The Informal Economy Of Ukraine Essay

2296 Words Oct 28th, 2016 10 Pages
Introduction

The informal economy interestingly can be known as the black economy, shadow economy, informal sector or gray economy due to its diverse activities and driven motives . Scholars argue that the informal economy is hard to measure because of the difficulty in defining the activities. Layman’s term the informal economy is the set of activities purposely done to escape from government reach or regulations, and this includes criminal activities. Ukranian Ministry of Economy, define the informal economy includes activities such as illegal production, undeclared activities for the purpose of tax evasion and an involvement of family or social connections in regular activities . Nothing much different from another definition, but there is an emphasis action on the involvement of family or social connections in the informal activities. This further creates a unique type of informal economy in Ukraine which can best explain by Ukranian itself. Onoshchenko, a Ukrainian student, wrote in his study titled “Tackling the Informal Economy in Ukraine” states that the informal economy in Ukraine is enormous and found that the informal economy is linked with informal connection and corruption. This further elaborates a different nature of the informal economy in Ukraine as to compare to other countries. Another description of informal economy in Ukraine as follows:

“Black and gray economies were significant parts of the economy of a shortage of Soviet systems. Popular…

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