The Gender Implications of Formalising Informal Activities: A comparative study of India, Thailand, South Africa, Ghana and Morocco Summary Report

Presented by Jayati Ghosh

1. Introduction

The desirability of moving towards greater formalisation of both economic activities and employment contracts seems so obvious that it scarcely bears further discussion. Therefore, both governments and those in civil society hoping for better conditions for workers have sought formalisation. Informality of enterprises is seen as undesirable not only because it enables greater evasion of taxes but also because such enterprises are harder to regulate in other ways, and so bringing them into the ambit of regulatory structures is seen as not just desirable but essential for a modern economy. And in its barest form, informality of employment is essentially the absence of worker protection, and so it is not surprising that those interested in the empowerment of workers (whether men or women) should strive for greater formalisation of work.

However, the manner in which such formalisation is done is crucial, and the macroeconomic and labour market conditions under which such policies are instituted also matter greatly. If formalisation attempts are not done in ways that recognise the broader socio-economic context, they may end up worsening the employment and livelihood conditions of the very workers who are sought to be protected. This is especially true for women workers in informal activities, who are typically disadvantaged in ways that are not recognised by public policy. That is why a gender perspective is essential when considering processes of formalisation.

This examines the processes of formalisation and their implications with a gender lens, through a comparative assessment of five developing countries in Asia and Africa: India, Thailand, South Africa, Ghana and Morocco. The next section takes up some conceptual issues in the definition of formality and formalisation, discusses some trajectories of formalisation in various development experiences, and considers the various approaches to formalisation that can be adopted. The third section briefly describes the main findings of the five country case studies. The third and final section draws on this analysis to provide some conclusions and some principles for policies for desirable formalisation that incorporates a gender perspective…….. Download the summary report