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The informal sector is made up of the set of companies, workers and activities that operate outside the legal framework and the rules that regulate economic activity. Therefore, being part of the informal sector means avoiding paying taxes and legal regulations, but it also means a lack of protection and services that the government could provide you. That is why we want to identify and internalize not only the economic aspect, but also the way in which informality is enhanced by the needs and sense of survival that, due to external or internal situations in our country, affect the population and trigger various problems. as is informality.
Informality is the distorted way in which an overly regulated economy responds both to the shocks it faces and to its growth potential. informality entails the loss of the advantages offered by legality: police protectionand judicial, access to formal credit, and the ability to participate in international markets.
Although the definition of informality may seem simple and precise, estimating its size is not easy. Given that this problem is identified by the economic activity that takes place outside the legal and regulatory framework, we do not have an exact and complete measurement of it, but we do have indicators that give an idea of its measurement and information on its many aspects. , this also implies the efficiency or lack of it in the control at the macro and micro levels in our country, since the problem not only affects the economic sphere but also a more urban aspect.
The informality rate in Peru is incredibly high, around 75% of the population engages in tax evasion and illegal economic activities. The consequences of this are many, for example, the lack of sufficient funds for the government to provide basic services such as education and health. Also, the distortion of statistical information and indicators. And unfair competition for companies that are legal.
Furthermore, the industry informal uses and congests public infrastructure without contributing to the tax revenues needed to supply it. Since public infrastructure complements the contribution of private capital in the production process, the existence of a large informal sector size implies lower productivity growth.
And all this is increasingly worrying in Peru because it generates losses since the informal sector generates a negative external factor on efficiency, such as informal activities that use and congest public infrastructure without providing the necessary tax revenue to supply it. In addition, the pandemic makes it more difficult to supervise and control work both in establishments and in the teleworking situation, so it is important to know its causes and consequences where we see many and that can even be interpreted as a cultural phenomenon. We also want to know some of the possible solution proposals that could be carried out to reduce this informality that affects us all so much in some way.
Finally, propose, from our analysis, new perspectives of the development system and the way in which the population begins a new era without informality, and make it no longer part of our training.
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