““System System D”D”

Outline

What is “System D”? Background Pricing Size of black markets Future prospects

What is “System D” ?

System D = Underground economy System D = Underground economy

Débrouillard – assertive, resourceful, sharp-witted

BackgroundUnderground economies :

illegal economy (black market) unreported economy (grey market)

PricingGoods acquired illegally take one of two price

levels: cheaper than legal market prices

more expensive

than legal

market prices.

Size of black marketsLargest black markets market value

(bln, USD)

Total 1,829

Counterfeit Drugs 200

Prostitution 187

Counterfeit Electronics 169

Marijuana 142

Illegal Gambling 140

Cocaine 85

Prescription Drugs 72,5

Heroin 68

Software Piracy 58,8

Movie Piracy 58

Gas and Oil Smuggling 54

Size of black markets

Underground Economy Value

in Ukraine Total Country Black Market Value:

$4.310 bln Total Country Grey Market Value:

$199 bln

Future prospects

By 2020, the OECD* predicts the shadow economy will employ two-thirds of the world’s workers.

*Organization for Economic Co-operation and Development, founded in 1961 to stimulate economic progress and world trade

"In this world there is nothing that is certain except death and taxes“

Benjamin Franklin