Informal Sector Research Articles

Empirical Evidence on Status of Street Vendors in Nepal amid COVID-19: A Structural Equation Modeling Approach

Background: During the COVID-19 pandemic, street vending businesses faced severe disruptions, exacerbating poverty and livelihood challenges for vendors. The government's neglect of this sector has further intensified these issues, highlighting the need for a comprehensive analysis of the situation. Objectives: This study aims to investigate the impact of COVID-19 on street vendors in Kathmandu Valley. Specifically, it explores the relationships between poverty, unemployment, and street vending, and examines the role of migration as a mediating factor. Methods: An explanatory research design was employed, utilizing a non-probability convenience sampling technique to collect data from 202 street vendors. Data were gathered using KOBO Toolbox and a structured questionnaire. Both descriptive and inferential statistics were applied, with Structural Equation Modeling (SEM) used to analyze relationships and impacts. Results: The analysis reveals a significant impact of poverty on unemployment among street vendors during the pandemic. Migration has a notable influence on street vending and unemployment, serving as a mediator between poverty and street vending activities. Domestic migration, in particular, has been pivotal in enhancing street vending in Kathmandu Valley. Conclusion: The study underscores the need for regulatory authorities at central, provincial, and local levels to develop a legal and political framework to support street vendors. Implementing such measures could significantly improve their status and mitigate the adverse effects of the pandemic on their livelihoods. Paper Types: Research Paper Keywords: Poverty, Migration, Street vending, Informal sector, Structural Equation Modelling, Nepal JEL Classification: E26, O17

Enhancing Capacity to Comply with Sustainability Standards in the Milk Value Chain in East Africa: Challenges, Prospects, and Policy Implications

This paper addresses the need to contextualize sustainability standards and supply chain management in dairy value chains in East Africa, where milk perishability and limited cold storage significantly impact the industry. The study highlights the importance of localizing these standards, given the greater dependence on local supply chains following the COVID-19 pandemic. Drawing on milk standards literature and various interventions aimed at promoting systemic change, this review analyses the capacity of marginalized stakeholders in East Africa’s dairy value chains to meet sustainability standards, focusing particularly on the social dimensions of these standards. The findings indicate that compliance with sustainability and safety standards is predominantly restricted to formal dairy networks, which process less than 20 percent of milk produced in the region. Most milk sales occur through informal or unorganized markets, which face significant barriers to meeting international sustainability benchmarks. The review advocates for the alignment of international sustainability standards with the unique conditions of the informal markets dominating East Africa’s dairy sector. It suggests enhancing stakeholder capabilities and addressing regulatory barriers as necessary steps for improving compliance with these standards. The co-operative model is highlighted as a promising approach to integrating farmers and marginalized value chain actors into the formal sector, thereby facilitating incremental adoption of sustainability standards. The paper identifies strategic entry points for organizing and upgrading the supply chain, including capacity building, certification, and catalyzing farmer groups to compliance and productivity.

Effects of Stone Mining on Household Livelihoods in Londiani Sub-County

Globally, rural areas are dominated by households earning less than a dollar per day and engaging in subsistence agriculture to meet their basic needs. In Kenya, governments and non-governmental organizations have taken measures to promote agricultural activities and non-agricultural activities to alleviate poverty in rural areas. One of such none agricultural activity in Kenya is stone mining. Stone mining is an alternative source of livelihood for most rural households. The objective of the study was to establishment the effects of stone mining on household livelihoods in the Londiani, Sub-County. Primary data was collected by use of structured household questionnaires and Key Informant Interviews. Descriptive statistics was used during data analysis where percentages were computed and tabulated. The study revealed that: stone quarry activities have adverse effects on residents of Londiani sub-County, notably: respiratory diseases, chest and skin infections, eye problems, rashes, and body injuries. Stone mining has numerous benefits to the miners' livelihoods. The money generated from stone mining is used to pay school fees, purchase food for the family, clothing, and health services and even build shelter for the family. The study recommends for an audit of the number of households directly involved in quarrying activities with a view to extending credit facilities to boost mining sector. The findings are significant to policymakers in the county government of Kericho, and national governments in formulating policies aimed at streamlining informal sectors into mainstream economic activities

