Difference between revisions of "Rad na crno (Serbia)"

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{{infobox
{{infobox  
  | nameofpractice = Rad na crno
| nameofpractice =Rad na crno
  | location = Serbia
| flagemoji = 🇷🇸
  | imagemap = Serbia map.png
| definition =Lit. ‘black labour’, payment for jobs that are not officially registered or that are only partially reported to the state authorities
  | imageflag = Serbia flag.png
| location =Serbia
  | authorofpiece = Kosovka Ognjenović
| imagemap =Serbia map.png
  | authorinstitution = Institute of Economic Sciences, Belgrade
| clusters =
}}
[[:Category:Market|Market]] – [[:Category: Functional ambivalence| Functional ambivalence]] – [[:Category: System made me do it| System made me do it]] – [[:Category: Survival| Survival]] – [[:Category: Informal entrepreneurship| Informal entrepreneurship]]
 
| categories =
'''''Original Text: Kosovka Ognjenović, Institute of Economic Sciences, Belgrade'''''
[[:Category:Serbia|Serbia]] – [[:Category: Balkans| Balkans]] – [[:Category: Yugoslavia| Yugoslavia]] – [[:Category: Europe| Europe]] – [[:Category: Payment| Payment]] – [[:Category: Money| Money]] – [[:Category: Employment| Employment]] – [[:Category: Tax avoidance| Tax avoidance]]
 
| authorofpiece =Kosovka Ognjenović
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| authorinstitution =Institute of Economic Sciences, Belgrade
''Rad na crno'', literally ‘black labour,’ is a Serbian term that describes socially acceptable ways of coping with the problems experienced by ordinary people during Serbia’s turbulent transition from socialism, that is, away from the system of worker-managed enterprises that characterised the Yugoslav economy from the late 1940s until the late 1980s. Specifically, ''rad na crno'' denotes payment for jobs that are not officially registered or that are only partially reported to the state authorities, and which are therefore not subject to taxation, social insurance or labour law. While the term has negative connotations in formal and legal contexts, ordinary people use it routinely and generally accept it as legitimate.
| authorwebsite =[https://www.ien.bg.ac.rs/en/kosovka-ognjenovic-phd/ Profile page at IEN]}}
<big>'''By Kosovka Ognjenović, Institute of Economic Sciences, Belgrade'''</big>
[[Category:Market]]
[[Category: Functional ambivalence]]
[[Category: System made me do it]]
[[Category: Survival]]
[[Category: Informal entrepreneurship]]
[[Category:Serbia]]
[[Category: Balkans]]
[[Category: Yugoslavia]]
[[Category: Europe]]
[[Category: Payment]]
[[Category: Money]]
[[Category: Employment]]
[[Category: Tax avoidance]]
[[Category:Entry]]
[[Category: Volume 2]]
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|style="font-size:1.1em;"| ''Rad na crno'', literally ‘black labour,’ is a Serbian term that describes socially acceptable ways of coping with the problems experienced by ordinary people during Serbia’s turbulent transition from socialism, that is, away from the system of worker-managed enterprises that characterised the Yugoslav economy from the late 1940s until the late 1980s. Specifically, ''rad na crno'' denotes payment for jobs that are not officially registered or that are only partially reported to the state authorities, and which are therefore not subject to taxation, social insurance or labour law. While the term has negative connotations in formal and legal contexts, ordinary people use it routinely and generally accept it as legitimate.


