.
As Moser (1978) stated.
The "accelerated growth" model . aimed to increase overal.
national growth through policy of accelerated industrialisation .
industrial expansion would result in increased wage sector.
employment on the basis that there was inevitably a positive.
relationship between the growth of output, employment and labour.
productivity, while the "filter down" effect would lead ultimately to.
the redistribution of resources and income throughout society ( p.
1042).
This theoretical assumption has fallen well short from it's original goal.
As the redistribution of resources and income in our competitive.
environment have see the polarisation of wealth for the few and the.
increase poverty around the world.
Majority of businesses around the world are involved in retail sales which.
have their own problems such as expensive overhead, wages,.
advertisement, storage facilities and distribution. All adding up to.
decreasing profits and an increasing cost to consumers. The informal.
economy gives multinational corporations the opportunity to subcontract.
assignments to informal organisations. .
By making use of informal distribution networks, industries.
eliminate the substantial cost of maintaining a permanent sales.
force (Portes, Sassen-Koob 19XX p. 38).
Our capitalist thirst for profit has encouraged exploitation of minorities.
and underdeveloped countries such as Nike in China and sweatshops in.
Mexico. .
Individuals also have the opportunity to benefit in this volatile.
environment. Individuals or groups of individuals from developed.
countries are able to act as middle men/women. Drawing upon their.
informal social networks they can create a core group of informal.
employees utilising skills to complete work. The monetary earnings of.
these informal ventures may vary, but can be much higher when compared.
to formal employment (Garcia, Kelly 1985). For the employees who are.
faced with economic uncertainties informal ventures are a better choice.
