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Summer Language Study (SWSEEL)
Russian and East European Institute
The Hour of Romania, International Conference

Informal Economy in Romania
Katalin Gal,
PhD Candidate, Babeş-Bolyai University

The Romanian structural-economical change was among others, attended by non-market acts. Accordingly we should understand the mechanisms of the plural economy, which besides the parameters. of the capitalist economy holds the characteristics of the hidden or informal economy. The informal economy can constitute a heritage of the past regimes or can stand for new survival strategies and patterns founded by the structural-economical transition. Based on the above phrases we can conclude that in the analysis of the informal economy and its mechanisms we should consider those important changes that were brought to the Romanian society by the change of regime, and accordingly by the political and economic transition.

My research is based on the observation of the Romanian informal economy: we can deduce that albeit the Romanian transition and the informal economical sphere interlocks with the Eastern-European patterns, it also disposes of its own specific characteristics. The research intended to highlight those peculiarities that make the Romanian informal sector to have its local color in comparison with other Eastern European countries We can draw the conclusion that the relationship between the informal and formal sphere should be rethink. This fact is motivated by the frequent "tacit agreements" which function as links between the two spheres. We can quasi conclude that the existing structure determines the informal economic actors to disobey the formally accepted norms. As a result of the rationalized economical calculus the violations of norms becomes the "new norm". With this shift, they develop a new form of exchange, which embeds in the system of the formal institutions, and becomes socially monitored. Having the different patterns of the reached informal economic strategies as examples it becomes unambiguous that the relationship between informal and formal sphere can and should not be treated inflexibly.

The importance and changes of the Romanian informal economic sphere are being placed in the limelight due to the topicality of the European integration.

 

 

 

 

 

 

 

 

 

Conference Co-sponsors
Indiana University Russian and East European Institute
Indiana University Office of Academic Affairs and Dean of the Faculties, Multidisciplinary Ventures and Seminars Fund
Indiana University College of Arts and Sciences
Indiana University College Arts and Humanities Institute
Indiana University Office of International Programs
Indiana University Department of Comparative Literature
Indiana University Department of History
Indiana University Department of Political Science
Indiana University Department of Sociology
Indiana University European Union Center of Excellence
Romanian Cultural Institute - Institutul Cultural Roman
Consulate General of Romania – Chicago, IL
Georgetown University - Ratiu Chair

 


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