The impact of the informal sector on unemployment and poverty in developing countries

Case study of Sudan during the period (2000 - 2022)

Abstract

Sudan suffers from the problem of the expansion of the informal sector at a large
rate at the expense of other sectors. The problem lies in the increase in the informal sector by more than 90%, and that the informal sector constitutes the orientation of the majority of Sudan‘s population and has increased in expansion and spread after the outbreak of war in Khartoum. Hence, the study aimed To know the informal economy and the reasons for its spread and its repercussions on society, and to shed light on the positive aspects and attempt to reform this sector because it is the sector of the overwhelming majority of people. The study also adopted the descriptive and analytical approach to describe and analyze the problem. The study reached several results, the most important of which is that the state does not care about workers in The informal sector, and therefore they do not receive attention and care from the competent authorities, and they suffer from a poor and deteriorating environment in which they work, surrounded by security breaches and dangers that threaten their lives, and that the state pursues, through campaigns, informal activities and does not allow them to practice their professions and crafts until it is easy to deal with them, register them, and even care for them. They grow and develop and thus move to major economic sectors. The study also recommended several recommendations, the most important of which is attention to developing handicrafts and craft industries, especially those that have export potential in the future, such as: metal crafts, leather products, and clothing. Keywords: informal sector, unemployment, poverty, developing countries, formal sector.