‘Second economy’ versus informal economy: A South African affair

Abstract

The informal economy is a vibrant and growing phenomenon, offering both opportunities and lessons on resilience and innovation. When considering global social, economic and environmental challenges, resilience and innovation are valuable response strategies. The notion of a green economy has similarly inspired a number of ideological, geopolitical and institutional responses, yet a review of the dominant approach indicates the propensity to undervalue or ignore the informal economy. Within the context of sustainable development and poverty eradication, connecting the informal economy with the green economy is imperative. This paper explores possible connections between the green economy and the informal economy in South Africa and argues that by engaging the informal economy in discussions on the green economy, a more informed policy and planning environment may ensue, resulting in more socially equitable and environmentally sustainable development.