The Relevance Of Informal Economy

Job creation is obviously an area of emphasis for any government anywhere in the world. And governments must be held accountable in this regard alongside their performance in the sectors of education, healthcare, energy, food and defense.

But at the same time: An almost unbeatable aspect of the Indian economy is its informal aspect.

An example is domestic helps who come and clean homes with a simple broom and pocha (Indian version of the mop), wash / iron clothes, cook food, etc. etc.

Thousands and thousands and thousands of people have been able to sustain themselves and their families over the years, they have educated their children, built small homes for themselves and saved a bit for rainy days by working at a few homes every day.

Yes, we need to hire domestic helps carefully and supervise as necessary to ensure safety and security. But that said, I must also say that over the years I have come across and hired domestic helps who are wonderful human beings, very honest, hardworking and committed and I don't believe there is any case to be overly suspicious and paranoid.

I also look forward to times when all of society is educated and there are opportunities for everyone in alternative professions that are more creative, enterprising and fulfilling.

But the transition from "now" to "then" has to be charted out very very carefully.

In particular, the speed at which technology replaces human beings in any profession has to be slower than the speed at which we are able to create alternative opportunities that are as good or better.

These are real living human beings who have families to support, not dispensable entities. We have to make sure they don't get hurt as we march down the path of development.

In case you feel that this profession is a sort of bondage that people should be liberated from, here is a suggestion:

You can pay your domestic helps a bit extra every month to save and possibly start some enterprise of their own in a few years. Some advice and guidance from you might also help them in making such a transition.