The informal economy largely evades state regulation. Nevertheless it is an important factor in economic, social and political stability, not only in countries suffering from crises and conflict. Even in cooperation countries with growing economies, too, structural changes and modernisation often result in stagnation or possibly shrinkage of employment in the formal sector.
This important segment of economic productivity is not infrequently branded “illegal”. Employees and the self-employed avoid contact with governmental facilities when they are in need of advice or training. They fear inspection and sanctions. Formal training courses are seldom tailored to their needs. They are too long, too costly and spatially and thematically “too far away”.
Gaining access to qualification is often difficult, especially for women: their role as head of household or the existence of cultural taboos restrict their mobility and often their participation in public life. They are particularly vulnerable to market changes, bureaucratic arbitrariness, perilous work circumstances and physical exploitation.
Reducing poverty begins first with reinforcing the people who work in the informal economy. Raising their productivity generates tangible effects on income. On top of this, vocational training can help link the informal to the formal economy. Small and micro-enterprises—even if they remain informal—play an important role as suppliers in value chains. Adapted management and technological competence are the prerequisites for this.
If training and counselling are within reach and affordable for people in all situations and walks of life, they not only make it possible for them to participate in the economy and harness their productive potential, but they also increase people’s capacity to find their way in informal job-placement networks, to express their interest in informal employment or to make use of formal educational offers.
Networks reach people in the informal economy or in informal working conditions within the formal economy. We strengthen the structure of traditional apprenticeship training and culturally embedded forms of job placement. We also support the establishment and networking of training agencies and self-organised learning groups. We advise on adjusted financing models, management issues, quality assurance, as well as questions of working conditions and work protection.
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