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Chapter 4 Endnotes1 A business has been defined as an organisational entity designedto sell goods and/or services in an effort to generate pr<strong>of</strong>it or a financialreturn. They can be also be a source <strong>of</strong> employment for o<strong>the</strong>rs — inaddition to <strong>the</strong> owner and operator - and provide wealth and livelihoodsto <strong>the</strong> owners as well as <strong>the</strong> employees. Informal Businesses andInformal Enterprises are used interchangeably in this report.2 George A. Aryee: ‘Promoting Productivity and Social Protection in<strong>the</strong> Urban Informal Sector - An Integrated Approach. Report on Pilotprojects in Bogota, Dar es Salam and Manila -Summary <strong>of</strong> activities,lessons and recommendations,’ ILO, 3rd (updated ) edition. Dec 2006ISBN 92-2-110343-9.3 Discussion Paper ‘The Informal Economy,’ Committee onEmployment and Social Policy, ILO, March 2007.4 Woolcock M., ‘Some Initial Thoughts on Empowering InformalBusinesses,’ contribution to CLEP, June 2007.5 Hyden G., African Politics in Comparative Perspective,Cambridge University Press, New York, 2006.6 Hart, K. (1973) Informal income opportunities and urbanemployment in Ghana. Journal <strong>of</strong> Modern African Studies, 11, 61-897 Devey, R., Skinner, C,, and Valodia, Imraan. ‘Informal EconomyEmployment Data in South Africa: A Critical Analysis,’ Forum 2003Papers, Development Policy Research Unit, School <strong>of</strong> Economics,University <strong>of</strong> Cape Town, http://www.wiego.org/publications/devey%20skinner%20valodia%20Informal%20Economy%20employment%20data%20in%20ZA.pdf8 UNU-WIDER. 2006.9 Stiglitz, J. Making Globalization Work. Penguin Group. UK. 2006.p11.10 Stiglitz, J. Op Cit p11. Even if <strong>the</strong> targets <strong>of</strong> <strong>the</strong> MillenniumDevelopment Goal (MDG) for water and sanitation are achieved, <strong>the</strong>rewill still be more than 800 million people without water and 1.8 billionpeople without sanitation in 2015.Summary, Human DevelopmentReport 2006. Beyond Scarcity: Power, poverty and <strong>the</strong> global watercrisis. New York. 2006. p13.11 Sen, A. Development as Freedom. 1999. First Anchor Books, USA.12 A business has been defi ned as an organisational entitydesigned to sell goods and/or services in an effort to generate pr<strong>of</strong>i tor a fi nancial return. They can be also be a source <strong>of</strong> employment foro<strong>the</strong>rs — in addition to <strong>the</strong> owner and operator - and provide wealthand livelihoods to <strong>the</strong> owners as well as <strong>the</strong> employees.13 Palmade, V. and Anayiotos, A., Rising Informality, Viewpoint 298,World Bank, Washington D.C., August 200514 Xaba, J. Horn, P. and Motala, S. ‘The Informal Sector in Sub-Saharan Africa’. Working paper on <strong>the</strong> informal economy, EmploymentSector, International Labour Offi ce, Geneva. 2002. http://www.ilo.org/public/english/employment/infeco/download/ssafrica.pdf, p.315 Charmes, J. (cited at) Women in Informal Employment:Globalisation and Organising (WIEGO), 2 nd Annual Meeting, Cambridge,Massachusetts. 22-24 May 2000.16 ‘Parallel Session III: Integrated Employment and SocialProtection Policies to Upgrade <strong>the</strong> Informal Economy,’ 11th AfricanRegional Meeting, Addis Ababa, 26 April, 2007. http://www.ilo.org/public/english/region/afpro/addisababa/pdf/informaleconomy.pdf, p.117 M<strong>of</strong>okeng, C. ‘The Informal Economy in Africa & Its Impacton Women’, Paper presented at <strong>the</strong> Symposium on Women’s Rightsand <strong>the</strong> Role <strong>of</strong> Women in Africa, Canada, October 3, 2005. http://canadianlabour.ca/updir/africaenwomen.pdf, p.218 ILO DG report ‘The Dilemma <strong>of</strong> <strong>the</strong> Informal Sector.’ 