The Invisibility of Wage Employment in Statistics on the Informal Economy in Africa: Causes and Consequences

Abstract

This article challenges the claim, along with the statistics that support it, that self-employment is by far the dominant employment status in the informal economy. The article begins by reviewing key insights from relevant literature on the informal economy to argue that conventional notions of ‘wage employment’ and ‘self-employment’, while unfit for capturing the nature and variety of employment relations in developing countries, remain central to the design of surveys on the workforce therein. After putting statistics on Tanzania’s informal economy and labour force into context, the analysis reviews the type of wage employment relationships that can be found in one instance of the informal economy in urban Tanzania. The categories and terms used by workers to describe their employment situation are then contrasted with those used by the latest labour force survey in Tanzania. The article scrutinises how key employment categories have been translated from English into Swahili, how the translation biases respondents’ answers towards the term ‘self-employment’, and how this, in turn, leads to the statistical invisibility of wage labour in the informal economy. The article also looks at the consequences of this ‘statistical tragedy’ and at the dangers of conflating varied forms of employment, including wage labour, that differ markedly in their modes of operation and growth potential. Attention is also paid to the trade-offs faced by policy-makers in designing better labour force surveys.     

Labour in Paradise: Gender,Class and Social Mobility in the Informal Tourism Economy of Urban Bali,Indonesia

Bali’s recent socio-economic transformation is mainly a result of rapid growth in mass-tourism, which, as a capitalist labour-intensive industry, represents a new regime of labour that reorganises, dislocates, and multiplies wage labour opportunities. ‘Localising globalisation’ through labour in tourism alters conditions for gaining a living wage; yet, it also produces new contestations of gender, caste and class. This article argues that the labour regime shift has produced a large informal economy that provides new paths for social mobility for low caste Bali-Hindus, whilst at the same time class, gender and caste inequalities interlock in the shaping of different labour trajectories.     

IDENTIFYING CAUSALITY IN PUBLIC INSTITUTIONAL CHANGE: THE ADAPTATION OF THE NATIONAL ASSEMBLY FOR WALES TO THE EUROPEAN UNION

The aim of this article is to identify causes and effects of public institutional change. Analysis is centred on those endogenous, not exogenous, sources of political change that account for the institutional metamorphosis of the Welsh Assembly in its engagement with UK‐EU processes since 1999. The central research question addressed is to explain a qualitative shift in the logic of action of Assembly engagement, resulting in the conduct of a territorially sensitive ‘parliamentary’ EU scrutiny, but within a model of executive devolution. To capture agency and change, and to engage with sociological institutionalist debates, the article develops analytical tools of ‘framing’ and ‘operationalizing’ institutions to study the interplay between informal and formal processes of institution building since devolution. In so doing, we place refined sociological conceptions of institutions at the heart of analyses of political discontinuity and theorization of public institutional change.     

‘Doing Gendered Age’: older mothers and migrant daughters negotiating care work in rural Lao PDR and Thailand

In this article I analyse the reconfiguration of the intersection of relations of gender and age manifesting between older mothers and their migrant daughters. For this I study the negotiation of care work between differently positioned women, drawing on material from Lao PDR and Thailand. Theoretically I draw on the constructivist notion of ‘doing gendered age’, which allows us to integrate the performance of gender–age subject positions with structural changes, most notably the generational dynamics of rural transformation, an expanding neoliberal labour market and demographic transition. I conclude that gender–age subject positions hold women accountable for ‘doing gendered age’ in a particular manner. This forms an important basis for informal mechanisms of social protection. However, these subject positions are neither pre-given nor voluntary but are enacted through everyday social interaction and subject to change.     

Enforcing labour rights of irregular migrants in Indonesia

The multi-directional nature of labour migration flows has resulted in an increasing number of countries having become both senders and receivers of regular and irregular migrants. However, some countries continue to see themselves primarily as senders and so ignore their role as a receiving country, which can have negative implications for the rights of migrants in their territory. Using the example of Indonesia, which is State Party to the 1990 UN Convention on the Rights of All Migrant Workers and Their Families, this article demonstrates that irregular migrant workers in this country have the legal right to protection against labour exploitation even when they work despite the government’s prohibition on employment. The article discusses the ‘right to work’ and how international human rights law has translated it into the ‘right to protection from labour exploitation’ for irregular migrants in Indonesia. By way of two case studies about the Indonesian government’s handling of irregular migrants, it shows how it prioritises enforcement of the employment immigration law over labour and employment laws much like countries that have not ratified the ICRMW. It also draws attention to legal protection gaps that emerge for asylum seekers when they are recognised to be genuine refugees.     

