Latin America: Informal Sector, Electronic Commerce and Subcapitalism

Amérique Latine: Secteur Informel, Commerce Électronique et Subcapitalisme

Le secteur informel du Pérou, du Brésil, de la Colombie comme au Mexique pour ne citer que les plus en vue, s’était érigé comme une alternative a l’inertie bureaucratique des Etats gouvernés a l’époque par des juntes militaires ou des -bureaucrates-technocratiques dont l’essentiel de la politique était de lutter contre ce qu’ils considéraient la subversion militante des syndicats et des partis représentants les travailleurs et les paysans pauvres.

Dr. Said El Mansour Cherkaoui with Dr. Jacques Chonchol, Former Minister of Agriculture in the Government of Salvador Allende (Chile), Director of Research / Professor at the Institute of Advanced Studies of Latin America, Paris, 1992.

Publications of Said El Mansour Cherkaoui

The inflation of the prices of raw materials and everyday consumer products and the high cost of living which all impact wage demands and lead to an increase in wages whose international competitiveness only erodes the added value and especially the benefit of large national and international companies. As a result, a shrinking of the international industrial base has repercussions in the advanced countries in the form of a reduction in employment, by a phase shift or else by an immigration of vulnerable industries, called on occasion by the lame ducks.

Entrepreneurship is found in countries where the spirit of enterprise is at its birth given the conditions for its adoption and its growth are not put in place or accessible to those who deserve it the most.

La France En Marche Arrière dans le Marché International

La France en Marche Arrière sur le Terrain de la Religiosité Ancestrale Immigrée avec un Libéralisme en Panne Son

Libéralisme pour le Capitalisme National et Protectionnisme pour le Commerce International

Initialement publié en October 25, 2018, 9:00 am Collection et Recueil par by Said El Mansour Cherkaoui – publié en partenariat avec le Forum MEDays. “Laissez faire!”, disaient les chantres du libéralisme au XIXème siècle. En réalité, la seule nation qui pratiquait, à cette époque, un libéralisme directement inspiré des manuels d’économie politique, était la Grande-Bretagne. … Lire la suite

Through these opportune policies, the advanced countries sought answers according to the length of the mandate of those elected occupying the spheres of national decision-making and acting as defenders of industrial sectors that had become decadent under the sudden blows of the vagaries of the international situation which has become subject to crises and recessions of which the United States of America are becoming the providers and drivers. Thus, it is the search for added value and the obsession with the rate of growth that dominate in setting up and conducting business in the advanced countries, whereas in the subcapitalist countries referred to as developing countries, it is it is more about survival and fighting back against favoritism, nepotism and marginalization.

Just to situate this phenomenon, Mexico being part of the Canada-United States-Mexico Agreement (CUSMA) and therefore having highly developed partners, the fact remains that it is the informal sector dominated by entrepreneurs. women and which provides the most employment both at the level of the son-in-law and that of the family.

Informal Sector in Latin America

At the level of what is called the Informal Sector, I have personally conducted several studies at this level with regard to Latin America.

The informal sector of Peru, Brazil, Colombia and Mexico, to name only the most prominent, had emerged as an alternative to the bureaucratic inertia of states governed at the time by military juntas or – technocratic-bureaucrats whose core policy was to fight against what they saw as the militant subversion of trade unions and parties representing workers and poor peasants. Their obsession therefore came from everything that could claim to be leftist or sympathetic to a socializing order without being communist or socialist in the true sense of the ideological and political concept.

This fierce struggle against the social forces was paradoxically carried out by the military in the name of safeguarding democracy and the Christian religion in the face of what they considered to be an attack and a threat to the established national order, therefore a nationalist coloring justified the attack on the security of the state apparatus dominated by a military-bureaucratic and technocratic alliance. This religiosity of the military dictatorship appeased and rallied the Church to the cause of autocratic and military regimes fearing an institutional breakthrough of communist factions within popular communities and social groups. This new rapprochement and integration of the religious element was also imposed by the fact that populism had demonstrated its limits with alliances with fascist regimes in Europe.

