George Washington Forum News and Events

This conference and subsequent special journal issue will examine capitalism and informality. More than a half-century of developmental discourse has portrayed informality as a signal of economic “backwardness”. From the writings of Max Weber to those of Clifford Geertz, Keith Hart, and Alfred Chandler, social scientific theories have suggested that as economies modernize, hierarchical and rationalized forms of economic organization will displace the “unorganized, unincorporated enterprises” and anomic agents of the informal economy. However, contrary to such predictions, informality remains the global norm. The informal economy continues to comprise at least half of all enterprises, a sizable majority of all jobs, and as much as 20 percent of gross domestic product in developed economies and 60 percent in emerging markets.

A recent generation of scholarship has begun to challenge the idea of the informal economy as a “little people’s alternative” — a static realm of simple, disorganized activity that exists outside of history. Studies have shown that, across different societal contexts, participation in the informal economy is driven by opportunity as well as by necessity, informal organizations can also structured and hierarchical, and informal entrepreneurship can play a powerful role in the reshaping of institutions. Scholars have also highlighted the interdependency of formal and informal economies. Informal enterprises and workers continue to supply critical labor, goods, and services that are used across the formal economy and most are intrinsically linked to formal firms. The informal economy is even facilitating the rise of new industries and new economic forms: artificial intelligence systems depend on “ghost laborers” to code the big data from which AI learns; offshore financial centers rely upon informal networks to arrive at understandings of acceptable practices; and sharing economies operate efficiently because of the services of informal middlemen. The informal thus remains inextricably interwoven with even the most modern elements of economies.

This conference will examine the persistence of informal economies and their relationship with economic transformation. It will explore how informal economies have developed complex organizational structures, have co-evolved in tandem with new industries and modes of production, and have shaped the broader economic and social contexts in which they are embedded.

James Otteson (University of Notre Dame)

James Otteson is the John T. Ryan Professor of Business Ethics, Rex and Alice A. Martin Faculty Director of the Notre Dame/Deloitte Center for Ethical Leadership at the University of Notre Dame’s Mendoza College of Business. His books include Adam Smith’s Marketplace of Life (2002), Actual Ethics (2006), Adam Smith (2013), The End of Socialism (2014), The Essential Adam Smith (2018), and Honorable Business: A Framework for Business in a Just and Humane Society (2019). His most recent book is Seven Deadly Economic Sins (Cambridge, 2021). His forthcoming book is Reexamining the Ethics of Wealth Redistribution (with Steven McMullen; Routledge, forthcoming in 2022).

Elbridge Colby

Elbridge Colby is co-founder and principal of The Marathon Initiative, a policy initiative focused on developing strategies to prepare the United States for an era of sustained great power competition. Previously, Colby was from 2018-2019 the Director of the Defense Program at the Center for a New American Security, where he led the Center’s work on defense issues.Before that, he served as the Deputy Assistant Secretary of Defense for Strategy and Force Development from 2017-2018. In that role, he served as the lead official in the development and rollout of the Department’s preeminent strategic planning guidance, the 2018 National Defense Strategy (NDS). His most recent book is The Strategy of Denial: American Defense in an Age of Great Power Conflict (2021).

Michael Munger (Duke University)

Michael Munger is Professor of Political Science, and Director of the PPE Certificate Program at Duke University. His primary research focus is on the functioning of markets, regulation, and government institutions. He has taught at Dartmouth College, University of Texas, and University of North Carolina (where he was Director of the Master of Public Administration Program), as well as working as a staff economist at the Federal Trade Commission during the Reagan Administration. He is a past President of the Public Choice Society, an international academic society of political scientists and economists with members in 16 countries. He now co-edits The Independent Review. 

James Hankins (Harvard University)

James Hankins is Professor of History at Harvard University. He is the founder and general editor of the I Tatti Renaissance Library and works on Renaissance Italian history and thought. He has given the Carlyle Lectures in the History of Political Thought at the University of Oxford and is a Corresponding Fellow of the British Academy. His most recent book is Virtue Politics: Soulcraft and Statecraft in Renaissance Italy (2019).