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This chapter explores how taxing the traditional livelihood practice of distilling spirits transformed the status of work and traditions, making previously ordinary ways of life illegal, and leading families to weigh their business self-interest against relationships, legal and moral responsibilities, and values. The chapter elucidates the opaque qualities of Istria’s vibrant moonshine market by unpacking the values underpinning it and the relationships between the winemakers, craft distillers, and bootleggers of which it is constituted. Taxing and regulating spirits challenged societal values in ways that forced new considerations into long-standing relationships, particularly around the circulation of the biowaste necessary for distilling. Families sought to maintain livelihoods based on farming, winemaking, and distilling while navigating new regulatory regimes, but those who could not handle such changes retreated from formal business ownership and into the margins of the market. This shift demonstrated that tax can make and unmake markets in sometimes unintended ways. At its core, this chapter illuminates how values in Istrian culture intersect in the practice of distilling and are complicated by the introduction of taxes and regulations.
This book describes the politically charged afterlife of Israeli electronics gathered by and processed in a cluster of rural Palestinian villages that has emerged as an informal regional e-waste hub. As with many such hubs throughout the global South, rudimentary recycling practices represent a remarkable entrepreneurial means of livelihood amidst poverty and constraint, that generates staggering damage to local health and the environment, with tensions between these reaching a breaking point. John-Michael Davis and Yaakov Garb draw on a decade of community-based action research with and within these villages to contextualise the emergence, realities and future options of the Palestinian hub within both the geo-political realities of Israel's occupation of the West Bank as well as shifting understandings of e-waste and recycling dynamics and policies globally. Their stories and analysis are a poignant window into this troubled region and a key sustainability challenge in polarized globalized world.
Secondary sanctions are unique in their audacity. Their application in an interdependent global context raises the specter of an uncontrolled burn, with consequences stretching beyond even their broadest scope. Such consequences reshape markets and, at times, create new ones. This chapter uses Iran as a lens through which to examine the relationship between the informal economy and US secondary sanctions and the potential disruption provided by the proliferation of cryptocurrencies. The chapter ultimately concludes that despite much-heralded potential, cryptocurrency’s disruption to the US financial system’s supremacy, as well as the sanctions regimes reliant on such supremacy, remains, for now, limited. This incomplete disruption means that any blunting effect provided by cryptocurrency on secondary sanctions cannot fully protect the informal economies and the participants therein from the effects of such sanctions, particularly in more protracted sanctions regimes. Indeed, cryptocurrency’s likeliest role in US sanctions is not to upend the secondary sanctions regime but rather to complicate the enforcement process. Given its rapid proliferation and built-in cryptography, cryptocurrency is likely to continue to make enforcement of sanctions more difficult, more expensive, and, perhaps, less appealing to pursue all potential evaders.
This chapter explores the different types of illicit and informal economy in the two migrant communities and examines why and how Sanhe gods get involved in the gray economy. It also discusses state intervention in the communities through surveillance, raids, and compaigns as well as through gentrification projects. It ends with a discussion on Sanhe gods’ friendships in the community.
We review the emergence of the West Line hub that has processed most of Israel’s e-waste for over two decades against the background of the global phenomena of e-waste policies and hubs often characterised as simply dumping grounds at the receiving end of flows of contaminating processes and materials to less regulated settings (the Pollution Haven Hypothesis, PHH). Its emergence was facilitated by factors common to the occupied West Bank as a whole (de-development, lower labor costs, dominance of the informal sector, a porous border and spatial fragmentation), and others especially important in the West Line area. These include the disruption of work opportunities in Israel alongside a rise in the amounts and value of e-waste; proximity to Israeli urban centers and distance from Palestinian ones; the historical presence of a scrap trade; a population comprised of a handful of extended families facilitating trust-based economies, on the one hand, while overcoming stigma and opposition on the other; and availability of areas of governance vacuum allowing dumping and burning. The PHH’s crudely global account of e-waste hub emergence must be refined to include the context-specific presence and operation of hubs as forceful economic agents, not simply passive recipients of waste dumping.
