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Round 4 Answers

Informal Economy 101


1. How many people worldwide work informally according to the WorldBank 2019 report?

2 billion
384 million
1.45 billion
771 million

2. Choose the correct statement(s):

Home-based work is a global phenomenon.
The informal economy is not linked to the formal economy.
Informal arrangements are more beneficial for domestic workers and employers than formal ones.
Street vendors work in public spaces in order to avoid regulations.

3. What is a chama?

An informal cooperative used to pool and invest savings in East Africa
VC funds in Kenya
A concept of a certain economic behavior which can be described as avoidance of official employment
An AI startup for entrepreneurs working in the unofficial economy

4. In Sub-Saharan Africa, what is the most popular way to transact money between regular people for personal needs?

They transfer money from balance of one SIM card to another (for example, using Vodafonepay)
They use Western Union or similar money transfer services
They use e-money systems, for example M-Pesa
They still use cash

5. What was the share of informal economy in Australian GDP in 2016?



1. Select the right set of countries where Chama-like informal savings groups are widespread?

Uganda, Rwanda, South Africa
Ukraine, Romania, Moldova
Thailand, Indonesia, Vietnam
Brazil, Aruba, Panama

2. Householders in Georgia have more cash resources than they declare to tax authorities. What is the approximate difference (in percent)?


3. In 2010, a street vendor set himself on fire in front of a local municipality building after administration officials and police confiscated his products and publicly humiliated him. This incident caused a wide public resonance and led to a revolution against unemployment and corruption. What is the name of this revolution?

Jasmine Revolution
Kashmir Unrest
Rose Revolution
Yemeni revolution

4. Which of the following countries has the most significant share of business built as cooperatives in its economy?

New Zealand
Russian Federation

5. How shared funds (money) are stored in majority of savings groups nowadays?

In cash (in local currency)
At shared bank account in local country
At shared account opened by international e-money systems
In cryptocurrency


1. What is ROSCA?

A group of individuals who agree to meet for a defined period in order to save and borrow together, a form of combined peer-to-peer banking and peer-to-peer lending
Russian Cryptocurrency Association
An informal name for a group of countries with the most significant share of informal economy.
A specific type of the saving circles where all of the funds are stored in the cryptocurrency

2. What is the estimated size of untaxed assets the poorest part of the population possesses in Peru?


3. What is the name for insurance co-ops in Netherlands?


4. What is the approximate amount of funds in control of chamas in Kenya?

$3.5 billion
$300 million
$1 billion
$25 billion

5. What amount of the population lived below the poverty line in Honduras in 2018 (according to the World Bank)?


Informal Economy 101 - Crosswords

Puzzle 1

1. This leading non-profit p2p-microfinance organization from California allows people to borrow money to start-up entrepreneurs and students around the world. It has issued more than $1B of loans as of today, mostly to the people who can’t access or denied by traditional financial institutions. What is the name of the CPO’s alma mater? Columbia
2. Followers of a certain sociological school in the 1960s argued that the sector of the informal economy would disappear completely (even in the most developed countries) with the tech and economic progress. One of the founders of this school is famous for his work regarding ethics and the spirit What is his last name? Weber 3. This investment plan for raising capital was developed in the 17th century by an Italian banker, to whom it owns its name. The plan became very popular throughout Europe in the XVIII and XIX centuries. This plan is still used nowadays, mostly within the informal/semi-formal economy for group savings and microcredit schemes. What is the name of this plan? Tontine
4. According to the World Bank, this country had the highest rate of informal employment in 2017, with more than 90% of total non-agricultural employment being informal. What is the capital of this country? Dhaka
5. Mobile phone based money transfer is the most popular way of person-to-person monetary transaction in many African countries. What is the name of the largest Kenian mobile career, according to 2018 statistics? Safaricom

Puzzle 2

1. This movement considers local people as a basis for political or economic changes. From the etymological point of view, its associated with agriculture. Grassroots
2. This idea of collective unity was widely spread in the 1990s. Its name is used as a reference to the humanist philosophy in Southern Africa. Also has something to do with free and open-source software. Ubuntu
3. Chama-like informal savings groups are also presented in Japan, despite the fact that the country is well developed economically. They originated in a certain period of the Japanese history. What was the factual capital of Japan at that time? Kamakura
4. Authorship of the first academic research of ROSCA is attributed to a certain scientist, which is also renowned for their research of an African ethnic group. What is the name of this ethnic group? Bakweri
5. According to this economic system, industries and organizations should be systematized in confederations or co-operatives. It was firstly introduced by radical left movement in France. Syndicalism