Download the file - United Nations Rule of Law

accepted customary forms could mean outrightrejection by the private sector. Therefore, indetermining what can be done to legally empowerinformal businesses to better access the opportunities,finances, services and facilities of the formalsector, one would have to take into accountthat which already works.The recommendations of the working group forChapter 4 of this report may be summarised indescriptions of five proposed pillars of reform:Pillar 1: Adopt an inclusive and integratedapproach to economic development so that thereis legal recognition and empowerment of informalbusinesses.Legally empowering small informal businessesrun by poor individuals or households should beseen as a central pillar of a just society and acentral strategy for reducing poverty and inequality.This means that policies and global economicprivilege, which is geared at present to the elitesand large enterprises, have to change to becomeinclusive of the billions at the bottom of the economicpyramid. These billions are the producersand consumers who make markets profitable forthe privileged. Their share has to be duly recognisedthrough much greater public and privatesector cognisance and support to small firmsand enterprises. Informality, with its flexibilityand space for millions to engage productivelyin economies, is here to stay. Official and legalresponse needs to recognise what works in thissector and strengthen and integrate these innovationsinto an inclusive integrated approach towealth creation.Pillar 2: Support legal empowerment througha package of commercial rights underlined inpolicies and instituted and enforced throughregulatory bodies.Commercial rights for informal entrepreneurs/operatorsinclude, but are not limited to, propertyrights, labour rights, right to social protection,right to be organised and represented in policymakingand rule-setting institutions and processes,and the right of access to justice in a transparentand equitable manner. The rights of the morevulnerable groups — the own-account operators,including single-person operators and those whowork in family businesses or on family farms— must also be addressed. These commercialrights should address all categories of informalenterprise, and include the following provisions:a) Basic commercial rights: right to work, includingthe right to vend; right to a work space(public land, private residences), includingrelated basic infrastructure (shelter, electricity,water, sanitation);b)Intermediary commercial rights: right togovernment incentives and support (includingprocurement, tax holidays, export licensing,export promotion); right to public infrastructure(transport and communication);c) Advanced commercial rights: relevant for larger,more advanced informal enterprises.Pillar 3: Reduce Decent Work ‘defi cits’ of thosewho work informally.This means support to informal businesses in theform of:• Participation in policy processes of a representativevoice of the working poor in the informaleconomy. Recognition and correction of thebias in existing commercial policies, regulations,laws and procedures favouring largerfirms and enterprises. Extension of governmentincentives and procurements to the smallestinformal enterprises;• Facilitation as appropriate of backward and264