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Download the file - United Nations Rule of Law

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in helping <strong>the</strong> poor create wealth. However, institutionalreform is needed to eradicate poverty, attaindevelopment, and successfully transition to freemarket economies. Reforms that reduce bureaucraticred tape and bring <strong>the</strong> cost <strong>of</strong> legal complianceunder that <strong>of</strong> extra-legality are necessary t<strong>of</strong>ormalise those who were previously excluded.Such reforms should also create greater regulatorytransparency, allow for citizen input, and aim atfighting corruption and inefficiency. When tailoredto local circumstances, titling programmes thatturn dead assets <strong>of</strong> <strong>the</strong> poor into useable capitalare great tools for poverty reduction, development,and attaining legal inclusion for informals. 68To Sum UpThe constraints and barriers discussed in thischapter clearly establish <strong>the</strong> reasons why <strong>the</strong> pooropt to remain in informal businesses. Informalenterprises <strong>of</strong>ten have limited access to broadereconomic opportunities and are especiallyvulnerable to uncertainties, corruption and evenviolence which is prevalent outside <strong>the</strong> rule <strong>of</strong>law. They have few means to settle disputes apartfrom bribery or violence. Without legal rights orprotection, <strong>the</strong>y are in a continual state <strong>of</strong> legaland political vulnerability. Thus making formalitymore accessible could legally empower <strong>the</strong> poorto grow <strong>the</strong>ir businesses, enjoy <strong>the</strong> appreciation<strong>of</strong> <strong>the</strong>ir assets in formal property markets, andaccess credit more easily. This is <strong>the</strong> vision <strong>of</strong> <strong>the</strong>Commission as a means to alleviate poverty whichhas been <strong>the</strong> focus <strong>of</strong> this as well as <strong>the</strong> followingsection which highlights <strong>the</strong> importance <strong>of</strong> accessto markets, goods and services and infrastructure.4. Empowering InformalEnterprises through accessto markets, goods andservices, and infrastructureImproving <strong>the</strong> functioning <strong>of</strong> marketsThe close correlation between being poor andoperating in <strong>the</strong> informal economy in <strong>the</strong> ruraland <strong>the</strong> urban sectors is conspicuous. Also, highbusiness costs and <strong>the</strong> informal economy movein parallel in response to ill-designed, unstableand non-participatory rules and regulations, lack<strong>of</strong> secure property rights, inadequate governmentcapacity and resources to enforce laws and regulations,a lack <strong>of</strong> transparency, accountability andautonomy <strong>of</strong> judicial process as well as high degree<strong>of</strong> macroeconomic instability and corruption.Inadequate access to markets, and poor quality ornon-existent basic public services and infrastructurefur<strong>the</strong>r lead to low productivity, particularlyfor informal businesses.Agriculture accounts for a large share <strong>of</strong> grossdomestic product (GDP) and employment inSub-Saharan Africa. It is primarily a family activity,a component <strong>of</strong> <strong>the</strong> informal economy with <strong>the</strong>majority <strong>of</strong> farmers being small holders owningbetween 0.5 and 2.0 hectares. Women providenearly 50 percent <strong>of</strong> <strong>the</strong> labour force and producemost <strong>of</strong> <strong>the</strong> food crops for <strong>the</strong> family. The recentreview by <strong>the</strong> Independent Evaluation Group <strong>of</strong><strong>the</strong> World Bank assistance to agriculture in Sub-Saharan Africa makes a pressing case for <strong>the</strong>necessity <strong>of</strong> access to credits and markets, roads,fertilisers, seeds, water, etc. by <strong>the</strong> impoverishedfarmers to sustain <strong>the</strong>ir lives and livelihoods.Given that poor households are concentratedin agriculture, any improvement in <strong>the</strong>ir livelihoodswould necessitate entail in part in making230

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