Labour supplies in historical perspective: A study of the proletarianization of the African peasantry in Rhodesia

The article attempts to show that W. A. Lewis's model of economic development with ‘unlimited’ supplies of labour has a far more limited application to the Rhodesian experience of capitalist development than W. J. Barber has assumed. ‘Unlimited’ supplies of labour were to a large extent the result of a process of ‘primary accumulation’ in which political rather than market mechanisms predominated and through which the gap between labour productivities in the peasant and capitalist sectors was progressively widened.

Thereafter, supplies of labour did become ‘unlimited’ and, for a period of about two decades, the Rhodesian economy displayed the main features of the Lewis model. However, owing to structural changes initiated by World War II (growing dominance of the economy by foreign oligopolies, development of a manufacturing industry, growing ‘superiority’ of capital intensive techniques, etc.), Lewis's assumption that investible surpluses are reinvested in loco so as to ‘widen’ capital ceased to be valid in the post‐war period.

Barber's failure to understand the real nature of capitalist development in Rhodesia is attributed to the general antihistorical bias of modern economics.     

Economic Transformation Outside the Law: Corruption,Trust in Public Institutions and the Informal Economy in Transition Countries of Central and Eastern Europe

This article considers the role of the informal economy in Central and Eastern European post-communist countries. The informal economy is defined as the ‘black’ economy, which is monetised but outside the law (often illegal) on the one hand and the ‘household’ and ‘social’ economies which are non-monetised and non-legal in the sense that they are outside of legislation. The article shows that in some countries the black economy is very important for supporting household incomes (Serbia and Croatia) and in other countries the household or social economies are predominant (especially Romania and Ukraine). In a third group of countries the formal economy predominates over other economies (especially the Czech Republic and Hungary). The article goes on to look at what kinds of people participate in these different economies and concludes that whilst the household and social economies are a social safety net for the poor, the elderly and those in rural areas, the black economy is more likely to be an option for those who are already better off to improve their incomes. The article considers the implications of this for attitudes to the legitimacy of the public realm and finds that greater participation in the informal economy is associated with both loss of trust in public institutions and increased perception of corruption. Therefore it is hypothesised that economic activities that take place ‘outside the law’ could lead to a decline in confidence in the state, although there are important variations between countries.     

Extractive peasants: reframing informal artisanal and small-scale mining debates

This paper explores the ongoing reconfiguration of peasant labour processes from agriculture to informal mineral extraction, outlining the motivations of the rural poor in adopting mining and quarrying, and discusses how social sciences can best account for this significant shift towards extractive livelihoods. It argues that the ‘extractive peasants’ best explain the contemporary changes in rural, mineral-rich tracts throughout the Global South, and peasant mining practices are part of the informal economies. The extractive peasants return intellectual attention to practices that disrupt contemporary global mineral production and place the politics of the poor within broader debates on resource politics.     

Explaining Informal Policy-Making Patterns in the Eurozone Crisis: Decentralized Bargaining and the Theory of EU Institutions

ABSTRACT

During the Eurozone crisis, the so-called ‘Merkozy duumvirate’ emerged as an informal, but highly visible EU policy-making pattern. This article asks why such forms of decentralized bargaining emerge and what this implies for the theory of EU institutions. According to an approach based on negotiation theory, the article argues that Merkozy is a strategic tool used by Germany to realize its preferences on EU crisis management. Based on an incomplete contracts theory of EU institutions, instead, the article analyses Merkozy as an informal institution created by France and Germany to avoid being discriminated by supranational institutions. Both approaches are employed to assess Merkozy’s role in the decision-making process leading to the adoption of the Fiscal Compact.     

