1.1. Informal EconomyThe concept of the informal sector dates back to the early 1970s, when economic anthropologist Keith Hart conducted his research in Ghana after discovering that it not only existed but was growing. Later, this was accepted by the ILO (International Labor Organization), perceiving the extent to which marginal labor was being transformed into profitable businesses. This was followed by the 2002 International Labor Conference, which expanded its concept to an economy-wide phenomenon involving jobs and workers (ILO, 2013). There are also various definitions incorporated by various economists and sociologists, but the 2002 ILO resolution gave the one commonly applied in many states: "The informal economy accounts for half to three-quarters of all non-agricultural employment in developing countries. Although it is difficult to generalize about the quality of informal employment, it most often results in poor employment conditions and is associated with increasing poverty. Some of the characteristics of informal employment are lack of protection for non-payment of wages, compulsory overtime or extra shifts, dismissals without notice or compensation, unsafe working conditions and lack of social benefits such as pensions, sick leave. salary and health insurance. Women, migrants and other vulnerable groups of workers who are excluded from other opportunities have no choice but to accept low-quality informal jobs (ILO, 2002).” Various socio-anthropologists and economists define the informal sector in their own way. Meagher (2004) introduces the following categories: informal survival group, dependent workers and entrepreneurs. House (1984) studies the motivation that drives entrepreneurs to start a business that fits the middle of paper ...... private sector. The overall negative result could be observed in post-USSR countries, called “transition countries”. Only Poland and Hungary were successful, alongside Georgia, but the latter experienced the worst case of production due to the civil wars of the 1990s. The paper will analyze the relationship between the informal sector, the results of formalization and macroeconomic structural changes. The analysis is based on the examples of three countries: Brazil, Vietnam and Georgia. These countries were selected because of their experience in managing the informal sector: Brazil was chosen for its successful public and financial policy which resulted in the rise of the formal sector; Vietnam for its partly successful formalization, but more for its successful informal institutions and finally Georgia, which made all the necessary structural adjustments, but resulted in reduced incentives for formalization..