ABSTRACT
The economy of cities in the Third World is based on peripheral capitalism. This mode of production consists of two interrelated parts: a capitalist sector integrated into the world economy, and a range of petty capitalist forms of production oriented more towards the domestic economy. These have been described as a 'firm-centred economy' and a 'bazaar economy',1 or the formal and informal sectors.2 Santos (1979) refers to the upper circuit and lower circuit, in order to highlight the dependence of the traditional informal sector upon the modern formal sector.3 The well-being of individuals and households is dependent on their position within this dual-sector or bipolar urban economy.