‘Labour Chains’: Analysing the Role of Labour Contractors in Global Production Networks

Third party labour contractors are increasingly prevalent in global production networks (GPNs), and can provide a channel for new forms of unfree labour. Review of case study evidence from South African and UK horticulture suggests this often emerges off-site through labour intermediaries. Analytical approaches to labour in GPNs and value chains are examined. The article argues that labour contracting is driven by the commercial dynamics of global outsourcing. A ‘cascade system’ allows unscrupulous intermediaries to coerce vulnerable workers. We examine strategies of civil society alliances, and regulatory reform, and argue for extending liability of all commercial actors across global boundaries.     

Women’s experiences of peacebuilding in violence-affected communities in Kenya

Despite the attention to gender and conflict in empirical positivist peace research, and the interest in local agency in recent peacebuilding literature, women’s understandings and lived experiences of peacebuilding are not necessarily well accounted for. This article, drawing on interviews, focus groups and observation research with 57 female victims/survivors of post-election violence in Kenya, provides an ethnographic study of women’s largely informal peacebuilding activities, ranging from mediation and dialogue to economic empowerment. It analyses women’s constructions and ways of making sense of being peacebuilders, demonstrating that, while participants employed dominant gender frames, they exerted considerable transformative agency in their communities. It argues that their ‘gendered responsibility for peace’ at community level is simultaneously empowering and disempowering. The research aims to increase understanding of the gendered nature of peacebuilding and the ways in which women exercise peacebuilding agency through a focus on their own voices and lived experiences.     

Humanitarian symbolic exchange: extending Responsibility to Protect through individual and local engagement

Moral common sense frames the relationship between privileged and at-risk populations underpinning contemporary Responsibility to Protect (R2P) discourse. This article develops an alternative by considering the relationship between archetypes of would-be rescuers and victims through Jean Baudrillard’s theorisation of symbolic exchange. Baudrillardian analysis connects personal morality and affective intersubjective symbolic exchange with the politics of international order. This leads, first, to an argument that current foundations for advocating R2P risk participating in a problematic moral economy of symbolic exchange between would-be rescuers and victims. Nonetheless, and secondly, the article deploys symbolic exchange to develop suggestions for partially re-figuring R2P’s humanitarian impulse by engaging ‘locally’ – both through one’s self (in the ethical relation suggested by Emmanuel Levinas) and with diverse forms of political order (following Jacques Rancière’s conception of politics). Doing so supports moves to engage a wide array of individual actors in a more interactive and less hierarchical form of R2P, to drive deeper consideration of local complexities of R2P through engagement with diverse local forms of political order, and to develop a more inclusive understanding of ‘humanity’ in order to bolster R2P’s normative foundations.     

Artisanal Gold Mining and Farming: Livelihood Linkages and Labour Dynamics after Land Reforms in Zimbabwe

While the rural development consequences of Zimbabwe’s Fast Track Land Reform Programme have been heavily debated, there is a dearth of literature focusing on the post-land reform inter-relations between artisanal and small-scale gold mining (ASGM) and farming. This article discusses the growing ASGM sector, encapsulated by the phrase ‘mari yaputika’/‘gold has detonated’, examining the impacts of ‘liberating’ mineral resources in farming areas previously inaccessible to the rural poor. Drawing on research in Mhondoro Ngezi District, we argue for more subtle understandings of smallholder farming/ASGM linkages in relation to changing labour and class dynamics, challenging accounts that under-recognise the multifaceted interconnectedness of artisanal mining and farming.     

Public participation

’Evidence‐based practice’ is a term used in Britain's National Health Service to describe the use of research evidence in policy, management and practice decisions. This article develops this idea and explores its use in local government decision making, using case studies of social care and education. It argues that the absence of a funding stream to support local authorities’ own research reinforces a view of local authorities as essentially administrative arms of the state, supervised through service‐by‐service performance measurement, rather than ‘intelligent’ agents using local research to develop evidence‐based policies.     

