The Informal Sector in Venezuela: Catalyst or Hindrance for Poverty Reduction

Author(s):  
Maria Beatriz Orlando Pagnataro
2015 ◽  
Vol 54 (4I-II) ◽  
pp. 825-840
Author(s):  
Hidayat Ullah Khan ◽  
Takashi Kurosaki

The approach of community-based development (CBD) is expected to improve targeting and reduce programme costs of poverty reduction policies, besides other positive contributions [Mansuri and Rao (2004)]. 1 Furthermore, the use of local knowledge is expected to bear greater relevance in a situation where credible monetary data for potential use in targeting activities are not available. According to Alatas, et al. (2012), in developing countries—where the majority of potential target group is employed in the informal sector—the availability of verifiable income records is always an issue. Therefore, it is difficult to identify target groups by employing conventional targeting techniques such as means tests. For these reasons, identification through the CBD approach is expected to improve targeting.


Author(s):  
Veronika Alhanaqtah

The chapter dwells on the theoretical and practical aspects of the informal sector involvement in the system of waste management in rural communities. First, the author discusses peculiar properties of the informal sector involvement such as social, economic, and environmental peculiarities. Second, organizing the informal sector in rural areas is considered. Such issues as the role of community members, organizational structures of community-based organizations, problems of community-based waste management, and directions of its solutions are covered. Third, the author provides summary of experience and policy recommendations for the integration of the informal sector in the waste management system in rural areas. The author concludes that policies facilitating the integration of the informal sector result in increasing recyclable recovery rates and reduction of total waste-management costs. Partnership with the informal recycling sector improves resource efficiency in rural areas and contributes to poverty reduction and environmental improvements.


Author(s):  
Abebe Shimeles

Growth has been high and widespread in the last decade in Africa. Whether this shift in Africa’s fortune has impacted poverty has been a subject of controversy. This chapter brings into focus recent evidence on the pace of poverty reduction in Africa and addresses the question of whether Africa is too poor to grow. The findings points to credible evidence that poverty has declined significantly since the 1990s but at a lesser speed than growth in per capita GDP. More importantly, global poverty tends to respond much more strongly to shifts in sector of employment, particularly to increase in employment in the industrial sector, than to increase in mean income. In Africa the closing of the gap in living standars between a large traditional and informal sector and a dynamic modern sector will remain the most effective way to achieve poverty reduction. Challenges of structural transformation and its attendant benefits are discussed using emerging thinking on industrial policies to achieve inclusive growth in Africa.


Author(s):  
Ernest Aryeetey

The expressions, “informal economy,” “informal sector,” and “informal employment” reflect statistical terms and definitions used to describe various aspects of informality. They are the result of several decades of work to develop a framework that adequately represents the multifaceted nature of informality as it applies not only to developing countries, but also to other transition and developed economies. The informal sector is generally viewed as the set of activities of small unregistered enterprises, while informal employment refers to employment within the formal or informal sector that lacks any form of protection, whether legal or social.1 The informal economy is a broader concept that encompasses all of these elements in their different forms, including their outputs and outcomes. The many different views about the drivers and composition of the informal economy in Africa have influenced various prescriptions and policy responses. On the one hand, some have viewed informality as being inimical to investment and growth, given that the activities undertaken usually fall outside of official regulation and control. The policy response has, therefore, often been to clamp down on or formalize the activities and relationships within the informal economy. On the other hand, informality is sometimes viewed as critical for growth and poverty reduction, given that the informal economy is inextricably linked to the formal economy while also serving as an important source of livelihood for millions of people. As a result of this, some effort has recently gone into providing a more supportive environment to enhance productivity within the informal economy and minimize its inherent vulnerabilities in the last decade. In the face of increasing globalization and access to new technologies that will drive the future of work, there is concern about the future of informal economic activities. Whether new technologies lead to a decline or upscaling of the informal economy in Africa will depend on several elements. Technology will not only shape how informality in Africa is viewed, but will influence the kind of activities undertaken, its links with the formal economy, and ultimately, the public policy response, which will itself be shaped by advances in technology.


Mousaion ◽  
2016 ◽  
Vol 32 (3) ◽  
pp. 29-48 ◽  
Author(s):  
Wakari Gikenye ◽  
Dennis N. Ocholla

The informal sector plays a key role in the economies of developing countries, through the creation of jobs; the production of affordable goods and services; and poverty reduction. However, the sector faces many challenges which include limited access to markets, lack of finance, and lack of access to new and changing technology. The purpose of this article is to report on the current diffusion of information and communication technologies (ICTs) in the informal sector in Kenya by showing the current access, use, impact and its potential. This study used a combination of quantitative and qualitative approaches. The survey research method was used to collect data by using structured and unstructured questionnaires from a sample of 390 micro and small enterprises (MSEs) participants. Data was obtained from different clusters of MSEs in Nairobi Province and Central Province in Kenya. The study found that over 70 per cent of the MSEs studied had between one and five employees, and mainly relied on themselves and fellow traders for business information. Their use of computer-based ICTs was found to be low with the majority of those studied using relatively inexpensive mobile phone technology. The researchers observed that government involvement in making the ICTs more accessible to the MSEs is yet to be felt, and more needs to be done in promoting their use and providing infrastructure that can support the use of ICTs.


2019 ◽  
Author(s):  
◽  
Sibongokuhle Sam Gumede ◽  

In the developing world, especially in Africa, informal sector businesses in rural areas, have been found to be the engine driving in poverty alleviation and in creating employment opportunities, economic development and poverty reduction. Although the government of South Africa has embarked on various interventions to address the growing problem of poverty and unemployment rate that is facing the country especially in the rural areas. As a result, many unemployed people and poor households venture into informal sector to escape poverty especially those people who live in rural areas where there are less job opportunities. It is against this background that this study attempts to document the role of the informal business sector in poverty alleviation in rural areas. The following objectives were implemented in order to achieve the intention of the study: to document the profile of informal business traders in Mtubatuba Local Municipality, assessing their knowledge in operating a business and the challenges they face, examine the contribution informal enterprises contribute to rural households in alleviating poverty. A multi-stage sampling technique was adopted to randomly select 180 controlled informal traders. A mixed research method was used on this study where, field observations, key informants and open-ended and closed questionnaires were used to gather the information. Analysis of the data was done with Statistical Package for the Social Sciences. The outcome of the study revealed that informal traders in KwaMsane and Mpukunyoni are from 40-45 years old on average and about 74.5% are female. Most of entrepreneurs came from a background of poverty. The most dominating type of businesses around the study area was tuck-shops. However, the sector is still confronted with various challenges that are obstructing it growth, sustainability and profitability. About 90% of entrepreneurs responded that they are breadwinners in their households meaning that their business income is the only source of income for their families. The study therefore recommends that the state and policy-makers need to recognise and involve entrepreneurs in drafting of policies so that these businesses can grow


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