Publication: Informality and Inclusive Growth in the Middle East and North Africa
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2023-06-08
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2023-06-08
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The long-standing informality debate in the Middle East and North Africa (MENA) Region has taken on a new urgency as it looks for a pathway to more socially inclusive growth that is less reliant on fossil fuels. This is occurring against a backdrop of subpar labor market outcomes, further growth setbacks, and deteriorating fiscal and current account de ficits in the aftermath of the COVID-19 pandemic—and in the wake of high in flation and supply chain disruptions triggered by the Russian Federation–Ukraine war.
"Informality and Inclusive Growth in the Middle East and North Africa" aims to better understand the characteristics and incentive structure that have led to the prevalence of informal employment in three MENA countries—the Arab Republic of Egypt, Morocco, and Tunisia. The report breaks new ground by adopting a comprehensive perspective to focus on the features of, and interrelationships among, different aspects of these countries’ institutional landscapes to make sense of the complex incentive structure that workers and firms face when deciding between formal and informal options. Specifically, the report groups these issues in three broad realms:(1) entrepreneur-worker relations, (2) taxes and transfers, and (3) market conditions.
“This report is an extremely welcome addition to the literature on MENA labor markets. By analyzing the incentive structure and institutional factors that have led to the prevalence of informal employment in Egypt, Morocco, and Tunisia, it points the way to policy actions that can be taken to reduce informality and increase social protection for workers. It is a must-read for anyone who cares about greater economic inclusion in MENA.” Ragui Assaad, Professor, Hubert H. Humphrey School of Public Affairs, University of Minnesota
“A compelling account of the implications of informality in the workforce and how economies of MENA can design appropriate policy responses. This timely report comes amid multiple social reforms in MENA and is a must-read for policy practitioners and economists in the region.” Karim El Aynaoui, Executive President, Policy Center for the New South
“This report is particularly timely given the negative impact the COVID-19 pandemic and subsequent crises have had on living standards and poverty rates around the world and especially in MENA countries. While the focus on boosting growth and achieving the Sustainable Development Goals has revolved around financing, the report sheds new light on the bene fits that tackling informality through institutional, regulatory, and policy changes could present to achieving these goals.” Mahmoud Mohieldin, Executive Director, International Monetary Fund
Le vieux débat sur l’informalité dans la Région Moyen-Orient et Afrique du Nord (MENA) a pris un caractère plus pressant alors qu’elle cherche une voie vers une croissance plus solidaire, moins dépendante des combustibles fossiles. Cette urgence intervient sur fond de résultats médiocres sur le marché du travail, de nouveaux reculs de la croissance, de détérioration des déficits budgétaires et courants à la suite de la pandémie de COVID-19, d’inflation élevée et de perturbations de la chaîne d’approvisionnement dues à la guerre entre la Fédération de Russie et l’Ukraine. Le rapport « L’informalité et la croissance solidaire au Moyen-Orient et en Afrique du Nord » vise à mieux comprendre les caractéristiques et les régimes incitatifs ayant conduit à la prévalence de l’emploi informel dans trois pays de la région MENA : la République arabe d’Égypte, le Maroc et la Tunisie. Il innove en adoptant une perspective globale pour se concentrer sur les caractéristiques des différents aspects du paysage institutionnel de ces pays, et leurs liens réciproques, afin de donner un sens aux régimes incitatifs complexes auxquels les travailleurs et les entreprises sont confrontés lorsqu’ils choisissent entre la formalité et l’informalité. Spécifiquement, le rapport regroupe ces questions en trois grands domaines : 1) les relations entrepreneurs-travailleurs ; 2) les impôts et les transferts ; et 3) les conditions du marché.
