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19 Chapter One the Informal Sector in Egypt and the World Acknowledgements Cairo Center for Development Benchmarking extends its thanks and appreciation to Major General/ Abu Bakr El-Gendy, Head of the Central Agency for Public Mobilization and Statistics, for providing the approval for the field study. And would like to thank Prof. Heba el Litthy for help in putting the criteria and choosing work areas for the implementation of the project. And Prof. Mohamed Ismail, Head of Statistics Department at Faculty of Economics and Political Sciences for the comprehensive review of the report content. Cairo Center for Development Benchmarking also extends its thanks to the team of the Coptic Evangelical Organization for Social Services in the Governorates of Cairo, Giza, Beni-Suef, Minya, and Qalubiya for supporting and organizing focus groups for government officials and organizing workshops to discuss the results of the study. And all Government Officials, NGOs representatives who participated in focus group discussions and report presentation workshops. The study is conducted with the support of the European Union. CDB is responsible of the content of the study, which doesn’t reflect the EU’s opinion by any means. About the Coptic Evangelical Organization for Social Services The Coptic Evangelical Organization for Social Services is a non-profit, publicly recognized Egyptian non-governmental civil association, registered in the Ministry of Social Solidarity number 468 Cairo. It was founded by the former pastor Dr. Samuel Habib in 1950 with the first nucleus project of literacy in one village of Minya province. The association is seeking, since its inception, to confirm the value of human life, improve human life quality, work to achieve justice and equality, spread the culture of enlightened intellect, confirm the ethics of common human values advocated by religions, consolidate loyalty, respect diversity and accept others’ values. It gives special attention for improving the living standards for individuals by increasing their awareness, and helping them to improve their living conditions. During more than half a century, the association developed its programs to keep pace with the rapid changes in society movement and to fit the needs of the marginalized and poor people. The Local Development Unit is one of the association’s working units which contributes to develop the quality of life for the poor and marginalized segments of the working communities in Cairo, Giza, Beni-Suef, Minya and Sohag by empowering individuals and communities to cope with their needs and their challenges to reach their social and economic rights; working on achieving principles of democracy, equality and social justice; also working on implementing an integrated development model in a number of geographic areas by focusing on programs for certain segments of the poor and marginalized, which give real and tangible effect on improving the quality of life and makes this model sustainable and flexible. About Cairo Center for Development Benchmarking: Cairo Center for Development Benchmarking (CDB) is a research and consultation company that works on consultation, training and publishing in the MENA region. The aim of the institution is to promote best practices and the outstanding models for development. For CDB Development doesn't refer only to the non-governmental sector; it is the common space shared by businesses, the government, civil society, and international organizations. Project Background Improving the Living Conditions of Poor Women Workers in the Informal Sector in Rural and Urban Egypt is one of the projects funded by the European Union, which seeks to improve the lives of poor working women in the informal sector in different governorates including Cairo, Qalubiya, Giza, Beni-Suef, and Minya. This study has been conducted to get the in depth knowledge about the status of the working women in the informal sector in terms of: 1- Having an overview of the situation of women working in the informal sector꞉ their numbers / types of work they do / work conditions, such as wages, working hours, social insurance / their educational and economic status, etc. 2- Determining the concentration areas of women working in the informal sector in the governorates of Minya, Beni-Suef, Cairo, Qalubiya, and Giza, characterizing the distinctive features for each area, and analyzing the climate and the surrounding environment for those women in the specified region. 3- Observing the problems and challenges facing the women working in the informal sector while performing their jobs, and analyzing the causes which negatively affect their living conditions. 4- Observing and analyzing laws and procedures associated with the informal sector in relation with the following: Laws and procedures that ensure the rights of women working in the informal sector, but deprived from their employment rights (uninsured / without contracts... etc.) and analyzing any gaps related to the implementation and enforcement of these laws. Laws and procedures that can be used to support working women in the informal sector (women who manage projects from inside or outside of their homes) in various aspects such as (health insurance / social insurance / pension plans / memberships of trade associations... etc.) in order to improve their living conditions. 5- Analyzing the opportunities, available resources, and the roles that can be performed by all parties involved in the case (governmental sector, civil society, or the private sector... etc.), which can be invested for the benefit of the target audience of the project. 6- Proposing a set of interventions that can be implemented through civil associations and partners in working communities as well as recommendations for issues related to the public policy work and the problems which face the working women in the informal sector. Index CDB Team ................................................................................................................................. 7 Introduction ................................................................................................................................ 8 Field study Methodology ......................................................................................................... 15 Chapter One: The Informal Sector in Egypt and the World .......................................... 19 1.1 Definition of the Informal Sector ....................................................................................... 19 1.2 Motives behind the emergence of the informal sector ....................................................... 22 1.3 Activities and professions of the informal sector .............................................................. 26 1.4 The Impact of the informal sector on the economy ........................................................... 28 1.5 Work in the informal sector globally ................................................................................. 30 1.6 Workers in the informal sector in Egypt ............................................................................ 33 1.7 Women in the informal sector............................................................................................ 37 1.8 Women and access to markets ........................................................................................... 38 1.9 The agricultural sector as a model for the informal sector ................................................ 39 Chapter Two: Legislative and Institutional Framework ................................................. 43 2.1 Legislative framework ................................................................................................. 43 2.1.1 Legislation regulating the commercial shops ................................................................. 43 2.1.2 Small and microsmall enterprises legislations ................................................................ 44 2.1.3 Private employment of women laws ............................................................................... 46 2.1.4 Trade unions and labor legislations ................................................................................ 47 2.1.5 legislations for practicing Businesses ............................................................................. 48 2.1.6 Irregular labor Unit ......................................................................................................... 50 2.1.7 Health insurance for supporting women ......................................................................... 53 2.2 Associations’ role in supporting interventions ........................................................... 54 1.2.2 The Social Fund of Development ................................................................................... 54 2.2.2 The Authority of Financial Supervision ......................................................................... 57 2.2.3 Nasser Social Bank ......................................................................................................... 59 2.2.4 The Authority of Investment ........................................................................................... 59 2.2.5 The Industrial Development Authority ........................................................................... 60 Chapter Three: Women characteristics in the Informal Sector ...................................... 63 3.1 Social conditions of women in the informal sector ......................................................................... 63 3.2 Health characteristics
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