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Eastern Europe: An Informal Economy Develops in Times of Crisis

“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 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.

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