Transition from informal to formal economy: Awareness raising on R204 towards designing an integrated policy framework in the Philippines

Transcription

1 Transition from informal to formal economy: Awareness raising on R204 towards designing an integrated policy framework in the Philippines Second edition targeting on policymakers 1

2 Welcome and presentations of programme 2

3 Official Opening ILO NAPC-WIS 3

4 Introduction to training objectives, programme and participants 4

5 Who are you? What do you do? 5

6 How much do you know about the informal economy? (nothing, a lot, a little, fair) 6

7 How much do you know about R204 and formalisation policies (nothing, a lot, a little, fair) 7

8 What does formalisation of employment mean for you? 1. Poverty alleviation 2. Registration of enterprises 3. Payment of taxes 4. Employment benefits in law and in practise 8

9 HOW DO YOU WEIGHT Your capacity ( in practice or by law) to influence the transition to formal economy in Philippines ( zero, 25%, 50% 75% 100%) 9

10 What is the most representative patterns of informality in the Philippines? Name one policy that, according to you, is the most relevant when addressing informality in the country. Share one success story you have come across with regards to formalization 10

11 Your expectations 11

12 Objectives during the 3 days 1. Understand the key concepts, terminology and conceptual framework related to informality and the transition to formal economy 2. Discuss international and national policies, strategies to address informal employment. 12

13 Course road map Strategies APPLY your Learning Concepts LEARN about the conceptual international framework on informal economy Challenges ANALYSE the challenges workers and enterprises from the informal economy are facing in Philippines ACQUIRE practical knowledge through concrete examples of measures applied at the local, national and international levels, and the importance to promote an integrated policy framework APPLY knowledge acquired by reviewing existing national policies

14 All materials in a dedicated website expertise/informal-economy/ar204- philippines/ 14

15 Session 2: Informal economy - conceptual framework 15

16 TWO learning objectives 1.Develop your knowledge of concepts relating to informal sector and informal employment 2.Discuss definitions in Philippines 12/07/

17 BREAKING SOME STEREOTYPES Informal economy is equal to illicit economy 17

18 Women are most represented in the informal economy because informal employment is the best option they have 18

19 Informal employment does not exist in formal establishments 19

20 Informal workers and enterprises do not need social protection 20

21 Thoughts? What defines informal economy and who are workers and economic units in the informal economy! 21 21

22 Activity 1 : Who are we talking about? In your groups, you have been given a (few) profiles of people who are in the informal economy. 1. Get familiar with the profiles individually 2. Discuss the profiles in the group (characteristics) 3. Answer as a group the following questions: Would you qualify the characters as formal or informal businesses - workers? What are the reasons for the characters being formal / informal? How do you define (in)formality? 22

23 Profiles: formal/informal status street vendor domestic worker owner of a restaurant business owner construction worker trader rural entrepreneur Driver Smallscale gold mine Wage worker owner of a small farm 23 23

24 Informality patterns Informality causes problems to workers: o Limited or no social protection o Workers incapable to enjoy their rights o Lack of voice and representation o Lack of information 24

25 Informality patterns Informality causes problems to firms: o Limited access to finance o Restricted access to markets o Difficulties in signing contracts and lack of capacity to enforce it, o Impediments in conflict resolution o Limited access to public services, o Lack of access to skills o Unfair competition for formal firms, 25

26 Informality patterns Informality causes problems to society: o Limited tax payers base o Limited capacity to fund social security systems o Limited capacity to inspect compliance o Limited rule of law (culture of compliance ) 26

27 Informality patterns Informality causes problems to workers: o Limited or no social protection o Workers Inabilitated to ensure their rights o Lack of voice and representation o Lack of information Informality causes problems to firms: o Limited access to finance o Restricted access to markets o Difficulties in signing contracts and lack of capacity to enforce it, o Impediments in conflict resolution o Limited access to public services, o Lack of access to skill o Unfair competition for formal firms, Informality causes problems to society: o Limited tax payers base o Limited capacity to fund social security systems o Limited capacity to inspect compliance o Limited rule of law (culture of compliance ) 27

