MSMEs in the Informal Sector: Formalization Ensure Sustainable Finance and Decent Jobs?

About 2 billion workers, or over 60 percent of the world’s adult labor force, operate in the informal sector –at least part-time, according to the ILO. The COVID-19 pandemic hit informal workers particularly hard, especially women. Micro Small Medium Enterprises (MSME), both formal and informal, make up over 90% of all firms around the globe and offer employment to one-third of 1.2 billion people in the world who work in the informal sector. They generate services for other sectors like small and large industries, retail, tourism, transportation, construction, etc., and contribute to over 30% of GDP and more than 70% of all jobs created in developing countries. MSMEs were heavily impacted by the pandemic and continue to face existential challenges on various fronts including but not limited to business formalization.

MSMEs, both formal and informal, make up over 90% of all firms around the globe1 and contribute to more than half of the GDP in most countries irrespective of income2. As many countries struggle to cope with the growing debt burdens and limited fiscal space to finance the SDGs, the important role of MSMEs as catalytic forces for achieving the SDGs cannot be stressed enough. Despite formalization gathering pace, MSMEs and those in the informal sector also continue to struggle to access formal finance. Without the appropriate regulatory reforms, social protection measures, access to formal finance, and capacity building in tools such as financial literacy and numeracy tools to help manage finances effectively, inclusive growth and a decent work environment for those in the sector will remain a challenge. As part of the Development Cooperation Strategy 2020-25, the ILO is forging partnerships that advance policy objectives and coherence within the framework of Integrated National Financing Frameworks (INFFs) that promote Financing Decent Work. In this panel, the speakers will share global and on-the-ground perspectives and explore steps countries are taking through regulatory reforms, access to finance, and capacity building to ensure sustainable finance and decent work for MSMEs in the informal sector.

Register here!

Speakers:

H.E. Mr. Arrmanatha Christiawan Nasir, Ambassador, Permanent Mission of Indonesia to the UN (TBC)
Ms. Chantal Line Carpentier, Chief, UNCTAD New York Office of the Secretary-General
Ms. Adriana Marina, Founder of Hecho por Nosotros & animaná, Argentina
Mr. Amar G. Prabhu, Principal of Don Bosco Industrial Training Institute Kurla, Mumbai, India
Ms. Sandie Ejang Elobu, CEO, Western Silk Road, Ltd., Uganda
Ms. Nana Efua Brown-Orleans, Program Lead, Duapa Workspace, Ghana
Ms. Estella Kabagaya Eldradaa, Founder, Mama Children Village, Uganda

Organizers: NGO Committee on Financing for Development, Virginia Gildersleeve International Fund (DBA Women First International Fund), Salesian Missions Inc, Africa Development Interchange Network, Institute of the Blessed Virgin Mary, Sisters of Charity Federation

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CoNGO Notes: The NGO Committee on Financing for Development is a Substantive Committee of the Conference of NGOs in Consultative Relationship with the United Nations. Likewise, for more information on the NGO Committee on Social Development, please visit ngosocdev.org. For more information on the NGO Committee on Sustainable Development/NY, please visit ngocsd-ny.org. For more information on the NGO Committee on Sustainable Development/Vienna, please visit ngocsdvienna.org. For more information on the NGO Committee on the Status of Women/NY, please visit ngocsw.org. For more information on the NGO Committee on the Status of Women/Geneva, please visit ngocsw-geneva.ch. For more information on the NGO Committee on the Status of Women/Vienna, please visit ngocswvienna.org.

World Day for Cultural Diversity for Dialogue and Development

Cultural events cancelled, cultural institutions closed, community cultural practices suspended, empty UNESCO World Heritage sites, heightened risk of looting of cultural sites and poaching at natural sites, artists unable to make ends meet and the cultural tourism sector greatly affected… The impact of COVID-19 on the cultural sector is being felt around the world. This impact is social, economic and political – it affects the fundamental right of access to culture, the social rights of artists and creative professionals, and the protection of a diversity of cultural expressions.

The unfolding crisis risks deepening inequalities and rendering communities vulnerable. In addition, the creative and cultural industries (CCI) contribute US$2,250bn to the global economy (3% of GDP) and account for 29.5 million jobs worldwide. The economic fall-out of not addressing the cultural sector – and all auxiliary services, particularly in the tourism sector – could also be disastrous. (source “Culture & COVID-19: Impact and Response Tracker – Issue 2

Why does cultural diversity matter?

Three-quarters of the world’s major conflicts have a cultural dimension. Bridging the gap between cultures is urgent and necessary for peace, stability and development.

Cultural diversity is a driving force of development, not only with respect to economic growth, but also as a means of leading a more fulfilling intellectual, emotional, moral and spiritual life. This is captured in the culture conventions, which provide a solid basis for the promotion of cultural diversity. Cultural diversity is thus an asset that is indispensable for poverty reduction and the achievement of sustainable development.

At the same time, acceptance and recognition of cultural diversity – in particular through innovative use of media and Information and Communications Technologies (ICTs) – are conducive to dialogue among civilizations and cultures, respect and mutual understanding.

To read more about the origin of this observance and peruse relevant materials, visit un.org/en/observances/cultural-diversity-day.

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CoNGO Notes: For more information on the NGO Committee on Financing for Development, please visit ngosonffd.org. For more information on the NGO Committee on Sustainable Development-NY, please visit ngocsd-ny.org. For more information on the NGO Committee on Sustainable Development-Vienna, please visit ngocsdvienna.org.

Launch of FACTI Panel Final Report

The FACTI Panel is the High Level Panel on International Financial Accountability, Transparency and Integrity for Achieving the 2030 Agenda. It aims to improve the world’s chances of achieving sustainable development by making recommendations that both strengthen current efforts to combat illicit financial flows, and close remaining gaps in the international system.

The FACTI Panel is set to launch its final report at 8:00-10:30 (EST) on Thursday, 25 February 2021. The event will be conducted virtually with simultaneous interpretation for all UN official languages.

All interested participants can register by clicking the registration link below and filling out the form. After registering the FACTI Panel Secretariat will directly send you connection details to attend the launch.

Register here.

Read the FACTI Panel interim report here.

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CoNGO Notes: For more information on the NGO Committee on Financing for Development, please visit ngosonffd.org. For more information on the NGO Committee on Sustainable Development-Vienna, please visit ngocsdvienna.org. For more information on the NGO Committee on Sustainable Development-New York, please visit ngocsd-ny.org.

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