Recognizing the Informal Economy

The informal or popular economy comprises economic activities that may involve most of the inhabitants of a given territory and that provide essential public services such as the reuse or sharing of goods, home care, and waste management. While taking into account the diversity and the complexity of the informal economy, the SSE often plays a key role in formalizing these activities, generating positive spinoffs on different levels: municipalities are better able to serve their target groups; public revenues are increased; and the economic stability of those who work in these enterprises is ensured. In some contexts, exiting the informal economy also translates into decent employment for the communities concerned, including immigrants, thereby promoting their social integration.