BUSA JEREMIAH WENOGO
WHILE much emphasis has been placed on the role of markets in encouraging the growth of the informal economy, very little has been said about those who operate small informal businesses outside its gates.
Mobile traders and peddlers are seen by most governments as problems rather than solutions, a notion based on the difficulties authorities have in controlling how they conduct their activities.
In addition, many mobile traders sell counterfeit products which pose competition to formal enterprises. Aspiring entrepreneurs who conduct informal business within the vicinity of their homes are not so much of a problem as it is easy to identify them and hold them accountable.
Building a physical market is a good strategy, not only to promote the growth of the informal economy but also to control the problems of an open and uncontrolled environment.
For instance, a lot of vendors, especially women, complain of loss of revenue and insecurity when they conduct business outside the ambit of a formal market.
Vendors also lack access to facilities such as toilets, clean water and shelter.
Peddlers and mobile traders, or hawkers, do have an advantage over vendors who operate within markets given that their mobility allows them to meet demand (customers) rather than wait for demand (customers) to come to them.
Perhaps their biggest advantage is the wide open space in which they can operate, unlike markets where space limitation is a real and challenging problem.
But this mobility coupled with aggressive market behaviour has led to complaints from the public. Regardless, the government, through the Informal Sector Development & Control Act 2004, recognizes their role in the informal economy – a brave move considering they have been blamed for all manner of public nuisance.
The government has to be commended for taking a holistic view of the informal economy given that there was no policy framework in place at the time the Act was drafted.
Furthermore the government should be congratulated for initiating a review of the Act to align with its National Informal Economy Policy 2011-2015.
That said, the government has failed miserably in performing its inspectorial functions which are crucial for control and monitoring.
It is clear that most town and urban authorities don’t have the funds to bolster their manpower and effectively enforce these laws. Nevertheless, it can also be said that lack of foresight and ingenuity has led to the problem getting out of hand.
There is legislation that provides powers to Provincial and Local Level Governments to enact laws to impose penalty fees and issue licenses to trade which would benefit both control and revenue generation.
The Informal Sector Development & Control Act 2004 recognises these powers although it excludes the Tradings Act on the grounds that it can apply to a formal entity such as a trade store.
Nevertheless, there is really no excuse for these authorities to argue that they do not have sufficient authority.
It is true, though, that to enforce some laws in their entirety might discourage and even damage the informal economy. To rigorously apply such laws would defeat the other major intent of the law which is to promote the informal economy.
This could explain why the Informal Sector Development & Control Act introduced minimum standards as a way of bringing the laws to a “level that can be easily comprehendible” by the informal economy participants.
By omitting certain laws as prescribed in section 18 of the law, the drafters aimed to attain a “balancing act”, that is, to develop and control the growth of the informal economy in PNG.
In PNG most of the mobile traders and peddlers are youths with a few old timers standing at strategic areas such as bus stops barking out prices and willing to bargain.
Given that most of these peddlers and mobile traders are youths, it is argued tis gives rise to petty crime. For instance, there have been reports of mobile traders taking part in carjacking and robbery while hawking on the side of the road.
However, as more women are becoming mobile traders and peddlers, it is important that this sort of generalisation does not do them unnecessary injustice.
From this perspective it is clear that petty trading need to be controlled but this has to be done with the understanding that markets have space limitations. If the government wants to get rid of mobile traders or peddlers it can either expand existing markets or build new ones. Otherwise, it should regulate by providing licenses or permits to trade.
Most of us don’t realise that mobile traders bring convenience to the way customer demand is met. We don’t need to travel to a shop or walk a long distance to purchase what we’re after. Mobile traders or peddlers also provide services to working class people who work long hours and don’t get a chance to go to shops.
In addition, formal enterprises can work in unison with mobile traders to act as their agents to sell their products. A classic example is Digicel PNG and its mobile shops and stalls set-up at “hotspots” to sell mobile phone credits.
Maybe we should not do away with peddlers and mobile traders as they play an important role in our economy. Rather we should concentrate on making these professions accountable to the government to combat issues relating to copyrights and patents.
It is important for the government and the general public to understand that most counterfeit products are imported and their availability in PNG is facilitated by foreign entities operating in the country. The government should investigate the origins of these products and prosecution should cover the entire supply chain.
For store goods sold on the streets it is just as important for the government to ensure that they are given a fair go. Competition should be welcomed with a view that these products meet a certain minimum standard and operate under a permit or license to trade.