1991.19 M<strong>of</strong>okeng, C. Op Cit. p.6.20 Gallin, D. ‘Organising in <strong>the</strong> Global Informal Economy.’Bogazici University Social Policy Forum: Changing Role <strong>of</strong> Unions in<strong>the</strong> Contemporary World <strong>of</strong> Labour, Istanbul, November 26-27, 2004.http://www.global-abour.org/workers_in_<strong>the</strong>_informal_economy.htm21 ‘Market Life in West Africa: Markets and <strong>the</strong> Informal Economy.’http://www.khm.uio.no/utstillinger/madeinafrica/english/marked_6.html22 A market is defi ned as a social arrangement that allows buyersand sellers to discover information and carry out a voluntary exchange<strong>of</strong> goods or services. It is considered as one <strong>of</strong> <strong>the</strong> two key institutionsthat organise trade, along with <strong>the</strong> right to own property (Wikipedia).23 Stiglitz, J. Op Cit. Also, nearly 741 million Indians in ruralareas are poorly served, despite a huge demand for fi nancial services,including an estimated annual credit demand exceeding $10 billion.24 Sen, A. Op Cit. p.4-5. Opportunities to satisfy hunger, achievesuffi cient nutrition, enjoy clean water and sanitation, receive basiceducation, health care, etc. are among <strong>the</strong> constitutive components <strong>of</strong>development.25 Discovering Hidden Assets. Financing <strong>the</strong> Base <strong>of</strong> <strong>the</strong> Pyramid.Developing Alternatives. Vol.10, Issue 1. Winter 2005. p4.26 Stiglitz, J. Op Cit.27 Chang, H-J. Stronger than Fiction? Understanding InstitutionalChanges and Economic Development. Policy Brief. UNU-WIDER.Finland. 6 November 2007.28 The underlying assumption <strong>of</strong> many interventions targetingwomen is that engagement in economic activity will translate intoeconomic empowerment (Safi lios-Rothschild, 1990; Goetz and SenGupta, 1996). Such assumptions rest on <strong>the</strong> belief that women secure<strong>the</strong> benefi ts <strong>of</strong> <strong>the</strong>ir involvement in an economic activity. However,research has shown that outcomes vary according to both <strong>the</strong> type <strong>of</strong>activity and women’s household circumstances.29 Given a formalisation system, an entrepreneur always decideswhe<strong>the</strong>r or not to formalise depending on <strong>the</strong> value <strong>of</strong> <strong>the</strong>ir fi rms.Arruñada, B. Pitfalls to Avoid when Measuring Institutions: Is DoingBusiness Damaging Business? Pompeu Fabra University. Barcelona. 17June 2007. p15.30 For instance, according to Friedrich Schneider, citizens behaveaccording to a ‘tax morality’, which describes <strong>the</strong> readiness <strong>of</strong>individuals to leave <strong>the</strong>ir <strong>of</strong>fi cial occupations and enter <strong>the</strong> informaleconomy. If citizens feel that <strong>the</strong>ir government is corrupt, <strong>the</strong>y will feelless inclined to cooperate with state rules and regulations. As such,it is assumed that a declining tax morality increases <strong>the</strong> size <strong>of</strong> <strong>the</strong>informal economy.31 Decent work and <strong>the</strong> informal economy. ILO, 90 th Session. 2002.pp.2-332 Recently completed studies <strong>of</strong> eight countries: Bangladesh,Brazil, Ghana, India, Indonesia, Tunisia, Uganda and Vietnam. Cord,Louise . Promoting Pro-Poor Growth: Lessons from country experiences.The World Bank. In Analysing and Achieving Pro-Poor Growth. Povertyin Focus. International Poverty Centre. UNDP. March 2007.268

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