In this form of technocratization of the workings of the State, a technocratic elite could engage and engage with the military, the people as such were left behind while fiscal, financial and even logistical aid and favors were granted. to large foreign interest groups. Multinationals thus became the driving force for economic growth based on discipline and the repression of social movements, thus offering a docile workforce, relatively much lower in cost in terms of wages and other rights and social coverage. . Social protection therefore remained failing in parallel with a careful dosage of widespread social insecurity reinforced by propaganda on the diabolical specter of « communist » regimes, 

A new class of workers was therefore conditioned by the absence of social alternatives for emancipation and by military and technocratic enlistment for the good of large international companies in terms of the exploitation of natural, financial and human resources. This coalition and complicity between the elite ruling class formed by military-bureaucratic-technocratic elements and international capital favored and objectified the creation of a new social base of power from an amalgamation of the old lower middle class. entrepreneurs who espoused the principles of such a docile internationalization of local workers and the technocracy which was the civil-looking extension of military teachings on the safeguarding of Christian heritage,

In these multilateral sequences and of the order of complementarity between what was called the center and the periphery, the marginalized peasant classes of the lands that had become the target of international exploitation and the other urban strata could no longer adhere to or challenge such a strategy of international cooperation; they thus remained adrift and were thus forced to swell the cities by a rural exodus becoming specific to the increase in the demography of slums and housing constructions having and not meeting any official standards.

The needs of such a construction combined with others and given the irregular situation of all the corresponding actions and interactions as well as the initiatives taken by these new social layers having emigrated to the city, were thus the cradle of the informal sector which was developing in at night and outside of any control by the central State or local and regional authorities.

In short, this is roughly how this phenomenon of the informal sector was created to fill the void left by the desertion of the military state from social sectors that did not respond to the logic of the internationalization of the national economy and the securing of competing or threatening social niches. The enemy was no longer at the borders, he was identified in another interior neighbor, the one who claims true democratic rights.

Faced with this harshness of military regimes, the proponents of foreign capital also wanted to have guarantees of law supported by the majority of the nation and not just by military juntas and their artificial supporters and their technocratic extensions. The soldiers had not succeeded in creating a broad base of legitimacy for their actions to protect the Christian religion since a Liberation movement took place within the very heart of the Church, which became the protector of poor peasants deprived of their land and thrown in the streets and builders of the new Shanti town.

This internal dislocation of the central power dealt a severe blow to the religious harmony aimed at by the military and undermined the central claim of the defense of the Christian West against the Atheism of the militant leftists representing foreign communist interests. The Cold War also found its ideological limits in such a loss of direct support from the Church. Priests and cardinals became overnight victims of repression like the rest of the engaged population.

It is indeed this new Theology of Liberation which in combination has factors of redeployment of industries towards Southeast Asia which dealt a fatal blow to the military regimes in Latin America which was triggered by the assassination of Monsignor Romero in Guatemala. Faced with the harmful effects of such a repressive campaign, foreign capital felt the tide turn and opted for more reforms and openness that could lead to what was designated as the new development formula for these socially neglected masses by effectively advocating a new strategy named for the occasion as an overcoming of the transitional black periods of economic growth coupled with social repression, this strategy was therefore called:

 »  Sustainable Development and Good Governance   » by giving it more weight and presenting it as an innovation, we added a sense of accountability based on democratic advances, in particular by the multiplication of political parties and electoral deadlines as well as by a greater great condensation of the division and the designation of the administrative regionalization coupled with a broader division by electoral districts.

Informal employment as a percentage of non-agricultural employment

This openness had also resulted in greater tolerance of the informal sector, since it was henceforth considered as a lever for social and economic change forming part of this concept of Sustainable Development, while the reality on the ground remains quite different.

