The informal road to markets

2014 ◽  
Vol 41 (4) ◽  
pp. 278-293 ◽  
Author(s):  
Basak Kus
Keyword(s):  
Private Sector ◽  
Informal Economy ◽  
Economic Activities ◽  
Regulatory Relationship ◽  
Government Regulations ◽  
Content Type ◽  
The Past ◽  
Neoliberal Reforms ◽  
Regulatory Barriers ◽  
Turkish Case

Purpose – The informal economy has expanded across developing countries during the last decades. Focussing on the Turkish case, the purpose of this paper is to examine the role of neoliberal reforms in this development. The author argues that neoliberal reforms produced a double-edged transformation in the regulatory environment of Turkey. On the one hand, the legal rules that constrain the operation of market forces decreased giving way to more entrepreneurial activity; while on the other hand, the state's effectiveness in “policing” the market declined. As the regulatory barriers to private entrepreneurship decreased, the regulatory barriers to informality also decreased. Private sector growth and informalization emerged as the concomitant outcomes of neoliberal reforms. Design/methodology/approach – This paper examines how the state's changing regulatory relationship to the private sector under neoliberal reforms fostered informal economic activities through a close study of the Turkish case. Findings – At the end of the 1980s, the Peruvian economist Hernando De Soto popularized the view that informalization resulted from government regulations imposing rigid constraints and costs on economic actors, and so would be restrained by decreasing or eliminating them. The economic developments of the past few decades challenge this view, however. The size of the informal economy has expanded in developing nations at a period when government regulations have been declining. How can we explain the increasing volume of informal economic activity in developing nations over the past few decades? And more, how can we explain that this has happened during a period when the private sector has grown, and regulatory rigidities have declined? This paper argues that the state's changing regulatory relationship to the private sector under neoliberal reforms was an important factor in the expansion of informal economic activities. Originality/value – The implications of neoliberal reforms for economic processes have been widely studied in the social scientific literature. Only a handful of studies have explored their implications for the informal economy, however. These studies singled out factors such as the decline in public employment, weakening of labor unions, or capital's enhanced ability to exploit labor in contributing to informalization of developing country economies in the neoliberal era. By discussing how the changing regulatory contours of the state-economy relationship played a role in the growth of informally operating private enterprises, this paper adds to the existing knowledge of this relationship.

scholarly journals Informal economic relations and organizations

2015 ◽  
Vol 28 (5) ◽  
pp. 749-769 ◽  
Author(s):  
Yochanan Altman ◽  
Claudio Morrison
Keyword(s):  
Informal Economy ◽  
Cultural Theory ◽  
Health And Safety ◽  
Negative Control ◽  
Social Implications ◽  
Soviet Period ◽  
Economic Activities ◽  
Content Type ◽  
Economic Relations ◽  
Labour Process

Purpose – The purpose of this paper is to identify the role of informal economic relations (IER) in the day-to-day working of organizations, thereby opening a way to theorizing and informed practice. The authors will present and discuss about the manifestation of informality in “everyday” reality of Soviet and transformation economies. Informed by Cultural theory and in particular the work of Gerald Mars, the authors are taking account ontologically and methodologically of Labour process theory. Design/methodology/approach – Through presentation of ethnographic data of detailed accounts and case vignettes in production and retail in the Soviet period of the late 1970s and 1980s and from the construction sector in contemporary Russia, with a focus on the labour process, the authors inform and discuss key processes in the informal working of organizations. Findings – In the Soviet system the informal economy co-existed in symbiosis with the formal command economy, implicitly adopting a “live and let live” attitude. In addition, informal relations were essential to the working of work organizations, sustaining workers’ “negative control” and bargaining power. contemporary Russian capitalism, while embracing informal economic activities, a legacy of the Soviet period, advocates an “each to his own” approach which retains the flexibility but not the bargaining space for employees. That facilitates exploitation, particularly of the most vulnerable workers, with dire consequences for the work process. Research limitations/implications – The paper provides a platform for theorizing about the role and place of IER in organizations. Of importance to managerial practice, the paper informs on those aspects of the work routine that remain hidden from view and are often excluded from academic discourse. The social implications are profound, shedding light on central issues such as recruitment, income distribution, health and safety and deregulated forms of employment. Originality/value – The paper examines economic behaviour under different economic-political regimes demonstrating continuities and changes during a fundamental social-economic reorientation of an important regional economy, through close observation at the micro and meso-level of, respectively, the workplace, organizations and industry, outlining theoretical, practical and social implications.

