City’s conflict affects informal economy

by GABRIEL LAHOC
SMALL to medium enterprises contributing to the informal economy in Lae are one of the most affected by the ethnic uprising by local Morobeans against Highlanders.
The larger businesses players reported two weeks ago that the uprising featuring rioting and targeted mob attacks had a direct effect on their workforce and their mobility to and from work.
These troubles affected working hours, resulting in losses.
The informal economy in Lae is now in the spotlight as its services to the public are still on hold as negotiations among the conflicting parties and the government through its appointed executive task force committee and other relevant authorities attempt to settle the conflict and return normalcy to the city.
The absence of street peddlers at bus stops and vendors on road sides and in public areas is now a welcome sight.
These traders, however, who are self-employed small-time entrepreneurs are questioning why their small business operations were being curbed as they needed money to pay for food each day.
The locals’ agenda against the street thugs has now developed into a call for a total ban on settlements on state land, street peddlers and loiterers because they are seen as contributing factors in the city’s escalating lawlessness.
One concern now for the authorities is how to accommodate the informal sector, which on the national level, is large and worth millions of kina and riding atop government support as per the Informal Sector Development and Control Act 2004.
This law recognises the importance of the sector and provides operating guidelines.
Street sellers now fear being attacked and have stopped trading store goods to betel nuts, while police are allowing only those who are selling in the perimeters of their houses to operate.
Bemobile and Digicel mobile networks agent, Jerry Tua, is one entrepreneur, who because of his Highlands origin, was affected when his 27 street top-up dealers were attacked in the widespread fights.
Just as with other highlanders who fled in fear of their lives, he reported that one of his dealers was stabbed and slashed in the face by knife wielding attackers.
He appealed to the authorities to come out clearly on genuine businessmen like him and allow them to come back with their sale of their goods.
It is difficult at this stage to establish the sum cost of loss incurred by the informal sector through the uprising.
Lae and parts of the neighbouring districts are under the government’s declared fighting zone areas.