What does the term “urban informality” refer to?

The term “urban informality” refers to activities that operate outside the established legal framework, which often includes informal markets and unregulated economic practices. This concept emphasizes the significant role that informal sectors play in urban economies, particularly in rapidly growing cities where formal employment may be scarce. These informal activities can encompass a wide range of economic exchanges, including street vending, informal housing, and unregistered businesses, which provide livelihoods for many but also exist without legal protection or oversight.

In contrast, the other options focus on structured and established systems—formal economic activities, regulated employment, and legally recognized housing developments—none of which capture the essence of the informal practices that characterize urban informality. Therefore, option B accurately encapsulates the essence of urban informality by highlighting its existence beyond formal legal and regulatory frameworks.