FINANCIAL INCLUSION AND THE INFORMAL SECTOR DURING AND POST-COVID 19 ERAS: STATUS, CHALLENGES AND WAY FORWARD

COVID 19 is one of the major disasters that significantly disrupted the socio-economic statuses of various businesses and nations at large. The purpose of the study was to explore the extent to which COVID 19 affected financial inclusion in Zimbabwe. The quantitative research methodology and the purposive sampling technique were employed. Data was collected using in-depth and focus discussion group interviews from 35 participants. Data was analysed using thematic data analysis approach. Barred people in rural areas from accessing financial services which directly and indirectly increased the magnitude of poverty among people running informal businesses. Financial inclusion, is a key driver to poverty reduction; hence the negative impact of on financial inclusion significantly propels poverty in societies. Digitalizing financial services is one of the strategies which can be utilized to promote financial inclusion in the post- era. Financial institutions should use technology in financial services, so that those in rural areas do not incur transport and logistical costs for accessing financial services. Digital finance and other various financial innovations should be used to achieve financial inclusion in rural areas. Policies that encourage the delivery of formal financial services in rural areas should be developed. Governments should consider granting subsidy to providers of financial services so that they can offer basic financial services at low cost to the excluded population. Thus, governments ought to commit themselves to the delivery of accessible, affordable, appropriate and cost-effective financial services to unserved or underserved households. The study provides managers of financial institutions with various techniques of providing financial services to the informal sector in the post- eras in rural areas. It also provides managers with information pertaining to the risks in providing financial services in post-pandemic era in rural areas. Managers of internet service providers has a role in making sure that the rural folk have access to the facility so that digital banking systems become realizable.

Impact of informal employment on individuals’ psychological well-being: microevidence from China

ObjectiveThe number of workers engaged in informal employment in China has reached 200 million individuals, constituting a substantial contribution to the pursuit of high-quality development and the attainment of stable employment objectives. Nevertheless, the psychological well-being of informal workers cannot be overlooked. Therefore, this study aims to investigate the impact of informal employment on individuals’ psychological well-being.MethodsDrawing on data from the 2020 China Family Panel Studies (CFPS) survey, this work employs ordinary least squares (OLS) models and instrumental variable analysis to empirically examine the impact of informal employment on the psychological well-being. Furthermore, different tests were utilised to analyse the mediating pathway through which informal employment affects the psychological well-being.ResultsInformal employment exhibits a significant negative impact on the psychological well-being, particularly among samples characterised by low educational levels, limited financial resources, and non-agricultural household registration. The exploration of the underlying mechanisms indicates that informal employment negatively affects the psychological well-being of workers through pathways that include reduced access to health entitlements, increased working hours, and decreased job satisfaction, particularly with the work environment.ConclusionA recommendation is proposed; namely, to further establish a social security system that caters to the needs of the informal employment population and supports and regulates the development of flexible employment forms, with the aim of protecting and enhancing the psychological well-being of the informal employment population.

Факторы социальной жизнестойкости арктических сельских сообществ в современной России (на материалах прибрежных и островных территорий Архангельской области)

The article focuses on the problem of factors ensuring social resilience of Arctic rural communities. Using the materials of island and coastal territories of the Primorskiy district of the Arkhangelsk Oblast, the author studies how the features of social organization and life activities of specific communities ensure their reproduction as local social systems, help them to remain resilient to external challenges of economic, environmental and other types, and allow them to adapt to the changes in the region. In order to solve these problems, the author took part in a field study on the territory of 14 rural settlements in three rural municipalities in the period from July to early September 2022. The main method of obtaining empirical data is in-depth interview. The analysis of the interviews made it possible to identify a set of key factors of resilience of the rural communities under consideration. The first factor is the ability of local residents to reorient to subsistence farming and traditional crafts in the conditions of degradation of those sectors of the local economy that imply permanent formal labor employment. The second factor is the high level of social capital of communities, which determines the normalization of mutual assistance practices. The third factor is the involvement of a part of the local population in grassroots activities: social and cultural initiatives of local residents make it possible to attract external resources to solve the problems of territorial development, as well as support the collective identity of rural community members and increase its cohesion. The fourth factor is the return of retired local natives who previously migrated from rural to urban areas.

