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South Asia
HIDDEN POTENTIAL
Rethinking Informality in South Asia
Edited by Maurizio Bussolo and Siddharth Sharma
Informality remains widespread in South Asia despite decades of economic growth. The low earnings and high vulnerability in the informal sector make this a major development issue for the region. Yet, there is no consensus on its causes and consequences, with the debate polarized between a view that informality is a problem of regulatory evasion and should be eradicated, and another which equates informality with economic exclusion. These views are at odds with the heterogeneity observed among informal firms. Recent advances in analyzing informality as the outcome of firm dynamics in distorted economic environments can help reconcile them. Building on these advances, the approach adopted in this volume clarifies that there are different types of informality, with different drivers and consequences. Using this approach, the report revisits old questions about the relationship of informality to regulation and taxation, and also pose new ones, such as how digital technologies and multifaceted policy designs can improve prospects in the informal sector.
PRIVATE CITIES IN SOUTH ASIA
Implications for Urban Policy in Developing Countries
By Yue Li and Martin Rama
Private cities are an emerging reality in developing countries and are particularly important in South Asia. Weak urban governments are at the root of some of the challenges faced by cities in developing countries. In most of South Asia, for example, urbanization has been "messy" and congestion has severely undermined the benefits of agglomeration. The shortage of empowered and accountable local government is the key challenge underlying these problems. Addressing this institutional failure remains the main priority of the urban agenda in most developing countries. This report explores how political economy constraints have made the reform of urban governance an arduous and often-frustrating undertaking. Only focusing on addressing weak urban governance could result in many missed opportunities over the coming decades. Given the contribution cities make to economic development, this conceptually ideal approach could slow down economic growth and poverty reduction.
SOUTH ASIA DEVELOPMENT FORUM
September 2022. 150 pages. Stock no. C211834 (ISBN: 978-1-4648-1834-9). US$43.95
