Konrad Adenauer Stiftung and Pathfinder Foundation organized a roundtable on social market economy and SMEs in Colombo today. Among the Sri Lankan research that was shared was a shortened version of a slideset from our 2011-13 research program. With regard to social market economy, I said that the German model could not be transplanted here. Lacking their almost religious fiscal discipline, we were likely to create an even bigger mess by guaranteeing social and economic safeguards in the Constitution. Their model rested on tripartite decision making system that gave a powerful role to trade unions.
ABSTRACT This paper investigates the factors that influence formalization of poor micro-enterprises (MEs) in urban locations in Bangladesh and Sri Lanka. The paper draws from a multi-country survey of information and communication needs of poor MEs in Bangladesh, India and Sri Lanka in the second quarter of 2013. Through logistic regression, it models business registration among such MEs to understand what affects the decision to formalize within these environments. The paper also looks at the barriers to registration and the policy implications from these findings. Using descriptive statistics and models we find that the MEs lack of formalization is explained to a significant level by their level of education, gender, size of the enterprise and awareness levels.