access to official resources and markets, is the proof that they have the potential to further develop their activities (ibid). As the supposedly inevitable and natural shift towards the declared economy occurs, through goods and services increasingly being produced and delivered via declared channels, the ‘traditional’ undeclared work disappears (Williams and Round, 2007). The formal, therefore, is considered as a reflection of ‘progress’, ‘development’ and ‘advancement’ (Lewis, 1959), thus establishing a hierarchical sequencing of declared and undeclared work (Williams and Round, 2007). Both the residue view and its wholly negative portrayal of the undeclared economy have, however, resulted in widespread criticism of this perspective. The 1970s saw increasing informality around the world, destroying expectations of the sector’s reduction. Therefore, the theorisation that informality is marginal and dispersed across the economic landscape was disproven, as a number of studies (both in developed and developing economies) show that the undeclared economy is not a temporary feature (Chen et al., 2004; Debrah, 2007; Potts, 2008; Williams and Round, 2009). As Chen et al. (2004:22) state: ‘It is not just a traditional or residual phenomenon but also a feature of modern capitalist development, associated with both growth and global integration. For this reason, the [undeclared] economy needs to be seen not as marginal or peripheral sector but also a basic component, the base, if you will, of the total economy’. Not only has there been acknowledgment of the phenomenon’s persistence, but its growth has also been shown in many regions (Buehn and Schneider, 2012; ILO, 2011; Jütting and Laiglesia, 2009; Schneider, 2011; Sassen, 2009; Standing, 2011). Furthermore, it is argued that it is not just confined to particular areas such as the global south or the margins of big cities (Sassen, 2009). Instead, it is an integral part of many economies across the globe. Chen et al., (2004), amongst others, therefore argue that the residue theory needs to be reconsidered, because not only has informality grown with modernisation, it has also emerged in various forms, as well as in unexpected locations. Sassen (2009) provides examples of artists, designers and architects in arguing its use as an escape of the
access to official resources and markets, is the proof that they have the potential to further develop their activities (ibid). As the supposedly inevitable and natural shift towards the declared economy occurs, through goods and services increasingly being produced and delivered via declared channels, the ‘traditional’ undeclared work disappears (Williams and Round, 2007). The formal, therefore, is considered as a reflection of ‘progress’, ‘development’ and ‘advancement’ (Lewis, 1959), thus establishing a hierarchical sequencing of declared and undeclared work (Williams and Round, 2007). Both the residue view and its wholly negative portrayal of the undeclared economy have, however, resulted in widespread criticism of this perspective. The 1970s saw increasing informality around the world, destroying expectations of the sector’s reduction. Therefore, the theorisation that informality is marginal and dispersed across the economic landscape was disproven, as a number of studies (both in developed and developing economies) show that the undeclared economy is not a temporary feature (Chen et al., 2004; Debrah, 2007; Potts, 2008; Williams and Round, 2009). As Chen et al. (2004:22) state: ‘It is not just a traditional or residual phenomenon but also a feature of modern capitalist development, associated with both growth and global integration. For this reason, the [undeclared] economy needs to be seen not as marginal or peripheral sector but also a basic component, the base, if you will, of the total economy’. Not only has there been acknowledgment of the phenomenon’s persistence, but its growth has also been shown in many regions (Buehn and Schneider, 2012; ILO, 2011; Jütting and Laiglesia, 2009; Schneider, 2011; Sassen, 2009; Standing, 2011). Furthermore, it is argued that it is not just confined to particular areas such as the global south or the margins of big cities (Sassen, 2009). Instead, it is an integral part of many economies across the globe. Chen et al., (2004), amongst others, therefore argue that the residue theory needs to be reconsidered, because not only has informality grown with modernisation, it has also emerged in various forms, as well as in unexpected locations. Sassen (2009) provides examples of artists, designers and architects in arguing its use as an escape of the
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