news

Transition to formal economy

news - 27/08/2015

A knowledge-sharing forum bringing together tripartite constituents from 12 Latin American and Caribbean countries in Lima, Peru

The Centre, in collaboration with the ILO Regional Office for Latin America and Caribbean countries, the ILO FORLAC programme (Formalization in Latin America and the Caribbean), and the Employment Policy Department in Geneva, organized this event.

The tripartite forum, also sponsored by the Spanish Ministry of Employment and Social Security aims to "promote the exchange of best practices and experiences at regional level on policies to facilitate the transition to formality, in order to develop and strengthen national capacities for the formulation, implementation and effective monitoring of an integrated policy framework”.

The forum was chaired by the ILO Regional Director for LAC countries, Mr Salazar, and the Peruvian Minister of Labour and Employment Promotion, Mr Daniel Maurate.

The reduction in informal employment, which affects at least 130 million workers in Latin America and the Caribbean, is one of the main challenges facing the region in the fight against poverty and inequality.  While there has been a slight decrease in the rate of non-agricultural informality, which stood at 50% in 2009 and fell to almost 47% in 2013, much needs still to be done to decrease inequality and prevent social exclusion.

The ILO Regional Director stressed that strategies based on an integrated policy to tackle informality on several fronts should be implemented. The regional forum held this week in Lima was specifically intended to contribute to expanding technical, operational and policy capacities to meet this challenge.

This forum is the first in a series of forums that will be held in Africa, Europe and Asia, culminating in a Global Forum in Turin from 23 to 27 November 2015. This event will bring together tripartite constituents to exchange knowledge and experiences in the transition to formality, and to prepare for the implementation of Recommendation 204, adopted by the International Labour Conference in June 2015.