Challenges and opportunities of partnering with the informal sector

• Published in: Policy File 2024
• Main Authors: Bhaskar, Kalyan, Griffin, Jennifer J, Radulovic, Verena
• Format: Report
• Language: English
• Subjects: Collaboration; Environment; International; Waste management

Collaborating across the private, public, and nonprofit sectors is critical for addressing environmental and social grand challenges (Doh et al., 2019; Selsky & Parker, 2005; Griffin, 2021). Yet, in developing countries collaborating with indigenous experts in informal sector organizations—the collection of firms, workers, and activities operating outside legal or regulatory frameworks (Loayza, 2016)—is likely required to address entrenched environmental challenges. Workers and organizations in the informal sector are often overlooked as collaborators or partners (Austin, 1990; Austin & Seitanidi, 2012a, 2012b) because they may be considered too inefficient for, or shut out from, formal sector jobs (Alvarez & Barney, 2014; La Porta & Shleifer, 2014). This further complicates complex partnerships. In addition, viewing informal sector workers as under- or un-educated entrepreneurs without state-provided basic needs (Alvarez & Barney, 2014; La Porta & Shleifer, 2014) stands in contrast to viewing informal sector organizations as having unique knowledge, unmatched skills, and time-tested, relational advantages (Shepherd et al., 2022). All in all, the limited understanding of the informal sector as a viable partner in addressing grand challenges suggests a need for a more nuanced scholarly examination (Ault & Spicer, 2022; Doh et al., 2016; Doh et al., 2019; Jackson 2013; Jamali et al., 2017; Wickert et al., 2021). In this study, we examine the role of collaborations with informal sector organizations in India’s electronic waste (e-waste) management system. We find that informal sector organizations are both fierce competitors and critically needed collaborators, despite being legally shut out of India’s e-waste process. That is, regulatory officials (e.g., India’s central pollution regulator, the Central Pollution Control Board (CPCB)) do not mention the informal sector nor their pervasive role in mitigation and remediation (Telangana State Pollution Control Board [TSPCB], 2018). Without formal recognition by the authorities, informal sector individuals and families operate outside legal and regulatory frameworks (Austin, 1990; Loayza, 2016) yet are considered critical collaborators (Turaga & Bhaskar, 2019). This lack of formal recognition is one of several challenges we identify when firms partner with the informal sector to address India’s e-waste challenges.