Informal%20commerce%20is%20a%20boon%20for%20the%20poor%20but%20disastrous%20for%20industry

Informal%20commerce%20is%20a%20boon%20for%20the%20poor%20but%20disastrous%20for%20industry

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NEWS: Informality in Mexico City Informal commerce is a boon for the poor but disastrous for industry. Ten-year-old Pedro and his father have to elbow their way along the streets of the Mexican capital’s historic center,  which are inundated by thousands of informal merchants who have paid up to US$900 a month or more per square  meter of sidewalk space, according to nearby business owners. This unlawful "sale" of public space generates over $54.5 million every month in bribes paid by street vendors to  neighborhood leaders working in cahoots with government officials, according to the Confederation of National  Chambers of Commerce, Services and Tourism. Alicia reported that she pays $5 a week to local government authorities who have allowed her to set up a  rudimentary stove on the sidewalk and sell quesadillas, a Mexican specialty. She earns enough to cover the costs  of her son’s university education and to pay an assistant. Official figures indicate that around 300,000 people in Mexico City are employed in the informal market, which  results in the loss of an estimated $872.2 million in taxes annually, was blamed for the closure of businesses that  provided jobs for over 15,000 workers last year alone. After walking countless blocks, Pedro and his father were unable to track down the toy they were looking for, a car  run by remote control and able to roll right over the most daunting obstacles. Most of the little cars they did see in 
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This note was uploaded on 11/10/2011 for the course ECON 4310 taught by Professor Staff during the Fall '08 term at Kennesaw.

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Informal%20commerce%20is%20a%20boon%20for%20the%20poor%20but%20disastrous%20for%20industry

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