The Impact Of Modern Industrial Sector On Developing Countries
From the 1950s to 1960s, modern industrial sector emerged as economic development. In response to this, Arther Lewis proposed that rural sector such as agriculture would be replaced by modern sector in urban areas. Although Europe and Japan increased industrial sector and expand the economy, this economic change did not happen in developing countries. On the contrary, the rate of unemployment increased. In addition, global competition expanded by 1990s and the informal employment become worldwide arguments (Chen at el, 2005).
A generally accepted definition of informal work is proposed by ILO in 2002, that is, not recognised, registered, regulated or protected by the law, hence receive little or no legal or social protection. In 1972, ILO defined informal work as self-employed, employees, employers, family workers in informal enterprises. However, current informal work is more complex and flexible, thus ILO expanded to those who work in the formal sector (ILO, 2002).
ILO admits that informal sector is beneficial to society because it creates job opportunities and expands global economy. According to ILO, contribute to over 7 to 38% of Gross Domestic Product (GDP) in sub-Saharan Africa, between 16 and 32% in Asia. More than 50% of total workers are employed in the informal sector in Mexico, Argentina and Brazil (ILO, 2002). In terms of the informal workers, there are several types business activities that are not only agriculture but also trading, service…