際際滷

際際滷Share a Scribd company logo
URBAN INFORMAL SECTOR
 According to Hart (1973), Informal sector serves
as a means for the poor to engage in
employment when there is insufficient job
opportunities for the expanding population.
 Hernando de Soto ( 1990 )argued that
informality exists where the means are illicit
but the end is licit
 Informality is viewed as a mass response to
mindless, pompous bureaucracy and the
manipulation of the economic system by corrupt
vested interest group
CAUSES OF INFORMAL SECTOR
Main cause of informal sector:
Excessive Governmental bureaucracy
Rigid administrative procedures (red tapeism)
Persistent mercantilist system (exploitation)
Inefficient legal systems
Elimination of protectionism, subsidies and
market segregation policies
SOCIO- ECONOMIC ASPECTS OF INFORMAL
SECTOR
 Self initiative and
entrepreneurial dynamism
 Finding informal means of
production and
reproduction, establishing
enterprises and providing
services
 Obtaining access to land,
housing utilities and
commodities
 Informality does not fall
into Government planned,
regulated and managed
economy
 Informality is
characterized by ignoring
official rules so as to meet
the basic needs
 Informal sector consists of
people low skilled labour,
inadequate capital,
training and lack technical
assistance
 Informality is dominant in
underdeveloped and
countries undergoing
socio- economic transition
DEVELOPMENT POTENTIALS
 Capacity to propel the engine of growth
 Employment (A simple necessity for the poor to
make a living)
 Major contributor to GDP in some countries e.g Peru
 Harnessing entrepreneurial dynamism
 Informality when decriminalized and regulated
serves the advantage to minimize illegal business
operations.
 Informality when carefully studied, it serves as a
basis for Government to orient development
strategies
CONSTRAINTS
 Bureaucracy
 Legal aspects
 Lack of adequate funds for operation
 Operate in small scale hence lack positive
externalities
 Social exclusion
 Market segregation
 Lack of database to inform decision making
process
CONSTRAINTS
 Bureaucracy
 Legal aspects
 Lack of adequate funds for operation
 Operate in small scale hence lack positive
externalities
 Social exclusion
 Market segregation
 Lack of database to inform decision making
process

More Related Content

Viewers also liked (20)

