3.0

credits

Average Course Rating

The informal economy is one of the most complex economic and political phenomena of our time. It exists in rich and poor countries alike, currently employs almost half of the world’s workers, about 1.8 billion people, and totals to economic activity of around $10 trillion. If the informal economy were an independent nation, it would be the second-largest economy in the world, after the United States and before China. In today’s globalizing environment, are informal economies a poverty trap or an engine of growth? Do they stimulate entrepreneurship and popular empowerment, or promote exploitation? How does an improved understanding of the size and organization of informal economies affect service provision, social policy or taxation? What are the implications of the informal economy for social cohesion and popular politics? The proposed course will address these (as well as other) questions related to the informal economy to offer students an understanding of such complex phenomenon from a variety of perspectives. The course will comprise three parts. Part 1 will explore the complexities of the informal economy, and the effects of informality on policies of inclusive growth. Part 2 will draw on empirical evidence and comparative case studies to examine informal economies in various regions, including Africa, East Asia, North and South America, and Europe, highlighting variations in activities, relations with the state, global integration and economic outcomes. Finally, Part 3 will discuss the ongoing economic policy shift from punitive measures to accepting informality as a virtual space through which citizens flow from job-seeker to compliant entrepreneurs.