Wednesday, November 30, 2005

Informal economy bad news for intellectual property protection

Dr Dinesh Moonshiram wrote in L'Express, a Mauritanian newspaper, a very informative article about the informal economy. His conclusion is that the disadvantages of the informal economy, such as the infringement of copyrights and other intellectual property rights outweigh the advantages such as job creation.

"Leading research institutes like McKinsey have found that the informal economy is actually growing in many countries including China, Brazil, India, Poland, Portugal, Russia, and Turkey. They have conclusively proved that that the substantial cost advantage that informal companies gain by avoiding taxes and regulations more than offsets their low productivity and small scale."

So bad news for the IP protection. Read more here.

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