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A large percentage of workers and firms operate in the informal economy, outside the line of sight of governments in emerging market and developing economies. This may hold back the recovery in these economies from the deep recessions caused by the COVID-19 pandemic--unless governments adopt a broad set of policies to address the challenges of widespread informality. This study is the first comprehensive analysis of the extent of informality and its implications for a durable economic recovery and for long-term development. It finds that pervasive informality is associated with significantly weaker economic outcomes--including lower government resources to combat recessions, lower per capita incomes, greater poverty, less financial development, and weaker investment and productivity.
This publication provides, for the first time, direct measures of informal employment inside and outside informal enterprises for 47 countries. It also presents statistics on the composition and contribution of the informal economy as well as on specific groups of urban informal workers.
In advancing the vision of adult learning articulated at the International Conference on Adult Education (CONFINTEA V) held in Hamburg in 1997, the UNESCO Institute for Education has been conducting studies on the different areas and dimensions of ‘Adult Learning and the Changing World of Work’. One question that has been central to this area is: What constitutes adult learning for those who traditionally secure their survival in the informal economy, as well as for those school leavers and dropouts who are forced to work in this sector? In answering this question, the informal sector or popular economy may be defined in various ways, but there is an increasing recognition that it is a phenomenon that has come to stay and that government policies aimed at economic and social development, including national education and training policies and programmes, should target those who work in this sector. In particular, basic education and continuing education and training are being seen as key to empowering people and as crucial to strategies for reducing poverty. Moreover, there is a growing awareness that education is a human right of fundamental siginificance to promoting decent work and humane living conditions. It is in view of such considerations that UIE and the ILO planned to conduct studies in South Asia (Nepal, Bangladesh, India) to develop an understanding of the quality provision of education and skills development in and for the informal sector.