South-South Expert Knowledge Sharing Forum on Policy Innovations and Lessons Learned on Enterprise Formalization

Efforts to support the formalization of the informal economy have accelerated across the globe after the historic adoption of International Labour Organization (ILO) Recommendation 204 Concerning the Transition from the Informal to the Formal Economy Recommendation in 2015. With the launch of the Sustainable Development Goals (SDG), interests are growing to support more than 60 per cent of the world’s workforce operating in the informal economy through the transition to formality. The notion that economic growth, while a necessary condition, is insufficient to reduce informality, is widespread in the debates of post-global financial crisis, and most recently in the context of the fourth industrial revolution including in the Future of Work dialogue hosted by the ILO.

Several countries, especially in Latin America, have made significant progress in reducing informality among small enterprises and their workers through a multi-facetted policy mix, providing incentives and information, whilst reducing administrative red tape. These experiences, together with their challenges, have been documented by the ILO, with a view to inform the policy debate in a wider group of countries.

Against this backdrop, the ILO organizes the South-South Expert Knowledge Sharing Forum on Policy Innovations and Lessons Learned on Enterprise Formalization. Through this Forum, experts, constituents (government, workers, and employers’ organizations), and other stakeholders of the host country will exchange with experts of the Global South on good practices and lessons learned, while exploring opportunities to replicate or adapt effective initiatives. The event is supported by the South-South and Triangular Cooperation (SSTC) Facility of the ILO Partnership and Field Support Department (PARDEV).

Objectives

The Forum aims to support the Philippines to achieve decent work through enterprise formalization by further empowering policymakers and informal economy leaders to design and implement an appropriate policy mix. The three-day Forum will bring together around 30 high level policy makers and expert from the Philippines with experts from the Global South (Brazil, Chile, India and Uruguay) and ILO specialists.

Content

The Forum will focus on integrated approaches to small enterprise formalization, including:
a) business entry reforms;
b) simplified tax regimes;
c) access to public procurement;
d) access to inclusive financial services;
e) access to entrepreneurship training, skills development and tailored business development services; and
f) access to social security coverage.

It is important to note that India and the Philippines, the two long-time champions of the informal economy discussion in the Asia Pacific Region, are presently undergoing major tax reform initiatives. Current practices in monitoring progress, assessing impacts and adjusting policies accordingly, will receive special attention.