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Download the file - United Nations Rule of Law

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negative manifestations <strong>of</strong> informal businessesand informalisation. Also, <strong>the</strong> changes have tooccur at <strong>the</strong> local level, which basically defines<strong>the</strong> informal economy. Successful mobilisation <strong>of</strong>businesses at local level, whe<strong>the</strong>r by <strong>the</strong> efforts<strong>of</strong> government, private sector or NGO, is a greatpromoter <strong>of</strong> equitable economic growth. Whilesuch interventions would be local in nature, <strong>the</strong>irimplementation recognises <strong>the</strong> global (universal)context that influences all development activities.In <strong>the</strong> end, <strong>the</strong> success and sustainability<strong>of</strong> any reform will depend on public recognitionand ownership <strong>of</strong> evidence-based transformationwithin <strong>the</strong> cultural, social and political milieu. 30To Sum UpThis introduction provided an overall frameworkon <strong>the</strong> legal empowerment agenda for businessrights and sets <strong>the</strong> stage for <strong>the</strong> sections thatfollow. We proposed that reforms can help <strong>the</strong>poor and <strong>the</strong> disadvantaged with <strong>the</strong> legal andinstitutional environment and <strong>the</strong> rule <strong>of</strong> law.People would <strong>the</strong>n be encouraged to develop<strong>the</strong>ir capacities, energies and initiatives and toaccess livelihood resources, build assets andgenerate efficient and productive enterprises. Thenext section will look at informal businesses andenterprises within <strong>the</strong> context <strong>of</strong> <strong>the</strong> informal-formalcontinuum; it will examine <strong>the</strong> relationshipbetween <strong>the</strong> informal economy, poverty and productivity,and it will map <strong>the</strong> informal economiesthat involve women and indigenous people.2. Informal Economy andInformal BusinessesInformal-Formal ContinuumEven though any debate on ‘informality’ centreson <strong>the</strong> dichotomy between formal andinformal, <strong>the</strong> concept is a lesser representative <strong>of</strong>dualism and embodies a continuum when viewedfrom any <strong>of</strong> <strong>the</strong> perspectives <strong>of</strong> activities, institutionsor contracts. The definition <strong>of</strong> informality,however, is ambiguous and informal economydenotes a plurality <strong>of</strong> activities that are also contextual.The term ‘informal sector’ is inadequatebecause it fails to represent <strong>the</strong> inherent heterogeneity,complexity and dynamism <strong>of</strong> this economyand its constituent activities. Also, <strong>the</strong> genderbias in <strong>the</strong> informal economy is probably underestimatedand women are more likely to be in thoseinformal activities that are under-counted, includingproduction for own consumption and paiddomestic activities in private households. Basedon <strong>the</strong> ILO’s classification, 31 <strong>the</strong> term ‘informaleconomy’ has come to be widely used to include<strong>the</strong> expanding and increasingly diverse group <strong>of</strong>workers and enterprises in both rural and urbanareas, operating without recognition under legaland protective frameworks, and characterised bya high degree <strong>of</strong> vulnerability.The informal economy is differentiated in terms<strong>of</strong> production units as well as employment status.Informal may <strong>the</strong>refore refer to firm features <strong>of</strong>types <strong>of</strong> firms, or it may refer to employment. Itmay also be characterised as an activity or a type<strong>of</strong> activity. On <strong>the</strong> one hand, it includes own-accountworkers in survival type activities, rangingfrom street vendors, cobblers and shoe shiners,garbage collectors and rag pickers, to <strong>the</strong> selfemployedentrepreneurs. On <strong>the</strong> o<strong>the</strong>r hand, <strong>the</strong>range <strong>of</strong> wage earners — from aid domestic work-210

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