Tackling the informal economy in Moldova: An assessment of the options

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 informal economy in other European countries, with particular attention paid to what has been done in the immediate region of south-east Europe. The author looks firstly at 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 state and for workers, the article turns to the measures which Moldova might take in response. 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.