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By: Michael on 03 May 2007
Additionally I would like to know more about the economics of either of these practices. I have long suspected (though never proved) that both car guards and street vendors are subject to similar structures of "ownership" to those that exist in the formal economy. By this I mean that they are ruled over by "landlords" who dictate the nature of much of their working environment and ultimately levy significant "taxes". This results in the majority of the realtive wealth generated ending up in the hands of a few who have no contestable right to those proceeds. Suddenly I feel like I'm reading Levitt and he's analysing the economics of the crack trade in Detroit. It is this informal power struggle that seems a hotbed for dangerous crime to me and, if the structures I describe are in existence, would justify the active policing of both prcatices.
Similarly, the above holding true, there is very little to then suggest that engagement in informal trading holds any prospect for future upliftment. While I don't expect desperate individuals to resort to anything else, surely the institutions that shape public policy have to take a longer term view. I don't profess to know the answer, it's likely not to be left to market forces, perhaps some sort of new deal arrangement and tighter border controls?
I'd be interested to hear your views on this, my ivory tower may be a priveliged one, but it has also afforded me a view that lets me not wish to see others pursue paths with little long term benefit, which is after all what we should want
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