28 Milestones 1972 kenya 1991 Informal Sector coined Describing the activities of poor working women and men who were not recognised, recorded, protected, or regulated by the public authorities DG Report: The dilemma of the informal sector (Link here) 1993 Statistical Definition: Fifteenth International Conference of Labour Statisticians ILC: Conclusions Concerning Decent Work and the Informal Economy From sector to economy In 2003, The ICLS issued guidelines on informal employment based on the discussions of 2002 on informal economy 2015 ILC: Recommendation No. 204: Concerning the Transition from the Informal to the Formal Economy Focus on formalisation of both economic units and workers 28

29 Some definitions Informal economy - All economic activities by workers and economic units that are in law or in practice not covered or insufficiently covered by formal arrangements - 90th ILC 2002 Nature and extent of informal economy to b assessed by countries i consultation with workers and employer organisationa (R204, paragraphe 6) in law : those excluded or partially covered by the law (eg. agricultural workers, domestic workers in some countries); in practice : the laws may exist but the institutions of the state and enforcement mechanisms are unable to reach segments of the workforce 29

30 Measuring employment in the informal economy: Two components Workers in informal sector enterprises (enterprise based concept) Workers with informal jobs (worker / job based concept) Informal jobs outside the Informal sector In the formal sector or in households producing exclusively for own final use Informal employment Informal sector employment Formal jobs in Informal sector enterprises Negligible if well defined and measured SDG indicator Proportion of informal employment in non-agriculture employment, by sex Two different aspects of informalisation of employment Important to keep separate as often require different policies Employment in the Informal Economy: = employment in the Informal sector + informal employment outside of the Informal sector 30

31 Economic activies insufficiently covered by formal arrangements by economic units : workers in informal economic units (informal sector) by workers : workers with informal jobs informal employment) 31

32 Enterprise-based definition by economic units : workers in informal economic units (informal sector) Economic activies insufficiently covered by formal arrangements Employment in the informal sector covers persons working in units that have informal characteristics in relation to their legal status, registration, registration of the employees, their bookkeeping practices. Production units not registered under specific forms of national legislation such as factories or commercial acts, tax or special security laws, professional groups regulatory acts or similar acts, laws or regulations established by national legislative bodies); and/or whose employees are not registered. (ICLS 17th session, 2003). The informal sec includes informa agricultural prod units but does no households as em domestic worker 32

33 Jobs-based definition Economic activies insufficiently covered by formal arrangements Informal employment, refers to the prevalence and characteristics of informal jobs (including the number of such jobs, from a statistical point of view). An employee is considered to be an informal worker if his employment relationship is not subject to labour regulation, taxation, social protection or entitlement to certain employment benefits (advance notice of dismissal, severance pay, paid annual leave or sick leave, etc ( ICLS 17th, session, 2003). Own account workers, employers and members of the producers cooperatives are considered to have informal job if the production unit is informal. Contributing family workers are all in informal employment. by workers : workers with informal jobs (informal employment) Informal employment is a job-based concept. It encompasses self-employed in the informal sector and wage employees whose main jobs lack basic social or legal protections or employment benefits and may be found in the formal sector, informal sector or households 33

34 According to you what is the share of workers in informal employment? In the world o <5% o 5-25% o 25-50% o 50-75% o 75-90% o >90% 61% In the Americas o <5% o 5-25% o 25-50% o 50-75% o 75-90% o >90% 40% In Africa o <5% o 5-25% o 25-50% o 50-75% o 75-90% o >90% 86% In Asia & the Pacific o <5% o 5-25% o 25-50% o 50-75% o 75-90% o >90% 68% In Europe o <5% o 5-25% o 25-50% o 50-75% o 75-90% o >90% 25% 34

