Half to three-quarters of all non-agricultural workers in poorer
countries (perhaps 2 billion people) fall outside the purview of
officialdom and so can be categorised as “informal” (or “shadow” or
“grey”). In rich countries the share is much smaller, though still
significant. One-tenth of Britain’s economy is thought to be informal.
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About 84% of all consumer transactions worldwide are still cash-based,
according to MasterCard, a credit-card provider. But that share will
fall as more workers ply their trades on digital platforms, whether
tutors on Eduwizards or drivers on Uber, a ride-hailing app. About half
the world’s adults now own a smartphone; by 2020 80% will.
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South Korea drove down the share of coins-and-notes transactions from
40% to 25% between 2002 and 2006 by applying a lower sales-tax rate to
card payments.
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