Levels of Centralisation and Autonomy in Russia’s ‘Party of Power’: Cross-Regional Variations

The institutionalisation and nationalisation of Russia’s party system, which is dominated by United Russia (Edinaya Rossiya—UR), has played a major role in the building of Putin’s ‘power vertical’. Nevertheless, despite the fact that formal relations within UR are highly centralised, informal practices allow for far greater degrees of regional autonomy. Focusing on UR’s candidate selection for the 2011 Duma election this article provides an examination of cross-regional variations in the relations between UR’s Party Centre and its regional branches. As electoral legislation requires the segmentation of party lists into ‘regional groups’, the composition of the regional lists, specifically the share of ‘native candidates’, is considered as an indicator of the level of autonomy of regional branches. Ordinal regression analysis confirms our main theoretical hypotheses. In the more financially autonomous regions, UR’s regional branches will have more leverage and bargaining power in their relations with the Party Centre. A second important factor is heterogeneity: the more a region’s socio-economic indices deviate from the national average (either up or down), the less its UR branch is subordinate to the Party Centre.     

‘Subsistence’ Readings: World Bank and State Approaches to Commercialising Agriculture in Post-Communist Eurasia

This article explores the World Bank’s project of ‘returning agriculture to the market’ through land titling reforms. It describes how World Bank and national government strategy papers distinguish between a ‘commercial’ or ‘entrepreneurial’ sector of farming and a ‘subsistence’ agricultural sector in post-communist Eurasia. The extension and growth of the former represents the desired goal of policies since the 1990s, while the latter’s numerical prominence in many countries constitutes a source of concern for authorities. The article argues that ‘subsistence’ represents a misreading of the rural population that confounds self-sufficiency with the size of farms, and casts millions of smallholders as non-economic and alien to markets. It focuses on two post-communist countries (Romania and Ukraine, extremes in terms of the introduction of property rights over agricultural land) to argue that efforts to reduce ‘subsistence’ translate into measures that increase the households’ monetary needs and are therefore going to be resisted. The article relies on analyses of World Bank and national government’s strategy papers as well as ethnographic data collected in 2013–2017 in the Ukrainian-Romanian border region.     

When Shadow Banking Can Be Productive: Financing Small and Medium Enterprises in China

Small and medium enterprises (SMEs) represent the backbone of China’s economy, yet they face challenges in accessing bank credit. SMEs thus rely on a wide range of alternative sources, including informal finance, online peer-to-peer (P2P) platforms, registered non-banking financial institutions (NBFIs), and underground financiers. This article distinguishes among different types of ‘shadow banking’ to clarify popular misconceptions about the nature of risks associated with informal financial intermediation in China. Given their familiarity with local business conditions and needs, regulated and well-managed NBFIs could provide an enduring foundation for commercialised financial intermediation serving SMEs.     

On researching ‘Ethnic Conflict’: epistemology,politics, and a Central Asian boundary dispute

Providing a critique of alarmist discussions of the danger of ethnic conflict in Kyrgyzstan, and the positivist epistemological assumptions and research practices that underpin them, this article develops an approach to researching ‘ethnicity’ and ‘ethnic conflict’ through the use of focus groups. Uzbeks and Kyrgyz in southern Kyrgyzstan expressed similar views about the closures of international boundaries, framed in terms of ethnicity. However, this was not an essentialist notion, but rather a concept of authentic ‘Uzbekness’ or ‘Kyrgyzness’ predicated primarily on the performance of endogenous kinship practices and Muslim/Soviet notions of class morality, nuanced by geography. These overlaps and discrepancies provide resources for those wishing to articulate visions of future social formations wider than the range of options currently propagated by ethnic entrepreneurs.     

All Quiet on the Eastern Front? Media Images of the West and Russian Foreign Political Identity1

National and foreign political identities are discursively constructed, not least through the media. Starting from the contention that Europe serves as the main Other used to define the idea of Russia, this article uses media texts (online and press) to analyse how Russia is constructed as a foreign policy actor in relation to Europe and the ‘West’ more generally. In so doing, the article draws on three discourses around Russia’s foreign policy: ‘Russia as Europe’; ‘Russia as part of Greater Europe’; and ‘Russia as Alternative Europe’. The article suggests that discursive developments in the 2000s have paved the way for a return of Cold War discourses in characterising relations between Russia and the West.