We build on Chapter three’s description of e-waste hubs as vital economic actors, rather than simply dumping sites, and Chapter four’s account of a consensual development vision for the West Line hub, to argue for the pragmatic and ethical necessity and advantages of centering e-waste hubs in e-waste policies. Existing EPR e-waste policies, generated in the Global North and adopted globally, usually ignore informal actors and dynamics, or propose formalizing them in a way that redirects attention and resources away from the value chains and sites that have historically collected and recycled most of the world’s e-waste. A hub-centered policy would boost the effectiveness and coherence of e-waste policies by accounting for and building on their entrepreneurial agility and expertise, decentralising decisions and interventions to actors with nuanced local knowledge, greater accountability, and long-term stakes in policies that not only propose solutions in the center but grapple with existing capacities and toxic legacies in the periphery. We briefly describe the interlocked arms of the West Line model for such restructuring elaborated in the following three chapters: curbing destructive practices through local enforcement; remediating past damage; and preserving livelihoods though environmental upgrading of the recycling processes.
At a time when precarious labor is on the rise on a global scale, Young and Restless in China explores both the institutional and the individual processes that lead to informal employment and the clustering of the 'great gods' (dashen) – migrant workers, mostly male and born in the 1990s, who are disappointed by exploitative factories and thus choose short-term employment and day labor – in urban migrant communities. Based on ethnographic studies in two of those communities in China, this book analyzes the gendered and gendering aspects of labor, reveals the different processes of precarization among workers, and discusses the role of the diverse intermediaries who both sustain workers' livelihoods and reproduce their precarity.
This Element shows China has assumed a historical role in shaping a new turn in globalization. It has assertively engaged in the open globalizing process through its Belt and Road Initiative as well as in the clandestine process through its shadow networks. These networks have incorporated millions of common people who are unwitting agents of transnational exchange in a global shadow economy. In contrast to the neoliberal phase, the shadow turn in globalization is driven by a plurality of individual, corporate, and state actors with unique divisions of labour, hierarchies of control and domination, and modes of operation. By virtue of being a nodal centre for shadow operations, China is exerting its shadow power in regrouping global city networks, redefining global value chains, and reconfigurating state borders and power.
In this essay, I reflect on the growing political obstacles to doing business history in China and how, in my doctoral dissertation research, I attempted to overcome them. More specifically, I discuss how I drew on unconventional historical sources and novel data to examine the relationship between informal entrepreneurial activity and economic change in Maoist China (1949–1978). Through the quantitative analysis of thousands of case files of individuals prosecuted as “speculators and profiteers”—discarded administrative documents that were recovered from Chinese flea markets—I reassessed the scale and scope of informal entrepreneurial activity in Maoist China. I then went on to triangulate these data with evidence found in other sources to illustrate how, over time, informal entrepreneurial activity became more collusive, encompassing, and impossible to contain. Ultimately, I argued that China’s “Reform and Opening Up” was not the state-led watershed event that it is often made out to be; rather, economic and institutional change was, at least partly, the result of a bottom-up transformation, decades in the making. This essay thus suggests that the use of unconventional sources and mixed methods presents opportunities both for doing research in contexts where history is being actively securitized and for producing countervailing narratives that decenter the state.
During the height of its power over everyday life, between 1968 and 1993, the Cuban Communist Party outlawed virtually all non-state labour and exchange. Since then, however, its continuity in power has increasingly depended on devolution: shifting responsibility for the provision of basic goods and services from failing state enterprises back to the self-employed. The latter now produce the majority of food and basic products; receive most of the national income from tourism, remittances and foreign investment; and generate most new jobs. Nevertheless, they subsist under a subaltern regime of fragile and conditional freedoms. The article adapts James Scott's consideration for the subaltern's ‘hidden transcripts’ and agencies to contemporary Cuba. It analyses the unavoidability of informal and illegal practices for daily subsistence; their naturalisation in society in contrast with their delegitimisation as opportunistic self-enrichment in party-controlled media; and how the self-employed resist such judgements in favour of more conciliatory civic visions.
