Informal Economy
Introduction
Millions of people around the globe scrape a living working outside the formal economy. Whether they are street vendors, rubbish collectors, home-workers or working in numerous other unregulated jobs, they provide society with vital services but are afforded little protection or legal rights.
Despite the common misperception that informal economy workers opt to stay outside the system to evade taxes or perform illegal activities like drug trafficking or smuggling, the vast majority have no choice in the matter. They are merely trying to make a living via legal activities that happen to be unrecognised in the system they are in.
Some workers cannot afford the licences or taxes necessary to work in the formal economy, whilst others have been pushed into the informal economy due to the job destruction resulting from economic restructuring. The consequences are often devastating: abysmal pay and safety conditions, job insecurity, and a complete lack of representation.
War on Want’s programme devoted to those in the informal economy aims to enhance the working conditions of the informal workers and to develop their capacity to represent themselves before the public authorities.
War on Want works with organisations in the informal economy in Guatemala, Malawi, Mozambique, Zambia, South Africa and India.
War on Want has produced three reports on the Informal Economy, downloadable as PDFs:
War on Want's Informal Economy projects:
- Time for a New Deal - Social dialogue and the informal economy in Zambia
- Time for a New Deal - briefing
- Forces for Change - Informal economy organisations in Africa
War on Want's Informal Economy projects:
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MUFIS - Malawi Helping street traders and market vendors |
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APF - South Africa Supporting new grassroots organisations |
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Conrado de La Cruz - Guatemala
Helping Guatemalan child labourers |
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AZIEA - Zambia Fighting poverty in Zambia's markets |
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Kenasvit - Kenya Supporting Kenya's urban street traders |


