[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.90,0:00:04.83,Default,,0000,0000,0000,,The informal markets of Africa\Nare stereotypically seen
Dialogue: 0,0:00:04.86,0:00:06.70,Default,,0000,0000,0000,,as chaotic and lackadaisical.
Dialogue: 0,0:00:07.23,0:00:09.89,Default,,0000,0000,0000,,The downside of hearing\Nthe word "informal"
Dialogue: 0,0:00:09.91,0:00:12.58,Default,,0000,0000,0000,,is this automatic grand\Nassociation we have,
Dialogue: 0,0:00:12.60,0:00:14.23,Default,,0000,0000,0000,,which is very negative,
Dialogue: 0,0:00:14.25,0:00:18.76,Default,,0000,0000,0000,,and it's had significant consequences\Nand economic losses,
Dialogue: 0,0:00:18.79,0:00:24.27,Default,,0000,0000,0000,,easily adding -- or subtracting --\N40 to 60 percent of the profit margin
Dialogue: 0,0:00:24.30,0:00:27.13,Default,,0000,0000,0000,,for the informal markets alone.
Dialogue: 0,0:00:27.16,0:00:31.46,Default,,0000,0000,0000,,As part of a task of mapping\Nthe informal trade ecosystem,
Dialogue: 0,0:00:31.48,0:00:34.02,Default,,0000,0000,0000,,we've done an extensive literature review
Dialogue: 0,0:00:34.04,0:00:38.99,Default,,0000,0000,0000,,of all the reports and research\Non cross-border trade in East Africa,
Dialogue: 0,0:00:39.02,0:00:40.83,Default,,0000,0000,0000,,going back 20 years.
Dialogue: 0,0:00:40.85,0:00:45.18,Default,,0000,0000,0000,,This was to prepare us for fieldwork\Nto understand what was the problem,
Dialogue: 0,0:00:45.21,0:00:49.37,Default,,0000,0000,0000,,what was holding back informal trade\Nin the informal sector.
Dialogue: 0,0:00:49.99,0:00:53.49,Default,,0000,0000,0000,,What we discovered\Nover the last 20 years was,
Dialogue: 0,0:00:53.52,0:00:57.27,Default,,0000,0000,0000,,nobody had distinguished\Nbetween illicit --
Dialogue: 0,0:00:57.30,0:01:01.74,Default,,0000,0000,0000,,which is like smuggling or contraband\Nin the informal sector --
Dialogue: 0,0:01:01.76,0:01:04.10,Default,,0000,0000,0000,,from the legal but unrecorded,
Dialogue: 0,0:01:04.13,0:01:07.13,Default,,0000,0000,0000,,such as tomatoes, oranges, fruit.
Dialogue: 0,0:01:07.70,0:01:10.02,Default,,0000,0000,0000,,This criminalization --
Dialogue: 0,0:01:10.04,0:01:15.24,Default,,0000,0000,0000,,what in Swahili refers to as "biashara,"\Nwhich is the trade or the commerce,
Dialogue: 0,0:01:15.26,0:01:18.70,Default,,0000,0000,0000,,versus "magendo," which is\Nthe smuggling or contraband --
Dialogue: 0,0:01:18.72,0:01:22.24,Default,,0000,0000,0000,,this criminalization\Nof the informal sector,
Dialogue: 0,0:01:22.27,0:01:26.14,Default,,0000,0000,0000,,in English, by not distinguishing\Nbetween these aspects,
Dialogue: 0,0:01:26.16,0:01:31.75,Default,,0000,0000,0000,,easily can cost each African economy\Nbetween 60 to 80 percent addition
Dialogue: 0,0:01:31.78,0:01:34.54,Default,,0000,0000,0000,,on the annual GDP growth rate,
Dialogue: 0,0:01:34.57,0:01:38.30,Default,,0000,0000,0000,,because we are not recognizing the engine
Dialogue: 0,0:01:38.33,0:01:40.90,Default,,0000,0000,0000,,of what keeps the economies running.
Dialogue: 0,0:01:40.92,0:01:44.40,Default,,0000,0000,0000,,The informal sector is growing jobs\Nat four times the rate
Dialogue: 0,0:01:44.42,0:01:46.37,Default,,0000,0000,0000,,of the traditional formal economy,
Dialogue: 0,0:01:46.39,0:01:48.95,Default,,0000,0000,0000,,or "modern" economy, as many call it.
Dialogue: 0,0:01:48.97,0:01:52.44,Default,,0000,0000,0000,,It offers employment and income\Ngeneration opportunities
Dialogue: 0,0:01:52.46,0:01:56.16,Default,,0000,0000,0000,,to the most "unskilled"\Nin conventional disciplines.
