Monday, October 28, 2013

the impeccable logic of development ...

... comes at the very end of this article on India's huge informal economy from The Hindu. Given the continued growth of System D in India, even in an era of unprecedented total economic growth,
It must be the case that there are many areas where the informal sector is not only not in competition with the formal sector, but actually services its requirements....In the process low wages in the informal economy help sustain profits in the formal sector. Only when this possibility is taken into account can we explain the size and scope of India’s informal economy.
After all that's been written about informality in the four decades since Keith Hart coined the term in 1973, shouldn't this be the start of any analysis rather than the tentative conclusion.

No comments: