Module 4 of CDDRL’s “Solving Public Policy Problems” Online Course Out Now
This module examines the problem of informality within small businesses in Medellin, Colombia. Through this case study, students will learn why informality is a problem in developing countries and how they can employ a causal map to develop a set of theories of change for addressing policy problems.
The Center on Democracy, Development and the Rule of Law is pleased to announce the release of the fourth module of mini-lectures in our Solving Public Policy Problems massive open online course (MOOC).
Serious Business: Diminishing the Size of the Informal Sector in Medellin, Colombia
The new mayor of Medellin, Sergio Fajardo, arrived in office in 2004, pledging to remake the social contract between society and the state. He campaigned to introduce innovative social programs designed to lessen the high levels of poverty and violence in the city. But, the mayor needed money to finance these programs. The Minister of Planning, Federico Restrepo Posada, was charged with engaging the private sector, increasing tax revenue and promoting job creation. To do this, Restrepo needed to address the high levels of informal economic activity hindering economic dynamism and depressing the tax base. The state could not provide the necessary services because it did not collect enough taxes, but businesses refused to pay taxes because they did not believe the state was capable of delivering the services that they required. The case looks at how Restrepo addressed this dilemma.
Through this case study, students will learn why informality is a problem in developing countries and how they can employ a causal map to develop a set of theories of change for addressing policy problems.
You can read the case study here, access the full series on our YouTube page, and watch Module 4 below:
