FROM INFORMALITY TO FORMALITY Victor E Tokman New York, may 8, 2006

Present policies: between persecution and recognition Regulatory systems: common or dual? How to ease integration: - Tolerance but complying with fundamental labour rights floor - Reduction of formality entry costs for all - Simplify rules and procedures - Redesign mechanisms of access to formality

Formality as a means to inclusion • taxes  accounting  business improvement • labour  legal recognition  protection and better practices • property titles  access to credit • separation of patrimony  ability to undertake business risks • streetsellers  lower security costs  demand expansion and stability An alternative approach to formality • from the interest of the insiders to the benefits of the outsiders • reversing the sequency: from obligations to entitlements