The term was commonly used in all the republics that, until the beginning of the 1990s, constituted the Socialist Federal Republic of Yugoslavia. For instance, ''rad na crno'' is translated in Slovenian as ''delo na črno'' and in Macedonian as ''работа на црно'', while similar phrasing is used in Bosnian, Croatian and Montenegrin. The term was not included in the early editions of the ''Economic Encyclopaedia'' (published in Belgrade in 1984 and 1986 <ref>''Ekonomska enciklopedija''. 1984, 1986. Belgrade: Savremena administracija </ref>) or the ''Economic and Business Encyclopaedia'' (1994)<ref>''Ekonomska i poslovna enciklopedija''. 1994. Belgrade: Savremena administracija</ref>, but it did appear in dictionaries of the Serbian language published in 1986 and 2003. These define ''rad na crno'' as ''bespravni rad''—that is, ‘work without a permit,’ ‘illicit’ or ‘illegitimate work.' While the term predates the end of socialist Yugoslavia, however, the post-socialist transition can be seen as shaping its subsequent use and meaning.
The term was commonly used in all the republics that, until the beginning of the 1990s, constituted the Socialist Federal Republic of Yugoslavia. For instance, ''rad na crno'' is translated in Slovenian as ''delo na črno'' and in Macedonian as ''работа на црно'', while similar phrasing is used in Bosnian, Croatian and Montenegrin. The term was not included in the early editions of the ''Economic Encyclopaedia'' (published in Belgrade in 1984 and 1986 <ref>''Ekonomska enciklopedija''. 1984, 1986. Belgrade: Savremena administracija </ref>) or the ''Economic and Business Encyclopaedia'' (1994)<ref>''Ekonomska i poslovna enciklopedija''. 1994. Belgrade: Savremena administracija</ref>, but it did appear in dictionaries of the Serbian language published in 1986 and 2003. These define ''rad na crno'' as ''bespravni rad''—that is, ‘work without a permit,’ ‘illicit’ or ‘illegitimate work.' While the term predates the end of socialist Yugoslavia, however, the post-socialist transition can be seen as shaping its subsequent use and meaning.
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Informal practices such as ''rad na crno'' are associated with the ‘black,’ ‘grey,’ ‘shadow’ or ‘hidden’ economy in Europe and elsewhere<ref>European Commission. 2014. ‘Undeclared work in the European Union.’ ''Special Eurobarometer 402''. Brussels: TNS Opinion and Social</ref>. These terms are used interchangeably and surface in the media to denote activities in the informal economy. In the social sciences, the informal economy is defined as ‘all economic activities that contribute to the officially calculated gross national product, but are currently unregistered’ <ref>Schneider, F. and Enste, D. H. 2000. 'Shadow economies: size, causes, and consequences,’ ''Journal of Economic Literature'', 38(01), 77–114</ref>. According to this definition, illegal activities such as the production and distribution of criminal or forbidden goods and services, or legal activities such as unpaid household work, are excluded. In common usage, however, ‘informal’ may be seen as a euphemism for other adjectives in ‘coloured markets’ <ref>Katsenelinboigen, A. 1977. 'Coloured markets in the Soviet Union,’ ''Soviet Studies'', 29(01), 62-85</ref>. Accordingly, ''rad na crno'' encompasses all wage-earners in principal, secondary or self-employment who work without or outside labour contracts.
Informal practices such as ''rad na crno'' are associated with the ‘black,’ ‘grey,’ ‘shadow’ or ‘hidden’ economy in Europe and elsewhere<ref>European Commission. 2014. ‘Undeclared work in the European Union.’ ''Special Eurobarometer 402''. Brussels: TNS Opinion and Social</ref>. These terms are used interchangeably and surface in the media to denote activities in the informal economy. In the social sciences, the informal economy is defined as ‘all economic activities that contribute to the officially calculated gross national product, but are currently unregistered’ <ref>Schneider, F. and Enste, D. H. 2000. 'Shadow economies: size, causes, and consequences,’ ''Journal of Economic Literature'', 38(01), 77–114</ref>. According to this definition, illegal activities such as the production and distribution of criminal or forbidden goods and services, or legal activities such as unpaid household work, are excluded. In common usage, however, ‘informal’ may be seen as a euphemism for other adjectives in ‘coloured markets’ <ref>Katsenelinboigen, A. 1977. 'Coloured markets in the Soviet Union,’ ''Soviet Studies'', 29(01), 62-85</ref>. Accordingly, ''rad na crno'' encompasses all wage-earners in principal, secondary or self-employment who work without or outside labour contracts.