Assessing disaster capitalism in post-disaster processes in Chile: neoliberal reforms and the role of the corporate class

2020 ◽  
Vol 29 (6) ◽  
pp. 831-847
Author(s):  
Vicente Sandoval ◽  
Claudia Gonzalez-Muzzio ◽  
Carlos Villalobos ◽  
Juan Pablo Sarmiento ◽  
Gabriela Hoberman
Keyword(s):  
Private Sector ◽  
Private Funding ◽  
Content Type ◽  
Neoliberal Reforms ◽  
Maule Earthquake ◽  
Disaster Capitalism ◽  
2010 Maule Earthquake ◽  
Cross Case Analysis ◽  
Post Disaster

PurposeThis paper examines disaster capitalism in Chile, that is, the relationships between disasters and neoliberalism. It looks at two post-disaster dimensions: disasters as windows of opportunity to introduce political reforms and disasters as occasions for the corporate class to capitalize on such disasters.Design/methodology/approachTwo indices, disaster capitalism (DC) and post-disaster private involvement (PDPI), are proposed for cross-case analysis. They are based on legal records, institutional reports and economic data. The DC assesses the introduction of reforms following disasters, while PDPI evaluates the share of public-private funding used for recovery. Both indices are applied here to two disasters in Chile: the 2010 Maule earthquake, and the 2008 Chaitén volcanic eruption.FindingsResults show that the highly neoliberal Chilean context leaves limited space for new neoliberal reforms. Although recovery is implemented predominantly through the private sector, the state still assumes greater responsibility for recovery costs. Results also detect poor levels of participation from the private sector in accounting their efforts and making them publicly available. Likewise, the research suggests that neoliberal reforms become more likely after disasters. However, the preexisting politico-economic context matters. Finally, there is clearly a need for data systematization in post-disaster recovery.Originality/valueIn the Chilean context, the indices proved beneficial as a strategy for data collection and a method for scrutinizing the implications of neoliberal policy implemented in the wake of disasters, as well as in evaluating the role of the corporate class during recovery.

Private sector strengthens Africa regional ties

2015 ◽  
Keyword(s):  
Economic Policy ◽  
Private Sector ◽  
Private Equity ◽  
Emerging Market ◽  
African Continent ◽  
Content Type ◽  
The Past ◽  
Its Regions ◽  
Insurance Firms

Subject The role of the private sector in strengthening regional ties between African states. Significance Over the past decade, the African continent has experienced greater integration within and across its regions, especially through trade. While still lagging behind many other emerging market regions, this growth has been driven in large part by the private sector. More African companies are now expanding beyond the borders of their home countries. Private equity is playing an important role in funding this expansion, supporting companies with knowledge and experience to access broader markets. Impacts Commercial ties are pushing regulators to harmonise aspects of economic policy across borders, eg on banks and insurance firms. Longer-term integration projects -- eg African Central Bank and African Monetary Fund -- are unlikely to succeed. Firms from regional hegemons (Nigeria, Kenya and South Africa) will tend to have the greatest pan-Africa footprint.

scholarly journals Airport management: a perspective article

2019 ◽  
Vol 75 (1) ◽  
pp. 102-108
Author(s):  
Anne Graham
Keyword(s):  
Private Sector ◽  
Design Methodology ◽  
Business Models ◽  
Public Utility ◽  
Airport Management ◽  
Content Type ◽  
Secondary Literature ◽  
The Past ◽  
Modern Enterprise

