Formally Challenged

Tackling Informality in Market System Development projects

Short description:

In June 2020, the ILO estimated that partial or full lock down measures would impact 1.6 billion informal workers, especially women. Supporting the informal economy is an important part of the recovery equation but the common discourse on informality tends to be oversimplified and somehow biased.

Against this challenging context, the Lab has produced this brief to help development practitioners understand how a market systems development (MSD) approach can address some of the issues associated with informality and, in turn, support better work opportunities for the informally employed. To do this, the brief walks through three parts:
  • The first part focuses on unpacking the concept of informality and on understanding why it is important for decent work.
  • The second part explores how MSD can be used to tackle informality.
  • The third part takes practical lessons from three market systems projects to help projects identify key sectors, analyse them and implement initiatives which can help create better jobs for informal workers.
See also: