United Nations
Information Centre | Nepal
The Informal Economy & Workers In Nepal ( June 2004)
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The report provides a wide-raining overview of the characteristics of Nepal's informal economy, particularly in terms of demographic, labour relations, decent work deficits. In this, the fastest growing and least protected part of the national economy, workers have no guarantees of economic or social security. The current period of political and economic uncertainly in Nepal is contributing to the growth of the informal economy, workers have no guarantees of economic or social security. The current period of political and economic uncertainly in Nepal is contributing to the growth of the informal economy and exacerbating the problems facing workers.
The authors provide a synopsis of the policy and legislative framework as well as trade union and employer initiatives. While the government is poorly equipped to enforce laws that apply in the informal economy, trade unions have limited experience and ability to organized workers. The authors, however, offer a comprehensive set of suggestion for intervention in the informal economy. As a priority, these urge the organization of workers and a strengthening of enforcement mechanisms.
The content of this report has been finalized after extensive dialogue with government, the business community and worker'[s themselves. The substance and recommendations of the report were presented at a workshop in March 2003. As a result, a tripartite working group on the informal economy in Nepal was established. The working group is wished every success in furthering a process a dialogue and constructive engagement with issues relating to the informal economy and the promotion of Decent Work.
The informal economy, which will be formally defined later, included activities of the economy which are individually smaller, generally unorganized and which has the opposite characteristics.
Every economy has a formal and informal part, Informal activities are pervasive and persistent economic features of most developing economies contributing significantly to employment, production and income generation. Nepal's informal part in the economy is characterized by unregistered production. Many of the informal activities are agriculture, in large part is informal.
ILO ,   (2004 )
Type / Script:
Progress Report in English
Thematic Group:
 ILO : International Labor & Labor
12.04.00  -  Labour Relations
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