The Impact of the Economic Crisis on the Informal Sector and Poverty in East Asia.

This article examines the structural reasons why the poor, and especially children, are impacted adversely as a result of the global economic crisis and presents policy concerns that governments must address to meet the income and livelihood needs of the poor. It analyzes the status of employment in the informal sector, which accounts for a significant share of total employment outside of agriculture, and in which the vulnerabilities of the poor are very high. It also analyzes the extent to which those outside the formal sector have access to state benefits in the sense of social insurance or transfer. It concludes with recommendations on protecting the poor, including social insurance and social assistance mechanisms for workers in the informal economy; a fiscal package to stimulate domestic demand and offset falling employment in export activities; and a focus on agriculture, especially food production, that will have multiplier effects throughout the economy. [ABSTRACT FROM AUTHOR]