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Informal Economies in Post-Socialist Spaces This page intentionally left blank Informal Economies in Post-Socialist Spaces Practices, Institutions and Networks Editedby Jeremy Morris UniversityofBirmingham,UK Abel Polese DublinCityUniversity,Ireland,andTallinnUniversity,Estonia Selection,introductionandeditorialmatter©JeremyMorris andAbelPolese2015 Individualchapters©Respectiveauthors2015 Allrightsreserved.Noreproduction,copyortransmissionofthis publicationmaybemadewithoutwrittenpermission. Noportionofthispublicationmaybereproduced,copiedortransmitted savewithwrittenpermissionorinaccordancewiththeprovisionsofthe Copyright,DesignsandPatentsAct1988,orunderthetermsofanylicence permittinglimitedcopyingissuedbytheCopyrightLicensingAgency, SaffronHouse,6–10KirbyStreet,LondonEC1N8TS. Anypersonwhodoesanyunauthorizedactinrelationtothispublication maybeliabletocriminalprosecutionandcivilclaimsfordamages. Theauthorshaveassertedtheirrightstobeidentifiedastheauthorsofthis workinaccordancewiththeCopyright,DesignsandPatentsAct1988. Firstpublished2015by PALGRAVEMACMILLAN PalgraveMacmillanintheUKisanimprintofMacmillanPublishersLimited, registeredinEngland,companynumber785998,ofHoundmills,Basingstoke, HampshireRG216XS. PalgraveMacmillanintheUSisadivisionofStMartin’sPressLLC, 175FifthAvenue,NewYork,NY10010. PalgraveMacmillanistheglobalacademicimprintoftheabovecompanies andhascompaniesandrepresentativesthroughouttheworld. Palgrave®andMacmillan®areregisteredtrademarksintheUnitedStates, theUnitedKingdom,Europeandothercountries. ISBN978–1–137–48306–5 Thisbookisprintedonpapersuitableforrecyclingandmadefromfully managedandsustainedforestsources.Logging,pulpingandmanufacturing processesareexpectedtoconformtotheenvironmentalregulationsofthe countryoforigin. AcataloguerecordforthisbookisavailablefromtheBritishLibrary. AcatalogrecordforthisbookisavailablefromtheLibraryofCongress. Contents ListofTablesandFigures vii Acknowledgements ix NotesonContributors x Introduction:MyNameIsLegion.TheResilienceand EnduranceofInformalitybeyond,orinspiteof,theState 1 AbelPoleseandJeremyMorris Part I ThinkingInformalityandDevelopmentWrit LargeandSmall 1 EvaluatingtheValidityoftheContrastingTheoretical PerspectivestowardstheInformalEconomyinUkraine 25 ColinC.WilliamsandOlgaOnoshchenko 2 InstitutionalTransformationandInformalityin AzerbaijanandGeorgia 51 HuseynAliyev 3 FightingtheShadows:Lithuania’sInformalWorkersand theFinancialCrisis 70 IdaHarboeKnudsen 4 FormalCrutchesforBrokenSociality 95 AetAnnist Part II RetheorizingInformality:Power,Culture, KinshipandHistory 5 FieldNotesonInformality’sCultureofUbiquity: RecognitionandSymbolicPowerwithinInformal EconomicPracticesinKosovo 117 AnnaDanielsson 6 TheImportanceofHavingštela:Reproductionof InformalityintheDemocratizationSectorinBosnia 139 KarlaKoutkova v vi Contents 7 Perceptionsvs.Practices:NepotisminSmallBusinessesin Bulgaria 154 TanyaChavdarova 8 TheImportanceofPersonalizedRelationshipsin Post-SocialistRuralBulgaria:InformalityofNewCapitalist Entrepreneurs 175 ChristianGiordano Part III InformalPublicSectorsandWelfare:State InterventionorWithdrawal? 9 InformalPaymentsforHealthcareServicesinLithuania andUkraine 195 TetianaStepurko,MilenaPavlova,IrenaGryga,Liubove MurauskieneandWimGroot 10 NuclearBorders:InformallyNegotiatingtheChernobyl ExclusionZone 225 ThomDavies 11 GoverningInformalPaymentsinHealthcare:Lessons fromChina 245 JingqingYang 12 InformalEconomicPracticeswithintheKyrgyzPolice (militsiia) 270 LiamO’Shea Conclusion:AgencyStrikesBack?QuoVadisInformality? 