scholarly journals Is Informal Sector Employment Marginal to Formal Sector Growth?

2012 ◽  
Vol 51 (4II) ◽  
pp. 543-564 ◽  
Author(s):  
Nadia Tahir ◽  
Pervez Tahir

Pakistan has adopted a neoliberal regime to open the economy to global competition and reduce the role of the state. This directional change brought increased flow of overseas remittances, speculative investment, and consumerism. Consequently, the economy in mid-2000s grew but commodity-producing sector contracted. Public sector spending has been falling, especially on social sectors. There are inadequate provisions for social security and employment based income guarantees. However, this growth and stability was short lived and there is now a fragile state and slowing economy. In the absence of an effective regulatory role of the state, and due to the failure in developing a long-term strategy to harness the labour force potential, there is a huge informal sector existing side by side with the formal economy. Almost 22 million of the employed labour force is earning its livelihood in streets and the government has no record of it. The informal workers can be categorised as self-employed workers and wage workers, doing diversified jobs from petty traders to small producers and from rickshaw driver to shoe shiners. It is difficult to measure the value added contribution of the informal sector in Pakistan. Indirect estimation approaches on the basis of employment and hours worked have been used to estimate the contribution of informal economy. For instance, Idris (2008) estimates the share at 36.8 percent of GNP, which is significant. Arby, Malik and Hanif (2010) measured the size of informal economy in Pakistan through a monetary approach. They find that the size has declined considerably.

2021 ◽  
Vol 12 (3) ◽  
Author(s):  
Galina Davydova ◽  
Galina Makarova ◽  
Mikhail Tagiev

The article discusses some theoretical and methodological problems of defining the concept of shadow economy and determining its role in the economy and society, and estimates the role of the state in formation and development of the informal economy. The authors propose to define shadow economy basing not only on the widely accepted micro-economic approach, but also on the macro-economic one. In this relation, they point out the inverse dependence of shadow economy on two micro-factors, namely, the state of the economy and the quality of public management. According to the article, the quality of public and economy management could be assessed by the extent to which the government is able to balance its own peculiar interests (which might be unfavourable for the society, but not completely eradicable) and those of the economically active population striving for their wellbeing and stable economic development. The authors infer that shadow economy emerges and extends its scope if the legislation provides for the state to prioritize, instead of minimizing, its peculiar interests over the interests of the economy and economically active population. Therefore, in the majority of countries, shadow economy is, in fact, a result of flaws accidentally or deliberately designed in the current national legislative framework.


Author(s):  
Jane N. O. Khayesi

This chapter examines the function of the informal economy in Kenya and the shifting government responses to it through a review of key policies and documents from 1971 to 2017. As in many African states, the Kenyan informal economy is a critical source of employment and economic activity, providing 80 percent of new jobs in an average year. The key finding of this chapter is that the Kenyan government has undertaken a number of initiatives to support the informal sector but the impact of these initiatives remains controversial; some have been actively resisted by informal workers and businesses that believe their impact would be damaging. Thus, although a policy and institutional framework has been put in place with the official aim of encouraging the growth of the informal economy, tensions with the government remain, and there is a pressing need for the full implementation of a number of measures, most notably licensing.


2010 ◽  
Vol 40 (3) ◽  
pp. 390
Author(s):  
Yohanes Suhardin

AbstrakThe role of the state in combating poverty is very strategic. Combatingpoverty means to free citizens who are poor. The strategic role given thenational ideals (read: state) is the creation of public welfare. Therefore,countries in this regard the government as the organizer of the state musthold fast to the national ideals through legal product that is loaded withsocial justice values in order to realize common prosperity. Therefore, thenature of the law is justice, then in the context of the state, the lawestablished for the creation of social justice. Law believed that social justiceas the path to the public welfare so that the Indonesian people in a relativelyshort time to eradicate poverty.


2019 ◽  
Vol 4 (2) ◽  
pp. 297
Author(s):  
Fredick Broven Ekayanta

The discussion about development discourse in a country talking about how an idea affect economic policies. In Indonesia, the development discourse continues to change depending on the ruling regime. After the reformation, the dominant discourse is a neoliberal one that minimizes the role of the state in development. During the reign of Jokowi-JK, however, the role of the state strengthened. The government plans to build a massive infrastructure of the physical economy. The government legitimized its choice of action as the implementation of the Pancasila and Trisakti ideologies. Using the theories of Ernesto Laclau and Chantal Mouffe, this article argues that the state legitimizes its policies as implementing ideology by building infrastructure development discourse, but covers only pragmatic practices that occur. The practices themselves are pragmatic because the government ignored the fate and rights of citizens affected by infrastructure development.


2017 ◽  
Vol 230 ◽  
pp. 348-370 ◽  
Author(s):  
Catherine R. Schenk

AbstractSince colonial times to the present day, Hong Kong's position as a global financial centre is one of the enduring economic strengths of the territory. This success is often attributed to the distinctive role of the state, coined in the 1970s by the-then financial secretary, Sir Philip Haddon-Cave, as “positive non-interventionism.” The relationship between the market and the state has also been characterized as a form of corporatism, particularly in the financial sector as bankers were able to influence policy. However, closer examination of the behind-the-scenes relations between bankers and the state reveals a much more complex relationship, with the banks seeking protection that the government was not willing to provide. Moreover, the reluctance to regulate financial markets resulted in piecemeal interventions and weak implementation that undermined the stability of this sector and of the economy as a whole. This paper demonstrates the confusion over the concept and practicalities of positive non-interventionism, even for Haddon-Cave, and how the concept evolved towards a policy of “when in doubt, do nothing” during a period of financial instability. Along the way, the paper presents new evidence about the origins of Hong Kong's current banking structure.