Decon 06
Decon 06Decon 06
Decon 06
Prof.(Dr.) Hong K. D.Litt, D.Sc., PhD.戟
Indicators of Development
Indicators of DevelopmentIndicators of Development
Indicators of Development
Manish Purani
Chapter 10 (social metrics)
Chapter 10 (social metrics)Chapter 10 (social metrics)
Chapter 10 (social metrics)
Jawad Chaudhry
M01 todaro smith013934_11_econ_c01
M01 todaro smith013934_11_econ_c01M01 todaro smith013934_11_econ_c01
M01 todaro smith013934_11_econ_c01
MBUZI DAVIES
Lecture
Lecture Lecture
Lecture
Dr. Aftab Khan
5 year plans of pakistan by brands academy
5 year plans of pakistan by brands academy5 year plans of pakistan by brands academy
5 year plans of pakistan by brands academy
Brands Academy
Migration in Pakistan
Migration in PakistanMigration in Pakistan
Migration in Pakistan
Tanveer Khan
Agricultural transformation and rural development chapter6
Agricultural transformation and rural development chapter6Agricultural transformation and rural development chapter6
Agricultural transformation and rural development chapter6
Elyas Khan
12 income distribution, poverty, and discrimination
12 income distribution, poverty, and discrimination12 income distribution, poverty, and discrimination
12 income distribution, poverty, and discrimination
NepDevWiki
Planning Process for Economic Development in Pakistan
Planning Process for Economic Development in PakistanPlanning Process for Economic Development in Pakistan
Planning Process for Economic Development in Pakistan
Vaqar Ahmed
URBANIZATION & MIGRATION
 URBANIZATION & MIGRATION URBANIZATION & MIGRATION
URBANIZATION & MIGRATION
Eminent Planners
Development Planning Process in Pakistan
Development Planning Process in PakistanDevelopment Planning Process in Pakistan
Development Planning Process in Pakistan
Vaqar Ahmed
Human capital: Education and health in economic development egp
Human capital: Education and health in economic development egpHuman capital: Education and health in economic development egp
Human capital: Education and health in economic development egp
Shivani Baghel
Introduction to development indicators
Introduction to development indicatorsIntroduction to development indicators
Introduction to development indicators
TonyCassidy
Population of pakistan
Population of pakistanPopulation of pakistan
Population of pakistan
Arfan Afzal
Agricultural Transformation and Rural Development
Agricultural Transformation and Rural DevelopmentAgricultural Transformation and Rural Development
Agricultural Transformation and Rural Development
guestf494e5
Causes and Consequences of Rapid Population Growth
Causes and Consequences of Rapid Population GrowthCauses and Consequences of Rapid Population Growth
Causes and Consequences of Rapid Population Growth
Unica Chiara
Basic concepts of Development: Lecture Note
Basic concepts of Development: Lecture NoteBasic concepts of Development: Lecture Note
Basic concepts of Development: Lecture Note
Henok Gebremedhin Teka
Indicators Of Economic Development
Indicators Of Economic DevelopmentIndicators Of Economic Development
Indicators Of Economic Development
Deighton Gooden
Population: Migration in Pakistan
Population: Migration in PakistanPopulation: Migration in Pakistan
Population: Migration in Pakistan
Syed Hasan Bari
Indicators of Development
Indicators of DevelopmentIndicators of Development
Indicators of Development
Manish Purani
Chapter 10 (social metrics)
Chapter 10 (social metrics)Chapter 10 (social metrics)
Chapter 10 (social metrics)
Jawad Chaudhry
M01 todaro smith013934_11_econ_c01
M01 todaro smith013934_11_econ_c01M01 todaro smith013934_11_econ_c01
M01 todaro smith013934_11_econ_c01
MBUZI DAVIES
5 year plans of pakistan by brands academy
5 year plans of pakistan by brands academy5 year plans of pakistan by brands academy
5 year plans of pakistan by brands academy
Brands Academy
Migration in Pakistan
Migration in PakistanMigration in Pakistan
Migration in Pakistan
Tanveer Khan
Agricultural transformation and rural development chapter6
Agricultural transformation and rural development chapter6Agricultural transformation and rural development chapter6
Agricultural transformation and rural development chapter6
Elyas Khan
12 income distribution, poverty, and discrimination
12 income distribution, poverty, and discrimination12 income distribution, poverty, and discrimination
12 income distribution, poverty, and discrimination
NepDevWiki
Planning Process for Economic Development in Pakistan
Planning Process for Economic Development in PakistanPlanning Process for Economic Development in Pakistan
Planning Process for Economic Development in Pakistan
Vaqar Ahmed
URBANIZATION & MIGRATION
 URBANIZATION & MIGRATION URBANIZATION & MIGRATION
URBANIZATION & MIGRATION
Eminent Planners
Development Planning Process in Pakistan
Development Planning Process in PakistanDevelopment Planning Process in Pakistan
Development Planning Process in Pakistan
Vaqar Ahmed
Human capital: Education and health in economic development egp
Human capital: Education and health in economic development egpHuman capital: Education and health in economic development egp
Human capital: Education and health in economic development egp
Shivani Baghel
Introduction to development indicators
Introduction to development indicatorsIntroduction to development indicators
Introduction to development indicators
TonyCassidy
Population of pakistan
Population of pakistanPopulation of pakistan
Population of pakistan
Arfan Afzal
Agricultural Transformation and Rural Development
Agricultural Transformation and Rural DevelopmentAgricultural Transformation and Rural Development
Agricultural Transformation and Rural Development
guestf494e5
Causes and Consequences of Rapid Population Growth
Causes and Consequences of Rapid Population GrowthCauses and Consequences of Rapid Population Growth
Causes and Consequences of Rapid Population Growth
Unica Chiara
Basic concepts of Development: Lecture Note
Basic concepts of Development: Lecture NoteBasic concepts of Development: Lecture Note
Basic concepts of Development: Lecture Note
Henok Gebremedhin Teka
Indicators Of Economic Development
Indicators Of Economic DevelopmentIndicators Of Economic Development
Indicators Of Economic Development
Deighton Gooden
Population: Migration in Pakistan
Population: Migration in PakistanPopulation: Migration in Pakistan
Population: Migration in Pakistan
Syed Hasan Bari

Similar to INFORMAL_CITY_ASSIGNMENT_ONE_-_Copy[1] (20)

