Community of Good Practices on ILO Recommendation 204
Last modified: Monday, 26 June 2017, 12:37 PM
Formalization and the UN Sustainable Development Goals
R.204 is a powerful policy tool to achieve the UN Sustainable Development Goals (SDGs).
The transition to formality contributes to reaching primarily SDG 8, namely to promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. In particular, it is a condition for achieving target 8.3 and for monitoring progress based on indicator 8.3.1 (“share of informal employment in non-agriculture employment, by sex”).
As informal economies are typically characterized by a high incidence of poverty, inequality and decent work deficits, the transition to formality will also have a significant influence on reaching several other SDGs and related targets under goal 1 (all targets) through higher labour incomes and extended social security coverage; goal 5 (targets 5a, 5.4 and 5.5) through gender-sensitive formalization policies that support the economic empowerment of women; goal 10 on inequality (targets 10.2 and 10.4) through the economic and social inclusion of those in the informal economy; and goal 16 (target 16.3) through higher respect for the rule of law.
(ILO GB.329/POL/2, 2017)
Play the following video on the transitioning from MDGs to SDGs, by UNDP