Formalization of the Informal Economy Project II
Fostering the transition to Formality of Informal workers and economic units in Mongolia - Phase II
This project (Phase 2) intends to ‘scale-up’ the work of Phase 1 (MNG/23/01/RBS) and advance on the integrated approach towards formalization pathways so to make the transition easier, more feasible and beneficial for enterprises and workers. Financial inclusion and digitalization are identified among the potential pathways to formality. Phase 2 focuses on the elements defined below and is aligned with the Government’s development policies and the Dzud Disaster Response Plan.
Duration
1 October 2024 - 30 September 2026
Reference
MNG/24/01/RBS
Location
Mongolia
Contact
Ms Munkhtogtokh Davaadorj, National Project Coordinator, [email protected]
The project will focus on three key areas below:
- Formalization: Piloting and implementing the comprehensive and gender-responsive digital solutions identified in Phase 1 and operationalizing the integrated approach by supporting the process through the enhanced platforms.
- Employment services: Employment promotion programme and employment services are adapted for formalization, with particular focus on migrants (e.g. herders) moving towards urban areas.
Protection of workers: Workers’ organizations offer new services designed for workers in facilitating the transition to formality.
Target group and geographical locationThe phase 2 will focus on the sectors where most migrant workers solicit work: construction, transportation and services sectors. Male migrant workers are prevalent in the construction and transportation sectors, whereas more female workers are found in the services sector. The intervention aims to reach out to 10,000 workers in these sectors, which comprise ~10% of informal workers (i.e., 4000 people in wholesale and retail trade, 3000 people in services, 2000 people in taxi services and around 1000 people in construction).
Geographical coverage will focus on urban areas: Ulaanbaatar, Erdenet and Darkhan-Uul.
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