2.2. MODERNISATION THEORY
2.2.4. Modernisation in developing countries
27 enterprises and help prevent corruption that hampers these enterprises’ growth. The major role of government is to monitor various policies within the different informal market categories to address and prevent negative impacts while emphasising growth and expansion in the informal market (Lema. 2013).
28 adoption of western principles of development as key in achieving urban and rural development. The characteristics assumed by the approach are that of western tools adopted by developing countries, those countries will be stimulated into approaching modernism.
The deconstruction of traditional values is based on rudimentary conceptions, regardless of the advantageous and positive influences that culture and tradition have in the informal sustainable environments. Positive influences impact on economic and social issues encountered by society, specifically the disabled, disadvantaged and poor members of society without adequate health services. The overview of past events related to developing countries being forced into initiating the natural emphasis of modernisation in society clearly gathers enough evidence that the modernisation model vindicates the “nullity” (in a sense) of development models used in “developing countries”. The end product is still not convincing worldwide.
Tagarirofa (2017), states that numerous policies have been put in place over time, policies that are unproductive when it comes to informal sector issues. In addition, policies concerned with development based on insensible models, feed on society’s liberties.
Although, society’s on their own are not in any way capable or strategically geared to achieve positive social transformation in developing countries. Policies that are imposed on developing countries suit and support internal political, social and economic patterns of that country, rather than being configured externally (Tagarirofa, 2017). This concludes the argument that informality is far from hostile to development, since a variety of developing countries develop and grow based on influence by the social, cultural and political inclination of its organisational models.
2.2.5. Informal supportive systems challenges
The amount of attention paid to the informal economy should be based on the carrying capacity of informal market with regards to poverty and unemployment. But since there is inequality and lack of support for the market, very little attention has been directed towards the informal sector in previous years. In 2007, the International Labour Office (ILO) mentioned that a variety of programmes had been implemented aiming at giving support to informal activities (International Labour Organisation, 1972). And the ILO (2007) cited Asia, Bogotá, Colombia, Ho Chi Minh City, India and Ghana as examples. Chen et al. (2018) speaks of essential support required from authorities in terms of the establishment of spatial provision that includes urban informal workers and places focus on street traders/vendors.
29 Vergara (2016) states that in Colombia there are still initiatives which are taken in the informal sector, and they entail rejuvenating trading spaces to produce more efficiency in the urban informal environment. In India procedures have been put in place to look at spatial issues and labour law reforms for the informal sector. The significance of the informal sector is becoming highly accepted at a national context. However, there are delays that hinder the implementation of developmental process. Vergara (2016) illustrates that the informal economy is a viable source of social and economic stability. This is even embraced by formal institutions which consider policy measures as tools that are viable in recognising potential functionality of the informal sector. The configuration and arrangement of these policy measures is capable of maintaining and guiding the process of productivity within the sector. The international agenda is to modernise the urban environment and cater for development in all aspects of socio-economic growth in developing countries.
Policy advancement results from legislative measures that advocate for informal upgrading and rejuvenation developmental initiative, and promoting the acceptance of the informal economy in urban areas. Policy measures have promoted the informal economy to profitability and viability for some, and it has proven the informal market to be acting as a safety net even during a downswing of the entire economy. This promoted international support for the informal economy has grown stronger and the sector has improved financially (Arshad, 2016). In developing countries there is a shared comprehension of inconsistent policy and strategic visions which need to improve the informal markets. Because of limited consensus amongst stakeholders and the state, the effectiveness of policy implementation has been hindered and the national budget not altered to accommodate changes required for the growth of the informal sector. The collaboration of stakeholders at a national level is a vital factor for the success and effective relief of policy measures towards the functionality of the informal sector (the collaborative approach). Conversely, at the local or regional level the initiatives policy implementation are adequate and productive when consensus is achieved amongst the individual stakeholders. However, the inabilities to constantly comprehend the informal economy policy strategic vision, various insufficiencies and productivity limitations come as a result. This further leads to stakeholders being incapable of responding with a more comprehensive approach (Arshad, 2016).
The informal economy is a complex subject to understand even at a local level. Within the perspective of modernisation, there is no common definition of the informal market that leads to inclusive and shared approaches/ideas that pioneer relevant strategies for policy implementation (Williams, 2015). In the African context, there was a report published in 1972 by the ILO. The report attempted to describe Kenya’s informal market support in the early 1970s (Kempe, 2014). The report related the market’s informality to labour precariousness
30 and illegality, yet the definitions of these words are very different. Illegality speaks to regulation and labour precariousness speaks to instability or functionality of the sector. The ILO indicated strategic opportunities that could be utilised to regulate the informal market via different approaches designed to formalise the informal activities and integrate the sector into the formal economy via modernisation process (Kempe, 2014).