Purpose The purpose of this paper is to present an overall viewpoint on the past (1946-2020) and future (2020-2095) development of airport management. Design/methodology/approach The paper is based on a review of secondary literature. Findings The paper finds that the airport industry has transformed from a public utility to a modern enterprise, with private sector ownership, more competition, the expansion of commercial facilities and more diverse business models. Originality/value The paper provides a unique long-term and comprehensive view of past, current and future airport management, bringing together a number of linked developments, which is not found elsewhere.

scholarly journals Economic crisis and “white informal economy” – a slippery slope

2017 ◽  
Vol 37 (7/8) ◽  
pp. 468-476 ◽  
Author(s):  
Bojan Dobovšek ◽  
Boštjan Slak
Keyword(s):  
Financial Crisis ◽  
Informal Economy ◽  
Tax Evasion ◽  
Policy Development ◽  
Tax Avoidance ◽  
Economic Activities ◽  
Content Type ◽  
Economic Practices ◽  
Legal Forms

Purpose The purpose of this paper is to demonstrate the importance of studying the quasi-legal forms of informal economic behaviour that we know as the white informal economy. The paper also sheds light on the role of the informal economy in the financial crisis that started in 2008. Finally, the aim of the paper is also to encourage empirical research about these concepts. Design/methodology/approach The paper is theoretical and based on a literature review. Findings The paper implies that when discussing about informal economy, different sub-categories should continue to be used in order to distinguish the various forms of informal economic practices. There is a particular need for research on practices of economic activities that are legal but not always moral, yet severely damaging. For such activities, the authors propose the term/categorisation the “white informal economy”. Additionally, the authors argue that in the causal links of events that brought about the financial crisis the role of the white informal economy was significant. Practical implications The paper wishes to encourage further research on the topic of (white) informal economy that in turn would also create the scenario for proper policy development for tackling tax avoidance, tax evasion and future financial crises. Originality/value The paper adds to scholarship that takes a critical standpoint towards the financial crisis and to scholarship on the informal economy. It presents an attempt to stimulate further discussion about the connectivity of the informal economy and the financial crisis.

Modern monetary theory offers few novelities

2019 ◽  
Keyword(s):  
Private Sector ◽  
Full Employment ◽  
Economic Effects ◽  
Monetary Theory ◽  
Fiscal Deficits ◽  
Content Type ◽  
New School ◽  
Presidential Candidates ◽  
The Past ◽  
Economic Thinking

Subject Modern monetary theory. Significance Over the past year, academia and policymakers have devoted much attention to a new school of economic thinking, modern monetary theory (MMT). According to this, governments could -- and should -- spend as much as they can to achieve full employment. Governments can print money to finance this as they own the monopoly over currency and do not need revenues to finance such expenditure as states cannot go bankrupt. Impacts US presidential candidates could advocate MMT to promise high spending with no deleterious economic effects. MMT will tempt governments as it promises that they can finance large fiscal deficits cheaply. According to MMT, public deficits cannot be compared to private-sector budgets and have more flexibility to expand.

Social costs of dollarisation will be high in Cuba

2020 ◽  
Keyword(s):  
Economic Policy ◽  
Soviet Union ◽  
Private Sector ◽  
Domestic Demand ◽  
Content Type ◽  
State Sector ◽  
The Past ◽  
The Soviet Union ◽  
The Government ◽  
Turn Over

Significance The economy, however, is in dire straits. Widespread shortages of everyday supplies are reminiscent of the crisis that followed collapse of the Soviet Union in the 1990s. Economic policy likewise has echoes of the past, with the government pursuing partial re-dollarisation. Impacts With dollarisation likely to spread to more sectors of the economy, the CUC faces a gradual demise. Parts of the private sector catering to domestic demand, such as transport, might benefit from relaxed regulations. The crisis might drive the state to turn over more services to the non-state sector.

Egypt may struggle to balance interests on rail reform

2019 ◽  
Keyword(s):  
Private Sector ◽  
Public Private Partnerships ◽  
Railway Network ◽  
Content Type ◽  
Ticket Price ◽  
The Past ◽  
Fuel Subsidies ◽  
The Government ◽  
Private Investors

Significance Over the past two years, the government has been planning an overhaul of its decrepit and dangerous railway network through investment and plans for public-private partnerships. Since February’s crash, in particular, officials have spoken of the urgency of implementing these measures. Impacts Concessions on planned new railway lines will be much more appealing for private investors. Large ticket price rises would likely generate popular discontent. The involvement of the private sector could streamline investments in construction and tourism. Successful improvement of the railways would reduce car usage, and thus fuel subsidies.