Determinants of the Root Causes and Success Factors for the East African Community Regional Force Intervention in Managing Intractable Intrastate Conflicts in the DRC

Globally, the Democratic Republic of Congo (DRC) has had one of the most intractable conflicts. Several attempts, ranging from global, continental, and regional levels, have been made to address these conflicts with little success. The deployment of the East African Community Regional Force (EACRF) in 2022, a period characterized by the emergence and intensification of the March 23 Movement (M23) — a rebel group that seeks to advance the interests of the Congolese Tutsi ethnic group within the DRC military and political system — was envisaged to change the fortunes regarding the conflicts in the DRC. This was because it would be the first localized attempt at intervention. However, since the intervention of the East African Community Regional Force (EACRF) in the DRC, there seems to have been little progress regarding the management of intractable conflicts. This paper sought to investigate the determinants of the success of the EACRF intervention in the management of the DRC’s intractable intra-state conflict. The study is underpinned by the interpretivism research philosophy, and the paper was anchored on Conflict Transformation Theory to sustain the study variables. The researcher adopted two research designs — descriptive survey and historical longitudinal research designs — to ensure valid research results. The target population was 297, from which a sample of 177 was derived, including EACRF ground personnel, military attachés, members of the local community, leaders of rebel groups, and refugees, who were sampled using census, simple random, snowballing, and purposive sampling techniques. The study findings established that EACRF's success was inhibited by a number of factors: 91 (60.66%) respondents acknowledged that institutional weaknesses in East African Community (EAC) states contribute to prolonged conflicts in the DRC. Additionally, 43 (28.66%) respondents stated that regional security competition, namely power rivalry, affects the management of the DRC conflict. Furthermore, 8 (5.33%) respondents cited the informal economy, and 8 (5.33%) respondents mentioned trans-border social networks as additional factors contributing to the complexity of internal conflict in the DRC. The paper concludes that the EACRF has had limited success due to several factors, thereby inhibiting its management of intractable intra-state conflicts in the DRC. The paper recommended that the EAC strategically focus on region-centric intervention in New Warfare in eastern DRC, especially in the Republics of Burundi, Rwanda, and Uganda, given that rebel groups originating from these nations frequently operate in the Eastern Region of the Democratic Republic of the Congo. Strengthening good governance in these states, including the DRC, is necessary to quell ethnic unrest that fuels internal and regional conflicts within the EAC.

Indirect Evidence of the Effect of Informal Economy in the Behavior of the Foreign Currency’s Prices: A Case Study

The effect of informal economy on the behavior of exchange rate is complex and difficult to evaluate in common economic conditions. But if informal sector is sizeable and a certain foreign currency is used for transactions therein without being converted, the supply and the demand for this currency, the velocity of the money circulation, and several other variables would be impacted, implicating a measurable response in the corresponding FX rates’ behavior, while the other currencies’ prices will be less affected. Consequently, distinguishable dissimilarities regarding dynamics and statistical features are expected for the exchange rates of the currencies traded in the country. By evidencing and analyzing them, we can proceed with a backward analysis to identify the hidden relationships between informal economy and exchange rates. As a case study we analyzed the FX rates of main currencies traded in Albania, considering that specifically the Euro is used at a non-neglected volume as national currency substitute in the informal sector. Recognizing the complexity of the relationship under investigation, we have employed an interdisciplinary approach by incorporating econometrics and econophysics approaches. After examining the multifractal features of each FX series, the non-stationarity measure for distributions of the corresponding rate of returns, and the significance of self-organizing regimes on FX time series, we noticed that the price of the EU currency behaves distinguishably different. We described the specific features observed for the Euro-ALL exchange rates as an indication of their response to the informal economy and partial usage of the Euro in the role of national currency in this sector. Those findings are used also for opinionizing regarding formalization issues and scenarios of replacement of national currency by the Euro. Acknowledging that informality is undoubtedly harmful for the economy, this work is limited to providing an alternative explanation of specific FX rates comportment observed in the country, and to offer a descriptive analysis for similar systems.

