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Reason for the Growth of Informal Economies

            In this essay I will endeavour to provide reasons for the phenomenal.
             Firstly, I will provide a brief definition.
             of informal and formal economies. I will also discuss the inequalities and.
             instability of the formal economy environment. Focusing on the.
             manoeuvres which manufacturers and individuals use within the informal.
             economy to alleviate these stresses. I will also put forward a concept of.
             "Interactive Distribution" which combines the best of what informal and.
             formal economies have to offer the economic environment. Creating a.
             powerful system of a informal distribution of goods and services. Thus, it.
             is my opinion that these inequalities within the formal economy, compared.
             to the attractive informal alternatives available to individuals and.
             corporations ensure the growth of the informal market. .
             Finally, I will give an overview of New Zealand's history, politics and.
             economy from which I will submit possible New Zealand reasons for the.
             growth of informal economies. Alternative income, created from the .
             informal system such as the fleamarkets around New Zealand. Also I will.
             discuss the cultural significance informal (traditional) economies have for.
             the Maori people of Aotearoa.
             An informal economy co-exist, within the formal or capitalist economy. .
             Working entirely or partially outside the framework of production and.
             distribution of goods and services within our economy. The formal.
             sector is our capitalistic principles that regulates our market. Capitalism's.
             main function in my opinion is to continually replicate itself establishing.
             its set of structures and regulation, to the benefit of few. .
             The inequalities that exist within our global economy concerning labour.
             and wages have seen the rise in unemployment and an increasing gap.
             between rich and poor. The lack of economic opportunities have also.
             plagued our formal economy placing pressure on individuals and.
             manufacturers to seek new forms of production and distribution.


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