Technical support on formalization of informal economy in Montenegro

This project aims at putting in place inter-institutional coordination mechanisms to implement measures to promote the transition from the informal to the formal economy in Montenegro. Strategies for the transition from the informal to formal economy and the reduction of undeclared work require a long-term commitment as well as coordinated and concerted action by all stakeholders, including the social partners and relevant public agencies, such as the labour inspectorate and the tax authority. The focus therefore will be threefold: first, to improve the understanding and monitoring of informal economy and processes of informalization and formalization by the government, the National Statistics Office, the National Employment Agency and the social partners; second, to facilitate effective action to support formalization and prevent informalization; and third, to promote decent work for workers in the informal economy. While addressing selected strategic elements of these three components, interventions will place special emphasis on fostering collaboration between the social partners in the development, implementation and monitoring of interventions. The action contributes to the achievement of SDG 8, 5 and 10. The new UNDAF 2017-2021 places informal economy high on the agenda as one of the priorities under the Economic Governance Pillar. The work of the ILO will be implemented in close association with UNDP.

Project symbol

MNE/16/01/RBS

Admin unit

DWT/CO-Budapest

Start date

01/01/2016

End date

31/12/2019

Total allocation

262913

Total expenditure

Status

Closed

262913

Development Partners

Core voluntary funds (RBSA)

Country/Countries

Montenegro

Outcomes

Formalization of the informal economy