Formalisation and the Grassroots Economy

Oct 22, 2024 | 11:00 AM - 11:40 AM

Description

Improving the quality of employment and promoting formalisation are key ingredients for improving workers' well-being. In addition, it is equally important to recognise the grassroots economy as an opportunity to foster innovative collaborations between the state and small-scale, spatially focused productive associations through mechanisms such as public-popular partnerships. Given that more than 40% of households in the LAC region are fully dependent on informal employment, it is crucial to closely analyse the socio-economic characteristics of informal work and its potential contributions. The grassroots economy, often marked by informal employment and small enterprises, is vital for many communities in the region and can play a more proactive role vis-à-vis the state. Examples of this are partnerships for the provision of goods and services, through public procurement, where the grassroots economy becomes a key actor. These strategies not only improve the quality of employment, but also empower informal workers, mitigating challenges such as income volatility, social and economic vulnerability, and lack of access to social protection. Tailored approaches that integrate the grassroots economy into broader partnerships with the public sector, and promote formalisation, can generate more effective policy actions to improve living conditions and strengthen productive structures in the region.