Formal and Informal sector intersect when the subject relates opportunity costs enforcing the cost-benefit approach. Legalist perspective suggests that formalization is the mechanism to protect business and property rights, creating capital, raise productivity and attract investments. De Soto (2000) argues that the real estate value is worth of USD 9.3 trillion in the Third World countries that exceeds any kind of donation and loans from the developed world. We witness the unique “entrepreneurial ingenuity” that the poor created in the developing world. Although, it is a dead capital which cannot be used for economic development, unless treated properly. De Soto claims that the higher formalization, the more potential exists to accumulate wealth and decrease the poverty rate. The concept that he considers crucial generating capital flow is the “surplus value” created by the formalization and property rights. Assets’ economic potential must be fixed in order to initiate additional production. Assets must be integrated into one formal representational system; that is how the West succeeded in capitalist realm. In 1849, California, the Congress gradually integrated the informal property created by immigrants and miners . Thus, benefits from the company perspective of operating formally are as follows: limited liability not risking the whole property of the business/owner; enforceable commercial contracts, enabling business entities insure rights and obligations to be met; access to finance and market information, legalised and registered entities benefit from the trust of financial institutions; access to government incentives, including procurement tenders and export promotion policies; access to public infrastructure and services; ...
... middle of paper ...
...loping countries. Its costs originate from penalties after they are detected by the government authorities. Those fines are very stiff and usually covered by the modest output or the physical capital stock of the informal entities. On the other hand, MSMEs being informal often prevent themselves achieving economies of scale, enjoy legal and judicial benefits and social services, lacking bargaining power and ability to enforce contracts through the courts. Thus, it reduces the chances of investments from internal and capital markets.
We have positioned advantages and disadvantages of being formal/informal to better understand the challenges in both circumstances. However, it is necessary to closely analyse the precedence of successful formalization as well as successful informal institutions in order to challenge modern economic paradigms in development economics.
Piaget’s Formal Operational Theory leads to the understanding that adolescents, around the age of 11-12, are believed to enter a developmental stage in which they gain the ability and capacity to think abstract and reason scientifically. This dramatic leap in Andrew Clark’s case in The Breakfast Club shows that he understands exactly how his father acts and what kind of person he is as well as the kind of person his father expects him to be. He can logically see the expectations that his father has for him. If he is not the best at wrestling then his father will be disappointed and punish him via verbal abuse. Andrew also talks about how much pressure his father puts on him to be perfect; he understands the hypothetical possibilities that could
born to the Empress Maria Theresa and Francis I, the Holy Roman Emperor. She lived a carefree
“I argue that it is personhood, and not genetic humanity, which is the fundamental basis for membership in the moral community” (133). This is the central idea in Mary Anne Warren’s argument on the personhood of a fetus. She argues that in order for a genetic human being to be considered a person, he or she would have to possess all of the six criteria’s of personhood which include sentience, ability to reason and emotionality. In order to determine the viability of the personhood of a fetus she argues two things. Firstly, Warren argues that even on the surmise that a fetus has a strong right to life, abortion can still be seen as morally permissible. Warren demonstrates this by using Judith Johnson’s Violinist analogy, which asks the basic
Anne Bradstreet was born in 1612 in England. She, her father, and her five siblings moved to Massachusetts when she was young. Her parents were governors in Massachusetts while Anne was growing up. Anne had very poor health as a kid that would follow her until death.
“What poppet’s that, sir?” Is a quote said fearfully by Mary Warren, a character in the Crucible, in front of John and Elizabeth Proctor, Marshal Herrick and Reverend Hale when they ask her about the poppet. Mary was one of the girls who followed Abigail by pretending to be bewitched. She is also the servant of Elizabeth and John Proctor and then a court executive to “testify” against those accused of witchcraft with the other girls, including Abigail. Also when she went with John Proctor to testify against the other girls she blames John for bewitching her into doing his work for the devil and called him, “The Devil’s Man”, in order to save herself from getting hung for being accused of being a witch. Mary Warren and I can both be seen as
Their will migrate into the hands of development experts, who, coming from the outside determines the goals and wellbeing of members in the society. The policy response by these experts with capitalist background is to assist the poor to participate into the global market through the production of cash crops (Escobar 2011). While that may be valuable, it most often disregards other forms of support, policy, or broader changes within society and in turn put the peasant farmers in a position of buying products they could have
Of all the institutions envisioned as the Second World War waned and ended, few are considered as marring and as pervasive as those of the international economic development complex. By the international economic development complex, I mean not only the organizations meant to provide said aid, but also the governments financing those organizations as part of their international commitm...
