Development of the informal economy: A strategy for resolving the crisis of the welfare state

This article is about the factors and conditions which would influence an expansion of the informal sector (jobs which at present are not registered or taxed and which are done on a voluntary or self-help basis). The need and the opportunity for a stronger informal sector are assessed and the social forces which could support such a strategy are identified. There is a danger of a situation arising where the dominant economic system would use the informal sector for its own stabilization; this reflects the limitations of such independent activities as a model for solving our problems.