The shadow economy in Russia

The shadow economy in Russia is considered a branch of activity, which is actively developing and is gaining momentum every year. This is called an economy in which there are organizations that operate outside the law. That is, the functioning of these companies on the territory of the country is illegal, as it is not confirmed by the relevant state bodies.

Experts argue that the shadow economy in modern Russia includes certain aspects, including a fictitious, informal and criminal economy. The first involves creating links based on corrupt relations, for example, obtaining various benefits or subsidies through the advance payment of bribes. In addition, there is a so-called gray market or informal economy. This sector includes carrying out seemingly small and insignificant operations, for example, tutoring lessons, informal renting of premises, sheltering the scale of profits from tax authorities. However, the shadow economy in Russia is largely developing due to this sector. From the consciousness of citizens and respect for legislative acts depends the country's position on the world arena and the welfare of citizens. And, of course, the criminal sphere or, as it is also called, the black market is considered to be the most dangerous activity for the society. After all, this type of business is officially banned by the law, and therefore, is strictly punishable by judicial bodies. In particular, the distribution of narcotic drugs, the trafficking of one's own body, that is, prostitution, smuggling and much more.

The shadow economy in Russia: the main reasons for its active development.

Among the list of the main factors of development of illegal activities in the country, it is customary to single out the extent to which the state interferes in the functioning of economic entities. As you know, the government, using various regulatory instruments, affects the activities of a particular company or sector of the economy. For example, due to a decrease or increase in the tax rate, state bodies can either help in further development or restrain it. In addition, there is a system of grants and subsidies, through which the state helps industries necessary for the development of the economy . Thus, the shadow economy in Russia arises from the moment when government control over the activities of economic entities is weakened.

Features of the Russian economy are due to the financial crisis. Until now, the process of restoring various industries and spheres of business is taking place, therefore, it is only possible to consider the crisis as conditional, since the depressed state among the masses is still present. In connection with the fall of the entire financial system, a large part of the population lost their jobs, and consequently, the means of subsistence. The high unemployment rate makes it necessary to create additional ways of earning, albeit illegal. Thus, private entrepreneurs organize their own business without prior registration, because then you do not have to pay exorbitant taxes and overcome the wall of bureaucratic design.

Accelerated rates of development of the shadow economy in Russia were noted during the 1990s, when the transition from one system to another generates a social boom. Impunity of any action leads to mass aggression and unrest in the country. At the moment, the government realistically assesses the degree of danger of further expansion of shadow relations, therefore it is working to create conditions that are as favorable as possible for conducting legitimate operations. Especially in this issue, private entrepreneurs and small business owners suffer, which is why the state issued many decrees that mitigate the tax burden.