Oprah Gail Winfrey was born on January 29, 1954 in Kosciusko Mississippi her parents abandon her at 2 years old and her mother would move to Milwaukee and oprah was left to stay in mississippi with her grandmother. her grandmother was very good at teaching oprah how to read considering
Flannery O’Connor is best known for her Southern Gothic writing style and grotesque characters. Dorothy Tuck McFarland states that “O’Connor created bizarre characters or extreme situations in order to attain deeper kinds of realism” (1). This writing style is seen in Flannery O’Connor’s short story “A Good Man is Hard to Find”. Flannery O’Connor uses many techniques to gain the reader’s attention and keep them captivated. One way that O’Connor does this is by revolving her stories around symbols and integrating religious elements into her works. O’Connor is widely recognized for incorporating her Catholic faith into her stories. “She was a devout Roman Catholic, with a Southern upbringing” (Whitt 1). There are many types of ways to interpret “A Good Man is Hard to Find”. One method is by using formalist criticism. Formalist criticism exists when a reader can approach, analyze, and understand a story by using elements like the setting and symbolism.
In the book The Mystery of Capital, Hernando De Soto claims that even if countries liberalize and open their economies to foreign investment, they will not be able succeed in bringing prosperity to common people until they have established a formal system of property rights. Although, poor people own homes and farms, small businesses and even quite large enterprise, they will not be able to succeed because there is a big difference between developing countries and Western countries. West countries have legal structures and established property rights, while developing countries have informal and often local ownership structures. Without titles, deeds, and articles of incorporation, the poor cannot use their extralegal property. This is what De Soto terms “dead capital,” capital that cannot legally be used to create more capital. It is the invisible potential that cannot be used do to the fact that it exists as the result of implicit, rather than legal, infrastructures. De Soto believes that by integrating the extralegal agreements into
In this view, he argues that despite money being a good way to get round the difficulties associated with the storage of property, the consequences are many as it permits people to accumulate the products of their labor and acquire wealth that is more as compared to the less talented or fortunate. Similarly, the uncontrolled accumulation of wealth puts unending pressure on the natural resources, which makes it less likely for others to amass the same wealth as the rich in the society. The inequality in property ownership is what brings about the concept of people being adversely affected by disputes and increasing concern for personal
“Art is a recurring form of human practice. Some have argued that all human societies have shown evidence of artistic activities.” (Carroll 5)
Having set the aims, objectives and research questions in the first chapter, this chapter zooms in to review literature available on the subject of land tenure regularization and its effect on housing investment from different parts of the world with specific reference to cities. The emphasis of this chapter is to analyse the link between land tenure regularization and housing investment in informal settlements. Also, the focus is on securing land rights in informal settlements, since it is widely believed that regularization of informal settlement rights leads to (increased) access to formal finance which subsequently encourages housing investment (Chome and McCall, 2005). The chapter starts with contextual definition of key terms, and then followed by global documentation on the impact of tenure regularization in informal settlement, focusing on the experiences of some selected countries. Since the aim of the research is to investigate the effect of land tenure regularization on informal housing investment and that both the Zambian Local Authorities and the government have intention to regularize informal settlements, lessons learnt from the case study countries will be noted, after which the chapter will be concluded in section 2.6 by way of a summary.
"The richly divergent patterns of economic development around the world hinge on the interplay of critical junctures and institutional drift. Existing political and economic institutions - sometimes shaped by a long process of institutional drift and sometimes resulting from divergent responses to prior critical junctures-create the anvil upon which future change will be forged."(109-110) Institutional drift is introduced as an instrument to further explain institutional evolution; used to explain the process of economical change.
The purpose of the article, Development Economics: From Classical to Critical Analysis by Susan Engel, is to explain the chronical development of economics as a sub-discipline. In economics, the neoclassical and the classical economics measure the increases in the domestic income better known as Gross Domestic Product (GDP), the inputs of production are labor, capital and land and the different measures for sectors such as agriculture, manufacture, and service sector. Nevertheless, Marxist and neo-Marxist approached the economy integrating aspects of psychoanalysis focusing on national income. Marxist, neo-Marxist, neo-classical and classical economics are part of the sub-disciplines of economics, each of these disciplines had different methods