Informal Economy Literature Review
Informal Economy Literature ReviewInformal Economy Literature Review
Informal Economy Literature Review
DrLendySpires
Strategies informalsector
Strategies informalsectorStrategies informalsector
Strategies informalsector
DrLendySpires
聴mperfect Information In Politics
聴mperfect Information In Politics聴mperfect Information In Politics
聴mperfect Information In Politics
COSKUN CAN AKTAN
Citizens and Free Expression
Citizens and Free ExpressionCitizens and Free Expression
Citizens and Free Expression
Philippine Press Institute
48(1) 2340, January 2011 0042-0980 Print1360-063X Online.docx
48(1) 2340, January 2011 0042-0980 Print1360-063X Online.docx48(1) 2340, January 2011 0042-0980 Print1360-063X Online.docx
48(1) 2340, January 2011 0042-0980 Print1360-063X Online.docx
blondellchancy
Prsp psd informal_sector
Prsp psd informal_sectorPrsp psd informal_sector
Prsp psd informal_sector
DrLendySpires
Informal sector labour markets in developing countries 0
Informal sector labour markets in developing countries 0Informal sector labour markets in developing countries 0
Informal sector labour markets in developing countries 0
DrLendySpires
The political dynamics of the informal sector in tanzania
The political dynamics of the informal sector in tanzaniaThe political dynamics of the informal sector in tanzania
The political dynamics of the informal sector in tanzania
DrLendySpires
Steele the craft of intelligence 3.4 pdf
Steele the craft of intelligence 3.4 pdfSteele the craft of intelligence 3.4 pdf
Steele the craft of intelligence 3.4 pdf
RobertDavidSteeleVivas
Political and legal environment
Political and legal environmentPolitical and legal environment
Political and legal environment
Tala Lorena
Political corruption
Political corruptionPolitical corruption
Political corruption
cristobalcuenca
Future Tech: How should enterprise avoid the 'success trap' of the next big t...
Future Tech: How should enterprise avoid the 'success trap' of the next big t...Future Tech: How should enterprise avoid the 'success trap' of the next big t...
Future Tech: How should enterprise avoid the 'success trap' of the next big t...
Livingstone Advisory
Corruption
CorruptionCorruption
Corruption
Chandrashekargextn
Corruption
CorruptionCorruption
Corruption
Vivek Kumar
Sociology 14 white colur crimes
Sociology 14 white colur crimesSociology 14 white colur crimes
Sociology 14 white colur crimes
Jalil Thebo
Africa S Growing Importance For World Society
Africa S Growing Importance For World SocietyAfrica S Growing Importance For World Society
Africa S Growing Importance For World Society
Luisa Polanco
Transnational organized crime
Transnational organized crimeTransnational organized crime
Transnational organized crime
Andrew Novak
Usher in-clean-India
Usher in-clean-IndiaUsher in-clean-India
Usher in-clean-India
H Janardan Prabhu
v20240306 Technology and Racism Copyright 2024 Ordell Cordova
v20240306 Technology and Racism Copyright 2024 Ordell Cordovav20240306 Technology and Racism Copyright 2024 Ordell Cordova
v20240306 Technology and Racism Copyright 2024 Ordell Cordova
Andrew Networks
Symptom of crisis or engine of development
Symptom of crisis or engine of developmentSymptom of crisis or engine of development
Symptom of crisis or engine of development
DrLendySpires
Informal Economy Literature Review
Informal Economy Literature ReviewInformal Economy Literature Review
Informal Economy Literature Review
DrLendySpires
Strategies informalsector
Strategies informalsectorStrategies informalsector
Strategies informalsector
DrLendySpires
聴mperfect Information In Politics
聴mperfect Information In Politics聴mperfect Information In Politics
聴mperfect Information In Politics
COSKUN CAN AKTAN
48(1) 2340, January 2011 0042-0980 Print1360-063X Online.docx
48(1) 2340, January 2011 0042-0980 Print1360-063X Online.docx48(1) 2340, January 2011 0042-0980 Print1360-063X Online.docx
48(1) 2340, January 2011 0042-0980 Print1360-063X Online.docx
blondellchancy
Prsp psd informal_sector
Prsp psd informal_sectorPrsp psd informal_sector
Prsp psd informal_sector
DrLendySpires
Informal sector labour markets in developing countries 0
Informal sector labour markets in developing countries 0Informal sector labour markets in developing countries 0
Informal sector labour markets in developing countries 0
DrLendySpires
The political dynamics of the informal sector in tanzania
The political dynamics of the informal sector in tanzaniaThe political dynamics of the informal sector in tanzania
The political dynamics of the informal sector in tanzania
DrLendySpires
Steele the craft of intelligence 3.4 pdf
Steele the craft of intelligence 3.4 pdfSteele the craft of intelligence 3.4 pdf
Steele the craft of intelligence 3.4 pdf
RobertDavidSteeleVivas
Political and legal environment
Political and legal environmentPolitical and legal environment
Political and legal environment
Tala Lorena
Future Tech: How should enterprise avoid the 'success trap' of the next big t...
Future Tech: How should enterprise avoid the 'success trap' of the next big t...Future Tech: How should enterprise avoid the 'success trap' of the next big t...
Future Tech: How should enterprise avoid the 'success trap' of the next big t...
Livingstone Advisory
Sociology 14 white colur crimes
Sociology 14 white colur crimesSociology 14 white colur crimes
Sociology 14 white colur crimes
Jalil Thebo
Africa S Growing Importance For World Society
Africa S Growing Importance For World SocietyAfrica S Growing Importance For World Society
Africa S Growing Importance For World Society
Luisa Polanco
Transnational organized crime
Transnational organized crimeTransnational organized crime
Transnational organized crime
Andrew Novak
v20240306 Technology and Racism Copyright 2024 Ordell Cordova
v20240306 Technology and Racism Copyright 2024 Ordell Cordovav20240306 Technology and Racism Copyright 2024 Ordell Cordova
v20240306 Technology and Racism Copyright 2024 Ordell Cordova
Andrew Networks
Symptom of crisis or engine of development
Symptom of crisis or engine of developmentSymptom of crisis or engine of development
Symptom of crisis or engine of development
DrLendySpires

