Causes and Backgrounds of the Shadow Economy in Ukraine, Approaches to Countering
Journal Title: Бізнес Інформ - Year 2015, Vol 11, Issue 0
Abstract
The article substantiates topicality of the problem of shadow economy in the context of the European integration of Ukraine. The article displays reasons for the ineffectiveness of economic reforms against the background of tolerance on the part of population to the illegal economy, the main varieties of such economy have been considered. The estimates of the level of shadow economy, analyzed in the publication, can serve as a signal of worsening of this process and demonstrate inefficiency of its consideration as «damping pillow» under the circumstances of crisis. Evaluation of different methods for calculating the level of shadow activities suggests that the most appropriate, under such circumstances, is the method of «private consumption - retail turnover», according to which about two-thirds of the Ukrainian business are within the shadow economy. Among the causes and circumstances of the high-level of shadow activity an imperfect tax system, administrative complexity, lack of «digital democracy», poor quality of social services by the State are mentioned. As some resolute measures against shadow economy have been proposed ways of encouraging individuals to declare their income through financial monitoring of their costs, the introduction of information systems in the sphere of administration and taxes, the change of industrial structure of economy in favor of the productive sector as well as active promotion of unshadowing.
Authors and Affiliations
Ganna Iastrebova
Keywords
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