Whether one is in support or against them, peddlers and mobile traders should be given serious consideration by the government. They have now increased their presence in both rural and urban areas of PNG.
They are becoming an important segment of the informal economy in PNG and deserve a place in our government’s plan to stimulate the informal economy and the SME sector.
WHILE much emphasis has been placed on the role of markets in encouraging the growth of the informal economy, very little has been said about those who operate small informal businesses outside its gates.
In addition, many mobile traders sell counterfeit products which pose competition to formal enterprises. Aspiring entrepreneurs who conduct informal business within the vicinity of their homes are not so much of a problem as it is easy to identify them and hold them accountable.
Building a physical market is a good strategy, not only to promote the growth of the informal economy but also to control the problems of an open and uncontrolled environment.
For instance, a lot of vendors, especially women, complain of loss of revenue and insecurity when they conduct business outside the ambit of a formal market.
Vendors also lack access to facilities such as toilets, clean water and shelter.
Peddlers and mobile traders, or hawkers, do have an advantage over vendors who operate within markets given that their mobility allows them to meet demand (customers) rather than wait for demand (customers) to come to them.
Perhaps their biggest advantage is the wide open space in which they can operate, unlike markets where space limitation is a real and challenging problem.
But this mobility coupled with aggressive market behaviour has led to complaints from the public. Regardless, the government, through the Informal Sector Development & Control Act 2004, recognizes their role in the informal economy – a brave move considering they have been blamed for all manner of public nuisance.
The government has to be commended for taking a holistic view of the informal economy given that there was no policy framework in place at the time the Act was drafted.
Furthermore the government should be congratulated for initiating a review of the Act to align with its National Informal Economy Policy 2011-2015.
That said, the government has failed miserably in performing its inspectorial functions which are crucial for control and monitoring.
It is clear that most town and urban authorities don’t have the funds to bolster their manpower and effectively enforce these laws. Nevertheless, it can also be said that lack of foresight and ingenuity has led to the problem getting out of hand.
There is legislation that provides powers to Provincial and Local Level Governments to enact laws to impose penalty fees and issue licenses to trade which would benefit both control and revenue generation.
The Informal Sector Development & Control Act 2004 recognises these powers although it excludes the Tradings Act on the grounds that it can apply to a formal entity such as a trade store.
Nevertheless, there is really no excuse for these authorities to argue that they do not have sufficient authority.
It is true, though, that to enforce some laws in their entirety might discourage and even damage the informal economy. To rigorously apply such laws would defeat the other major intent of the law which is to promote the informal economy.
This could explain why the Informal Sector Development & Control Act introduced minimum standards as a way of bringing the laws to a “level that can be easily comprehendible” by the informal economy participants.
By omitting certain laws as prescribed in section 18 of the law, the drafters aimed to attain a “balancing act”, that is, to develop and control the growth of the informal economy in PNG.
In PNG most of the mobile traders and peddlers are youths with a few old timers standing at strategic areas such as bus stops barking out prices and willing to bargain.
Given that most of these peddlers and mobile traders are youths, it is argued tis gives rise to petty crime. For instance, there have been reports of mobile traders taking part in carjacking and robbery while hawking on the side of the road.
However, as more women are becoming mobile traders and peddlers, it is important that this sort of generalisation does not do them unnecessary injustice.
From this perspective it is clear that petty trading need to be controlled but this has to be done with the understanding that markets have space limitations. If the government wants to get rid of mobile traders or peddlers it can either expand existing markets or build new ones. Otherwise, it should regulate by providing licenses or permits to trade.
Most of us don’t realise that mobile traders bring convenience to the way customer demand is met. We don’t need to travel to a shop or walk a long distance to purchase what we’re after. Mobile traders or peddlers also provide services to working class people who work long hours and don’t get a chance to go to shops.
In addition, formal enterprises can work in unison with mobile traders to act as their agents to sell their products. A classic example is Digicel PNG and its mobile shops and stalls set-up at “hotspots” to sell mobile phone credits.
Maybe we should not do away with peddlers and mobile traders as they play an important role in our economy. Rather we should concentrate on making these professions accountable to the government to combat issues relating to copyrights and patents.
It is important for the government and the general public to understand that most counterfeit products are imported and their availability in PNG is facilitated by foreign entities operating in the country. The government should investigate the origins of these products and prosecution should cover the entire supply chain.
