From Rags to Riches: Tapping the Social Capital within the Solid Waste Informal Sector
Many large cities in the developing world cannot keep up with the vast quantities of solid waste being produced on a daily basis. Often, only 15 per cent of the waste is handled by municipal waste management systems; the rest is handled by the informal sector consisting of networks of rag-pickers who collect, sort, process and dispose of solid waste. These networks and waste streams hold not only economic but also environmental and social value. The current literature, however, has largely ignored this promising area of study, and provides limited direction in terms of the informal networks and their influence on economic, environmental and social outcomes. In this research, we use qualitative methodology and archival data to develop a typology connecting social capital to three value streams within this informal solid waste network. We find that the social capital of the rag-pickers provides superior economic, social and environmental yields. In addition, we discuss the role of NGOs in fostering social capital.