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World Bank chides region for growing informal economyThe Caribbean and Latin America have been chided for allowing too much business to be conducted outside the formal economy. The World Bank says the high level of informality in [COLOR=blue! important][COLOR=blue! important]Latin [COLOR=blue! important]America[/COLOR][/COLOR][/COLOR] and the Caribbean stems from institutional flaws.
In the formal economy business activity is regulated and [COLOR=blue! important][COLOR=blue! important]taxes[/COLOR][/COLOR] are levied and collected.
The informal sector operates without adequate government supervision and regulation.
The World Bank says allowing the informal sector to thrive not only restricts opportunities for growth and social welfare, but undermines the region’s societies.
The report encourages governments to reach out to people engaged in the underground economy by improving conditions that would allow them to enter the formal sector.
This, it says, should include addressing the costs and other barriers that make it difficult to operate as normal businesses
In the formal economy business activity is regulated and [COLOR=blue! important][COLOR=blue! important]taxes[/COLOR][/COLOR] are levied and collected.
The informal sector operates without adequate government supervision and regulation.
The World Bank says allowing the informal sector to thrive not only restricts opportunities for growth and social welfare, but undermines the region’s societies.
The report encourages governments to reach out to people engaged in the underground economy by improving conditions that would allow them to enter the formal sector.
This, it says, should include addressing the costs and other barriers that make it difficult to operate as normal businesses