THE RISE OF THE INFORMAL SECTOR IN INTERNATIONAL DEVELOPMENTAL DISCOURSE

Abstract

This article documents the rise to prominence of the informal economic sector in academic developmental discourse. After a brief survey of the South African context, the article contrasts the new way of viewing the informal sector with the old. It shows how this shift in attitudes, ranging from grudging respect to outright advocacy, has generated new conceptual tools with which to theorise economic informality. A keen appreciation of the imperatives entailed by the different perspectives of the main protagonists is vital to any reconciliation of the divergent policy prescriptions being advanced for the informal sector.Bureaucrats and human rights activists view informality through very different lenses. The World Bank’s exit/exclusion philosophy recognises that economies at different stages of development will require customised approaches in coming to terms with economic informality. However, the common denominator of the theoretical views articulated in the article is a recognition that the informal sector cannot be dismissed out of hand, and that it has grown to the extent that it warrants serious attention and respect. Measures taken by the government to compensate for losses incurred due to informality could prove ultimately to be counter-productive. The informal economic sector has become a force to be reckoned with.