INTERNATIONAL POLICY ANALYSIS Understanding Informal Economies in North Africa From Law and Order to Social Justice MAX GALLIEN July 2018 n More than half of North Africa’s labour force is employed in the informal economy, typically working without contracts, unions, or access to social insurance schemes. The intersection of economic marginality, underdevelopment, and abuse by law en­forcement have made the region’s informal workers a powerful symbol of social injustice around which protest movements have rallied. n Rather than a pre-modern relic or a criminal violation, the region’s informal sector is a fundamental feature of its economic development model. It provides employment for millions of people in the context of state withdrawal and sluggish private sector development. n Meaningful analyses of the region’s informal economy should investigate a broader range of issues than just law enforcement and taxation. Effective policies will include components such as investment in skill development, infrastructure, unions and as­sociations, and inclusive formal sector development.