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Carlos Cordero's avatar

Doctor, you just described the structural situation in Latin America since at least the 1970s, certainly since the 1980s. In Perú, the case I know well, the 80s saw the “informal economy” appear - micro entrepreneurs selling wares on street corners and without permits or licenses. The neoliberal reforms of 1990 onwards legalised the use of “service contracts”, this is paying employees as contractors (sans workers benefits) but in theory with more cash in pocket - no PAYE but for a little income tax retention.

Should you like, I can put you in touch with the people at the Universidad del Pacífico CIUP (the research centre at the UP). You will find a treasure trove of colleagues and analysis that describes how this one plays out (Cliff Note: you end up with impoverished Latin America, Africa, and a large swath of Asia).

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Jo Wrigley's avatar

Timely and so so helpful right now.

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