For store goods sold on the streets it is just as important for the government to ensure that they are given a fair go. Competition should be welcomed with a view that these products meet a certain minimum standard and operate under a permit or license to trade.
Whether one is in support or against them, peddlers and mobile traders should be given serious consideration by the government. They have now increased their presence in both rural and urban areas of PNG.
They are becoming an important segment of the informal economy in PNG and deserve a place in our government’s plan to stimulate the informal economy and the SME sector.
Peddlers and mobile traders, or hawkers, do have an advantage over vendors who operate within markets given that their mobility allows them to meet demand (customers) rather than wait for demand (customers) to come to them.
Perhaps their biggest advantage is the wide open space in which they can operate, unlike markets where space limitation is a real and challenging problem.
But this mobility coupled with aggressive market behaviour has led to complaints from the public. Regardless, the government, through the Informal Sector Development & Control Act 2004, recognizes their role in the informal economy – a brave move considering they have been blamed for all manner of public nuisance.
The government has to be commended for taking a holistic view of the informal economy given that there was no policy framework in place at the time the Act was drafted.
Furthermore the government should be congratulated for initiating a review of the Act to align with its National Informal Economy Policy 2011-2015.
That said, the government has failed miserably in performing its inspectorial functions which are crucial for control and monitoring.
It is clear that most town and urban authorities don’t have the funds to bolster their manpower and effectively enforce these laws. Nevertheless, it can also be said that lack of foresight and ingenuity has led to the problem getting out of hand.
There is legislation that provides powers to Provincial and Local Level Governments to enact laws to impose penalty fees and issue licenses to trade which would benefit both control and revenue generation.
The Informal Sector Development & Control Act 2004 recognises these powers although it excludes the Tradings Act on the grounds that it can apply to a formal entity such as a trade store.
Nevertheless, there is really no excuse for these authorities to argue that they do not have sufficient authority.
It is true, though, that to enforce some laws in their entirety might discourage and even damage the informal economy. To rigorously apply such laws would defeat the other major intent of the law which is to promote the informal economy.
This could explain why the Informal Sector Development & Control Act introduced minimum standards as a way of bringing the laws to a “level that can be easily comprehendible” by the informal economy participants.
By omitting certain laws as prescribed in section 18 of the law, the drafters aimed to attain a “balancing act”, that is, to develop and control the growth of the informal economy in PNG.
In PNG most of the mobile traders and peddlers are youths with a few old timers standing at strategic areas such as bus stops barking out prices and willing to bargain.
Given that most of these peddlers and mobile traders are youths, it is argued tis gives rise to petty crime. For instance, there have been reports of mobile traders taking part in carjacking and robbery while hawking on the side of the road.
However, as more women are becoming mobile traders and peddlers, it is important that this sort of generalisation does not do them unnecessary injustice.
From this perspective it is clear that petty trading need to be controlled but this has to be done with the understanding that markets have space limitations. If the government wants to get rid of mobile traders or peddlers it can either expand existing markets or build new ones. Otherwise, it should regulate by providing licenses or permits to trade.
Most of us don’t realise that mobile traders bring convenience to the way customer demand is met. We don’t need to travel to a shop or walk a long distance to purchase what we’re after. Mobile traders or peddlers also provide services to working class people who work long hours and don’t get a chance to go to shops.
In addition, formal enterprises can work in unison with mobile traders to act as their agents to sell their products. A classic example is Digicel PNG and its mobile shops and stalls set-up at “hotspots” to sell mobile phone credits.
Maybe we should not do away with peddlers and mobile traders as they play an important role in our economy. Rather we should concentrate on making these professions accountable to the government to combat issues relating to copyrights and patents.
It is important for the government and the general public to understand that most counterfeit products are imported and their availability in PNG is facilitated by foreign entities operating in the country. The government should investigate the origins of these products and prosecution should cover the entire supply chain.
For store goods sold on the streets it is just as important for the government to ensure that they are given a fair go. Competition should be welcomed with a view that these products meet a certain minimum standard and operate under a permit or license to trade.
Whether one is in support or against them, peddlers and mobile traders should be given serious consideration by the government. They have now increased their presence in both rural and urban areas of PNG.
They are becoming an important segment of the informal economy in PNG and deserve a place in our government’s plan to stimulate the informal economy and the SME sector.
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