However many argue that left alone, the informal economy has repeatedly acted as an economic safety net to the poor during economic downturn in Egypt and other countries. Those opposed to formalization argue that:
i) there are a limited number of successful formalization programs because most governments view formalization as a measure of raising additional revenue for the state and have no institutional capacity for their implementation;
ii) providing the poor with marketable property rights exposes them to market risks, which they are poorly equipped to manage;
iii) formalization may lead to an increase in property prices which puts them beyond the reach of the poor and which may also ‘compel’ poor property owners to sell their properties.
