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Tackling the informal economy in Moldova: anassessment of the options

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Article

Hutsebaut, Martin

SEER. Journal for Labour and Social Affairs in Eastern Europe

2021

24

2

243-264

informal economy ; public service ; employment ; taxation ; corruption ; governance ; social protection ; hidden economy

Republic of Moldova

Employment

https://doi.org/10.5771/1435-2869-2021-2-243

English

Bibliogr.

"This article presents a structured compilation of the major findings of surveys, articles and reports into the realities of the informal economy in Moldova. Comparative lessons are drawn from actions taken to address aspects of the informaleconomy in other European countries, with particular attention paid to what hasbeen done in the immediate region of south-east Europe. The author looks firstlyat the comparative size of the informal economy in Moldova and its major sectoral and occupational characteristics before examining the major drivers of informality. After considering the implications of the informal economy for the stateand for workers, the article turns to the measures which Moldova might take inresponse. These are varied and many incorporate a scale of investment which Moldova – typically a poor country beset by many problems – may find difficult to access, not least in the time of the pandemic. Others, however, are low-cost measures where the primary barrier is likely to be the existence of the political will to tackle the issues that arise, not least at government level"

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