Urban petty producers in underdeveloped countries provide many of the necessary wage‐goods demanded by the urban and rural population at relatively cheap prices. Large numbers of youth are trained in small workshops and a flexible supply of cheap labour is maintained for large‐scale industry. Yet many small producers find themselves impoverished and unable to gain access to even the basic means of production. Patterns of industrial and personal consumption have been distorted, whilst foreign capital continues to be invested in activities of little value for authentic, popular development.