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The Influence of Informality in a Local Agri‐food Supply Chain in Brazil

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  • Michel T. Q. M. Assis
  • Markus Tümpel
  • Maria Raquel Lucas
  • Maria José M. Rainho

Abstract

During qualitative research on trust, conducted in a mariculture chain in southern Brazil, the theme of informality emerged spontaneously in most interviews. Although it is difficult to measure, some data and estimates point out that informality is still quite present worldwide, but especially in emerging and developing countries, and this situation was confirmed in the studied supply chain. In analysing the narratives, we noticed that this is a chronic issue which bothers the producers that are properly formalised mainly because of unfair competition, and hinders the organisation of the chain. Some factors foster the persistence of informality, such as family labour and temporary jobs, the low educational level of entrepreneurs, lack of adequate supervision and cultural aspects of producers and their families. We could corroborate the perspectives of modernisation (informality is still persistent), neo‐liberal (informal entrepreneurs reject the bureaucracy of an over‐regulated market) and post‐structuralist (informality is a way of life related to identity, social position and/or resistance against the formal structure) theories. Our research has shown us that the situation found is contributing to a reduction in the number of formal producers and impairing the development of that local supply chain, as well as its sustainability. Au cours d'une étude qualitative sur la confiance portant sur une chaîne de mariculture du sud du Brésil, le thème de l'informalité est ressorti spontanément dans la plupart des entretiens. Bien qu'elle soit difficile à mesurer, certaines données et estimations soulignent que l'informalité est encore assez présente dans le monde, mais surtout dans les pays émergents et en développement, et cette situation s'est confirmée dans la chaîne d'approvisionnement étudiée. En analysant les récits, nous avons pu constater qu'il s'agit d'un problème chronique, qui gêne les producteurs correctement formalisés notamment à cause de la concurrence déloyale, et freine l'organisation de la filière. Certains facteurs favorisent la persistance de l'informalité, tels que le travail familial et les emplois temporaires, le faible niveau d'instruction des entrepreneurs, le manque d'encadrement adéquat et les aspects culturels propres aux producteurs et leurs familles. On pourrait corroborer les perspectives modernisatrices (l'informalité persiste), néo‐libérales (les entrepreneurs informels rejettent la bureaucratie d'un marché sur‐réglementé) et post‐structuralistes (l'informalité est un mode de vie lié à l'identité, la position sociale et/ou la résistance contre la structure formelle). Nos recherches nous ont montré que la situation constatée contribue à la réduction du nombre de producteurs formels et entrave le développement de cette chaîne d'approvisionnement locale, ainsi que sa durabilité. Bei einer qualitativen Untersuchung im Süden Brasiliens zum Thema Vertrauen in der Warenkette für Marikultur, kam das Thema der Informalität in den meisten Interviews spontan auf. Obwohl diese nur schwer messbar ist, weisen einige Daten und Schätzungen darauf hin, dass die Informalität weltweit, vor allem aber in Schwellen‐ und Entwicklungsländern, immer noch sehr verbreitet ist. Für die hier untersuchte Warenkette konnte dies bestätigt werden. Die Befragungen zeigten, dass es sich um ein anhaltendes Problem handelt. Vor allem wegen des unlauteren Wettbewerbs werden diejenigen beeinträchtigt, die ordnungsgemäß produzieren; die Organisation der Warenkette wird dadurch erschwert. Einige Faktoren begünstigen die anhaltende Informalität, z. B. Familienarbeit und befristete Arbeitsverträge, das niedrige Bildungsniveau, das Fehlen einer angemessenen Überwachung und kulturelle Aspekte der Erzeuger und Erzeugerinnen und ihrer Familien. Unsere Analysen bestätigen: die Sichtweisen der Modernisierungstheorien (die Informalität dauert an), die neoliberalen Theorien (informelle Unternehmer und Unternehmerinnen lehnen die Bürokratie eines überregulierten Marktes ab) und die poststrukturalistischen Theorien (Informalität ist eine Lebensweise, die mit Identität, sozialer Stellung und/oder Widerstand gegen die formale Struktur zusammenhängt). Die Ergebnisse machen deutlich, dass die vorgefundene Marktsituation zum Rückgang der Zahl der formellen Erzeuger und Erzeugerinnen beiträgt und die Entwicklung der regionalen Warenkette, sowie ihre Nachhaltigkeit beeinträchtigt.

Suggested Citation

  • Michel T. Q. M. Assis & Markus Tümpel & Maria Raquel Lucas & Maria José M. Rainho, 2023. "The Influence of Informality in a Local Agri‐food Supply Chain in Brazil," EuroChoices, The Agricultural Economics Society, vol. 22(1), pages 37-43, April.
  • Handle: RePEc:bla:eurcho:v:22:y:2023:i:1:p:37-43
    DOI: 10.1111/1746-692X.12385
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    References listed on IDEAS

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    1. Rafael La Porta & Andrei Shleifer, 2014. "Informality and Development," Journal of Economic Perspectives, American Economic Association, vol. 28(3), pages 109-126, Summer.
    2. Rafael La Porta & Andrei Shleifer, 2008. "The Unofficial Economy and Economic Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 39(2 (Fall)), pages 275-363.
    3. Mangirdas Morkunas, 2022. "Measuring the Cohesion of Informal Economy in Agriculture in New European Union Member States," Economies, MDPI, vol. 10(11), pages 1-13, November.
    4. Colin C. Williams & Sara Nadin, 2010. "Entrepreneurship And The Informal Economy: An Overview," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 15(04), pages 361-378.
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