35 Emerging Develope d World Developing 2 billion people more than 60 per cent of the world s employed population are in informal employment Informal employment Formal employment Share of informal employment in total employment (including & excluding agriculture, 2016) Source: ILO calculations based on household survey micro datasets: Women and in the informal economy: a statistical picture Note: based on 119 countries representing more than 90 per cent of the world s working population. Missing values are estimated based on sub-regional/ income groups averages. 35

36 Composition of informal & formal employment by employment status Distribution of informal employment by status in employment Common trends between regions but differences depending on employment statuses The self employed represent 60% of those in informal employment and this this share increase with the decrease in the level of development (non-wage workers represent nearly 80% of informally employed people in low-income countries) Still, employees represent 41% of total informal employment worldwide and more than half in Europe & Central Asia 36

37 HOUSEHOLD S FORMAL SECTOR Composition and heterogeneity of informal employment in the informal economy: a cartography Formal sector entrepreneurs (own account workers, employers and members of producers cooperatives in the formal sector) Employees in the formal sector who have formal employment Employees in households producing exclusively for own final use who have formal employment Informal employment Employees in the formal sector who have informal employment cell 2 Employees in households producing exclusively for own final use who have informal employment cell 10 Informal sector entrepreneurs (Own account workers, employers and members of producers cooperatives in the informal sector) - cells 3,4,8 Employees in the informal sector Employees in the informal sector who have informal employment cell 6 Own account workers in households producing exclusively for own final use -cell 9 Who have formal employ -ment - cell 7 INFORMAL SECTOR Total employment

38 CONCEPTUAL FRAMEWORK FOR INFORMAL EMPLOYMENT Job status in employment Production units by type Own-account workers Employers Contributing family workers Employees Members of producers cooperatives Infor mal Formal Inform al Formal Informal Inform al Formal Inform al Formal Formal sector enterprise 1 2 Informal sector (b) Households (c) 9 10 Notes: (a) (b) (c) Dark grey cells refer to jobs which, by definition, do not exist in the type of production unit in question. Light grey refers to formal jobs. Unshaded cells represent the various forms of informal jobs. Excludes household employing paid domestic workers (as per 15 th ICLS). Households producing goods exclusively for own final use and those employing paid domestic workers. Source: 17 th ICLS resolution, Informal employment: Cells 1-6 and 8-10 Employment in informal sector: Cells 3-8; Informal employment in formal sector: Cells 1, 2, 9, 10

39 CONCEPTUAL FRAMEWORK FOR INFORMAL EMPLOYMENT Job status in employment Production units by type Own-account workers Total: 5,792,598 Employers 472,327 Contributing family workers 2,127,660 Employees 9,629,301 Members of producers cooperatives 3,008 Informal Form al Informal Formal Informal Informal Form al Informal Form al Formal sector enterprise Total: 6,432,279 Informal sector (b) Households (c) Notes: (a) (b) (c) 11,392, ,039 Dark grey cells refer to jobs which, by definition, do not exist in the type of production unit in question. Light grey refers to formal jobs. Unshaded cells represent the various forms of informal jobs. Excludes household employing paid domestic workers (as per 15 th ICLS). Households producing goods exclusively for own final use and those employing paid domestic workers. Source: 17 th ICLS resolution, % 30.2% 0.02% 31.9% 2.6% 6.3% 22.4% % 0.87% Informal employment: Cells 1-6 and 8-10 Employment in informal sector: Cells 3-8; Informal employment in formal sector: Cells 1, 2, 9, 10

40 Assessing the informal /formal status of our characters 12/07/

41 Assessing the formal/informal employment status of our characters 12/07/

42 From international to national definitions Informal employment: Country Source Definitions Brazil Urban informal economy survey Employees without a formal contract (carteira assinada) Moldova Republic Turkey South Africa Labour force survey Household labour force survey Quaterly labour force survey Employees for whom the employer does not pay social security contribution, or who do not benefit from paid annual leave (or financial compensation for untaken leave) or will not be given paid sick leave in the event of illness or injury. Employees without any social security registration Employees without written employment contract, or for whom the employer does not contribute to the pension/ retirement fund or to medical/ aid benefits Viet Nam Zambia Labour force survey 2009 Labour force survey 2008 Employees without a written employment contract, or not covered by social insurance or not entitled to paid annual leave/ public holidays Employees not entitled to paid annual leave or for whom employer does not contribute to social security 42 scheme 42

