Formalising the informal sector : a case study on the City of Johannesburg

Show simple item record Van Rooyen, Enslin Antonites, Alexander Josef 2007-11-07T08:55:32Z 2007-11-07T08:55:32Z 2007-08
dc.description.abstract Informal trading is a phenomenon prevalent throughout the world, but nowhere more visible and contributively to local economies than in the developing world. South Africa faces similar challenges as any other emerging economy, which demonstrates a duality insofar as its formal and informal arrangements are concerned. In addition, poverty and unemployment, HIV/AIDS and concomitant social problems all form part of the Country’s current socio-economic landscape. The Constitution of the Republic of South Africa, 1996 provides local government with a mandate to govern, provide service and to promote development within their areas of jurisdiction. The Constitution of the Republic of South Africa, 1996 stipulates in Section 153 that local government must structure and manage its administration, budgeting and planning processes to give priority to the needs of the community and promote the social and economic development of the community. The concept of developmental local government is extensively elaborated upon in policy documents and legislation, which impress the obligation of local government to apply technologies to further its developmental objectives. The Metropolitan Trading Company (MTC) in the City of Johannesburg is mandated to manage trading within the area of its jurisdiction by acting as a conduit and facilitator to economic activities associated with bottom end trading. This function poses significant challenges, especially if taken into account the extent of poverty and different forms of disenfranchisement, which traders currently experience. Location in terms of finding appropriate trading venues, abiding with the regulatory framework imposed by the authorities (especially the municipal authorities) and access to support mechanisms to enhance their prospects of success (including finance, skills development and product/market options etc.) are all contributive factors to limiting the success and growth that is needed by such traders. On the one hand, a proper system within which orderly trading is assured (such as a regulatory framework that limits trading in particular areas and registration) is necessary and highly desirable. Yet, on the other hand it should be noted that the trading community would remain and possibly even grow. It should be noted furthermore that the trading community would continue to expand even if general local economic growth is significantly improved. Global trends in countries, which demonstrate similar socio-economic characteristics as South Africa, testify to this. Urgent support mechanisms are needed to improve this state of affairs. The fundamental role of these mechanisms is to transform the informal sector and trade into a contributing channel of entrepreneurial performance and job creation. This article endeavours to assess the issues faced by local government in this process and offer some solutions within the frame of a case study. en
dc.format.extent 368768 bytes
dc.format.mimetype application/pdf
dc.identifier.citation Van Rooyen, EJ & Antonites, AJ 2007, 'Formalising the informal sector : a case study on the City of Johannesburg', Journal of Public Administration, vol. 42, no. 3, pp. 324-346. [] en
dc.identifier.issn 0036-0767
dc.language.iso en en
dc.publisher South African Association for Public Administration and Management en
dc.rights South African Association for Public Administration and Management en
dc.subject Informal trading en
dc.subject South African local government en
dc.subject Metropolitan Trading Company (MTC) en
dc.subject City of Johannesburg en
dc.subject Entrepreneurial performance en
dc.subject Job creation en
dc.subject.lcsh Local government -- South Africa
dc.subject.lcsh Informal sector (Economics) -- South Africa -- Johannesburg
dc.title Formalising the informal sector : a case study on the City of Johannesburg en
dc.type Article en

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