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COVID-19 has triggered an economic and public health crisis that has had a particularly severe effect on informal businesses and workers in a region where they have historically represented a large share of the economy (up to half of GDP in several countries).
The informal sector has previously acted as a social buffer in times of crisis, and has been a source of resilience for many precarious workers in transition economies. For many in the region, informal economic activity has provided subsistence revenues, flexible arrangements and opportunities for vulnerable workers and businesses alike.
COVID-19 is different. Many of the key arenas for informal work were among the first to be hit by the crisis: governments had to close market places and implement strict containment and social distancing measures. Many informal workers were left with nothing to fall back on. Migrants had to return home or remain without work in their countries of destination, of