« Ce rapport vient très utilement compléter la littérature sur les marchés du travail de la région MENA. En analysant les régimes incitatifs et les facteurs institutionnels qui ont conduit à la prévalence de l’emploi informel en Égypte, au Maroc et en Tunisie, il esquisse des actions gouvernementales susceptibles de réduire l’informalité et d’accroître la protection sociale des travailleurs. Ce rapport est incontournable pour quiconque souhaite favoriser l’inclusion économique dans la région MENA ». Ragui Assaad, Professeur, Hubert H. Humphrey School of Public Affairs, Université du Minnesota
« Un compte rendu convaincant des incidences du travail informel et de la voie à suivre par les économies de la région MENA pour concevoir des interventions appropriées. Ce rapport arrive à point nommé dans un contexte de multiples réformes sociales et constitue une lecture indispensable pour les praticiens et les économistes de la région ». Karim El Aynaoui, Président exécutif, Policy Center for the New Sout
« Ce rapport tombe fort à propos compte tenu de l’impact négatif de la pandémie de COVID-19 et des crises ultérieures sur les niveaux de vie et les taux de pauvreté dans le monde entier, et en particulier dans les pays de la région MENA. Alors que l’attention accordée à la stimulation de la croissance et la réalisation des objectifs de développement durable a tourné autour des questions de financement, le rapport apporte un nouvel éclairage sur les avantages que la lutte contre l’informalité reposant sur des changements institutionnels, réglementaires et politiques pourrait présenter pour la réalisation de ces objectifs ». Mahmoud Mohieldin, Administrateur, Fonds monétaire international
“This report is an extremely welcome addition to the literature on MENA labor markets. By analyzing the incentive structure and institutional factors that have led to the prevalence of informal employment in Egypt, Morocco, and Tunisia, it points the way to policy actions that can be taken to reduce informality and increase social protection for workers. It is a must-read for anyone who cares about greater economic inclusion in MENA.” Ragui Assaad, Professor, Hubert H. Humphrey School of Public Affairs, University of Minnesota
“A compelling account of the implications of informality in the workforce and how economies of MENA can design appropriate policy responses. This timely report comes amid multiple social reforms in MENA and is a must-read for policy practitioners and economists in the region.” Karim El Aynaoui, Executive President, Policy Center for the New South
“This report is particularly timely given the negative impact the COVID-19 pandemic and subsequent crises have had on living standards and poverty rates around the world and especially in MENA countries. While the focus on boosting growth and achieving the Sustainable Development Goals has revolved around financing, the report sheds new light on the bene fits that tackling informality through institutional, regulatory, and policy changes could present to achieving these goals.” Mahmoud Mohieldin, Executive Director, International Monetary Fund
Le vieux débat sur l’informalité dans la Région Moyen-Orient et Afrique du Nord (MENA) a pris un caractère plus pressant alors qu’elle cherche une voie vers une croissance plus solidaire, moins dépendante des combustibles fossiles. Cette urgence intervient sur fond de résultats médiocres sur le marché du travail, de nouveaux reculs de la croissance, de détérioration des déficits budgétaires et courants à la suite de la pandémie de COVID-19, d’inflation élevée et de perturbations de la chaîne d’approvisionnement dues à la guerre entre la Fédération de Russie et l’Ukraine. Le rapport « L’informalité et la croissance solidaire au Moyen-Orient et en Afrique du Nord » vise à mieux comprendre les caractéristiques et les régimes incitatifs ayant conduit à la prévalence de l’emploi informel dans trois pays de la région MENA : la République arabe d’Égypte, le Maroc et la Tunisie. Il innove en adoptant une perspective globale pour se concentrer sur les caractéristiques des différents aspects du paysage institutionnel de ces pays, et leurs liens réciproques, afin de donner un sens aux régimes incitatifs complexes auxquels les travailleurs et les entreprises sont confrontés lorsqu’ils choisissent entre la formalité et l’informalité. Spécifiquement, le rapport regroupe ces questions en trois grands domaines : 1) les relations entrepreneurs-travailleurs ; 2) les impôts et les transferts ; et 3) les conditions du marché.
« Ce rapport vient très utilement compléter la littérature sur les marchés du travail de la région MENA. En analysant les régimes incitatifs et les facteurs institutionnels qui ont conduit à la prévalence de l’emploi informel en Égypte, au Maroc et en Tunisie, il esquisse des actions gouvernementales susceptibles de réduire l’informalité et d’accroître la protection sociale des travailleurs. Ce rapport est incontournable pour quiconque souhaite favoriser l’inclusion économique dans la région MENA ». Ragui Assaad, Professeur, Hubert H. Humphrey School of Public Affairs, Université du Minnesota
« Un compte rendu convaincant des incidences du travail informel et de la voie à suivre par les économies de la région MENA pour concevoir des interventions appropriées. Ce rapport arrive à point nommé dans un contexte de multiples réformes sociales et constitue une lecture indispensable pour les praticiens et les économistes de la région ». Karim El Aynaoui, Président exécutif, Policy Center for the New Sout
« Ce rapport tombe fort à propos compte tenu de l’impact négatif de la pandémie de COVID-19 et des crises ultérieures sur les niveaux de vie et les taux de pauvreté dans le monde entier, et en particulier dans les pays de la région MENA. Alors que l’attention accordée à la stimulation de la croissance et la réalisation des objectifs de développement durable a tourné autour des questions de financement, le rapport apporte un nouvel éclairage sur les avantages que la lutte contre l’informalité reposant sur des changements institutionnels, réglementaires et politiques pourrait présenter pour la réalisation de ces objectifs ». Mahmoud Mohieldin, Administrateur, Fonds monétaire international
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“Sinha, Nistha; Lopez-Acevedo, Gladys; Ranzani, Marco; Elsheikhi, Adam. 2023. Informality and Inclusive Growth in the Middle East and North Africa. Middle East and North Africa Development Report. © World Bank. http://hdl.handle.net/10986/39865 License: CC BY 3.0 IGO.”
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