Robert Neuwirth: The power of the informal economy

The video explores the informal economy, known as System D, highlighting its significance in global business. It discusses how communities like Makoko in Lagos, Nigeria, thrive through self-reliance and informal trade. The informal economy, often overlooked, is a major global force, employing 1.8 billion people and potentially becoming the largest economy. Corporations like UAC Foods and MTN have adapted to this economy, recognizing its potential. Despite challenges like piracy and tax evasion, the informal economy offers opportunities for growth and development, urging a reevaluation of its role in global economics.

What unique feature characterizes the informal businesses in Makoko, Lagos?

• They rely on street vendors.

• They operate in skyscrapers.

• They are primarily online.

• They are government-owned.

What does the term 'System D' refer to?

• A new transportation system.

• An informal, self-reliant economy.

• A type of digital currency.

• A government-regulated economy.

How does the informal economy compare to the luxury economy in terms of worker inclusion?

• It includes more workers.

• It includes fewer workers.

• It includes the same number of workers.

• It excludes all workers.

Which company sells its products through street hawkers in Lagos?

• Siemens

• Procter & Gamble

• UAC Foods

• MTN

What strategy did MTN adopt to succeed in the Nigerian market?

• Selling expensive monthly plans.

• Providing free phones.

• Selling only airtime.

• Offering unlimited data.

What is a common issue faced by the informal economy?

• Overproduction.

• Excessive regulation.

• Lack of transparency.

• High taxation rates.

How do some companies view piracy in the informal economy?

• As a form of market research.

• As a threat to their business.

• As a minor inconvenience.

• As a legal issue.

What philosophical perspective is suggested for understanding the informal economy?

• It should be seen as a cooperative.

• It should be heavily regulated.

• It should be ignored.

• It should be taxed heavily.

What is a potential benefit of the informal economy according to the speaker?

• It limits economic growth.

• It creates a more egalitarian world.

• It reduces global trade.

• It increases government control.

What is a key characteristic of products sold in the informal economy?

• They are often pirated.

• They are always high-quality.

• They are government-approved.

• They are exclusively local.