It's Not What You Think: India's Informal Economy and the Global Crisis
Would you want an unlicensed dentist working on your teeth?
You might if, like many of India’s poor, you lacked the money to see a professional. By your willingness to pay for these services, you’d also be creating a kind of employment for someone who could never find work in a traditional medical office.
Workers like these amateur dentists are part of India's informal sector, made up of the small-business employees like cleaners, agricultural workers, and hawkers of street goods who work for cash without a contract or benefits. Although India is best-known for its high-tech economy, the Indian government estimates that more than 93 percent of Indian workers are informally employed.
The informal sector didn't benefit much from India's tech boom, but its extra-stretchy quality actually makes India's economy stronger, says businessman Semil Shah. Why? For starters, he explains, the informal economy "provides markets for goods and services that may not have been otherwise traded." Others also see the the informal economy as a safety net for workers, since it gives more work possibilities to those who've lost jobs in the formal sector. Because of this, the informal sector may help sustain India through the global economic crisis, reports CNN.
However, maintaining a large informal economy isn't the long-term answer for India's poor, many researchers say. Life in the informal sector is harsh, since employment is often uncertain and poorly-paid. Moreover, working conditions aren't always good and competition can be stiff, especially when workers from the formal sector flood back in. Without a safety net of their own, informal workers hit the ground hard when they fall.
Despite all the drawbacks, many out-of-work Indians would probably agree that the uncertainty of informal work trumps the certainty of no work at all.
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Street dentistry sounds unique
I knew that a lot of professions in India and neighboring countries were informal, but street dentistry is a unique one. Wonder how they get their customers-- you sort of have to know or have heard about an informal medical worker before you trust them. I'm curious how the street dentist acquires his skills for the profession--and how much he charges the customers.
Great point
That's a great point, and I think it raises some important questions: Who is best-placed to take advantage of the informal economy? Does the informal economy depend on and reinforce existing hierarchies and networks?
The CNN article also mentioned that the dentist it cited had studied with someone in order to learn these skills (perhaps only for a few months, I think), but it would also be great to know more specific information about that.
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