ABSTRACT

The unofficial economy is present in every society that has developed to the extent that its economic activities must be standardized in order to continue to operate normally and in an unhindered way. An economic system consisting of self-employed and relatively independent producers lies at the end of an economic range in which there is the least need for the formation of an unofficial economy. The development of interdependency in production, division of labor and interaction between different sectors of the economy requires that economic relations among those involved in product, labor and capital markets be organized so as to produce a transparent system. Although the benefits of such a system do not need to be specially stressed, the greatest of them, as far as the economy is concerned, is business efficiency. The institutional and legislative framework within which an economy operates, however, is a product of historical development.