2.6. Informalisation in the Developing Countries
“Developing countries’ one third of national income comes from the informal sector. The informal sector reduces the unemployment problems”
The third world countries - especially those of Asia and Africa - are under the rapid transition phase and marked by rapid population growth. Hence, such countries face dual problems of economic development and sustaining such large populations. The size of the informal sector in developing countries excluding the agricultural employment ranges roughly between one-fifth and four-fifths and in terms of its contribution to GDP. The informal economy accounts for between 25 percent and 40 percent of annual output in developing countries of Asia and Africa.
Over
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Urban poverty may be accounted to the poor interventions to engage sufficiently with rural poverty or due to failure of various policies or strategies to reduce rural poverty. This trend is predominant across cities of various developing countries.
This phenomenon is changing the entire urban face by introducing two major aspects/dimensions. The first is that the poor are being forced to live in slums to fulfill the residential foothold and the other aspect is that the poor are being forced to work in the informal sector to earn a living. The proportion of informal sector is higher than the formal in urban areas. According to the UN-HABITAT report of 2001 in Africa and Asia, 54 percent and 33 percent of the total workforce is in the informal sector, respectively.
Globalisation is pressurising the developing countries to restructure their economy so that it can compete at the global level as a result of which government is forced to downsizing, privatising the public sector and cutting the government expenditure and subsidies. Also the formal sector is forced to reduce the costs and maximize the value. Hence all these together have severe implications on the urban poor and are leading to loss of blue collared
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Hence health of this sector should be of primary concern for governments. However, at present informal sector is marred by several constraints. Chief constraints faced by this sector in developing countries are:
• Availability of capital: though the quantum of capital required is less as compared to the formal sector, but they lack good mechanisms to allow inflow of credits from formal institutions and only the informal mechanisms generally provide financial assistance.
• Lack of technical know-how: governmental institutions are responsible for providing skill assistance but due to political influence these aren’t disposed favourably towards the poor and the illiterate in the informal sector.
• Lack of training and credit: they are forced to stick to simple technology, escape from the rent by locating in unauthorized locations and also to cut the cost of regulations.
• Policy prejudice: this makes it naturally difficult to compete with formal institutions. This may be attributed to government’s belief that modernisation is equivalent to development and hence the formal sector needs to be
In his Book, Off the Books: The Underground Economy of the Urban Poor, Sudhir Alladi Venkatesh, explains that in the early-nineties while doing field work in the Southside of Chicago he gravitated to a predominantly working-poor black community near his field site (ix). Venkatesh describes the ten-squared block community as being in disrepair very much like the high-rises that were being torn down in the surrounding area (iv). In the presence of some “greystones” and “brownstones” Venkatesh noticed vacant lots, beat-up homes, and what he perceived to be inadequate city involvement in the community -streets need fixing, and trash pick-up was lacking (x). There were also closed storefronts and burned-out buildings in the area (Venkatesh, 92).
Neoliberalism is usually confused and misinterpreted. The rise of neoliberalism had influenced public sector relations. The impact of the economic crisis and association of austerity measures had put pressure for some change and reform. Regardless of the rise of neoliberalism and austerity, extent and impact are not uniformed. Public sectors are strong and their influence have become weak.
Abstract The global garment industry, worth more than $400 billion dollars today, is a very lucrative industry. Garment factories in developing countries working for retailers in developed ones shows how efficiency is increased and every party can benefit through outsourcing of labour from developed countries; retailers and consumers get clothes at cheaper prices while employment is provided to areas plagued with poverty. However, it is evident that many of these garment factories are sweatshops, which are factories and businesses that violates local or international labour laws, such as providing workers with atrocious working conditions, providing minimal compensation or even employing child labour. Like it or not, many of our clothes does not come ethically and they have probably encouraged labour exploitation in one way or another.
III. A theory in the work is that political and economic structures failed to provide enough decent opportunities and support to the whole economy. IV. The Author does not present any original research, does use sources to come to conclusions on poverty. The author doesn’t mention the methodology used.
In Street-Level Bureaucracy: Dilemmas of the Individual in Public Services, Lipsky defines street-level bureaucrats as the “teachers, police officers and other law enforcement personnel, social workers, judges, public lawyers and other court officers, health workers, and many other public employees who grant access to government programs and provide services within them” (1980, 3). The book provides us with an insight into the everyday life of a street-level bureaucrat and shows their unmistakable role in delivering social services. Lipsky believes policy is best understood when looking at the people at the forefront of the implementation process; those that have to deal with both the government and the public. Overall, I found this book extremely
Market Structure - Oligopoly Oligopoly is a market structure whereby a few number of firms owns a lion’s share in the market. This market structure is similar to monopoly, except that instead of one firm, two or more firms have control in the market. In an oligopoly, there are no upper limits to the number of firms, but the number must be nadir enough that the operations of one firm remarkably influence and affects the others (Investopedia, 2003). The Walt Disney Company is categorized under an oligopoly market structure.
The Private sector plays a vital role in urban and economic development as it is a large contributor to national income and is the sector that employs the most people. The private sector provides 90% of employment in the developing world and provides 83.1% of the United Kingdom’s jobs. In the UK there are 5.3 million micro-businesses (0-9 employees) this makes up 96% of all businesses in the private sector. Those millions of micro-businesses account for 32% of employment and 19% turnover in the private sector. The Large businesses are the ones that bring in the most turnover and contribute the most to the economy.
Each institution has a different purpose which carries out a certain role in society. Each Institution also works closely with another and creates a functioning society. These institutions can be categorized into four groups. i.
The subject of sweatshop and child labor is one of great controversy. The first thought to mind when speaking of sweatshops is probably a vision of sketchy factories in far off Third World countries such as Bangladesh or China working their employees 15+ hours a day in cramped up in a dust-filled space for little wages. Not in America though, right? Most Americans would be horribly upset if they found out they had been unknowingly supporting a business that uses sweatshops to produce its merchandise. Odds are though, businesses that exploit such labor are being supported in every shopping trip a person takes whether it be shopping for groceries, clothes, jewelry, or athletic gear.
The Effects of Growing up in Poverty Poverty is not a new phenomenon we are dealing with. It has been an issue from the foretime till now. Poverty gradually has continued and changed its form in a different manner that has created many problems for the new generations, for example, in the old days poverty implicated to lack land and food, but nowadays, poverty means lack of education, lack of food and water, lack of money and much more. The main cause of poverty is a lack of money or income which has created a very critical situation in local and international society. These critical situations are child labor, hunger, health problems and much more that we are dealing with nowadays.
Furthermore, this analysis looks at informal employment as to having of lack of job security, access to social benefits and social protection (Pillay,
Many organisation argue that they should move away from the ideology of HSE legislation standards because of it’s many regulation(red-tape) affect the way business is done The Rt Hon Michael Fallon et al., 2013). The reason organisation believes in a more “laissez faire” way of doing things, it that is help drives the market into a more competitive form of business in comparison to the “laissez faire” of trade Kelloway and Cooper,
Informal Networks The article written by Richard McDermott and Douglas Archibald talks about informal networks in companies. Informal networks are more a kind of informal groups that are automatically formed in a company. The main motive behind forming this socially based informal group is to share knowledge. These informal networks have many names peer groups, communities of practice, functional groups etc.
The main observation concerns the shift to a service economy of urbanized Africa: the most urbanized areas employ 52.6% of workers in services, the less urbanized areas 17.8%. Services value added in the most urbanized areas is 51.0% of
Poor people being unable to take part in social and cultural norms leads to breakdown of social relation among the people The effects of poverty can be mainly categorized as unemployment, illiteracy, food security, psychological well-being, increased crime rate, child health, homelessness etc. Major effect of poverty is unemployment to those without land or dependable wage labor. Poor people can rarely find permanent, salaried job in the village or even in the city. Poor people engage in informal and daily wage labor with no security and low earnings.