294 JeremyMorrisandAbelPolese Index 300 Tables and Figures Tables 1.1 Oldandnewviewsoftheinformaleconomy 28 1.2 Themostimportantactivitiesforthestandardofliving ofthehousehold,byhouseholdincome 37 1.3 Thesecondmostimportantactivitiesforthestandardof livingofthehousehold,byhouseholdincome 38 1.4 Participationintheinformaleconomy,bylevelof incomegroups 38 1.5 Exitorexclusionfromformaleconomy,bygender 40 1.6 Exitorexclusionfromformaleconomy,byhousehold incomegroup 40 2.1 Unofficialpaymentstopublicinstitutions(%) 59 2.2 Households’accesstopublicservices,byincome groups(%) 63 9.1 Dimensions,factorsandindicatorsthatexplainthe presenceofinformalpatientpayments 200 9.2 Indicatorsofthefourdimensionsofthepresenceof informalpatientpaymentsappliedintheSPACE-matrix analysis 204 9.3 Healthcareservicesconsumptionandpaymentsduring thelast12months 210 9.4 Publicperceptionsandattitudestowardsinformal patientpayments 213 12.1 Violence-managingagencies 281 Figures 3.1 ‘DarboBirža’attheriversideinKaunas 82 8.1 Intimacyzonesandpersonalizedrelationshipsinthe networkofapost-socialistagriculturalentrepreneur 188 9.1 CountryprofilesofLithuaniaandUkrainebasedonthe averagestandardizedscoresfromtheSPACE-matrix analysis(seeTable9.2) 206 vii viii ListofTablesandFigures 9.2 Publicattitudestowardsinformalpatientpaymentsin LithuaniaandUkraine 211 9.3 Publicperceptionsofinformalpatientpaymentsas corruptionorgratitude 212 Acknowledgements Afterseveralyearsofobsessiveresearchoninformaleconomies,wehave accumulated a number of debts, fortunately all of them of an intellec- tual nature, to a number of people and institutions. First of all, we are extremely grateful to the authors of this book’s chapters for delivering ontimeandputtingupwithourmanycommentsandrequirements. We are also indebted to the University of Birmingham, the Institute forInternationalConflictResolutionandReconstructionatDublinCity University,theDepartmentofInternationalRelationsattheTallinnUni- versity of Technology, the Institute of Political Sciences at Tallinn Uni- versity and the School of Management of the University of Sheffield for their support during the various phases of the preparation of the typescript. This book also benefited from the stimulating environment we found during research stays at a number of institutions, includ- ing the School of International Studies, Renmin University, Faculty of Humanities,TbilisiStateUniversity,FacultyofPolitics,MoscowHigher SchoolofEconomics,SchoolofInternationalStudies,JawaharlalNehru University (where an early version of the introductory chapter was presented) and the Aleksanteri Institute of the University of Helsinki. ThanksareduetoProfessorsCuiShoujun,KevetanKutsushvili,Andrey Melville, Oxana Kharitanova, Maria Pilgun, Ajay Patnaik and Rajan Kumar. Discussionswithanumberofcolleaguesandfriendsbothchallenged us and helped us to focus our arguments. We thank (in alphabeti- cal order) Juraj Buzalka, Francoise Companjen, Eileen Connolly, Sally Cummings,ErhanDogan,JohnDoyle,RickFawn,DmitriFefilov,Hans Gutebrod, Ida Harboe, Nicholas Hayoz, Rico Isaacs, Rob Kevlihan, Bori Kovacs, Han Kurbanov, Donnacha Ó Beacháin, Heiko Pleines, MathiasRauch,KarolinaStepanczak,ViktorStepanenko,ColinWilliams and Mikhail Zolyan. It goes without saying that any mistakes remain ourown. Finally, this book would not have been possible without two gener- ous grants from the European Commission Research Executive Agency (grantnos292232and318961). ix

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