Geography Reference
In-Depth Information
3.3 DECENT WORK,
RISK AND THE
INFORMAL SECTOR
Globalization, Decent Work and
the Informal Sector
The 'informal sector' refers to a heterogeneous group of activities and
employment relationships that share one common characteristic - the
lack of legal recognition, regulation or protection. The sector encom-
passes a diverse range of activities from street trading and
micro-enterprise to home working, service provision and domestic
labour. In the last ten years, the informal sector has experienced
unprecedented growth as labour force expansion has outpaced employ-
ment opportunities in many nations. As explored in Chapter 3.2, the
reality of the contemporary global economy is that a majority of the
workforce in the global South are employed in high risk, casual,
home-based or own-account work in the informal economy, escaping
government regulations and social legislation. Recent estimates by the
International Labour Organization (ILO) suggest that the informal sec-
tor accounts for one half to three-quarters of non-agricultural employ-
ment in most countries of the global South: 51 per cent in Latin America
and the Caribbean, 65 per cent in Asia, and 72 per cent in sub-Saharan
Africa. When informal employment in agriculture is added, the propor-
tion increases substantially in all regions, increasing the figure from 83
per cent to 93 per cent in India alone.
There are now well-established links between the informal sector,
poverty and vulnerability worldwide (Chant, 2008; Kabeer, 2008a).
Indeed, poverty and inequality, however defined, are inextricably
linked to the availability of secure and decent work. The ILO defines
'decent work' as employment opportunities that are accompanied by
'rights, protection and voice'. Given the increasing vulnerability of the
