The report discusses issues related to defining informal economic activity and identifies three main categories of informal economic activity - paid informal work, illegal economic activity, and unpaid informal work. It sets out policy issues for each of the categories. The authors highlight the positive and negative consequences of involvement in particular types of informal economic activity in each chapter. They explore the range of policy issues that arise from consideration of the different dimensions of informal activity and the extent of compatibility and contradiction between different policy trajectories.

The aim of the research was to review the existing evidence base relating to informal economic activities within deprived neighbourhoods and to provide insights to shape future policy development.

The review started with a scoping study to clarify the questions to be addressed.  Literature searches were conducted of UK and international materials, including grey literature, and key documents were selected and appraised.  Various experts were consulted at a one-day seminar to discuss the initial findings, and case studies of selected policy initiatives were explored to illustrate key points of analysis and discussion.

Informal economic activity is an integral part of the overall economy in deprived neighbourhoods and it will continue to be so in the future in the light of economic globalisation, ‘flexibilisation’ and the reconfiguring of state activity. In deprived neighbourhoods it is a major resource and so the challenge is to build on its positive aspects in such as way as to complement efforts to tackle its negative aspects, for instance illegal activity. Future policy should focus on strategies which promote the positive consequences of informal economic activity, such as: schemes to encourage mutuality and social capital (time banks, local exchange trading systems); schemes for acquiring skills (for self-provisioning), schemes to develop entrepreneurial skills, to promote active citizenship and to improve the ability to cope of those living in deprived neighbourhoods. 

Department for Communities and Local Government
Phone: +44 20 7944 4400
contactus@communities.gsi.gov.uk

01/06/2006

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Melvyn Evans, Stephen Syrett (Middlesex University); Colin Williams (University of Sheffield)

research

Urban Policy > Economy knowledge & employment > Urban economy

Employment