The informal economy: Don’t fight it, work with it

This work was carried out under the Infrastructure and Cities for Economic Development (ICED) facility.

ICED supported DFID country offices, central teams and ODA-spending Other Government Departments to deliver DFID’s Economic Development Strategy by scaling up programming and investment in infrastructure and cities. It operated between February 2016 and July 2019.

For a long time, governments have seen street vendors, waste pickers and other informal activities as a headache and lost tax revenue opportunity. Efforts to formalise the informal economy and bring it under regulation have often failed, not just due to its sheer size, but also stemming from a lack of understanding of the political economy conditions that drive people to work in the informal economy in the first place. But now, perceptions are changing.

This blog post explores the steps needed to enhance opportunities for more productive jobs and to promote inclusion.

Published

26/01/18

Tags

Resource
Gender, disability and inclusion
Urban
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