How do cities foster political trust among informal workers? This question is particularly salient in Africa's growing cities where local governments must reconcile policy priorities across highly heterogeneous constituencies, including a burgeoning middle-class and a large informal economy. We argue that expectations about reciprocity and procedural justice shape the probability that informal traders trust their local government. In doing so, we analyse a survey of approximately 1000 informal traders in Ghana's three main cities – Accra, Kumasi and Tamale. We find that traders who paid requisite fees to local assemblies and could attribute a benefit from those payments were more likely to trust their local government while those who had experienced harassment by city authorities were less likely to do so. The paper highlights that drivers of trust among diverse urban constituencies deserve greater empirical and comparative attention, especially as countries deepen decentralisation initiatives and cities commit to development goals around inclusivity.
In this article we develop and analyse novel datasets to retrace the persistence and scale of underground market activity in Maoist China. We show that, contrary to received wisdom, Chinese citizens continued to engage in market-based transactions long after “socialist transformation” was ostensibly complete, and that this activity constituted a substantial proportion of local economic output throughout the Maoist era. This helps to explain, in part, why, when markets were officially reopened in China, private economic activity took off. We arrive at these findings through the development and analysis of novel datasets based on unconventional historical sources – namely, a collection of 2,690 cases of “speculation and profiteering” that were recovered from flea markets in eastern China. We show how these grassroots sources can be systematically analysed and used, in lieu of official statistical aggregates, to develop new insights into the macro workings of the Maoist economy.
South Korea’s past offers an example of an authoritarian context in which police roles proliferated. Besides maintaining order, police officers in Seoul were deployed for all sorts of purposes. Police were positioned as representatives of a state that had, in the 1960s and 1970s, ambitious plans for remaking society. Seoul’s large underclass posed, in the visions of City Hall and the central government, challenges to those plans. The policing of vagrancy in this period serves as a window onto the interface between state and society. Despite impressive coercive resources, police struggled to impose the state’s demands in managing the streets of Seoul. Instead, they made compromises. In order to attend to their many tasks, police relied on delegates with no formal authority and on irregular procedures. These observations point to a situation of unrestrained power that was also, effectively, limited.
While traditional labour market estimates indicate that there has been little change in the proportion of workers holding multiple jobs in North America, survey instrument deficiencies may be hiding more substantial growth driven by the gig economy. To address this possibility, I test a broader measure of multiple jobholding to examine its prevalence in the Canadian workforce based on two national studies of workers (2011 Canadian Work Stress and Health Study and 2019 Canadian Quality of Work and Economic Life Study). Almost 20% of workers in 2019 reported multiple jobholding – a rate that is three times higher than Statistics Canada estimates. While multivariate analyses reveal that the multiple jobholding rate in 2019 was 30% higher than in the 2011 Canadian Work Stress and Health Study, multiple jobholders in 2019 were less likely to report longer work hours in secondary employment. Analyses also revealed that having financial difficulties is consistently associated with multiple jobholding in 2011 and 2019. Collectively, these findings suggest that while the spread of short-term work arrangements has facilitated Canadians’ secondary employment decisions, for many workers these decisions may reflect underlying problems in the quality of primary employment in Canada, rather than labour market opportunity. I discuss the potential links between multiple jobholding, the gig economy and employment precariousness.
The IT industry has been portrayed as instrumental to India’s transition to a high-growth economy. But critics argue that it has delivered few benefits to the wider population. In this context, industry advocates have drawn attention to the direct and indirect impact of IT on output and employment. This article critically explores these claims by locating them in the conventional (neoliberal) narrative of India’s recent economic development. It finds that industry claims are exaggerated and that IT industry demand is often linked to the creation of employment in industries dominated by informal employment arrangements. The prevalence of informal employment highlights problems of low pay and poor or hazardous working conditions. The IT industry’s rise to prominence has traversed a deeply ingrained process of labour market informalisation. In exaggerating the employment-generating capacity of the IT industry, its supporters have largely ignored problems relating to the quality of employment.
