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Eastern Europe: An Informal Economy Develops in Times of Crisis

Categories: Eastern & Central Europe, Citizen Media, Economics & Business

“Governments should be worried about this [trend], because it leads to potentially negative consequences for competitiveness and growth, harms social programs, undermines social cohesion and law and order, and erodes tax revenues.”

Charlotte Guériaux writing [1] at the website New Eastern Europe about the phenomenon of an increased informal economy in Eastern European countries. In times of crisis, this hidden economy also happens to be a source of jobs and a safety net for many people.