Wow! Was my first reaction. I have been reading about the shadow markets in the world and the Foreign policy magazine estimates it to be worth 12 trillion dollars. They went on to fantasize about a utopian economy based entirely on shadow networks and under hand dealings calling it the united states of shadow republics (USSR).
Amazing. Why do they exist in reality? Why do shadow businesses flourish where the white economy falters? The reason is the capitalistic. It knows the true price of a product or a service. Its dynamic, untied to law and is fluid to exist or vanish. If this provides cost effective solutions like in Nigeria where some ingenious trader imported portable diesel engines to power the homes of oil rich Nigeria at a fraction of their electricity bills, whats wrong in it? The Chinese exported the machines, the locals used the available diesel and behold! There is power everywhere.
I will stop at this because this does not ask for explanations. The moment you start talking about advantages and disadvantages or pros and cons, out goes the informal economy.It reads your thoughts before you even realize. That you are trying to formalize it or legitimize it or bring it under rules.
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