43 From international to national definitions: the informal sector: Country Source Definitions Brazil Ethiopia Moldova Republic Turkey United Republic of Tanzania Urban informal economy survey Urban employment/ unemployment survey Labour force survey Household labour force survey Integrated labour force survey 43 Enterprises with fewer than 6 employees and without a complete set of accounts (agriculture excluded) Enterprises without an accounts book that have fewer than 11 employees or no licence (agriculture included) Enterprises that are not registered (agriculture included) Enterprises paying a lump-sum tax or not paying any tax, and with fewer than 10 persons engaged (agriculture excluded) Enterprises with fewer than 10 employees and without a complete set of accounts (agriculture excluded) 43

44 WHY is it important to define informal economy, informal enmployment or informal enterprises? 44

45 Dynamic of informality over time Change in the share of informal employment How about Philippines? Source: ILO calculations based on national household surveys

46 R204 and statistics on informality 1. R204 provides a definition of the informal economy 2. For the purposes of this Recommendation, the term informal economy : (a) refers to all economic activities by workers and economic units that are in law or in practice not covered or insufficiently covered by formal arrangements; and (b) does not cover illicit activities (I. Objectives and scope [ 2-5] in R204) 2. R204 includes a dedicated section on VIII. Data collection and monitoring VIII. Data collection and monitoring 36. Members should, in consultation with employers and workers organizations, on a regular basis: (a) where possible and as appropriate, collect, analyse and disseminate statistics disaggregated by sex, age, workplace, and other specific socio-economic characteristics on the size and composition of the informal economy, including the number of informal economic units, the number of workers employed and their sectors; and (b) monitor and evaluate the progress towards formalization. 46

47 R204 and statistics on informality, it calls for data & Statistics as a key element of national diagnoses R204 calls for data and statistics to identify the nature and extent of the informal economy [para 6] as part of national diagnoses [para 8] 6.. given the diversity of the informal economy across member States, the competent authority should identify the nature and extent of the informal economy as described in this Recommendation, and its relationship to the formal economy. 8. Members should undertake a proper assessment and diagnostics of factors, characteristics, causes and circumstances of informality in the national context to inform the design and implementation of laws and regulations, policies and other measures aiming to facilitate the transition to the formal economy. Who are Analysis the of some workers in the of the main informal drivers of economy? informality => Not all quantifiable o Build consensus about national priorities o Clear link with policies: basis for o the adoption, review and enforcement of measures o monitoring progress towards formalization

48 How about in the Philippines? Definitions You are going to hear a short presentation about the definitions that are currently used in the Philippines. You will be asked if these definitions are aligned to international practice and guidelines. If you agree raise your green card! If you disagree raise your red card! 48

49 Philippines definition LFS in Institutional sectors ( government, households, private sector) important for the informal sector is already used 2. No use of size, registration of the enterprise as indicators 3. For employment ; there is not much ( nature of employment : permanent or temporary as a proxy) - Actually in the questionnaire: question on the type of contract (c17_natem) But not enough to assess access to effective protection 4. Ways to improve measurement : Informal sector Need to add at least a question to identify if the enterprise is registered Informal employment Contribution to social security- Annual paid leave- Paid sick leave 49

50 If you have any suggestions for new definitions that can be used within the Filipino reality use the parking lot! New ideas? Add any ideas to the space provided be sure to list your institution 50

51 Quizzz ( RED or GREEN ) An informal sector economic unit is a production unit operated in the owner s home All small economic units are in the informal sector Persons working in a household are by definition informal workers A person is in the informal sector if he/she has a precarious job All migrant workers are in the informal sector A person can work both in the formal sector and in the informal sector To measure the informal sector, the most important criterion is place of work Right now, countries all use the same definition of the informal sector Informal employment can only happen in the informal sector Employees of large enterprises cannot be in informal employment 51

