Papua New Guinea: The Informal Economy and the Resource Boom, 2011
The informal economy consists primarily of household enterprises (often called ‘micro’ or ‘survival’ enterprises). These enable the poor to ‘get by’ when the ‘modern’ economy is slow in creating enough ‘formal’ jobs. Cash-crop farming, trading and other services, and petty manufactures, are common activities and represent the forgotten grassroots element in the private sectors of those countries, and ‘pro-poor’ development strategies must take them into account. This paper, prepared by Dr. John Conroy, is written with Papua New Guinea in mind, though it has wider relevance.