Informality and Structural Transformation in Egypt, Iraq and Jordan
A Framework for Assessing Policy Responses in the MENA Region
Informality is not a new phenomenon but today, in face of the multiplication of domestic
and global shocks, the vulnerabilities associated with informal work and businesses
are an undisputable hurdle to economic resilience and more inclusive and equal societies.
Yet, certain policy measures implemented with the intention of addressing the consequences
of crises on vulnerable groups in the society – groups that include informal workers
and businesses – can unintentionally induce more informality, in a vicious cycle that
makes formalisation and resilience even more difficult to reach. The report Informality
and Structural Transformation in the Middle East and North Africa outlines a framework
for assessing the impact of economic and social policies on informality. The framework
was developed jointly by the ILO, OECD and UNDP, and is thought as a hands-on instrument,
allowing policy makers to foresee early on in the policymaking cycles the effects
diverse economic and social policies could have on the informal economy. This tool
adds to the vast literature on informality. Understanding the expected impact of different
policies on informality can help governments to identify measures that support their
key objectives, e.g. helping firms in financial distress or expanding social protection,
without altering motivations and incentives to formalisation.
Available from June 11, 2024