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Question of the week 19

Under which conditions can government-driven formalization initiatives be beneficial for informal sector workers and what are promising examples of such initiatives?

Reactions (3)

Gladys Mponda
2016-11-17 05:53

Government should create public policies to achieve the Recommendation 204 transition from informal to formal with social security.  Informal workers should be included  I’m the process. Eg when making Labour laws at a local government level.  The ideas has to come from the grassroot level.

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Professor Colin C Williams - University of Sheffield
2016-11-19 08:56

It is correct, as the above respondent asserts, that the country members of the the United Nations have signed a declaration that supports the formalization of the informal sector. My first question is that if formalisation is not the answer, then what is the alternative. Three possible options exist: do nothing; eradicate the informal sector, or informalise the formal sector. You can read the pros and cons of each option in the following reports:

Williams, C.C. (2014) Confronting the Shadow Economy: evaluating tax compliance and behaviour p... read more »

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Mwenya Kapasa - International Labour Organization
2016-11-22 18:35

The following conditions should be considered:

Comprehensive diagnosis of national contexts in line with provisions of ILO's Recommendation 204. This will present an understanding of informal economy, including extent of informality within the different sectors-from a statistical perspective, gender aspects and demographic characteristics.
Assessing extent of social protection coverage of informal workers and appropriate mechanisms that could be used to extend coverage.
Status of legal framework with regards to transitioning from inf... read more »

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