Monday, March 23, 2009

The informal sector

The Wall Street Journal has an article on the growth of the informal sector in the undeveloped economies.
Economists have stressed the negative aspects of informal trade for decades. Informal businesses often don't pay taxes, and they routinely lack the capital and expertise to be as productive as big enterprises, leading to less innovation and lower standards of living.

I guess the reporter never read Hernando De Soto.

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