Informal Sector 2
Informal Sector 2 : Also known as the unorganized sector or the informal economy, this concept was first mooted by the International Labour Organization (ILO) in 1972. The term is used by the ILO to " refer to very small-scale units producing and distributing goods and services, and consisting largely of independent, self-employed producers in urban areas of developing countries, some of whom also employ family labour and/or a few hired workers or apprentices; which operate with very little capital, or none at all; which utilize a low level of technology and skills; which therefore operate at a low level of productivity; and which generally provide very low irregular incomes and highly unstable employment to those who work in it. They are informal in the sense that they are for the most part unregulated and unrecorded in official statistics; they tend to have little or no access to organized markets, to formal credit institutions, to formal education and training institutions or to many public services and amenities; they are not recognized, supported or regulated by the government; they are often compelled by circumstances to operate outside the framework of the law, and even where they are registered and respect certain aspects of the law, they are almost invariably beyond the pale of social protection, labour legislation and protective measures at the workplace". The ILO also notes, that "Informal sector producers and workers are generally unorganized .. and in most cases beyond the scope of action of trade unions and employers' organizations .. [And] .. they generally live and work in appalling, often dangerous and unhealthy conditions".. The ILO has noted that the persistence of the informal sector is due to the inability of the other sectors of the economy - agriculture or other rural activities on the one hand and modern industry and services on the other - to provide adequate incomes or employment to a rapidly growing labour force (ILO 1991 in Mhone 1996)
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