History of the Capitalist Congress Calls for a Reassessment of the Benefits of the Informal Economy

History of the Capitalist Congress Hosted Menard Family George Washington Forumbrought together academics working in entrepreneurship and the informal economy from around the world to discuss “Capitalism and Informality” at Ohio University on April 14 and 15.

Informal economic activity, explained, occurs when formal institutions fail to promote well-being and protect social welfare from the interests of government and corporate powers. coat rodette,Associate Professor economic College of Arts and Sciences and Forum Director.

This conference will explore the relationship between informal economy sustainability and economic transformation, how the informal economy develops complex organizational structures, co-evolves alongside new industries and modes of production, and expands We explored how economic and social conditions have shaped. they are embedded.

“The main takeaway from the conference calls for a reassessment of the implicit assumption that entrepreneurial spirit within formal institutions (e.g. compliance with licensing regulations and payment of local taxes) is important to businesses. was the consensus. everytime It’s better for entrepreneurs and their communities,” said Rodet.

Development discourse for more than half a century has portrayed informality as a signal of economic weakness. From the work of Max Weber to the works of Clifford Geertz, Keith Hart, and Alfred Chandler, social science theory suggests that as economies modernize, hierarchical, rationalized forms of economic organization become “organized.” “Unincorporated and unincorporated corporations” suggest replacing incompetent agents of the economy. informal economy.

Contrary to such predictions, informality remains the norm worldwide. The informal economy continues to account for at least half of all enterprises, the majority of all employment, his 20% of gross domestic product in developed countries and 60% in emerging markets.

“Entrepreneurs are often left behind in the informal economy because the formal institutions of the community (constitutions, ordinances, laws, etc.) do not provide the rule of law that supports justice, fairness, or opportunities to exercise creativity. It’s often active,” said Rodett.

“There is no ‘one size fits all’ solution to improving formal institutions, but how examining the entrepreneurial process in the informal economy can improve local conditions to unleash entrepreneurial creativity and innovation.” can gain insight into Formal institutions have legitimacy and work for the benefit of the community, creating a positive feedback loop in which community members work to uphold the rule of law,” he said. .

The participants of the conference came from various fields.

• Economists Rob Ackrill of Nottingham Trent University, Vincent Carret of Duke University, Eghosa Igudia of De Montfort University, and Maria Minniti of Syracuse University.
• Adam Frost, Copenhagen Business School historian and David Kirsch, University of Maryland
• Anthropologists Shuang Lu Frost of Aarhus University and Ipshita Ghosh of the University of North Carolina at Charlotte
• Communications scholar Fabian Prieto Nanes at Virginia Tech
• Entrepreneurship researchers Jorge Arteaga of Oklahoma State University; Richard Hunt of Virginia Tech; Justin Webb of UNC Charlotte

The conference will be followed by a special magazine issue examining capitalism and informality.