Albert Science International Organization

Abstract

The informal sector in relation to trade and production in Uganda has continued to face negative inverse relational effect from both the Governments’ regulatory implementer forces and formal sector challengers who are out competed in the acquisition of revenue and customers respectively. The clash between the three actors in trade and production has continued to coexist in a midst of much suffering of the informal sector through losses of their capital when attacked by both government and formal sector. This existent political economy in terms of studying production and trade, and their relations with law, custom, and government, as well as with the distribution of national income and wealth for a shared developmental approach for all will be examined in this paper. Since there is less focus on transforming the informal sector to becoming formal and contribute to the majority of the citizens who are in the informal trade and production in Uganda, this paper presents the historical experience of Ugandan political economy in relation to literature connected to the informal and formal sector in the country. Review of secondary sources is used to shape the methodology of combining information to address the focus of the paper. Lastly, the paper also provides the results, conclusion and recommendation in relation to the political economy of Uganda and its Regulatory role in managing the Formal sector and Informal Sector in the areas of Trade and production.

Key Words: Formal Sector, Informal Sector, Trade and Production.

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