For a long time, governments have seen street vendors, waste pickers and other informal activities as a headache and lost tax revenue opportunity. Efforts to formalise the informal economy and bring it under regulation have often failed, not just due to its sheer size, but also stemming from a lack of understanding of the political economy conditions that drive people to work in the informal economy in the first place. But now, perceptions are changing.
This blog post explores the steps needed to enhance opportunities for more productive jobs and to promote inclusion.