Personality Traits and Tax Evasion Attitude: The Moderating Role of Religiosity

Tax evasion remains a significant issue despite regulatory improvements, with informal sectors, income underreporting, and corruption contributing to the problem. Studies typically focus on economic factors but overlook non-economic influences, such as psychological factors, social norms, and religion. This research explores the impact of religiosity on tax evasion, particularly how it affects the relationship between personality traits and tax evasion behaviors. Using a sample of 443 individuals from salaried and self-employed backgrounds, the study employed survey methodology to gather data. The results of analysis revealed that personality traits like conscientiousness, openness to experience, neuroticism, agreeableness, and extraversion significantly influence tax evasion attitudes. Conscientiousness particularly affects self-interest tax evasion, while religiosity moderates the relationship between extraversion and self-interest tax evasion and between conscientiousness and justice of system tax evasion. The findings suggest that incorporating religious values into tax policy could help reduce tax evasion. Policymakers are advised to enhance tax compliance by promoting tax awareness through educational programs, emphasizing community benefits, and collaborating with religious scholars to foster ethical tax practices. The study underscores the importance of considering religiosity and personality traits in developing strategies to combat tax evasion, especially in developing countries.

Insurance Services, Sustainability, and Transformation of Businesses in the Nigerian Informal Sector: A Conceptual Review

ABSTRACT This study explores the impact of insurance services and the sustainability of businesses in the Nigerian informal sector. The analysis relies on extant literature sourced from various sources to develop an understanding of the current trends of insurance services in the Nigerian informal sector and develop a suggested model for improved insurance service delivery in the Nigerian informal sector. Findings show that stakeholder commitment is necessary for better impact of insurance services in the sector. The conclusion emphasizes the possibility of business sustainability through consolidated insurance services among stakeholders in the sector. Part of the suggestion for further research is the need for a wider focus on insurance practices both in the formal and informal sectors of the Nigerian economy. This is coupled with an exploratory view on the impact of policy development on insurance support to business activities in the Nigerian informal sector.

Is G.A. Cohen’s Egalitarian Ethos Consistent with Unconditional Basic Income?

Abstract The egalitarian ethos, as formulated by G.A. Cohen, and the unconditional basic income are two proposals that a priori may seem incompatible. The reason is that Cohen’s ethos – aimed at reducing inequality without sacrificing efficiency or freedom- requires that individuals work hard in socially useful occupations without asking for any inequality-generating incentives. On the contrary, the UBI, as conceived by Van Parijs and van der Veen, consists of an income paid by the government to every full member of society regardless of their willingness to contribute to society in the form of work. In short, the ethos includes a productive requirement while the UBI has an unconditional character. However, if we introduce an absolute level of affluence above what occupational autonomy takes precedence over efficiency and if we broaden the range of socially useful contributions beyond formal employment, the tension between the egalitarian ethos and UBI will be alleviated.

Impact of the Covid-19 Pandemic on Women Entrepreneurs in the Informal Business Sector in Tikapur City, Nepal

Impact of the Covid-19 Pandemic on Women Entrepreneurs in the Informal Business Sector in Tikapur City, Nepal

An analysis of the contribution of the informal milk market to nutrition in Kenya

BackgroundThe dairy sector in Kenya is an important part of the agricultural GDP of the country. Its legal framework was reformed in 2004 to address the economic importance that the informal sector (i.e. trading on raw milk) had for smallholders’ producers. However, this reform was accused of being a pro-poor policy instead of focusing on the development of the formal dairy sector. In recent years, there has been pressure to go back to the pre-2004 regulatory system and to illegalize the raw milk trade. An aspect that has been absent from the discussion is the contribution that the informal market has to households’ nutrition. The contribution of this paper is to address this shortcoming using the most recent Kenya Integrated Household Budget Survey for 2015–16.ResultsThe results indicate that the rural annual milk consumption (70.2 L) surpasses that of urban areas (68.8 L). These values are different to those found in the literature. County consumption varies depending on the availability of milk, which appears associated to the production capacity and the climate of the region. However, regardless of the region unpacked milk is the most consumed dairy item representing 72 per cent of the total countrywide; 84 per cent of the rural total and 55 per cent of the urban area.ConclusionsThe results indicate that the sector provides significant nutrition especially to poor economic groups. Therefore, attempting to ban the informal sector would have negative consequences for Kenya's food security, impacting mostly on the nutritional security of low-income households. In addition, the nutritional aspects that the informal dairy sector provides need to be considered alongside the economic ones in future debates regarding regulatory reforms of the sector.