Corporate governance as a mechanism for the deterrence of economic crimes in the Commonwealth Caribbean

2015 ◽  
Vol 22 (3) ◽  
pp. 347-353 ◽  
Author(s):  
Suzanne Cecile Ffolkes-Goldson
Keyword(s):  
Economic Growth ◽  
Corporate Governance ◽  
Private Sector ◽  
Developing Economies ◽  
International Standards ◽  
Corporate Misconduct ◽  
Content Type ◽  
The Past ◽  
Commonwealth Caribbean ◽  
Transparency And Accountability

Purpose – The purpose of this paper is to highlight the need for good corporate governance (CG) as one of the mechanisms to combat corporate misconduct and, by extension, to encourage economic growth and development, with special emphasis on Jamaica, which not only has seen the greatest financial sector meltdown in the region, but has also seen the greatest response to the need for CG initiatives. Design/methodology/approach – For the past 20 years, CG has been at the forefront of discussions, legislation and moral suasion regarding corporate transparency and accountability, especially in the wake of spectacular scandals from the Maxwell debacle in the United Kingdom (1992), to Enron in the USA (2001), to the world economic crisis (2008). Codes have been adopted and legislation drafted to meet the concerns regarding corporate abuse, which have not only had an impact on the corporations and their shareholders, but also on a wider group of stakeholders, which includes, in some cases, the countries in which they operate. Not only have these scandals rocked the developed world, but corporate misconduct has taken an especially debilitating toll on developing economies, such as those found in the Commonwealth Caribbean. The cost of corporate misconduct in the region has included government bailouts, loss of jobs and loss of confidence in the markets. These, in turn, have had some negative impact on the development of many of the countries, which includes slow, stagnant or negative economic growth. Findings – The attention to CG in the Commonwealth Caribbean has grown tremendously in the past 10 years by the introduction of codes and legislation with a focus on transparency and accountability in accordance with international standards. The challenge now appears to be the need to link these initiatives with the anti-corruption project. This may be best achieved through the acknowledgment of the need for the private sector to play a greater role in the prevention of corruption through CG initiatives. Put another way, there may be need for an increased focus on the demand side of bribery and corruption rather than simply on the supply side. Finally, the development of emerging economies relies heavily on the stemming of corruption and mismanagement both in the public sector and the private sector. Originality/value – The original value of this paper is the development of CG principles in the region.

scholarly journals Post-Soviet informality: towards theory-building

2015 ◽  
Vol 35 (3/4) ◽  
pp. 182-198 ◽  
Author(s):  
Huseyn Aliyev
Keyword(s):  
Informal Economy ◽  
Design Methodology ◽  
Theory Building ◽  
Economic Activities ◽  
Content Type ◽  
Secondary Sources ◽  
Soviet Space ◽  
Informal Practices ◽  
Proper Analysis ◽  
Post Soviet Space

Purpose – The purpose of this paper is to suggest that informal practices and institutions of post-Soviet countries differ from informality in other post-socialist regions and, therefore, proposes categorizing it as “post-Soviet informality” – a composite definition that extends beyond the concept of “informal economy” and encompasses, along with economic activities, social and political spheres. Design/methodology/approach – The arguments of the paper are based on a comprehensive analysis of secondary sources. Findings – This paper shows that, owing to the effects of antecedent regime’s legacies and the problems of post-communist transition, for the proper analysis of informality in post-Soviet countries it needs to be based on an own concept. Originality/value – This study, in contrast to the existing literature on informality in post-communist spaces, specifically focuses on the informal sphere of post-Soviet countries, suggesting that the informal institutions and practices thriving across the vast post-Soviet space not only differ from the informal spheres elsewhere in the world, but also from informality in other post-communist regions.

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