Hidden Potential: Rethinking Informality in South Asia

doi:10.1596/978-1-4648-1834-9

Publication:
Hidden Potential: Rethinking Informality in South Asia

dc.contributor.editor	Bussolo, Maurizio
dc.contributor.editor	Sharma, Siddharth
dc.date.accessioned	2022-11-08T19:29:29Z
dc.date.available	2022-11-08T19:29:29Z
dc.date.issued	2022
dc.description.abstract	Informality remains widespread in South Asia despite decades of economic growth. The low earnings and high vulnerability in the informal sector make this a major development issue for the region. Yet, there is no consensus on its causes and consequences, with the debate polarized between a view that informality is a problem of regulatory evasion and should be eradicated, and another which equates informality with economic exclusion. These views are at odds with the heterogeneity observed among informal firms. Recent advances in analyzing informality as the outcome of firm dynamics in distorted economic environments can help reconcile them. Building on these advances, the approach adopted in this volume clarifies that there are different types of informality, with different drivers and consequences. Using this approach, the papers in this volume revisit old questions about the relationship of informality to regulation and taxation, and also pose new ones, such as how digital technologies and multi-faceted policy designs can improve prospects in the informal sector. They have four main messages. First, informality in South Asia is dominated by firms that happen to be outside the purview of regulations because they are small, as opposed to those that remain small to escape regulations. Second, reforms of business regulations tend to have small direct effects on the informal sector, though they could have sizable indirect impacts on it if they succeed in removing major inefficiencies in the broader economy. Third, e-commerce platforms (and similar technologies) offer new opportunities to informal firms and workers, but many of them lack complementary skills or credit to benefit from such technologies. Fourth, a combination of contributory and non-contributory programs recognizing the heterogenous saving capacities of informal workers may be necessary to achieve more universal coverage of social insurance. A multi-pronged strategy is needed to tackle the developmental challenges presented by informality.	en
dc.identifier.doi	10.1596/978-1-4648-1834-9
dc.identifier.isbn	978-1-4648-1834-9
dc.identifier.isbn	978-1-4648-1836-3 (electronic)
dc.identifier.other	Library of Congress Control Number: 2022917984
dc.identifier.uri	https://hdl.handle.net/10986/38282
dc.language.iso	en_US
dc.publisher	Washington, DC : World Bank
dc.relation.ispartofseries	South Asia Development Forum;
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo
dc.subject	INFORMALITY
dc.subject	INFORMAL SECTOR REFORMS
dc.subject	DIGITAL PLATFORMS
dc.subject	SKILLS
dc.subject	CAPITAL ACCUMULATION
dc.subject	TAXATION
dc.title	Hidden Potential	en
dc.title.subtitle	Rethinking Informality in South Asia	en
dc.type	Book	en
dc.type	Livre	fr
dc.type	Libro	es
dspace.entity.type	Publication
okr.associatedcontent	https://www.youtube.com/watch?v=7GvzliXGcco Video Presentation
okr.crossref.title	Hidden Potential: Rethinking Informality in South Asia
okr.date.disclosure	2022-11-09
okr.date.doiregistration	2025-04-15T10:59:03.835479Z
okr.doctype	Publications & Research
okr.doctype	Publications & Research::Publication
okr.identifier.doi	10.1596/978-1-4648-1834-9
okr.language.supported	en
okr.region.geographical	South Asia
okr.topic	Macroeconomics and Economic Growth::Economic Forecasting
okr.topic	Macroeconomics and Economic Growth::Economic Growth
okr.topic	Macroeconomics and Economic Growth::Taxation & Subsidies