INFORMAL SECTOR - PROBLEMS OF APPROACHING INTERVENTION IN DEVELOPING-COUNTRIES

The heterogeneity of the socio-politico-economic environment of developing economies makes it difficult to analyze their informal sector and to design successful aid programs. This article suggests that both the shape and the stability of governmental structures are important sources of heterogeneity. A classification of informal enterprises taking these government structures into account is proposed, and recommendations on appropriate interventions are given. The issue of the role of informal enterprises in developing economies and of the appropriateness of their formalization are also addressed.