Baseline Study of Informal Economy in the African, Caribbean, and Pacific regions - The Case of Haiti
Summary — This report presents a baseline study of Haiti's informal economy, which accounts for over 90% of national employment and 55.1% of the nation's GDP. It examines the factors propagating informal enterprises, assesses past government efforts, and offers practical solutions to transform informal enterprises through a four-year action plan.
Key Findings
- Haiti's informal sector accounts for over 90% of national employment and 55.1% of GDP.
- Macro, micro, and sectoral issues drive informality, including conflicts, climate disasters, unemployment, and complex registration procedures.
- Past formalization efforts have been insufficient due to a lack of incentives, information, and consistent law enforcement.
- Digitization, particularly in the garment industry, offers a pathway to formalization by promoting e-governance, financial inclusion, and efficient production processes.
- The garment industry has strong potential for absorbing informal workers and connecting Haiti to global markets.
Full Description
The study provides a comprehensive analysis of Haiti's informal sector, highlighting its significant contribution to employment, poverty reduction, and economic growth. It identifies the sector's strengths, weaknesses, opportunities, and threats through a SWOT analysis. The report also delves into the drivers of informality, including macro, micro, and sectoral issues, and evaluates past formalization efforts, revealing their limitations and proposing practical solutions. Specific intervention areas are explored, such as regulation, financial sector innovation, capacity building, and sector-specific collective action, with a focus on leveraging ICT to transform the garment industry.