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The Informal Sector
Interconnectedness, partnerships and continuity with the formal sector
So where does the informal sector end and the formal sector start?
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Interconnectedness with the formal sector |
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 re the formal and informal sectors distinct and separate? The informal sector does not exist in vacuum - there are clear interconnectedness, partnerships and continuity with the formal sector - maintaining a two way flow of labour, goods, finances etc between the two sectors.
The dividing line that separates the two sectors is also hazy, further buildng a 'smooth continuum' between them |
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Supply Chain Linkages:
In India, an estimated 45 percent of manufacturing output comes from informal subcontractors supplying formal firms (ILO).
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Urban Services:
In many African cities, 60 to 80 percent of transport, waste collection, and food vending services are provided through informal-formal partnerships.
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Digital Inclusion:
Platforms such as Indonesia's Gojek and Kenya's Jua Kali Online have formalized transactions for over 2 million informal workers, linking them to formal markets while maintaining flexible work structures.
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