Evaluating the policy approach towards the undeclared economy in FYR Macedonia

Abstract

This paper evaluates how the undeclared economy is being tackled in FYR Macedonia. Reporting the findings on the extent and nature of the undeclared economy in this country, FYR Macedonia is shown to have the largest undeclared economy of all European countries and such work is prevalent across all sectors and business types. Examining how the undeclared economy is being tackled, it is revealed that there is a need not only to move away from the current fragmented approach by establishing a single agency or committee to better coordinate the fight against undeclared work in FYR Macedonia but also for a shift away from the current focus upon deterrents and for more attention to be paid to a wider range of measures that enable undeclared work to move into the declared economy. Unless such an approach is pursued then it is likely to remain difficult to make further headway in tackling undeclared work.