Exchange and Markets in Early Economic Development: Informal Economy in the Three New Guineas

The concept of an informal economy is a critique of the ideology of 'economic development' and originated from Keith Harts recognition of informal economic activity in 1960s Ghana. This book recounts Harts effort in 1972 to introduce the informal 'sector into development planning in Papua New Guinea, where traditional modes of exchange persisted.

Format: Hardback
Length: 296 pages
Publication date: 12 May 2023
Publisher: Berghahn Books

The concept of an informal economy has its roots in and serves as a critical examination of the ideology of economic development. Its origins can be traced back to Keith Hart's recognition of informal economic activity in Ghana during the 1960s. In the context of four colonialisms, namely German, British, Australian, and Dutch, this book delves into Hart's endeavors in 1972 to incorporate the informal sector into development planning in Papua New Guinea. However, this endeavor posed significant challenges due to the market's lack of institutionalization and the persistence of traditional modes of exchange. Instead of conforming to the post-colonial economic ideology, the subjected people resisted imposed bureaucracy and adopted informal and hybrid economic practices.

The informal economy encompasses a wide range of economic activities that are not regulated or monitored by formal institutions. It includes activities such as street vending, small-scale agriculture, domestic work, and informal trade. These activities are often conducted by individuals or small groups who do not have access to traditional financial institutions or employment opportunities.

One of the key features of the informal economy is its resilience and adaptability. It is able to respond quickly to changing market conditions and economic shocks, providing employment and income opportunities to those who are marginalized or excluded from the formal economy. However, the informal economy also faces several challenges, including lack of access to basic services such as healthcare, education, and social security, exploitation and discrimination, and limited legal protection.

The study of the informal economy has gained increasing importance in recent years as policymakers and development practitioners seek to address the challenges faced by marginalized communities and promote inclusive economic growth. This has led to the development of new policies and programs aimed at supporting and promoting informal economic activity, such as microfinance, entrepreneurship development, and social protection programs.

In conclusion, the informal economy is a complex and multifaceted phenomenon that emerged from and critiques the ideology of economic development. It provides employment and income opportunities to those who are marginalized or excluded from the formal economy, but also faces several challenges. The study of the informal economy has gained increasing importance in recent years as policymakers and development practitioners seek to promote inclusive economic growth and address the challenges faced by marginalized communities.

Dimension: 229 x 152 (mm)
ISBN-13: 9781800739680