Informal Services

Public transportation has become a remarkable case in the informal sector. In developing countries, public transportation is usually informal and private. In developed countries, public transportation is usually state-run. In Peru of 1990, 95% of urban transportation was in the hands of the small entrepreneurs. Each entrepreneur was the owner of his bus. The entire state-owned public transportation system went bankrupt that same year. The Peruvian government completely informalized urban transportation by dissolving the only public enterprise that existed in the public transportation sector by selling to each driver the vehicle he was driving.

A clip of transportation in Iquitos

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