(Photo: Paolo Aguilar)
Schneider and Enste make their reference based on two main definitions that have been used frequently. The first is described as an informal sector since this contributes to the GDP calculated officially, but there is no official record that has been registered. The second is achieved by being able to define a production that is not formally in the market for goods and services that are not registered in the official GDP.
How do you manage to indicate in these two definitions that they are not entirely precise. Mirus and Smith frame the informal economy as a very broad context that manages to encompass different illegal legal activities and monetary and non-monetary transactions that, according to this, the independent activities of the household, the unreported income in the production of legal goods and services are also part of the non-formal sector better known as the informal sector.
Finally, Fleming indicates that the discrepancies in the definition of the informal sector are due to differences in the study objectives, such as the estimation of the magnitude of the sector or its characterization. In the first case, they suggest defining any unregistered activity as informal; while in the second, they recommend defining the informal sector based on the characteristics of the behavior of the agents. As can be seen, it is difficult to establish a precise definition of the informal sector, since there are as many definitions as there are studies that seek to quantify it.
Informal commerce: It is an activity that consists of workers occupying a position that is not officially registered where workers from other branches arrive, since in the sector there are numerous meetings for which it must be ordered in an appropriate manner.
Informal services: These are the services that there are the most since they are the easiest to do since there is no means by which you must be officially registered, making it quick and easy.
Tax evasion: It is all activities aimed at subtracting all or part of a state legally due to the state in order to pay taxes.
The informal sector and tax evasion in Peru: It is related both in the causes and effects that must be complied with in order to be in force since it is an obligation in labor laws.
Informality on the peruvian public transport:
In Peru, the activity level of the informal services are very high. One of the largest displays of informality are the ones that are shown on the public transport in Peru, especially Lima.
According to Paulino Barragan Arqué, in underdeveloped countries the system of public transport is always informal, as the urgency of bigger cities has been matched with the growing systems of informal transport.
Around the 90’s, 95% of the urban transport vehicles in the country were in hands of small businessmen owning “omnibuses” or “combis”. At the same year, the 100% of the public urban transport went broke; giving them the free will of setting their own prices/fees, consequently creating a lot of new transport services, being most of those informal ones.
Garcia Ortiz, Javier Even, a peruvian marketing administrator, also stated that just the year of 2020 a total of 2159 persons died just in car accidents that occured in highways, which were caused by a lot of external factors, just as insecurity, bad quality of the service, ineptitude of peruvian authorities, etc.
On the other hand, the value of tickets in interprovincial transport in the country is regulated by the behavior of supply and demand in the market, being the increase of these with greater notoriety in festive times. prices are increased due to the increase in demand for this service, in some cases even presenting variations, ranging from 20% of the normal price. Also, the hours established for travel by formal companies are not fully adjusted to the needs and requirements required by passengers who require increasingly personalized, flexible, comfortable, fast and above all available, which makes informal transport a travel option.
Developing appropriate strategies for this important sector, needs to be designed in accordance with the needs that the market demands, contributes substantially to improving the economic, social and environmental indicators of the nation. In this way it will be possible to reduce insecurity rates during travel, improve resource management with those that are counted, optimize the costs that are generated as a product of said processes, mitigate the environmental impact, as well as improve the quality of the service offered.
References:
- LA INFORMALIDAD EN LOS SECTORES ECONÓMICOS Y LA EVASIÓN TRIBUTARIA EN EL PERÚ. (s/f). Edu.pe. Retrieved on October 12, 2022, from https://revistasinvestigacion.unmsm.edu.pe/index.php/quipu/article/view/6805/6026
- Garcia Ortiz, J. E., Mallqui Nieto, Y., Mejia Pardo, J. J., & Solis Solis, D. D. (2022). Modelo prolab: Propuesta para reducir la informalidad del sector transporte interprovincial en Perú. Pontificia Universidad Católica del Perú.
- MAGNITUD DE LA ECONOMÍA INFORMAL EN EL PERÚ Y EL MUNDO. (s/f). Edu.pe. Retrieved on October 12, 2022, from https://revistasinvestigacion.unmsm.edu.pe/index.php/administrativas/article/view/9791/8578
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