Youth unemployment remains a major political and socioeconomic challenge in Africa despite the recent strong growth performance of many African countries. The study undertakes an empirical assessment of the main sources of youth unemployment in Africa. Based on panel data of 41 African countries covering the period 2000–2010, the study finds a demographic youth bulge and poor economic growth from both supply and demand sides of the market to be key drivers of youth unemployment in Africa. Employment-to-population ratio as a measure of country’s job creation ability and vulnerable employment as a proxy for informality are observed to have had a decreasing effect on youth unemployment. The empirical findings also suggest higher youth employment rates among females than males and a higher concentration in urban than rural areas. Investment in the high labour absorption sectors of agriculture and manufacturing is advocated as job creation strategies, along with population control measures to slow the growing youth population in Africa. High growth in the low employment sectors of mining and extractive industries could serve as resource generating avenues to promote investment in education and skill training, along with infrastructure to facilitate growth in high labour absorption sectors.
Most proposed solutions in the Global Green New Deal literature involve finance and technology transfers to address the imbalance between the Global North and Global South, while providing little discussion of the internal socioeconomic structures within countries in the Global South. This article uses China as a case study to show that without addressing the issue of domestic informality, the potential benefits of a Global Green New Deal are less likely to be fully realised in the Global South. We use the Input-Output method and our originally constructed data on formal and informal employment to calculate the informal employment share in two exemplary renewable energy sectors: solar and wind. We find that more than half of the jobs created in the solar and wind energy sectors, with a given level of spending, will be in the informal economy, and hence are associated with low wages and little social welfare protection. The results imply that, without addressing informality, both renewable energy sectors perpetuate the informal structure in the broader economy. We also question the capitalist nature of ‘green jobs’ created by the Green New Deal. Based on the results, we call for a more organic integration of a Global South perspective in the studies of a Global Green New Deal.
Disenchantment with traditional income-based measures of well-being has led to the search for alternative measures. Two major alternative measures of well-being come from subjective well-being research and the objective capability approach. The capability approach has been largely discussed in the context of development studies and economics and is mainly used within quantitative frameworks, but it also raises many questions that are worthy of discussion from a sociological perspective as well. This study opts for a qualitative approach to transpose capability approach in order to assess the well-being of female homeworkers in the football industry of Pakistan. The aim of this empirical research is to focus on the capabilities of homeworkers in accessing economic, individual, social and psychological aspects of well-being.
There exists a gap at the intersection of Australia’s immigration and employment laws that has serious implications for employees, employers and policy. Australia is host to a large and growing population of immigrants working without authorisation, described as the most significant problem facing Australian immigration authorities. These undocumented workers are often exploited by employers through wage theft, sexual harassment and unsafe working conditions. Yet, they are not entitled to protection under Australia’s employment laws. In addition to the implications for workers, there are broader policy concerns arising from the current system of regulation that effectively rewards employers who are equally in breach of immigration law. Left uncorrected, current regulation may in fact be encouraging a ‘race to the bottom’ for employment standards and increasing undocumented immigrant work. As well as highlighting the inadequacy of the existing regulatory framework, potential avenues for addressing this are explored.
In Sudan the era of the oil boom resulted in a flood in labor remittances that circumvented official financial institutions, thereby undercutting the state’s fiscal and regulatory capacity and fueling the expansion of the informal foreign currency trade. Initially, developments in Sudan paralleled those in Egypt as the boom witnessed the rise of an Islamist-commercial class that formed as a result of its successful monopolization of informal financial markets. However, in contrast to Egypt, by 1989 Sudanese Islamists were able to take over the levers of the state via a military-coup. This development was made possible by Sudan’s weaker state capacity and the extreme weakness of its formal banking system. As a result, the financial power of the Muslim Brotherhood continued to increase in relationship to the state as they continued to profit from participation in the lucrative speculation in black market transactions and advantageous access to import licenses.