By Aaron Barbour
In our informal economy work we’ve always been asked, particularly by politicians and civil servants, to “prove it exists – give us a number”.
As you know trying to prove something that is hidden is difficult to say the least. Prof. Friedrich Schneider is one of the leading exponents of measuring informal economic activity at a macro-level. His extensive work over last three decades has looked at the informal economy in over 140 countries, using a range of different techniques ranging from tax gap analysis, national income and expenditure analysis, and currency demand approaches.
However at a micro-level very little research exists that measures local informal economic activity. So we rose to the challenge and in 2005/06 developed the UK’s first informal economy measurement service, with support from four universities including Sheffield and Birkbeck, University of London.
We try to continually improve and develop the service. Through previous measurements with local authorities we have found that it is insufficient to provide just the numbers. A further step is needed to turn the findings into strategies and practical, do-able plans. So we now offer an informal economy consultancy service.
That’s what we’re currently doing with the London borough of Brent. Tailored to meet their needs we surveyed six wards (using both quantative and qualitative techniques); from the findings we are developing a strategy that will help them meet their priority of increasing income levels. We are recommending that they do this by formalising their local informal economic activities, whislt maximising incomes through increasing the take-up of benefits, in-work credits and tax credits by local residents.
Alka Nepali, Brent Council’s Economic Development Officer said:
“Brent Council commissioned Community Links in 2008-09 to measure the extent to which informal economic activity plays a part in the lives of local Brent residents. The research captured both quantitative and qualitative information from residents and delivery agencies/organisations living and working in the borough to identify the impact the activity has on the local economy and how these findings could inform the Council’s current approach to Regeneration”.
Our unique service provides robust research, coupled with a strategy and planning service which enables Local Authorities and Regional Development Agencies to:
- understand their local economy: the hidden as well as the recorded
- identify and address the issues in practical, strategic ways
- harness the skills of the local workforce (employees and businesses) enabling them to build their own ladders out of poverty.
To find out more about what our service can do for your local area, download more information and get in touch with me at aaron.barbour@community-links.org
This is what Liz Holford, former Regeneration Manager, London borough of Haringey had to say about our work:
“Community Links produced an invaluable, qualitative study of the informal economy in the London Borough of Haringey, in 2006/7. We commissioned this study because we wanted to supplement official statistics with an understanding of the cash-in-hand economy. This was vital so that we could develop employment, skills and and business policies that are relevant and helpful to the reality of people and businesses in our most economically disadvantaged communities.”
To find out more about what our service can do for your local area, download more information and contact:
Aaron Barbour
linksUK Research & Policy Manager
020 7473 9666 (direct line)
aaron.barbour@community-links.org