More from Nana Akwasi Acheampong (8)

LAND USE PLANNING AND MACRO ZONING_ksi
LAND USE PLANNING AND MACRO ZONING_ksiLAND USE PLANNING AND MACRO ZONING_ksi
LAND USE PLANNING AND MACRO ZONING_ksi
Nana Akwasi Acheampong
URBAN PLANNING_Essay 3
URBAN PLANNING_Essay 3URBAN PLANNING_Essay 3
URBAN PLANNING_Essay 3
Nana Akwasi Acheampong
NANA THESIS
NANA THESISNANA THESIS
NANA THESIS
Nana Akwasi Acheampong
PPP_Essay 1
PPP_Essay 1PPP_Essay 1
PPP_Essay 1
Nana Akwasi Acheampong
URBAN GOVERNANCE_Essay 2
URBAN GOVERNANCE_Essay 2URBAN GOVERNANCE_Essay 2
URBAN GOVERNANCE_Essay 2
Nana Akwasi Acheampong
Group 3 Assignment 2 Version 1.3
Group 3 Assignment 2 Version 1.3Group 3 Assignment 2 Version 1.3
Group 3 Assignment 2 Version 1.3
Nana Akwasi Acheampong
Education in Ghana (1)
Education in Ghana (1)Education in Ghana (1)
Education in Ghana (1)
Nana Akwasi Acheampong
group 3 and 4 policy analysis_final
group 3 and 4 policy analysis_finalgroup 3 and 4 policy analysis_final
group 3 and 4 policy analysis_final
Nana Akwasi Acheampong

INFORMAL_CITY_ASSIGNMENT_ONE_-_Copy[1]

  • 1. URBAN INFORMAL SECTOR According to Hart (1973), Informal sector serves as a means for the poor to engage in employment when there is insufficient job opportunities for the expanding population. Hernando de Soto ( 1990 )argued that informality exists where the means are illicit but the end is licit Informality is viewed as a mass response to mindless, pompous bureaucracy and the manipulation of the economic system by corrupt vested interest group
  • 2. CAUSES OF INFORMAL SECTOR Main cause of informal sector: Excessive Governmental bureaucracy Rigid administrative procedures (red tapeism) Persistent mercantilist system (exploitation) Inefficient legal systems Elimination of protectionism, subsidies and market segregation policies
  • 3. SOCIO- ECONOMIC ASPECTS OF INFORMAL SECTOR Self initiative and entrepreneurial dynamism Finding informal means of production and reproduction, establishing enterprises and providing services Obtaining access to land, housing utilities and commodities Informality does not fall into Government planned, regulated and managed economy Informality is characterized by ignoring official rules so as to meet the basic needs Informal sector consists of people low skilled labour, inadequate capital, training and lack technical assistance Informality is dominant in underdeveloped and countries undergoing socio- economic transition
  • 4. DEVELOPMENT POTENTIALS Capacity to propel the engine of growth Employment (A simple necessity for the poor to make a living) Major contributor to GDP in some countries e.g Peru Harnessing entrepreneurial dynamism Informality when decriminalized and regulated serves the advantage to minimize illegal business operations. Informality when carefully studied, it serves as a basis for Government to orient development strategies
  • 5. CONSTRAINTS Bureaucracy Legal aspects Lack of adequate funds for operation Operate in small scale hence lack positive externalities Social exclusion Market segregation Lack of database to inform decision making process
  • 6. CONSTRAINTS Bureaucracy Legal aspects Lack of adequate funds for operation Operate in small scale hence lack positive externalities Social exclusion Market segregation Lack of database to inform decision making process