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Fact finding study - The Informal Economy

With such possibilities on the horizon, it was clear that the modelling framework used by this Review had to be built around the economics of risk. Averaging across possibilities conceals risks. The risks of outcomes much worse than expected are very real and they could be catastrophic. Policy on climate change is in large measure about reducing these risks. They cannot be fully eliminated, but they can be substantially reduced. Such a modelling framework has to take into account ethical judgements on the distribution of income and on how to treat future generations. . | Sida MARCH 2004 KRISTINA FLODMAN BECKER Fact finding study The Informal Economy Content Executive Summary.3 1 Introduction.5 2. Objectives of the study.7 3. The informal economy development definitions and composition. 8 3.1 Development and growth of the informal economy.8 3.2 How to define the informal economy. 10 3.3 How to measure the informal economy. 15 3.4 The informal economy in developing countries regional differences. 17 3.5 Especially exposed groups within the informal economy . 21 4. Informal enterprises.22 4.1 Obstacles faced by informal enterprises.22 4.2 Transition from informality to formality . 23 5. Examples of Policies Strategies and Programmes aimed at the Informal Economy.27 5.1 The Role of Governments.27 5.2 Examples of Government Policies and Programmes . 28 5.3 Examples of International Programmes . 31 5.4 The Role of Donors.32 5.5 Conclusions on policy and strategy development.34 6 The Informal Economy in Sida s Policies Strategies and Projects 36 6.1 Sida sector policies and strategies.36 6.2 Sida Country Strategies.36 6.3 An inventory on the informal economy in five Sida partner countries . 37 6.4 Examples of Sida projects targeting informal economy actors.40 6.5 The relevance of a strategy for the informal economy.41 7. Main findings . 45 8. Recommendations . 48 Bibliography.49 Appendix . .