Monday, December 24, 2007

informal service

There are different ways to look at economies. First, there are market and non-market economies. The latter are subsistence economies. These economies produce for there own consumption (thus: producer and consumer are the same). A few chickens in the backyard or a small plot of paddy field characterize such an economy. A market economy can be divided into the formal and the informal market economy. Legally defined property rights characterize the formal market economy so that market exchanges are taxable by the state. Of course, there is overlap between the formal and informal sectors. The formal sector can be informally taxed, this is usually called extortion though and this is how the mafia got big. The informal market economy is also called the black market. The informal sector is on the other hand more flexible. In Indonesian cities one can find posters all around on which services are offered: your sofa can be cleaned, you can learn Korean, you can borrow money, you can hire a maid or a car, you can make posters or banners. The Jakarta based artists collective Ruang Rupa makes fun of this by making their own poster. Ruang Rupa offers a course on how to become a thief (maling) and the teacher can come to your home.

1 comment:

eri said...

Bravo Roy! What a great way..'hidden promotion' being packed up with analytical on economic thing, surpringsingly ended by art matter:)