Informal Economy: A Blessing or a Curse?
Like it or not, most jobs in developing economies, especially the poorer ones, are found in the informal economy. Millions of micro and small enterprises operate in this economy, often in crowded markets, generating low profits (if any), and toiling in difficult, often underpaid and unprotected work conditions. However, in some cases, the informal economy can also be a place for innovation and the lack of government regulation (or lack of compliance with government regulation) unleashes a competitive entrepreneurial spirit.
While reformers have typically focused their efforts on formalizing unregistered and unlicensed firms, success has been muted. How then, should we look at the informal economy? Do we want to remove it, reduce it, or improve it? Are all firms in the informal economy capable of formalizing or should we strive for other outcomes, such as better social protection? What is a pragmatic reformer’s view on this?
Join the webinar at 9 am EST (1500 CET).
Ms. Tabea Lakemann from the German Institute of Global and Area Studies (GIGA)
Mr. Will Nielsen, Consultant, World Bank Group
Ms. Anastasia de Santos, Economist, Office of Trade and Regulatory Reform, Bureau for Economic Growth, Education and Environment, US Agency for International Development