Dialogue: 0,0:01:56.18,0:01:59.82,Default,,0000,0000,0000,,But can you make a french fry\Nmachine out of an old car?
Dialogue: 0,0:02:00.40,0:02:03.86,Default,,0000,0000,0000,,So, this, ladies and gentlemen,
Dialogue: 0,0:02:03.89,0:02:07.10,Default,,0000,0000,0000,,is what so desperately needs\Nto be recognized.
Dialogue: 0,0:02:07.13,0:02:11.39,Default,,0000,0000,0000,,As long as the current assumptions\Nhold that this is criminal,
Dialogue: 0,0:02:11.41,0:02:12.64,Default,,0000,0000,0000,,this is shadow,
Dialogue: 0,0:02:12.66,0:02:14.28,Default,,0000,0000,0000,,this is illegal,
Dialogue: 0,0:02:14.30,0:02:18.76,Default,,0000,0000,0000,,there will be no attempt at integrating\Nthe informal economic ecosystem
Dialogue: 0,0:02:18.79,0:02:21.74,Default,,0000,0000,0000,,with the formal or even the global one.
Dialogue: 0,0:02:22.97,0:02:25.77,Default,,0000,0000,0000,,I'm going to tell you a story of Teresia,
Dialogue: 0,0:02:25.80,0:02:29.87,Default,,0000,0000,0000,,a trader who overturned\Nall our assumptions,
Dialogue: 0,0:02:29.90,0:02:33.25,Default,,0000,0000,0000,,made us question all the stereotypes\Nthat we'd gone in on,
Dialogue: 0,0:02:33.27,0:02:36.18,Default,,0000,0000,0000,,based on 20 years of literature review.
Dialogue: 0,0:02:37.68,0:02:43.16,Default,,0000,0000,0000,,Teresia sells clothes under a tree\Nin a town called Malaba,
Dialogue: 0,0:02:43.19,0:02:45.28,Default,,0000,0000,0000,,on the border of Uganda and Kenya.
Dialogue: 0,0:02:45.88,0:02:48.04,Default,,0000,0000,0000,,You think it's very simple, don't you?
Dialogue: 0,0:02:48.81,0:02:51.47,Default,,0000,0000,0000,,We'll go hang up new clothes\Nfrom the branches,
Dialogue: 0,0:02:51.49,0:02:54.42,Default,,0000,0000,0000,,put out the tarp, settle down,\Nwait for customers,
Dialogue: 0,0:02:54.45,0:02:55.79,Default,,0000,0000,0000,,and there we have it.
Dialogue: 0,0:02:55.82,0:02:59.20,Default,,0000,0000,0000,,She was everything we were expecting\Naccording to the literature,
Dialogue: 0,0:02:59.22,0:03:00.49,Default,,0000,0000,0000,,to the research,
Dialogue: 0,0:03:00.52,0:03:04.29,Default,,0000,0000,0000,,right down to she was a single\Nmom driven to trade,
Dialogue: 0,0:03:04.32,0:03:05.81,Default,,0000,0000,0000,,supporting her kids.
Dialogue: 0,0:03:07.09,0:03:09.70,Default,,0000,0000,0000,,So what overturned our assumptions?
Dialogue: 0,0:03:09.73,0:03:11.24,Default,,0000,0000,0000,,What surprised us?
Dialogue: 0,0:03:11.27,0:03:14.99,Default,,0000,0000,0000,,First, Teresia paid the county\Ngovernment market fees
Dialogue: 0,0:03:15.02,0:03:16.85,Default,,0000,0000,0000,,every single working day
Dialogue: 0,0:03:16.87,0:03:20.12,Default,,0000,0000,0000,,for the privilege of setting\Nup shop under her tree.
Dialogue: 0,0:03:20.15,0:03:22.20,Default,,0000,0000,0000,,She's been doing it for seven years,
Dialogue: 0,0:03:22.22,0:03:24.14,Default,,0000,0000,0000,,and she's been getting receipts.
Dialogue: 0,0:03:24.56,0:03:26.04,Default,,0000,0000,0000,,She keeps records.
Dialogue: 0,0:03:26.06,0:03:29.23,Default,,0000,0000,0000,,We're seeing not a marginal,
Dialogue: 0,0:03:29.25,0:03:30.60,Default,,0000,0000,0000,,underprivileged,
Dialogue: 0,0:03:30.62,0:03:36.44,Default,,0000,0000,0000,,vulnerable African woman trader\Nby the side of the road -- no.