The importance of the informal food economy to food access and security: An examination of the Western Isles of Scotland

In many countries the informal food economy (IFE) plays an essential role in ensuring food access and security. In addition, IFEs can improve choice, have a positive impact upon diet as well as generate household income and employment. While studies have primarily focused upon the role of IFEs in developing economies, their importance within more developed rural markets warrants further attention. This paper draws upon key learnings from the existing literature and examines how IFEs operate within a developed, rural economy. Framed within a social economy framework, it examines the role and function of IFEs across the Western Isles of Scotland. Despite being part of an advanced market economy, food access and security in this region has previously been identified as problematic for particular consumer groups and communities. The research identifies that due to the continued expansion of the formal retail sector and the growth of on-line delivery, food access has become less of an issue for many island residents. This is not to suggest that IFEs are inconsequential. Apart from their role in strengthening social and community linkages, for certain segments of the island population they continue to play a key role in providing food access. The research also identified an increasing reliance upon a small number of national retail chains. This suggests, that in future, food security in remote and rural communities could become increasingly vulnerable to market externalities.

A Mobile based Decision Support System for Postural Evaluation of Agricultural Activities with Rapid Entire Body Assessment (REBA)

Agriculture is an unorganized sector and it is a very high drudgery prone profession due to the absence of awareness and entry of advanced agricultural technologies. Many farming activities and operations are carried out by farm workers in the agriculture sector, where they are subject to very poor working conditions which can lead to physical and mental stress. Workers in agriculture experience musculoskeletal disorders in various body parts throughout various agricultural operations. These problems are caused by heavy work loads, repetitive movements, uncomfortable postures, prolonged periods of time spent in neutral or unsupported positions and the use of conventional equipment and implements that are not ergonomically built. The ergonomic risk factors present in the workplace can be examined using various evaluation instruments to ascertain the workers abilities and drawbacks. The work-related risks are measured using the scientifically validated posture assessment instruments. Rapid entire body assessment (REBA) is a technique that assess a person’s complete body including wrists, fore arms, elbows, shoulders, neck, trunk, back, legs and knees. It uses a systematic process to find the postural musculoskeletal disorders and risks associated with the job tasks. A mobile application is developed to assess the agricultural activities on the basis of physiological analysis and postural analysis using REBA ergonomics technique. The application evaluates the drudgery involved in the agricultural work by using physical assessment followed by postural ergonomics methods and provide recommendation of correct posture to avoid developing musculoskeletal disorders.

The Role of Plastic Recycling Shops in Khulna City Within A Circular Economy Framework

Plastics are widely used in many industries, leading to a growing plastic waste problem. To address this, a shift from a linear economy to a circular economy is required. In Bangladesh, the waste management sector predominantly relies on the informal sector, which remains underappreciated and inadequately supported. This study evaluates the environmental, economic, social, and urban development dimensions of recycling shops within the informal sector, highlighting their potential to alleviate ecological burdens, enhance energy efficiency, and generate local employment. A comprehensive methodology encompassing field surveys, environmental and economic benefit calculations, and fuzzy logic analysis are employed. The findings demonstrate that recycling shops, through a circular economy approach, substantially mitigate greenhouse gas emissions, reduce litter, save energy, and conserve landfill space. Among the 35 recycling shops examined, 22.86% were identified as low-volume recyclers, 48.57% as medium-volume recyclers, and 28.57% as high-volume recyclers, each group exerting correspondingly low, medium, and high positive impacts on the environment and society. Collectively, these shops manage 6.68 tons of PET bottle labels, reduce greenhouse gas emissions by 509.35 MTCE, prevent 202,186.9 tons of litter, save 5,728.1 m³ of landfill space, and conserve 406.8 barrels of oil monthly. Additionally, they employ 427 individuals. Expanding recycling shop operations, exploring new recycling technologies, and examining supportive policies are crucial for improving Khulna City's plastic waste management and overall sustainability. Journal of Engineering Science 15(1), 2024, 31-43