52 How to Formalize?: R204 and Integrated Policy Packages DAY 1 - SESSION 3 52

53 Objectives Understand the objectives and policy guidance of R204 Discuss what an integrated framework (policies, strategies) to promote transition to formal employment and enterprises, means in practice Map out existing policies and strategies from Philippines 53

54 2) Regulatory framework, public instit. & enforcement mechanisms 4. Understanding the root causes of informality Main drivers of informality -Transversal versus specific to particular 1) Macro economic context Inability of the economy to create enough formal jobs The macro-economic Economic crisis and context economic restructuring Flexibilization of formal jobs as a result of globalization pressures Regulatory framework inadequate or lacking Lack of transparency & accountability of public institutions => lack of trust Lack of communication => lack of awareness Weak enforcement systems, incl. labour inspection Lack of adequate social benefits to secure income / inappropriate modalities to comply Multiples drivers and incentives of informality 4) Attractiveness of informal activities (evasion of tax/ contributions, work family balance) groups or economic units 3) Micro level determinants Low educated and qualified workforce => low mobility from informal to formal jobs Discrimination (exclusion of workers from categories of jobs based on race, gender, age) Poverty Low productivity Inability to overcome costs of formalization Lack of access to market; finances; technology Lack of voice and representation of workers 54

55 Typologies of formalization Formalization of economic units Registration of economic units Increased compliance Extension in application of labour and social security regulation Formalization of jobs Extension of application of labour regulation Extension of coverage of social security Registration of employment relationship Registration of own-account endeavours Productive job creation in the formal economy Most new entrants have access to employment in the formal economy Increased formal employment intensity of growth. 55

56 What does formal employment look like? Coverage by labour legislation Dimensions - Recognition of the status of the worker & associated rights - Rights at work put into practice Social security coverage - Recognition of entitlements to social security benefits - Registration with the social security system and payment of contributions Registration/declaration to the public authorities - Registration - Tax declaration/payment Formal employment practices - Written contract, terms of employment - Payroll, payment accounting 56

57 What does a formal firm look like? Dimensions Registration with the relevant authorities - Chamber of Commerce - Ministry of Industry Relevant operating licences and permits - Sanitary permit - Zoning - Building - Fire safety - Occupational Safety and Health - Sector/occupation specific permits Compliant with tax obligations - VAT - Profit tax - Other Compliant with social security obligations - Health insurance - Pension contributions - Accident insurance - Unemployment & disability insurance Formal transactions - Receipts, invoices - Formal accounting practices 57

58 Advantages of formalization at the firm level Firm level 1. Access to regulated markets for products 2. Access to formal sources of finance 3. Access to business development services 4. Access to legal assistance 5. Access to infrastructure and services PRODUCTIVITY 12/07/

59 Advantages of formalization at the sector level Cluster/sector level 1. Fair competition 2. Less tax burden on formal firms FAIR COMPETITION 12/07/

60 State level Advantages of formalization at the country level 1. Broader tax base 2. Larger pool of social security contributors SOCIAL CONTRACT C Company registration Licensing Compliance with social security Compliance with tax regulations Formal business transactions Compliance will all relevant laws (labour, commercial, environmental, sector-specific, etc) 12/07/

61 The significance of the new Recommendation 204 First international standard to provide both a normative and a developmental framework: Focusing on the informal economy in its entirety and diversity; Indicating a clear orientation and practical guidance for moving out of informality and transitioning to the formal economy through integrated strategies; Encapsulating good practices in transition to formality and at the same time open to policy innovations; A Recommendation adopted through a strong tripartite ( governments, employers and workers) consensus 61

62 Objectives of R204: Facilitate the transition of workers and economic units from the informal to the formal economy Promote the creation, preservation and sustainability of enterprises and decent jobs in the formal economy Prevent the informalization of formal economy jobs 62

