The informal economy is a system in which the informal income of some is the informal expenditure of others. Institutionalising an informal activity reduces its already weak competitiveness in relation to imports, and/or lowers its employment level, even though labour is the abundant factor. Yet this does not mean that the public authorities should neglect this economy. Nwaka (2005) argues that "what is needed is not less government, less control, or mindless deregulation of economic and planning activities, but rather a more enlightened, more participatory, and more equitable form of state intervention that eliminates needless restrictions, and provides a more appropriate and flexible regulatory framework that is compatible with local conditions and yet reasonably efficient and environmentally sustainable". These activities need to pool resources and costs and require, more than large-scale enterprises, an appropriate physical setting or support from external savings provided by the local or national community. The practice of "participatory budgeting" is one example of this kind of management.