Social and Behavioral Sciences Commons^™

Not Just A Formality: How Inefficient Bureaucracy And Government Distrust Fuel Nepal’S Informal Economy, Anders Karl Lindgren

Independent Study Project (ISP) Collection

Currently the Nepali government and the International Labour Organization (ILO) are involved in a campaign to increase rates of government registration among small businesses, which are technically illegal to operate unregistered. The program incentivizes and facilitates registration, attempting to change the cost-benefit analysis that shopkeepers make when deciding whether to register. Using interviews with small business owners in the Kathmandu area, this study provides qualitative data about what information these shopkeepers have, how they perceive the registration process, whether the government has traditionally followed through on its promises, and how all of these factors affect their registration cost-benefit analyses. Additionally, …