A case for formality and a comprehensive social security system

Much had already been said about the ramifications of shutting the economy down on the workers of the informal sector during the earlier days of the lockdown and with each passing week, the effects became evident through numerous reports and incidents. Indeed many saw the crisis as an opportunity in the sense that perhaps sweeping reforms will be made that addresses the existent flaws. The crisis is what can be termed as a critical juncture, a term used by Robinson and Acemoglu in their book Why Nations Fail, which explains a scenario in which instability leads to sweeping institutional reforms. One can only be hopeful that such sweeping reforms take place in the years that follow and although there may be many reforms that are to take place, the one that undeniably has to take the center stage and perhaps has been reflected throughout the crisis is the formalization of informal workers and addressing the flaws in our existent social security system. Continue Reading