Informality: a lifestyle?

By Roger, Sebastián, Maria, Carla,

With the passing of the years, informal business keeps growing and growing, and we as members of this society haven't done something to change our reality, but what is our reality?

To start talking about our reality, we need to focus on the common and little things. We can find informality from a bus stop to the emporium of sale, also we can identify how this affects different aspects of the country, how this affects our evolution like society and the innovations that would be created. For this reason, to identify the beginning of the problem is essential for finding a solution.

In 2020, the informal labor rate increased up to 75% (Luis Sáenz) of the total population, resulting in 11,2 million informal workers. According to specialists such as the well-known sociologist Jorge Yamamoto, one of the main problems that cause this culture of informality is the lack of empathy, morals, and ideals in the Peruvian society. And as a fact, 53% of informal businesses don't think it's necessary to formalize. This means this big problem is normalized in Peru.

The main causes of this issue is a result of the costs of formalization being higher than the actual benefits that come with the formalization. At the same time,  the unorganized and bad service of the public services does not make it any easier. Also, there is no quality education, which doesn't help new generations to evolve professionally, making it even harder for the citizens to actually get to go beyond the actual mediocrity. 

As a consequence, we can see every day how people just don't care about the regulations. Peruvian society does not care about breaking rules even though it´s prejudicing others, for example, people who buy pirate movies or books instead of the original versions don't give a second thought about the effort, time and money the producers and writers put into it. 

Another reason why we have normalized informality is because of the lack of legal consequences, informality can not be eradicated if the authorities who are supposed to regulate this problem show nothing more but indifference to it. As a consequence we have lost respect for the authority, the sense of it and the people that represent it since there is so much corruption and negligence in their workspace. It is nothing but the result of our egoism and the constant search for our own benefit at the expense of others

Luis Sáenz, economista del Instituto de Economía y Desarrollo Empresarial de la Cámara de Comercio de Lima (CCL). (2021). Informalidad Peruana. El Comercio, 14,15.


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