Way Out of Informality: Facilitating Formalization of Informal Economy in South Asia (Nepal, Bangladesh and India)

The five year project is funded by the Government of Japan and is implemented in Bangladesh, India and Nepal. The project will address the problems by facilitating formalization of informal businesses and workers, and discouraging informalization of the formal economy firms and jobs. It will also facilitate a review of the policy and the regulatory incentives and disincentives of formalization/ informalization, and promote growth of formal employment through job-rich growth strategies and integrated formalization assistance in selected Districts and sector in Nepal.

Project objectives

The project aims at facilitating formalization of informal businesses and employment relationships and discourage informalization of formal economy firms and jobs in Nepal and in South Asia.

Target group

The primary target groups are both firms and workers in selected sectors. For firms, the target group is those with potential to move into the formal sector as well as those which face competitive pressure towards informalization of its workforce. For workers, the target group includes self-employed workers and unpaid family contributing workers in the informal economy; the workers in the informal sectors, the non-regular/informal workers linked to the formal sectors, the workers in the formal sector at risk of being informalized or replaced by informal workers, and the underemployed and youth facing difficulties in finding formal jobs.

Key partners

Ministry of Labour and Employment, Workers’ Organizations, Employer’s Organization, Banks insurance companies and Development partners

Target beneficiaries

 Local and national firms, Self-paid workers, Unpaid family contributing working workers in informal economy and the Tripartite Constituents at the national level

For further information please contact:

Mr. Prakash Sharma
National Project Coordinator
Tel.: +977 1 5555 777 Ext. 122