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  • 1. Is the current concept of informal economy adequate as a basis for protecting workers and providing for their needs? • Characteristics of informal economy – Labour status – Size of activity – Professional status – Registration of activity – GNP accounts Nima Viswanatha TEOCAR- Position Paper1 1
  • 2. Is the current concept of informal economy adequate as a basis for protecting workers and providing for their needs? • Growth and development of the informal economy (Gerxhani, 2004) – To evade taxes – To avoid losing government benefits – To circumvent regulations and licensing requirements – A reaction by both firms and individuals to labour unions – The impact of international competition Nima Viswanatha TEOCAR- Position Paper1 2
  • 3. Is the current concept of informal economy adequate as a basis for protecting workers and providing for their needs? • Current problems faced in the informal sector (ILO, 2002 & Becker, 2004) – Worker rights not present – Indirect costs – Force labour Nima Viswanatha TEOCAR- Position Paper1 3
  • 4. Is the current concept of informal economy adequate as a basis for protecting workers and providing for their needs? • Conclusion – When government policies get complex or costly, employers/workers sometimes move outside the official system – Enterprises in the informal economy have an entrepreneurial potential that could flourish if certain obstacles were removed – Policies are to be implemented to help the development of the informal sector and help integrate the two sectors of the economy: formal and informal Nima Viswanatha TEOCAR- Position Paper1 4