However, informality is much more hazardous than imagined. In the information age, informality plays a part in widening the gap between developed and developing countries. Sullivan visited Brazil in November to participate in the World Movement for Democracy's Second Assembly. A democratic country that mistreats their small businesspeople suffer politically. This situation ends up retracting from the legitimacy people see in a democratic regime.
Informality means that there is dwarfed investment in human capital.
This is a key issue right now, not to mention that it implies that new companies can't grow, it is a disease no matter what country you are talking about. The same is true for countries with booming populations. This is due to overly tight regulations for the formal sector, making the creation of economic opportunities insufficient. People are becoming more aware of this situation. This isn't anything new, worries over the situation is the real novelty.