In the countries of Latin America , the rate of employment in the  informal sector  is even very high since a rapid increase characterizes it in relation to all urban employment, which rose from 50% in 1990 to 58% in 1997 for be around 70% (on average); this figure, fairly stable over time, represents approximately 35% of GDP (on average).

Eighteen million people are employed as servants in Latin American households (7 per cent of the total employed population) and almost 80 per cent of them are subject to informal working conditions – and therefore deprived of social security protection, earning poverty wages and working exhausting days – as highlighted in an ILO Regional Office report published today [11 July 2016].

“Domestic work is a profession with one of the highest rates of informality in Latin America and the Caribbean. Eight out of ten domestic workers are affected by informality. This represents 10 per cent of all informal employment in the region,” said ILO Regional Office Director José Manuel Salazar, commenting on the new report.

Mr. Salazar added: “It is a complex discriminatory situation, which has its roots in the history of our societies, based on servitude and attitudes which make invisible the work of women, of indigenous populations, of the descendants of Africans and migrants.

« Improving working conditions for domestic workers is a historic debt and a necessity if we want to make a qualitative leap towards the eradication of inequalities, gender discrimination and poverty in our region », concluded the Director of the ILO Regional Office. Source

Dr. Said El Mansour Cherkaoui


Morocco World News is just replica of other news no analysis or research based publication.

So you need better reference.

For the World Bank, it is matter of conditionality policies not about really deep concerns about the Moroccan who have no banking account or have no regular income; the later is the most important element to present in any research or study on the Moroccan Banking System.

In this ranking, the presentation focused only on the last cascade hole of downstream trends and flows of income coming from the source which is regular and recognized employment or business ownership that are the 2 basis for opening a checking account in Morocco.

No Money No Honey No Checking Account, no Job no showing Money.

Many transactions in Morocco are made through the use of cash and Cash remains the other King in Morocco for even the people who have a checking or saving account. The informal system is not just conducted by Moroccan citizens but also by many nationalities coming also from Sub-Saharan countries given their great level of adaptation to the Moroccan parallel business environment and also their willingness to integrate the fabric of the culture of Moroccan means and ways of conducting business operations and transactions through specific and selected clientele from the working classes. These services are rendering a great input to the everyday life in Morocco and provide services closer to the people.

The importance of the informal sector is also relevant to the Latin American economies that were the first to launch such movement and phenomena during the sixties and early seventies such as in Mexico and Peru as the initial platforms given the rise of the rural exodus and the recession that dominated the world economy following the quadruplication of the price of the petrol price in 1973.

Latin America: Informal Sector, Electronic Commerce and Subcapitalism

The informal sector of Peru, Brazil, Colombia and Mexico, to name only the most prominent, had emerged as an alternative to the bureaucratic inertia of states governed at the time by military juntas or – technocratic-bureaucrats whose core policy was to fight against what they saw as the militant subversion of trade unions and parties representing workers and poor peasants.


Within such range of informal sector operations, you have also to consider that many financial institutions are offering banking services without being a Bank this is the case of the Post Office – Barid.

The presentation here remains instructive and indicative of a reality that needs to be approached from inside the country not from the perspective of these international financial institutions that have their own motives in their soi-disant finding and recommendations that remained twisted by self-interest and self-promotion in regards to the solutions and the services they provide as well as the credit line they open for country-members of their organization.


#africa #africanmarkets #morocco #morocconow #entreprise #business #job #people #tech #research #culture #environment #banking #bank #money #employment #reference



Said El Mansour Cherkaoui and Latin America June 13, 2022 In « Latin America »

The British Foundations of Subcapitalism August 28, 2019 Dans « News & Analysis »

Morocco: Liberalism and Sustainable Development: Levers for Social and Economic Emancipation?October 27, 2019 Dans « Brazil »

June 8, 2020

Latin America , Economic Development , Entrepreneurship , SUBCAPITALISM, Latin America , Sustainable Development , Informal Sector , 

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