Survival strategies of informal sector workers in Bali's tourism industry

The informal tourism sector plays a vital role in the local economies, particularly in destinations such as Bali. This aligns with the United Nations Sustainable Development Goal 8, which focuses on promoting decent work and economic growth. These workers, who are often ignored, greatly enrich the experience of tourism but encounter distinct obstacles on a daily basis. Gaining insight into their methods for staying alive is crucial. Informal workers face distinct limits compared to formal sector employees, resulting in less defined sustainability and growth strategies. A thorough investigation was carried out in nine regencies in Bali, utilizing observations and interviews, in order to examine these tactics. This method facilitated a comprehensive comprehension of their day-to-day routines and difficulties. The study identified four crucial survival strategies: implementing prudent financial management to sustain businesses and meet daily needs, utilizing communication skills to maintain income and continuity, enhancing social capital through positive relationships with fellow workers, and comprehending government policies. Out of these factors, effectively managing economic capital is crucial for maintaining livelihoods in the fiercely competitive tourism business. The results of this study provide a basis for future policies or interventions aimed at supporting and enhancing the lives of informal sector workers in tourist areas such as Bali.

The Transformation of Zimbabwe’s Informal Economy: From Petty Trade to Vibrant Sector

This article explores how the informal economy of Zimbabwe has transformed from a disorganised petty trading sector to a significant economic sector, despite facing challenges. Data were collected in Norton using ethnographic methods. Results show how the sector innovated and expanded into an organised and fairly productive sector. The article debunks stereotypes about the informal economy, such as being a survivalist or low-productivity sector. It argues that the sector has become resilient and vibrant over time and grown in innovative and creative ways as it fights for a place in an economy crippled by economic crises.

Identifying Development Priority Areas Using Index of Dissatisfaction: A Case Study of a Coastal Town in the Philippines

In local planning practice, subjective well-being (SWB) approaches continue to gain traction. For the past two decades, researchers have devised tools that generate action or priority lists, such as by asking self-reported life satisfaction or satisfaction levels across aspects of their lives (e.g., health, finances). These listings are especially beneficial for rural areas where local income and other resources are inadequate and misdirected. This article examines residents’ perceptions of a rural coastal community in the Philippines on various personal and related factors affecting their well-being. A comprehensive collection of quantitative tools (e.g., principal component analysis, seemingly unrelated regression, and Index of Dissatisfaction (IDS) scores) were used to identify priority development areas and to understand the factors influencing such decisions. The research process, which was both comprehensive and inclusive, took into account various locations, ages, levels of formal education, household sizes and employment characteristics, which have distinct choices. This broad scope of the research ensures that the voices and needs of all residents are heard and considered, promoting a sense of fairness and equity in the planning process and making the audience feel more informed and involved in the process of regional development.

Tackling a worrisome rate of lost to follow-up among migrants with hepatitis B in French Guiana

ObjectivesManagement of Hepatitis B virus (HBV)-infected patients, whether they are receiving treatment or not, necessitates long-term follow-up. This study evaluated the rate of lost to follow-up (LTFU) among HBV-infected patients and the feasibility of a callback strategy to re-engage these patients in HBV care. Patients and methodsWe conducted a retrospective study involving HBV-infected patients attending the outpatient clinic at Cayenne Hospital, French Guiana. LTFU was defined as patients who had not attended the clinic for more than 18 months. A callback strategy was implemented to re-engage LTFU patients in HBV care. ResultsBetween 1st January 2015 and 31st December 2018, 203 HBV-infected patients were referred to the outpatient clinic; 95/203 (46.8 %) were LTFU, resulting in a crude LTFU rate of 2.6 (95 % CI, 2.1–3.2) per 100 person-years. At baseline, patients aged 30–40 years (aOR, 0.48; 95 %CI, 0.24–0.95) and those who initiated treatment (aOR, 0.26; 95 %CI, 0.10–0.60) were less likely to be LTFU. Through application of the callback strategy, 55/95 (58 %) patients were successfully contacted, and 46/55 (84 %) attended the outpatient clinic for a liver assessment. The EASL criteria for treatment eligibility were met by 3/46 (4 %) patients. Compared to non-LTFU patients, LTFU patients were more likely to be in informal employment (p = 0.03) and to be receiving state medical assistance (p < 0.01), and had lower levels of knowledge about their condition (p < 0.01). ConclusionsThe callback strategy to re-engage LTFU patients in HBV care is feasible and effectively identifies those eligible for antiviral therapy.