Economy
The Informal Sector Trap
No safety nets, lack of formal credit, survival mode
Informal work traps people in survival mode — no safety net, no cheap credit, no path to scale — even when they want to formalize.
What keeps this stuck
- High cost and complexity of formal registration
- No paper trail or collateral for bank credit; moneylenders fill the gap
- Direct leap from farms to casual gig work without a factory rung
- Weak bargaining power for unskilled labor
Is this a root problem worth fixing first?
How this connects
Where this problem sits in the causal graph — what feeds it, and what it feeds.
Fed by
Leads to
What could move this
Curated interventions, graded by how much evidence stands behind them — not endorsements. Tap a card to open it.
7 solutions found