Informal Economy Essay

Concept of the Informal Economy

The overwhelming presence of capitalism has landed two major successes in contemporary societies: economic liberalization and globalization. These two have been the new constant for developed and emerging economies. Between them, the world has experienced and continues to experience some of the finest and astounding innovations as well as thriving and successful business models ever known to man. From the privatization and commercialization of the internet that has promoted e-commerce and other e-businesses to the booming garment industries in Bangladesh, the world is ever changing. However, despite the increasingly successful nature of economic liberalization and globalization, there exists one phenomenon

The complexities of the informal sector however, hinge on the fact that it is heterogeneous and polarized. This heterogeneity comes from the fact that within the informal economy there exist sub-sector/ sub-categories. These include piece-rate workers; agriculture and construction daily wage laborers; street vendors; bicycle peddlers; security guard; hawkers; street food sellers; domestic workers; waste pickers; etc. these and many more make up the informal economy. Markedly, each of the sub-sectors/sub-categories plays important roles in the informal

It had suffered from some the worst forms of atrocities ever known to man. The fourteen years of civil crisis that only ended in 2003 left the country vulnerable and wretched; wiping away some 270,000 people while thousands more fled the country. The crisis left the economy in ruin, electricity, sanitation, and safe drinking water became scare public goods. Even today, despite the relatively stable peace and moderate economic growth; the capital has very limited electricity and running water; adequate access to basic social services are still far from being met; corruption is seemingly everywhere; in government and in the private sector. High level of illiteracy and Unemployment still remain