Fraught with Friction: Inclusive Development for Informal Workers in Urban Ghana

Abstract

Informal workers are a heterogeneous group distinguished by diverse activities and interests, but they have in common that they operate largely outside state regulations. In this article, we analyse the ways in which informal workers in Ghana are organising (themselves) in response to proposed relocations of their workspace. Borrowing from Tsing, we distinguish three layers of friction that can lead to (structural) change, collective action, and an increase in informal workers’ political leverage. Our two case studies in Accra and Kumasi show how striving for inclusive development is a process shaped by diverse agendas and potentially conflicting interests. These relational and political aspects are crucial for understanding the frictions involved, as well as how these may lead to change. Where the tendency is to gloss over these frictions, we argue that they need to be the starting point for effective policies and initiatives for inclusive development.

Mobile money taxation and informal workers: Evidence from Ghana's E‐levy

“…To the best of our knowledge, this is the largest and most detailed study of the effects of DFS taxes on informal workers. Capturing the views of informal workers is particularly important given the challenges informal workers often face in finding political representation and voice (Hendriks et al, 2022; Kabeer et al, 2013), as well as the overall lack of inclusivity of the decision‐making processes around the E‐levy (e.g., Sensitize public, 2022). While focusing on the effects of informal workers as a whole, we disaggregate our analysis by income and gender, which we expect to impact mobile money usage and thus the distribution of new tax burdens.…”

“…We make use of a novel and statistically representative dataset of the informal economy in Accra to explore the likely impact of a mobile money tax on equity, and to capture informal workers' perceptions of the policy proposal and their understanding of it against the backdrop of their relationship with the state. Capturing the views of informal workers is particularly important, given challenges informal workers often face in finding political representation and voice (Hendriks et al 2022;Kabeer et al 2013), as well as the overall lack of inclusivity in many of the decision-making processes around the E-levy (e.g. GhanaWeb 2022b).…”