In West Africa a dynamic informal sector dominates the stagnant
formal economy. Small operators coexist with very large and politically
well-connected informal enterprises and well-organized networks. To
date there have been relatively few systematic studies of this dual
feature, and consequently too little is known about it. Determinants
and appropriate policy responses are likely to differ between
'large' and 'small' informal operations.
This study focuses on the urban informal sector in three capital
cities: Dakar (Senegal), Cotonou (Benin) and Ouagadougou (Burkina
Faso). These three countries have important differences and as a group,
are quite representative of francophone West Africa and to a lesser
extent West Africa as a whole.
A mix of quantitative and qualitative approaches was used, with data
obtained from original surveys of 900 firms in the three cities,
interviews with knowledgeable stakeholders and participants, and all
available secondary data. The results for West Africa presented in this
book corroborate many findings from earlier studies, particularly for
small informal firms. In addition, the book breaks new ground by
shedding light on the large informal sector and the influence of
institutional and socio-cultural factors in shaping the informal
sector.
'The dynamism of the informal sector in Africa is obvious to
the casual observer. Yet the sector is neglected in the policy
discourse. One reason is that we have insufficient systematic
information and analysis of the informal sector-its contribution to the
economy and the constraints it faces. This is particularly the case for
Francophone Africa. This volume fills this important gap in the
literature. Using primary data from original firm surveys and a range
of other information sources, the study tells about the characteristics
of actors, tax collections and the informal sector, the productivity of
informal firms, and more. It will be useful to researchers and policy
makers alike as they consider policy interventions to improve the
integration of this vital sector into the economy as a
whole.'
—Ravi Kanbur, T.H. Lee
Professor of World Affairs, International Professor of Applied
Economics, Cornell University
'An excellent and in-depth work on a complex subject that
UEMOA deems vital to economic progress and fiscal reforms. It will
unquestionably help guide both policy makers and the financial sector
in its dealings with the informal private sector.'
—Cheikhe Hadjibou Soumaré,
Président de la Commission de l'UEMOA
'The informal sector plays a major role in Africa's
development. This book gives an excellent analysis of this sector. The
study uses an innovative methodology to better understand the informal
sector, a key driver of development in West Africa.'
—Hakim Ben Hammouda, Special
Adviser to the President, African Development Bank
'The originality and strength of the present work by Benjamin
and Mbaye is not only to approach informality as a continuum of
characteristics, but also to encompass the role of large informal
firms, religious networks, and cross-border trade networks, with
empirically based methods of enterprise surveys.'
—Jacques CHARMES, Emeritus
Research Director, Institut de Recherches pour le Développement
(France)
'The analysis of large informal firms is a significant
innovation. The analysis also bridges economics and sociology as it
explores the linkages between socio-cultural traditions and informal
networks. It offers thoughtful policy recommendations to improve
competitiveness and raise productivity.'
—Alan Gelb, Senior fellow,
Center for Global Development
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