Informal Economy and Development - DES 413 Course Guide

A comprehensive set of flashcards to assist students in reviewing key concepts, facts, and details regarding the course on Informal Economy and Development (DES 413) ahead of exams.

What is the overall aim of the DES 413 course?

To provide an introductory understanding of the informal economy and its contribution to national development.

How many modules does the DES 413 course contain?

The course contains four modules.

What are the two types of assessments in the DES 413 course?

Tutor-marked assignments (TMAs) and the final examination.

What is expected from students at the end of the course?

Students should demonstrate an understanding of the nature, structure, and functions of the informal economy.

How many units are in the DES 413 course?

There are thirteen units in the course.

What does the informal economy contribute to socio-economic development?

It contributes through productive activities, employment, revenue generation, and income generation.

What is a major problem associated with the informal economy in Nigeria?

Tax evasion and lack of legal protections for informal workers.

What is the significance of informal economy for Nigeria's GDP?

The informal economy accounts for a substantial portion of Nigeria's GDP.

What percentage of Nigeria’s workforce is estimated to be in the informal economy?

Around 80.4% of Nigeria's workforce is in the informal economy.

What are the self-assessment exercises called that are included in each unit?

Student Assessment Exercises (SAE).

In Module 1, what is the focus of Unit 2?

Definitions and Scope of Informal Economy.

Name one characteristic of the informal economy discussed in the lecture.

Small scale operations utilizing less capital.

What is one of the aims of the informal economy in the context of development?

To integrate informal sectors into formal economies.

What is the definition of the informal economy according to the ILO?

Activities that are, in law or practice, not covered or insufficiently covered by formal arrangements.

What has caused the growth of informal economy in many developing countries?

Economic, institutional, and social constraints like corruption and complex regulations.

Name one advantage of the informal economy as mentioned in the course.

Easy access for less qualified workers.

What is a significant challenge for informal workers in Nigeria?

Lack of access to credit and financial services.

Which module discusses the problems and prospects of the informal economy in Nigeria?

Module Four.

What is a major challenge that affects the performance of informal enterprises in Nigeria?

Poor infrastructure and high levels of corruption.

In the context of globalization, how does the informal economy benefit?

By providing affordable goods and services to low-income populations.

What is one reason the informal economy remains persistent in Nigeria?

High unemployment and poverty levels.

What legislative measure affects informal businesses in Nigeria?

Multiple taxes imposed by non-state actors.

What is the definition of economic growth?

An increase in the quantity and quality of economic goods and services produced.

What role do women's contributions play in Nigeria's informal economy?

Women constitute a large percentage of informal workers and are predominantly engaged in sectors like food production and retail.

How does the Nigerian informal economy relate to poverty reduction?

It provides employment opportunities and generates income for many low-income households.

Why might some informal activities be seen as beneficial to the state?

They provide low-cost alternatives and reduce unemployment rates.

Which sector has the highest number of informal workers in Nigeria?

Agriculture.

What type of enterprises dominate the informal economy?

Micro, small, and medium enterprises (MSMEs).

What aspect of globalization positively impacts the informal economy?

Increased migrant labor which provides cheap labor and fills job vacancies.

What is suggested as a pathway for informal workers to access better opportunities?

Formalization of informal activities.

What is the expected outcome of encouraging informal economy formalization?

Improved job security, better wages, and access to benefits for workers.

What does the ILO's Recommendation 204 focus on?

The transition from the informal to the formal economy.

What is an example of how informal networks can benefit workers?

Providing support and job opportunities through family and community ties.

According to the lecture, what percentage of the informal economy's workers are women?

Women account for about 58.5% of informal economy workers.

What challenges do waste pickers face in the informal economy?

Poor working conditions and lack of legal protections.

In what way does informal tourism contribute to local economies?

It creates jobs and generates income for local communities.

What should be the focus of policies toward the informal economy according to the course content?

Improving working conditions and promoting formalization.

How does the informal economy contribute to employment generation in Nigeria?

By providing opportunities for various skills and demographics.

What impact does globalization have on informal labor markets?

Increases competition and opportunities for informal employment.

What is one of the traditional products that reflect the cultural aspect of Nigeria's informal economy?

Adire textiles.

Why is informal economy considered a complex issue when discussing its benefits and drawbacks?