63 Some highlights on the Preamble of R204 R204 recognizes that: the high incidence of the informal economy is a major challenge for the rights of workers and decent working conditions has a negative impact on enterprises, public revenues, government s scope of action, soundness of institutions and fair competition Most people enter in the informal economy not by choice Decent work deficits more pronounced in the informal economy Transition is essential for inclusive development and decent work for all 63

64 Components of R204: YOU ARE THE EXPERT 1. Legal and policy framework 2. Employment policies 3. Rights and social protection 4. Incentives, compliance and enforcement 5. Freedom of association, social dialogue and role of Workers and employers organisations 64

65 What is the most important feature of an integrated framework? 65

66 A broad diversity of possible interventions across a large range of policy areas A broad diversity of possible interventions: Policies that affect the environment/context: Macroeconomic, trade, industrial, tax, sectoral and infrastructure policies aiming to promote employment, enhance productivity and facilitate structural transformations, etc. Policies that affect transversal drivers of formalization, mostly to strengthen institutions, such as those to tackle poor social security systems, weak labour market institutions, lack of access to finance, to education, to skills, to infrastructures, etc. Policies that target specific categories of economic units (e.g. MSEs), groups of workers (e.g. domestic work, self-employed), type of informality (e.g. undeclared work in formal enterprises). Combine interventions to increase: 1) the ability of the environment to absorb the informal and 2) the ability of individuals and economic units to enter the formal economy. 66

67 2) Regulatory framework, public instit. & enforcement mechanisms 1) Macro environment / context Issues & policy responses: Macroeconomic, trade, industrial, tax, sectoral and infrastructure policies aiming to promote employment, enhance productivity and facilitate structural transformations 4. Root causes of informality in your country and main policy interventions Main policy responses depending on the Another way to look at possible combination interventions of o Formalization of economic drivers units Policies responses (examples) Reform or development of new laws (e.g. extension of social o Improve access to BDS, to security laws) technology, to information on Reduce the costs of compliance markets for goods and services; o Formalization of jobs with law (e.g. simplify o Improve effective access to social o Productive job creation in the formal economy procedures easier registration security coverage procedures; simplify forms; o Promote access to public Targeted VAT reductions; procurement (ex. public Increase resources devoted to procurement quotas; simplification) compliance mechanisms Improved transparency/ accountability of institutions Measures to change perceived fairness of the system Coordinating strategy across government, etc. Attractiveness of informal activities ex. Increase the cost of informality/ decrease the cost of formalization (campaigns to inform about the risks and costs of informality; Use of penalties and fines ; Recurrent questions o Need for coordination (identify constraints; inform & set up appropriate mechanisms) o Focus on a particular group of workers or type of enterprises 3) Micro level determinants Policy responses (examples) 1) To improve productivity/ reduce poverty o Improve access to financial services; o Improve access to training/ retraining, skills development 2) Organization of IE workers / eco units o Promote and strengthen organizations of workers & employers in the IE; o Traditional unions & employers org. expand their membership & services to those in IE 67

68 A broad diversity of possible interventions across a large range of policy areas: The risk of delinking the different dimensions of formalization Colombia Formalization of micro-enterprises: trends, percentage of micro-enterprises with business registration percentage of workers covered by health or pensions in establishments with less than 5 workers percentage of microenterprises with accounts 68

69 Mapping and promoting good practices Regulatory environment: labour inspection, special regimes (rural workers, domestic work), offender employers registry Incentives to formalize employment: simplification regimes, reductions in social security contributions for new hires, wage subsidies for hiring,, skills development programmes Boost enterprises registration and creation: simplified taxation regimes for SMEs and microentrepreneurs, innovation and technology transfer programs, access to credit Incentives to formalize employment: reductions in social-security contributions for micro-entrepreneurs, labour inspection Boost enterprises creation: single windows for enterprises Prioritize sectors National networks on Labor formalization: rise-awareness campaigns to employers and workers on good practices Argentina Informal jobs transition Brazil Micro and SMEs transition Colombia Creation of formal enterprises and jobs 69