One of the first researchers into the workings of the informal economy and ''rad na crno'' in Serbia and the other former Yugoslav republics has concluded that, as a result of anonymity and lack of data, it is difficult accurately to measure or even approximately to estimate the incidence of ''rad na crno'' practices <ref>Božović, G. 1992. ‘The Hidden Economy in Yugoslavia in 1986,’ ''Methodology Studies and Documentation'' 27. Belgrade: Federal Statistics Office</ref>. This is also because the lines are not clearly defined: ''rad na crno'' may denote not only economic activity that is illegal because it is not officially reported, but also work that is legal but which is only partially reported. For example, the activity of only some of the employees may be reported to the authorities, or workers may be reported to have received only the minimum wage, whereas in reality they have been paid above that rate (see Latvian alga aploksnē in this volume). Such ‘informal’ employment is seen as beneficial by wage-earners since their income is not taxed, but it may also be detrimental, since those who earn money in this way are not covered by the social security system. The ambivalence surrounding such practices makes them hard to pin down and creates avenues for tax-avoidance and social-protection fraud.
One of the first researchers into the workings of the informal economy and ''rad na crno'' in Serbia and the other former Yugoslav republics has concluded that, as a result of anonymity and lack of data, it is difficult accurately to measure or even approximately to estimate the incidence of ''rad na crno'' practices <ref>Božović, G. 1992. ‘The Hidden Economy in Yugoslavia in 1986,’ ''Methodology Studies and Documentation'' 27. Belgrade: Federal Statistics Office</ref>. This is also because the lines are not clearly defined: ''rad na crno'' may denote not only economic activity that is illegal because it is not officially reported, but also work that is legal but which is only partially reported. For example, the activity of only some of the employees may be reported to the authorities, or workers may be reported to have received only the minimum wage, whereas in reality they have been paid above that rate (see Latvian [[alga aploksnē]] in this volume). Such ‘informal’ employment is seen as beneficial by wage-earners since their income is not taxed, but it may also be detrimental, since those who earn money in this way are not covered by the social security system. The ambivalence surrounding such practices makes them hard to pin down and creates avenues for tax-avoidance and social-protection fraud.


The transition from Yugoslavia’s socialist economy began in the late 1980s, when the system of worker-managed enterprises was abandoned and new legislation on business enterprises came into force. However, ethnic tensions, which were already high throughout the 1980s, provoked widespread conflict and declarations of independence by Yugoslavia’s constituent republics, resulting in the break-up of the federation. The conflict disrupted Serbia’s transition to the market and its economy was pushed into depression by political and economic sanctions imposed by the international community from 1992-2000 and by NATO’s bombing campaign of 1999. Serbia suffered heavy economic disruption throughout the 1990s.
The transition from Yugoslavia’s socialist economy began in the late 1980s, when the system of worker-managed enterprises was abandoned and new legislation on business enterprises came into force. However, ethnic tensions, which were already high throughout the 1980s, provoked widespread conflict and declarations of independence by Yugoslavia’s constituent republics, resulting in the break-up of the federation. The conflict disrupted Serbia’s transition to the market and its economy was pushed into depression by political and economic sanctions imposed by the international community from 1992-2000 and by NATO’s bombing campaign of 1999. Serbia suffered heavy economic disruption throughout the 1990s.
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In post-socialist Serbia, ''rad na crno'' practices have come increasingly to be associated with corruption. Nowadays, it is often necessary to pay in order to get either a formal or informal job; one must also give a kickback to the ‘right person,’ or exploit one’s personal connections in order to secure employment for one’s relations. Pursuing one’s economic interests individually, through informal and illegal payments or as part of ‘informal groups,’ is symbiotic with systemic corruption and organised crime<ref>''Ekonomska enciklopedija''. 1984, 1986. Belgrade: Savremena administracija. 1154. </ref>. In such circumstances, the capacity for elites to reinvent themselves is limited and reforms of formal institutions remain ineffective, while the burden of reform falls on the individual practitioner of ''rad na crno''.
In post-socialist Serbia, ''rad na crno'' practices have come increasingly to be associated with corruption. Nowadays, it is often necessary to pay in order to get either a formal or informal job; one must also give a kickback to the ‘right person,’ or exploit one’s personal connections in order to secure employment for one’s relations. Pursuing one’s economic interests individually, through informal and illegal payments or as part of ‘informal groups,’ is symbiotic with systemic corruption and organised crime<ref>''Ekonomska enciklopedija''. 1984, 1986. Belgrade: Savremena administracija. 1154. </ref>. In such circumstances, the capacity for elites to reinvent themselves is limited and reforms of formal institutions remain ineffective, while the burden of reform falls on the individual practitioner of ''rad na crno''.
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==Notes==
==References==
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<references />
[[Category:Informal Practices]]
[[Category:Balkans]]
[[Category:Serbia]]
[[Category:Bosnia and Herzegovina]]
[[Category:Croatia]]
[[Category:Montenegro]]
[[Category:Slovenia]]
[[Category:North Macedonia]]
[[Category:Informal entrepreneurship]]
[[Category:Functional]]
[[Category:Survival]]
[[Category:Entry]]</div>
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