, seguransa no kapasidade ba rai sasán.
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| - Skill development and access to credit. More than 50% of surveyed vendors have never attended school. Vendors who lack education are unlikely to find alternative employment in the formal economy. Therefore, we suggest implementing training and education programs for street vendors to develop skills such as financial and business management, customer service, health, and safety.
In addition, 17% of surveyed vendors would like increased access to credit, which can be provided in monetary form or as better equipment which could be paid for over time. This could then be used by vendors to expand their business, increase their earnings and improve their quality of life.
| - Dezenvolvimentu kapasidade no asesu ba kréditu. Liu 50% husi vendedór iha peskiza ne’e nunka atende eskola. Susar ba vendedór ne’ebé la atende edukasaun atu hetan empregu seluk iha ekonomia formál. Tanba ne’e, ami sujere katak governu implementa programa formasaun no edukasaun ba vendedór atu ajuda sira dezenvolve skills hanesan jestaun finanseiru no bisnis, servisu ba kliente, saúde no seguransa.
Aleinde ne’e, 17% husi vendedór hakarak atu bele asesu ba kréditu, hanesan osan ka ekipamentu ne’ebé vendedór bele selu fila fali fulan ba fulan. Nune’e vendedór sira bele aumenta sira nia negósiu, aumenta rendimentu hodi hadi’ak sira nia kualidade moris.
| Conclusion This is a summary of a baseline report on Dili’s informal street economy from the perspective of street vendors. Additional research is needed to better understand the vendor registration process, such as the annual number of permits issued in Dili, the application fees, the average application processing time, as well as an evaluation of the inspection and appeal processes. Through increased recognition of the importance and validity of street vending as a socially beneficial activity, workers, consumers, and governing bodies, can work together to implement evidence-based and effective street vending policy. Such a policy should prioritize the protection of legal rights, increase workers’ opportunities, and enable consumers to conveniently and safely purchase goods from street vendors in public spaces. | Konkluzaun Artigu ne’e mak rezumu husi relatóriu baseline kona-ba Dili nia ekonomia la-formál, ne’ebé bazeia liu-liu ba perspetiva vendedór nian. Presiza halo peskiza tan atu komprende di’ak liu tan prosesu rejistrasaun vendedór, hanesan númeru lisensa ne’ebé hasai iha Dili kada tinan, kustu aplikasaun, tempu hira ba prosesu, no mós avaliasaun ba prosesu inspesaun no rekursu. Ita tenke rekoñese no valoriza liu tan vendedór, tanba sira nia atividade fó benefísiu sosiál ne’ebé importante tebes. Traballadór, konsumidór no ajénsia governu nian bele servisu hamutuk atu implementa polítika ba vendedór ne’ebé efetivu liu no bazeia ba evidénsia. Polítika ida ne’e tenke prioritiza protesaun diretu legál, aumenta oportunidade ba traballadór sira no mós fó oportunidade ba konsumidór atu hola sasán husi vendedór sira iha fatin públiku ho konveniente no seguru. | | This research was primarily done by Janice Leung, an interne from Wheaton College who worked at La'o Hamutuk in 2015, with some support from other La'o Hamutuk staffers. | Janice Leung husi Wheaton College mak halo maioria peskiza ne’e durante ninia estájiu iha La’o Hamutuk iha 2015, no nia hetan apoiu husi staff La’o Hamutuk sira seluk. |
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