The Shadow Superpower

The world has a significant informal economy, employing half the world’s workforce and estimated to be worth $10 trillion, excluding blatantly illegal activities. The so-called System D, slang from French-speaking Africa and the Caribbean, can no longer go ignored by policymakers, argues Robert Neuwirth for Foreign Policy. The actions of street vendors, barterers, garage sale operators, impromptu handymen and even tiny lemonade stands operated by children are not “haphazard,” but follow a number of unwritten rules, despite the absence of government oversight. With the global financial crisis of 2008, many entrepreneurs have found respite in the black market, as it creates “international industries that help billions of people find jobs and services” where they previously did not exist. The informal economy has been second to none in distributing technology among the poor and reducing costs. As the black market is projected to continue growing and Western economies contract, policymakers must acknowledge both the struggles and the contributions to global well-being. – YaleGlobal