Chant 2001

Question 1

The informal economy

Answer 1

Many people in the informal economy work on their own account in street-vending, the running of ‘front room’ eateries, stalls or shops, the operation of domestic-based industrial units, and the transport of passengers and goods

Question 2

when did the term ‘informal sector’ rise

Answer 2

in literature in the early 70s, especially Hart’s work in Ghana

Question 3

what is the formal sector split into

Answer 3

Legitimate and illegitimate

Question 4

why does data on informal employment need to be looked at with caution

Answer 4

it is irregular, hard to gather accurately, and varies with definition and classification by governments

Question 5

why has there been a general rise in informal employment

Answer 5

recession, cutbacks in public employment, closing of firms etc.

Question 6

choice

Answer 6

some people may chose to be informally employed, others have no choice

Question 7

possible benefits of informal employment

Answer 7

earn more, pride from self-employment, flexibility to adapt to changing demand and family circumstances

Question 8

women

Answer 8

often confined to the lowest tier of jobs, have the biggest brunt of economic deterioration

Question 9

how are people now viewing the informal economy

Answer 9

As a place of entrepreneurial potential rather than a poverty trap

Question 10

de soto (1989)

Answer 10

he argues the informal economy is a product of injustice regulation by governments, favouring the powerful and dominant groups in society

Question 11

who argued that ‘the informal economy is a product of injustice regulation by governments, favouring the powerful and dominant groups in society’

Answer 11

De Soto (1989)

Question 12

does De Soto (1989) see the informal economy as justifiable

Answer 12

he argues that illegality is a justifiable response on behalf of the urban poor, and they should be encouraged by governments rather than regulated

Question 13

Chen (2009)

Answer 13

argues informality may not be the problem, and formalisation may not be the answer

Question 14

who argues that informality may not be problem, and not formalisation may not be the answer

Answer 14

Chen (2009)

Question 15

what do people think is the best way to monitor informal economies

Answer 15

to encourage diversification through education and training, provide access to credit and management etc.