informal economy – Just Transition Initiative

What is "Just Transition"?

Report/Guidelines, Strategies and Recommendations

Jan 2019

The Contribution of Social Dialogue to the 2030 Agenda: Formalizing the Informal Economy

This report discusses the importance of social dialogue in formalizing the informal economy, as outlined in the UN’s 2030 Agenda for Sustainable Development.

Geographic Scope
Sectors: General
Focus Areas: Employment > Job creation and/or equality, Skills, Social protections, Worker safety; Environment and/or pollution > Human health; Government intervention > Regulation; Inequality and/or poverty > Gender inequality, Other
Keywords: informal economy; social dialogue; recommendation 204; 2030 Agenda; stakeholder engagement; tripartite dialogue; poverty alleviation; gender bias
By: Laura Maffei
Publishing Organization: International Trade Union Confederation (ITUC)
Inter-governmental/international organization
Summary: The author summarizes findings of case studies from Argentina, Costa Rica, the Philippines, and Kenya on the contribution of social dialogue to formalizing the informal economy and meeting the 2030 Agenda for Sustainable Development. She discusses how social dialogue serves as a mechanism for implementing the 2030 Agenda and provides recommendations for improving social dialogue to better contribute to formalizing the informal sector.

The author offers a brief explanation of social dialogue before discussing the scale of the informal sector in the global economy. She then highlights the challenges that informal workers face, demonstrating the need for formalization and explaining why social dialogue is essential to the formalization process. Citing examples from around the world, the author also demonstrates how social dialogue can facilitate progress on social protections, inclusion, and more.

The author highlights the continued challenges to formalization, including lack of commitment to social dialogue by various actors, insufficient time and resources, and lack of coordination between dialogue processes. She concludes with recommendations to address these challenges and strengthen social dialogue outcomes.

Report/Definitions and Concepts; Guidelines, Strategies and Recommendations

Mar 2020

Incorporating Just Transition Strategies in Developing Country Nationally Determined Contributions

This report examines how developing countries can incorporate just transition principles into their revised Nationally Determined Contributions (NDCs) to enable more ambitious and equitable emissions reduction strategies.

Geographic Scope
Sectors: General
Focus Areas: Economic diversification/restructuring > Economic development plans; Employment > Job creation and/or equality, Skills, Social protections; Government intervention > Regulation; Inequality and/or poverty > Other; Social and/or cultural impacts > Other
Keywords: template; structural unemployment; labor market strategies; Latin America; Global South; Nationally Determined Contributions (NDCs); informal economy
By: Peter Glynn, Andrzej Błachowicz, Mark Nicholls
Publishing Organization: Climate Strategies
Academic/research institution or journal
Summary: This report explores how low- and middle-income countries can incorporate just transitions principles into their revised Nationally Determined Contributions (NDCs) to the Paris Agreement goals. Writing for an intended audience of policymakers involved in drafting NDCs for developing countries, the authors explain the evolution of the just transitions concept and provide guidance on incorporating just transition language into NDCs. They suggest a timeline for each stage of the process and identify the resources available to assist in implementation.

Given the common perception that the just transitions concept is mainly relevant to developed countries, this report aims to link just transitions to the circumstances and needs of low- and middle-income countries. The report presents a brief overview of the just transition concept, its evolution and how it became embedded in the UN climate process during the Paris Agreement. The authors explain the importance of incorporating just transitions into NDCs. They call for countries to undertake labor market reforms, identify sectors that will be affected by climate change policies, and engage with all stakeholders to address those impacts.

The authors also present a just transitions “toolbox” developed by the 24th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP24), organizing suggestions and best practices into three groups: transition of the labor market, sustainable production and consumption, and inclusive transitions.

Brief/Guidelines, Strategies and Recommendations

Dec 2017

Green Initiative Policy Brief: Gender, Labor, and a Just Transition towards Environmentally Sustainable Economic and Societies for All

This brief summarizes climate-related challenges to gender equality in the world of work and emphasizes the need to achieve greater gender equality through transitions to a low-carbon, sustainable economy.This brief summarizes climate-related challenges to gender equality in the world of work and emphasizes the need to achieve greater gender equality through transitions to a low-carbon, sustainable economy.

Geographic Scope
Sectors: General
Focus Areas: Employment > Job creation and/or equality, Social protections, Worker safety; Inequality and/or poverty > Gender inequality; Social and/or cultural impacts > Other
Keywords: informal economy; disproportionate climate impacts; agriculture; care work
Publishing Organization: International Labor Organization (ILO)
Inter-governmental/international organization, Labor organization
Summary: This brief provides a high-level summary of the challenges that women in the world of work face as a result of climate change, both now and within the framework of worsening, future climate impacts. It also warns against the negative effects of excluding or overlooking the needs of women when enacting climate mitigation and adaptation measures.

The authors explore these challenges in the context of formal labor, informal agricultural labor, and unpaid household and care work. They suggest that the transition to low-carbon and sustainable economies offers an opportunity to address existing and emerging inequalities and vulnerabilities, secure and protect fundamental workplace rights, and empower women by ensuring their essential contribution to the stimulation of green growth.

To achieve these goals, the authors encourage greater engagement on the issues of gender, labor, and climate change. Furthermore, they encourage policymakers to include specific goals in transition planning regarding equal opportunities for and treatment of women and men.

Report/Guidelines, Strategies and Recommendations

Mar 2018

Social Dialogue and Tripartism

This report summarizes social dialogue principles and examines challenges related to the changing nature of work related to the UN’s Sustainable Development Goals (SDGs).

Geographic Scope
Sectors: General
Focus Areas: Employment > Other; Justice
Keywords: tripartism; labor laws; informal economy; collective bargaining; sustainable development goals; SDGs
Publishing Organization: International Labor Organization (ILO)
Inter-governmental/international organization, Labor organization
Summary: “This 2018 International Labor Organization (ILO) report takes stock of current social dialogue efforts, including tripartism, in terms of the changing nature of work and in the context of the 2030 Agenda for Sustainable Development. It examines best practices and shortcomings on a region-by-region basis. It also analyzes several threats to social dialogue: automation and digitalization, migration and changes in demography, climate change, and the backlash to globalization.

While noting the importance of social dialogue and tripartism, the paper points out that widening income inequality, weakening labor market institutions, increasing automation, and informal sector employment could all potentially weaken the effectiveness of social dialogue. Climate change also poses a threat because the work of labor institutions and social partners to manage distributional impacts lags behind actual needs in many countries. The report outlines such elements of these challenges at a regional and national level.

The ILO reiterates the importance of social dialogue and tripartism in meeting the SDGs and the need for “decent work.” The final chapter of the report includes suggestions to strengthen social dialogue and labor institutions, including enhancing collective bargaining capacity, but notes that more evidence-based research (including better statistics) is needed to measure the impact of social dialogue.”