Due to its diverse nature and varying impacts on different stakeholders.

What is the contribution of informal economy to Nigeria's GDP?

It contributed 57.9% to Nigeria's GDP in 2013.

What are the reasons for de-industrialization in Nigeria?

Collapse of manufacturing industries and reliance on imports.

In what module can you find information about the dynamics of the informal economy?

Module Three.

What role do returns from remittances play in the informal economy?

They provide financial support and stimulate local economies.

How does informal sector entrepreneurship affect social welfare?

It offers employment and helps alleviate poverty.

What influenced the historical development of the informal economy in Nigeria?

Colonialism and the lack of support for traditional industries.

What is the trend related to migration and the informal economy?

Migration often leads to increased participation in informal work sectors.

How does the informal economy support the formal economy?

By supplying cheaper goods and services and acting as a labor pool.

What is a primary feature of informal employment in relation to formal employment?

Informal employment is characterized by a lack of labor protections.

What is an economic strategy mentioned in the course to enhance the informal economy?

Promoting entrepreneurship and small business development.

What do the course readings suggest about the link between informal economy and state revenue?

Despite challenges, informal economy can contribute significantly to state revenue.

What is one educational concern related to the informal economy?

Inadequate access to training and skills development for informal workers.

How is public perception of informal economy generally characterized?

As a negative aspect of the economy that hinders growth.

What is an important aspect of waste management linked to the informal economy?

Waste pickers contribute to recycling and environmental sustainability.

What defines the success of the informal economy in terms of integration with the formal economy?

Successful integration provides benefits for both sectors.

Why is formalization of the informal economy seen as necessary?

To improve labor conditions and expand access to services.

How can collaboration between informal and formal sectors be encouraged?

By creating supportive policies and reducing barriers to entry.

What are the implications of informal labor for economic stability?

Informal labor can provide a buffer during economic downturns.

How does the informal economy aid in providing for basic needs?

By supplying affordable goods and services to low-income populations.

What is the significance of community associations in informal economy activities?

They help organize and advocate for informal workers and their rights.

How do cultural practices shape the informal economy in Nigeria?

Traditional crafts and practices continue to be integral to informal activities.

What has recent research indicated about the potential of informal enterprises?

They can transition to formal status with appropriate support.

What can informal economy participants gain from formal recognition?

Access to benefits, better working conditions, and legal protections.

What does the term 'dual economy' refer to in the context of informal economy?

The coexistence of formal and informal sectors within the same economy.

What are some typical activities found in the informal economy?

Street vending, home-based work, and casual labor.

What do the characteristics of the informal economy suggest about its workforce?

It's often composed of vulnerable and marginalized individuals.

What historical factors contributed to the ongoing existence of informal economies?

Colonial legacies and post-colonial neglect of traditional economic activities.

In terms of Labor Rights, how are informal workers treated compared to formal workers?

Informal workers typically lack basic labor rights and protections.

What is an example of a benefit provided by informal economic activities?

Affordable access to goods and services for lower-income individuals.

What does the course state about the relationship between informal economy and globalization?

Globalization has expanded opportunities for informal work and entrepreneurship.

What does the final assessment in the course encompass?

A final examination which assesses understanding of all course materials.

How does the course suggest informal economies should be addressed by policymakers?

Through supportive legislation and integration strategies.

What significant role does mobile technology play in the informal economy?

It facilitates transactions and communications for informal businesses.

What are some outcomes of successful integration of informal sectors into the formal economy?

Increased labor rights, better access to finance, and improved economic stability.

What kind of strategies are proposed for informal economy workers to thrive?

Access to education, training, and supportive entrepreneurial policies.

How can informal sectors contribute to environmental sustainability?

Through recycling initiatives and sustainable practices.

What are the implications of child labor in the informal economy as discussed in the course?

Child labor perpetuates poverty and limits educational opportunities.

Why is informal economic growth not necessarily detrimental according to course?

It provides essential livelihoods and economic opportunities for many.

What can be said about the interdependence of informal and formal sectors?

They rely on each other for economic transactions and labor supply.

What role do economic shocks play in the growth of informal economies?

Economic crises often lead to an increase in informal employment.

In the context of the informal economy, what do terms like 'resilience' and 'adaptability' refer to?

The ability of informal workers to survive and thrive amid economic challenges.