INFORMAL ECONOMY AND FAMILY STRATEGIES

The concept of the informal economy, though flawed, serves to identify important trends in the current restructuring of the global economy. The key issue is that of economic regulation, whether formally by the state or informally through social relationships. The structural articulation between the formal and informal economies derives from the operating principles of the informal sector, particularly its flexibility, which contrast with the bureaucratic character of both the state and the large corporation, It is also based on the existence of an abundant supply of labour. Family strategies, whether consensual or not, gain significance as a means of coping with urban life as a result of economic informalization. The informal economy provides flexible work arrangements that are convenient to many family strategies, but informal work is often synonymous with poverty as people seek to generate income to substitute for the non-existence or erosion of welfare programmes. Since both the informal economy and family strategies are locally embedded, the spatial context gives rise to specific regional combinations that result in distinctive economic cultures. These combinations are the subject matter of the articles in this issue.