Policy highlights:

  • Strategies to facilitate the transition of workers to the formal economy should be tailored to the specific circumstances/characteristics of workers, including the most vulnerable such as women, young people, migrants, elderly and ill/disabled people.
  • Formulated strategies should then be translated into an integrated policy framework that ensures and promote: sustainable development and inclusive growth; freedom of association and collective bargaining for workers and employers, for example by means of trade organisations; access to education, financial services, markets, infrastructure, technology, social security coverage, justice and international cooperation mechanisms; coordination and cooperation between different levels of government and relevant bodies and authorities.
  • To facilitate an effective transition to the formal economy, a combination of incentives and preventive measures and sanctions should be implemented. Incentives may include access to services, educational programmes, and reduction of tax and other barriers.
  • Finally, an appropriate system of inspection and review must be put in place to ensure compliance with rules, rights and regulations, and to prevent corruption and human rights violations.
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