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Digital technology formalises informality


Anthony Dass: The informal economy is one of the most pervasive challenges in modern society, yet one of the hardest to measure or understand. Many governments around the world recognise the challenges posed by the informal economy, and are increasingly embracing digital payments as a way to reduce informal transactions.

Anthony Dass: The informal economy is one of the most pervasive challenges in modern society, yet one of the hardest to measure or understand. Many governments around the world recognise the challenges posed by the informal economy, and are increasingly embracing digital payments as a way to reduce informal transactions.

THE informal economy touches every sector, from agriculture and construction to education and professional services, to a varying degree. A dominant trait is its reliance on unreported cash-only transactions.

Around the world, the informal economy has negative impacts on governments, businesses, and individuals. It limits governments’ abilities to provide services, damages business competition, fosters unfair labour practices, and leaves workers vulnerable in an unregulated environment with a limited safety net.

   

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