reform of governance is essential including measures to deal with corruption and regulatory cost burdens even so a policy of deliberate legal and financial integration would need to be grounded in understanding of the varying potential of different informal enterprises for growth and the extent to which they contribute to a loss of human capital by deskilling what is a relatively skilled and educated labour force bernabe thus only the highly skilled are expected to engage in formal employment and reap the benefits it provides those with low skills and especially with low educational background are likely to be employed informally and hence receive relatively lower incomes and fewer benefits