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Fostering the Social and Solidarity Economy and Formalizing Informality in MENA Countries

Author

Listed:
  • Philippe Adair

    (University Paris-Est Créteil)

  • Vladimir Hlasny

    (United Nations Economic and Social Commission for Western Asia)

  • Mariem Omrani

    (UNDP)

  • Kareem Sharabi Rosshandler

    (The Economic Growth Pillar, West Asia-North Africa Institute)

Abstract

First, youth inactivity, unemployment and informal employment are pervasive in the MENA labour markets. Using microdata from Labor Market Panel Surveys, and ERF COVID-19 MENA Monitors for six MENA countries, workers’ employment statuses are assessed separately by age group and gender. Second, the social and solidarity economy (SSE) includes both for profit and non-profit entities, cooperatives, associations and mutual. Their legal frameworks and economic impact, especially in terms of employment and GDP contribution are surveyed. Third, personal savings and grants remain the major funding sources of SSEs, which face structural deficiencies in the banking system and lack tailored financial products that the microfinance industry should overcome. Four, formalisation policies encapsulate distinct strategies, targets and impact assessment, wherein which the SSE including microfinance institutions plays a role in formalising both informal businesses and employees, as well as triggering job creation.

Suggested Citation

  • Philippe Adair & Vladimir Hlasny & Mariem Omrani & Kareem Sharabi Rosshandler, 2022. "Fostering the Social and Solidarity Economy and Formalizing Informality in MENA Countries," Working Papers 1604, Economic Research Forum, revised 20 Nov 2022.
    • Handle: RePEc:erg:wpaper:1604
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