Sociology and Space, No. 144-145, 1999.
Review article
Black (Hidden) Economy in Rural Areas and Agriculture
Predrag Bejaković
Abstract
In economic literature black (hidden, informal) economy encompasses production that is
formally legal, but a particular, one or more members of the production chain try to conceal
it from public authorities in order to avoid taxes and similar charges; then, a production
of illegal goods and services, and various kinds of concealed income. The first component,
unreported legal economy usually has the largest share in hidden economy and is
more often examined in scientific researches. Informal economy is present in all societies
irrespective of their dominant social and political system. Nevertheless, there are considerable
differences in the scope and form that informal economy may assume in each society.
This paper estimates the size and the role of the black economy in planned societies, in
former Yugoslavia and Croatia, in developed industrial countries and in developing countries
with special accent on informal economy in rural areas and agriculture. The author s
analysis of the results of accomplished and published researches evidenced and gave interpretation
of apparently surprising finding: among the wage earners in agriculture there is
proportionally the largest participation pf those working on “cash-in-hand” basis. Given the
fact that these are a part time season jobs, the number of unregistered workers amounts to
one third. Particularly attentively the author displayed the results of more important
researches in black economy in Croatia thus enabling the readers to evaluate theoretical
foundation and applied methodology in critical manner. In this part of the work a method
of evaluation the newly created/made values in the informal part of Croatian agriculture
belonging to peasant’s households is emphasized.
The author also writes about the possible future of black economy, and considering the
future tendencies in post-socialist countries, i.e. countries in transition, he points at decisive
obstacles to such endavours. The paper ends with analysis of economic, social and
political role of informal (black) economy and of the economic policy efficiency and range in its regulation.
Keywords
black economy; countries in transition; economic policy; hidden and clandestine
Hrčak ID:
119970
URI
Publication date:
10.9.1999.
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