Project Details
Description
Many development policies embrace firm formalization as important to sustainable development. For
example, the United Nations’ Sustainable Development Goal 8.3 seeks to “encourage the
formalization and growth of micro-, small- and medium-sized enterprises” (UN, 2016: 92). The
International Labour Organization’s Decent Work agenda (ILO, 2018: 3) endeavors to “facilitate the
transition to the formal economy, create new formal jobs and prevent further informalization”. This
emphasis is undeniably warranted. An estimated 89% of all workers in Sub-Saharan Africa are
employed in the informal economy, and thus deprived of institutional protection and decent working
conditions (ILO, 2018). The COVID-19 pandemic has further exacerbated this situation (Narula,
2020). Moreover, as informal firms operate outside the reach of official governance they are more
likely to evade regulations, pollute, and contribute to environmental degradation (Abid, 2015).
example, the United Nations’ Sustainable Development Goal 8.3 seeks to “encourage the
formalization and growth of micro-, small- and medium-sized enterprises” (UN, 2016: 92). The
International Labour Organization’s Decent Work agenda (ILO, 2018: 3) endeavors to “facilitate the
transition to the formal economy, create new formal jobs and prevent further informalization”. This
emphasis is undeniably warranted. An estimated 89% of all workers in Sub-Saharan Africa are
employed in the informal economy, and thus deprived of institutional protection and decent working
conditions (ILO, 2018). The COVID-19 pandemic has further exacerbated this situation (Narula,
2020). Moreover, as informal firms operate outside the reach of official governance they are more
likely to evade regulations, pollute, and contribute to environmental degradation (Abid, 2015).
| Status | Active |
|---|---|
| Effective start/end date | 01/01/2022 → 31/12/2025 |