70 Formalisation Experiences: Integrated Approach in LAC Adoption of an integrated approach to promote formalisation in LAC. ARGENTINA 2014 REGISTERED LABOUR PROMOTION AND LABOUR FRAUD PREVENTION ACT Economic incentives for registering with social security Activities for encouraging formalisation in highly informal sectors Strengthening of labour inspection MÉXICO 2014 GROWING TOGETHER (CREZCAMOS JUNTOS) Progressive tax benefits during 10 years Access to social security Other incentives: access to financing, housing credit, etc. BRAZIL 2014 NATIONAL PLAN TO COMBAT INFORMALITY Tax incentives State provided credits for enterprises with registered workers Strengthening of labour inspection PERÚ 2014 NATIONAL PRODUCTION DIVERSIFICATION PLAN & SECTORIAL STRATEGY ON LABOUR FORMALISATION Strategies to improve productivity (information, services) Strategies to Improve incentives for MSEs, own-account workers Strenghten compliance capacity 70

71 71

72 Integrated approaches implies coordination of interventions Fully joined-up forms of government: one agency/public department is responsible for either the whole formalization process or formalisation in a specific sector; has specific targets and a defined strategy. Cross-government departmental co-operations ranging from initiatives where the co-operating government departments have common shared targets to achieve at the level of strategy, operations or data matching (and relate to the whole informal economy or specific sectors, occupations and so forth). departments involved have separate targets to achieve and which can also be applied at the level of strategy, operations or data matching (and relate to the whole informal economy or specific sectors, occupations and so forth). Completely fragmented forms of government in the form of a departmental silos approach. 72

73 Other examples of coordination mecanisms Social dialogue through tripartite agreements Formalization pacts 73 73

74 The Example of GREECE: Tripartite committee on undeclared work European Stability Mechanism support programme for Greece the authorities will adopt an integrated action plan to fight undeclared and under-declared work in order to strengthen the competitiveness of legal companies and protect workers as well as raise tax and social security revenues PRODOC formulated by ILO, in collaboration with social partners and funded by EU Supporting the transition from informal to formal economy and addressing undeclared work in Greece. Diagnosis of Undeclared Work in Greece endorsed by the Greek Government and the social partners in a high level tripartite validation meeting held on 6 July 2016 Design of a Road Map to address undeclared work in Greece, adopted in October 2016 adoption on 28/04/17 of the new Law 4468/2017, which establishes the Tripartite Committee with equal representation under the Supreme Labour Council on undeclared work. responsible for steering and monitoring the implementation of the roadmap, involving social partners in the design and implementation of economic, employment and social policies. 74

75 Formalizing through a service sim card: Cheap and fast 75

76 A multi-stakeholders information system 77

77 Cabo Verde: Integrated approach REMPE: Promoting formalisation & job creation in Cabo Verde Streamlining of procedures Training & innovation Access to markets MICRO & SMALL ENTERPRISES Financing Social protection Investment & growth incentives

78 Effective Coordination and Stakeholder Analysis DAY 1 SESSIONS 3 AND 4 83

79 Step 1 Activity: Policies, strategies and practices in the Philippines On your tables you have been given a large piece of paper. Together, use this paper to map out the different policies, strategies and practices in the Philippines that facilitate the transition to formality. Step 2 Next, draw lines between the policies where there are links between the policies, strategies and practices that can contribute to an integrated framework? Step 3 Select 1 policy, strategy or practice to present to the other groups. How does it respond to the question of Formalization? Step 4 Post your policy map up in the gallery. Use this time to see if there are any differences or similarities with other groups work. 84

80 Activity: Who are the stakeholders? What are their roles? There are 3 steps in this activity: Step 1: List and map stakeholders Step 2: Step 3: Analyse stakeholders commitment level and identify gaps Think of a strategy to support one stakeholder in particular. You have a task sheet at hand to help you work through these steps. There is a total time of 1 hour to complete the activity. The facilitator assigned to your group will feedback in plenary at the end of the task. 85