Govt urged to employ informal economy
BY GORETHY KENNETH
THE government has been urged to harness the informal economy sector by seriously addressing and developing it because currently it provides 90 per cent of household income in major towns.
Community Development Secretary Anna Solomon Kavana told the leaders’ summit, the informal economy in PNG employs over 80 per cent of adults and net profits range from K300 to K500 per week or K1000 if they were lucky.
She stressed to the Summit that the informal economy is currently worth about K12 billion per year, around 20 per cent of gross domestic product. The National Budget is about K16 billion and this could add to that budget if harnessed well.
Ms Kavana thanked the Government of Prime Minister Peter O’Neill as she singled out that for the first time, they allowed and allocated money to carry out the first global audit they undertook which had a favourable result.
She said the audit revealed that workers in the informal economy tend to be much better educated than was the case in 2001, and compared with the population average.
“The National Government must now look after those involved in the informal market economy because this is where the money is,” Ms Solomon Kavana said.
“The informal economy accommodates many vulnerable people including women with young children, old people and disabled people, all of whom may be excluded from the formal economy and who need some flexibility about where they work and their working hours.
“Net profits appear to be in the region of K300 to K500 a week which is more than double the minimum wage in the formal sector. However, while the earnings from individual enterprises appear to have increased, it did not include ‘unpaid helpers’. Men working in markets appear to earn more than women, but this does not apply to workers in residential areas.”
Last week a paper was presented to Prime Minister Mr O’Neill and the Government through the Minister Soroi Eoe.
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