Informality and Globalisation
In Search of a New Social Contract
Globalisation and rapid technological change have radically transformed labour markets,
affecting the lives and prospects of billions of workers. Those in the informal economy,
the vast bulk of the workforce in the Global South, have been bearing the brunt. This
report is for policy makers seeking to address the factors that make those workers
in informality vulnerable. It provides them with a distinctive cross-country comparison
of recent informality trends, and how they were affected by the recent crises such
as the COVID-19 epidemic, casting light on the impacts of sub-contracting models in
global value chains, and digital labour platforms. It argues that an inclusive recovery
and greater resilience to future crises necessitate that many countries renew their
social contracts, to make them more inclusive of informal workers and their families.
Published on April 20, 2023