Dialogue: 0,0:03:36.46,0:03:40.56,Default,,0000,0000,0000,,We were seeing somebody\Nwho's keeping sales records for years;
Dialogue: 0,0:03:40.59,0:03:46.91,Default,,0000,0000,0000,,somebody who had an entire ecosystem\Nof retail that comes in from Uganda
Dialogue: 0,0:03:46.93,0:03:49.25,Default,,0000,0000,0000,,to pick up inventory;
Dialogue: 0,0:03:49.27,0:03:53.13,Default,,0000,0000,0000,,someone who's got handcarts\Nbringing the goods in,
Dialogue: 0,0:03:53.16,0:03:56.07,Default,,0000,0000,0000,,or the mobile money agent\Nwho comes to collect cash
Dialogue: 0,0:03:56.10,0:03:57.52,Default,,0000,0000,0000,,at the end of the evening.
Dialogue: 0,0:03:57.55,0:04:01.96,Default,,0000,0000,0000,,Can you guess how much\NTeresia spends, on average,
Dialogue: 0,0:04:01.98,0:04:04.58,Default,,0000,0000,0000,,each month on inventory --
Dialogue: 0,0:04:04.60,0:04:07.27,Default,,0000,0000,0000,,stocks of new clothes\Nthat she gets from Nairobi?
Dialogue: 0,0:04:07.82,0:04:10.01,Default,,0000,0000,0000,,One thousand five hundred US dollars.
Dialogue: 0,0:04:10.52,0:04:15.96,Default,,0000,0000,0000,,That's around 20,000 US dollars\Ninvested in trade goods and services
Dialogue: 0,0:04:15.99,0:04:17.54,Default,,0000,0000,0000,,every year.
Dialogue: 0,0:04:17.57,0:04:19.02,Default,,0000,0000,0000,,This is Teresia,
Dialogue: 0,0:04:19.04,0:04:20.44,Default,,0000,0000,0000,,the invisible one,
Dialogue: 0,0:04:20.46,0:04:21.74,Default,,0000,0000,0000,,the hidden middle.
Dialogue: 0,0:04:22.44,0:04:26.54,Default,,0000,0000,0000,,And she's only the first rung\Nof the small entrepreneurs,
Dialogue: 0,0:04:26.56,0:04:30.65,Default,,0000,0000,0000,,the micro-businesses that can be found\Nin these market towns.
Dialogue: 0,0:04:30.67,0:04:35.56,Default,,0000,0000,0000,,At least in the larger Malaba border,\Nshe's at the first rung.
Dialogue: 0,0:04:36.52,0:04:39.16,Default,,0000,0000,0000,,The people further up the value chain
Dialogue: 0,0:04:39.18,0:04:42.23,Default,,0000,0000,0000,,are easily running\Nthree lines of business,
Dialogue: 0,0:04:42.25,0:04:47.34,Default,,0000,0000,0000,,investing 2,500 to 3,000\NUS dollars every month.
Dialogue: 0,0:04:47.77,0:04:51.75,Default,,0000,0000,0000,,So the problem turned out\Nthat it wasn't the criminalization;
Dialogue: 0,0:04:51.78,0:04:56.42,Default,,0000,0000,0000,,you can't really criminalize someone\Nyou're charging receipts from.
Dialogue: 0,0:04:56.96,0:05:02.35,Default,,0000,0000,0000,,It's the lack of recognition\Nof their skilled occupations.
Dialogue: 0,0:05:03.05,0:05:07.04,Default,,0000,0000,0000,,The bank systems and structures\Nhave no means to recognize them
Dialogue: 0,0:05:07.07,0:05:08.56,Default,,0000,0000,0000,,as micro-businesses,
Dialogue: 0,0:05:08.58,0:05:11.16,Default,,0000,0000,0000,,much less the fact that, you know,
Dialogue: 0,0:05:11.18,0:05:13.39,Default,,0000,0000,0000,,her tree doesn't have\Na forwarding address.
Dialogue: 0,0:05:13.91,0:05:16.24,Default,,0000,0000,0000,,So she's trapped in the middle.
Dialogue: 0,0:05:16.26,0:05:18.69,Default,,0000,0000,0000,,She's falling through the cracks\Nof our assumptions.
Dialogue: 0,0:05:18.72,0:05:22.26,Default,,0000,0000,0000,,You know all those microloans\Nto help African women traders?
Dialogue: 0,0:05:22.65,0:05:25.48,Default,,0000,0000,0000,,They're going to loan her\N50 dollars or 100 dollars.
Dialogue: 0,0:05:25.50,0:05:27.11,Default,,0000,0000,0000,,What's she going to do with it?