2021 ◽  
Author(s):  
◽  
Patricia Gay Simpkin

<p>The purpose of this thesis is to examine the response of secondary school teachers to the Tomorrow's Schools education reforms. Their early response was made largely through their union, the Post Primary Teachers' Association (PPTA), in an industrial relations setting as the reform proposals were in development and taking their final shape. The interaction between the professional project of these teachers with the proposed reforms produced an outcome for secondary school education shaped by the interaction, rather than just by the reforms themselves. A case study situated at the intersection of industrial relations, state sector and education restructurings during the period 1984-1989 is the focus of the thesis. The argument is located within French regulationalist theory. The concept of the Keynesian Welfare National State provides a means for connecting education as part of the mode of regulation with the role of the state in New Zealand. The Fourth Labour Government entered into a political project that shifted the role of the state in the economy and society. The roots of the project lay in the discourse of economic rationalism. Policy resulting from this discourse was put into operation through legislation affecting all parts of the state. In education, the discourse of economic rationalism introduced a new approach, the values of which were at odds with those of the previous education settlement of the Keynesian Welfare National State. The object of the thesis is to trace the process of change within the secondary schools sector of education through the years 1984-1989 as the two different sets of values interacted. The assumption is made that institutional change results from a dynamic interaction between new ideas and continuities and discontinuities with the past. This allows for the possibility of the effects of agency on public policy. Analysis focuses on a series of industrial negotiations between the PPTA and the State Services Commission, the negotiating body for government. They took place as various government policy documents and resulting legislation altered the positioning of teachers within the state. The negotiations were of such a character that the educational discourses of economic rationalism and the education settlement of the Keynesian Welfare National State came into conflict and were debated at length. The thesis concludes that, by the end of the negotiations and despite the introduction of legislation on education, the values of secondary teachers remained substantially unchanged and in opposition to the intent of the government reforms.</p>


2021 ◽  
Vol 41 (1) ◽  
pp. 207-214
Author(s):  
JOÃO GABRIEL DE ARAUJO OLIVEIRA ◽  
RENATO NOZAKI SUGAHARA ◽  
JOANILIO RODOLPHO TEIXEIRA

ABSTRACT This comment came to refute and correct the idea of Charles (2007) about the negatively implications in the income distribution when the government expand the consumption in favour to households. We prove that the political choice, to both cases (increasing consumption or increasing profit), impact positively the income distribution and does not affect the essential nature of the Kaldor neo-Pasinetti dynamic equilibrium results and the “Cambridge Equation”. The stability of the model is guarantee by applying the Olech’s Theorem to the case.


2009 ◽  
Vol 62 (1) ◽  
pp. 87-119 ◽  
Author(s):  
Lars-Erik Cederman ◽  
Andreas Wimmer ◽  
Brian Min

Much of the quantitative literature on civil wars and ethnic conflict ignores the role of the state or treats it as a mere arena for political competition among ethnic groups. Other studies analyze how the state grants or withholds minority rights and faces ethnic protest and rebellion accordingly, while largely overlooking the ethnic power configurations at the state's center. Drawing on a new data set on Ethnic Power Relations (EPR) that identifies all politically relevant ethnic groups and their access to central state power around the world from 1946 through 2005, the authors analyze outbreaks of armed conflict as the result of competing ethnonationalist claims to state power. The findings indicate that representatives of ethnic groups are more likely to initiate conflict with the government (1) the more excluded from state power they are, especially if they have recently lost power, (2) the higher their mobilizational capacity, and (3) the more they have experienced conflict in the past.


1996 ◽  
Vol 28 (2) ◽  
pp. 279-297 ◽  
Author(s):  
Lawrence Boudon

AbstractThis article examines the Colombian peace process since 1982, arguing that the government must strengthen the state and expand its presence into the remote areas in which the leftist guerrillas have established para-statal organisations. The traditionally weak Colombian state has allowed rebel groups to flourish in isolated areas. However, President Ernesto Samper has announced a new initiative that features an ambitious plan to strengthen the state. The plan includes judicial and social reforms that address many of the guerrilla demands, but also threaten to undermine their para-statal organisations. Massive oil discoveries and tax reforms could provide the necessary funding.


Yustitia ◽  
2020 ◽  
Vol 6 (1) ◽  
pp. 108-118
Author(s):  
Suhendar Suhendar ◽  
Riva Rachmi Kusumah

Neutrality is an important capital for the State Civil Apparatus (ASN) as the government organizer. However, it is not easy to realize the principle called neutrality. There are several factors that make it difficult for ASNs to be neutral. First, the massive amount of ASN. ASN has a good understanding of the government's governance policies, as well as the authority possessed by the country's civil apparatus. Various regulations related to elections both in the handling of violations and the state civil apparatus are indeed well structured, but they should be able to reduce the potential behavior of the community, election participants and election organizers, but the potential for violations in the general election yesterday was large enough so that the authors are interested in researching deeper, based on Indonesia being a state of law both the government and its people must obey and abide by existing laws, but unfortunate law made easily by the public is one of the regulations related to general elections, this paper focuses on the role of the state civil apparatus in organizing general elections and handling election violations in the Indramayu district


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