By its very nature, the characteristics of the informal economy are largely negative, since it can hold people and companies into a spiral of low productivity and poverty. A coherent national strategy to facilitate the transition to the formality has to recognize that the costs of informality of work are high for companies, workers, and the community. From the point of view of workers without protection, the negative aspects of work in the informal economy outweigh the positive aspects. Workers are not recognized, registered, regulated, or protected under labor and social protection legislation and, therefore, cannot enjoy their fundamental rights, exercise, or defend them. As they are usually not organized, collective representation before employers or public authorities is insufficient or non-existent. This chapter explains the informal economy in Honduras and Latin America, the problems of municipal markets, and its transition into the formal economy through the plan of cooperation for local development between the various participants in the country.