Dialogue: 0,0:05:27.13,0:05:29.47,Default,,0000,0000,0000,,She spends 10 times\Nthat amount every month
Dialogue: 0,0:05:29.50,0:05:31.10,Default,,0000,0000,0000,,just on inventory --
Dialogue: 0,0:05:31.12,0:05:33.41,Default,,0000,0000,0000,,we're not talking about\Nthe additional services
Dialogue: 0,0:05:33.43,0:05:35.27,Default,,0000,0000,0000,,or the support ecosystem.
Dialogue: 0,0:05:35.86,0:05:39.45,Default,,0000,0000,0000,,These are the ones who fit\Nneither the policy stereotype
Dialogue: 0,0:05:39.48,0:05:41.88,Default,,0000,0000,0000,,of the low-skilled and the marginalized,
Dialogue: 0,0:05:41.90,0:05:44.78,Default,,0000,0000,0000,,nor the white-collar,\Nsalaried office worker
Dialogue: 0,0:05:44.80,0:05:46.66,Default,,0000,0000,0000,,or civil servant with a pension
Dialogue: 0,0:05:46.68,0:05:50.06,Default,,0000,0000,0000,,that the middle classes\Nare allegedly composed of.
Dialogue: 0,0:05:50.08,0:05:54.63,Default,,0000,0000,0000,,Instead, what we have here\Nare the proto-SMEs
Dialogue: 0,0:05:54.66,0:05:58.45,Default,,0000,0000,0000,,these are the fertile seeds\Nof businesses and enterprises
Dialogue: 0,0:05:58.48,0:06:00.42,Default,,0000,0000,0000,,that keep the engines running.
Dialogue: 0,0:06:00.44,0:06:02.18,Default,,0000,0000,0000,,They put food on your table.
Dialogue: 0,0:06:02.20,0:06:05.27,Default,,0000,0000,0000,,Even here in this hotel,\Nthe invisible ones --
Dialogue: 0,0:06:05.30,0:06:08.75,Default,,0000,0000,0000,,the butchers, the bakers\Nthe candlestick makers --
Dialogue: 0,0:06:08.77,0:06:11.17,Default,,0000,0000,0000,,they make the machines\Nthat make your french fries
Dialogue: 0,0:06:11.19,0:06:12.42,Default,,0000,0000,0000,,and they make your beds.
Dialogue: 0,0:06:12.44,0:06:15.85,Default,,0000,0000,0000,,These are the invisible businesswomen\Ntrading across borders,
Dialogue: 0,0:06:17.04,0:06:19.41,Default,,0000,0000,0000,,all on the side of the road,
Dialogue: 0,0:06:19.43,0:06:22.35,Default,,0000,0000,0000,,and so they're invisible\Nto data gatherers.
Dialogue: 0,0:06:22.70,0:06:26.36,Default,,0000,0000,0000,,And they're mashed together\Nwith the vast informal sector
Dialogue: 0,0:06:26.38,0:06:31.46,Default,,0000,0000,0000,,that doesn't bother to distinguish\Nbetween smugglers and tax evaders
Dialogue: 0,0:06:31.48,0:06:34.09,Default,,0000,0000,0000,,and those running illegal whatnot,
Dialogue: 0,0:06:34.11,0:06:36.14,Default,,0000,0000,0000,,and the ladies who trade,
Dialogue: 0,0:06:36.17,0:06:40.31,Default,,0000,0000,0000,,and who put food on the table\Nand send their kids to university.
Dialogue: 0,0:06:40.34,0:06:43.56,Default,,0000,0000,0000,,So that's really what I'm asking here.
Dialogue: 0,0:06:43.59,0:06:46.42,Default,,0000,0000,0000,,That's all that we need to start by doing.
Dialogue: 0,0:06:46.87,0:06:51.48,Default,,0000,0000,0000,,Can we start by recognizing\Nthe skills, the occupations?
Dialogue: 0,0:06:51.50,0:06:56.12,Default,,0000,0000,0000,,We could transform the informal economy\Nby beginning with this recognition
Dialogue: 0,0:06:56.15,0:07:00.83,Default,,0000,0000,0000,,and then designing the customized\Ndoorways for them to enter
Dialogue: 0,0:07:00.85,0:07:03.06,Default,,0000,0000,0000,,or integrate with the formal,
Dialogue: 0,0:07:03.09,0:07:04.39,Default,,0000,0000,0000,,with the global,
Dialogue: 0,0:07:04.42,0:07:06.13,Default,,0000,0000,0000,,with the entire system.
Dialogue: 0,0:07:06.15,0:07:07.71,Default,,0000,0000,0000,,Thank you, ladies and gentlemen.
Dialogue: 0,0:07:07.74,0:07:11.46,Default,,0000,0000,0000,,(Applause)