Compliance Costs Research Articles

Beyond administrative burden: Activation and administrative harm

AbstractWithin recent public policy and administration scholarship, there has been a growing focus on the concept of “administrative burden” to describe the learning, compliance and psychological costs incurred by citizens when trying to access services and exercise social and political rights. Specifically, in the context of activation and welfare‐to‐work programmes, scholars have highlighted the effects of administrative burdens on claimants' autonomy, dignity and well‐being. We bring critical social policy scholarship on administrative harm into conversation with Adam and Balfour's concept of “administrative evil” to highlight the underlying dynamics of masking, moral inversion and dehumanisation that facilitate street‐level workers to adopt dispositions of enforcement of administrative burdens. To illustrate the applicability of Adam and Balfour's work to understanding how experiences of administrative burden can be intensified by the practices and dispositions of street‐level workers, we draw on examples of from an ethnographic study of the delivery of welfare‐to‐work in Australia.

Effects of AI-Generated Misinformation and Disinformation on the Economy

This study investigates the potential consequences of AI-driven misinformation/disinformation on the economy, which the World Economic Forum has identified as the most significant threat to global stability in the near term. To determine the effects of false and/or fake information on the economy, qualitative research method which involves collecting and analyzing information that is rich in detail, context, and meaning was preferred within the framework of this study, and the following inferences and conclusions were drawn regarding the potential implications and consequences of AI-generated mis/disinformation. Mis/disinformation can severely damage consumer trust, leading to reduced revenue and tarnished reputations for businesses. Fake news and reviews can harm consumers by influencing their decisions and can damage brands, resulting in crisis management efforts and decreased consumer loyalty. In financial markets, dis/misinformation can create divergent opinions among investors, leading to market volatility. Within supply chains, the spread of false information can disrupt operations and have significant economic consequences. AI-driven disinformation can pose additional risks, potentially affecting political stability and economic policies. As AI technology advances, countries are implementing stricter regulations, such as the EU AI Act, which may increase compliance costs, particularly for smaller businesses. This study can be considered important as it aims to contribute to a growing awareness of the complex and multifaceted nature of the impact of AI on the economy by investigating the potential negative effects of AI.

Impact of Regulatory Changes on Financial Market Stability in Germany

Purpose: The aim of the study was to examine the impact of regulatory changes on financial market stability in Germany. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The impact of regulatory changes on financial market stability in Germany has been significant, contributing to a more resilient financial system. Stricter regulations, particularly after the 2008 financial crisis, have enhanced risk management practices, increased capital requirements for banks, and improved transparency in financial transactions. These measures have reduced systemic risks and bolstered investor confidence, helping to maintain market stability even during periods of economic uncertainty. However, the increased regulatory burden has also posed challenges for financial institutions, leading to higher compliance costs and adjustments in business strategies to meet new standards. Unique Contribution to Theory, Practice and Policy: Theory of financial regulation, adaptive market hypothesis (AMH) & the institutional theory may be used to anchor future studies of the impact of regulatory changes on financial market stability in Germany. Practically, financial institutions and market participants need to adapt to evolving regulatory environments with robust risk management and compliance strategies. Policymakers should ensure that regulatory frameworks are designed to promote financial stability while accommodating the needs of financial institutions.

Enhancing small business success through effective tax management and policy optimization

The examination of fiscal practices and challenges faced by small businesses underscores the pivotal role of effective tax management in their success and growth. Tax deductions, which allow businesses to reduce taxable income by subtracting certain expenses, are essential tools that help alleviate financial pressures. Despite their potential benefits, many small business owners struggle due to insufficient tax planning and the need for meticulous financial record-keeping. The reviewed studies reveal a significant need to optimize tax policies to support small business development. For instance, proposals such as the Standard Business Deduction (SBD) aim to simplify the tax process by providing a fixed amount that can be claimed above the line, reducing the need for detailed expense tracking and potentially lowering compliance and enforcement costs. Additionally, recommendations for improving accounting practices highlight the importance of simplifying and standardizing accounting requirements to meet informational needs and enhance efficiency. Further research indicates that tailoring tax policies to specific sectors, such as agriculture, can address the unique challenges faced by small businesses in these areas. Effective tax planning and a well-organized accounting system are crucial for maximizing tax benefits and enabling productive investment in business growth. Overall, the intersection of business structure, tax systems, and accounting organization is critical for the effective operation of small enterprises. Future research should focus on refining these areas to provide solutions that support the sustainable development and prosperity of small businesses.

Tax Dispute Analysis of Incorrect Vat Payment on Offshore Royalty Viewed From the Ease of Administration Principle (Case Study of PT X)

The purposes of this research are: (i) to analyse basic considerations from the Indonesian Tax Authority (ITA) in making regulations regarding the incorrect transfer of VAT on taxable services from outside customs territory which cannot be overbooked; and (ii) to analyse whether the administrative sanctions penalized to the taxpayer are appropriate from the ease of tax administration principle’s perspective. This study is using (i) VAT imposition on intangible taxable goods and services from outside the Indonesian customs territory; (ii) Ease of Administrative principles: certainty, efficiency, convenience of payment, and simplicity as theoretical references. The research is categorized as applied study with a qualitative method using qualitative data collection techniques through literatures and field studies (interview with various key informants from ITA, representatives of the taxpayers, and taxation experts and academia. The qualitative analysis on data/information was done via triangulating process with related theories, VAT laws and regulation, as well as expert opinions. Results of the study conclude that the basis of considerations of the ITA makes regulations for the utilization of Intangible Taxable Goods and Taxable Services from Outside the Customs Territory, which cannot be done with overbook because both offshore VAT objects are difficult to detect and can be used for tax avoidance modus by the taxpayers. The ownership of documentary evidence is actually a foreign party while the person who is supposed to make a transfer request is the owner of the document evidence, and the tax that has been deposited has become a tax credit and will not move to another place other than the state treasury because the tax credit is the taxpayer's right. Considerations taken by ITA have not met the theory of good tax administration because there has been no legal formulation related to this matter and ITA's accountability is still considered to be lacking in terms of supervision and control. Administrative sanctions penalized to PT X due to tax deposit errors are not in accordance with the ease of tax administration principle. Even though it is certainly stipulated in the prevailing law and regulation, but the procedure is so lengthy and detrimental to the taxpayer, increase and disrupt cash flow for business activities carried out by PT X. In terms of efficiency principle, the rejection of overbooking process creates additional compliance costs to the taxpayer, namely: fiscal financial cost, time cost and psychological cost and denial the facts that actually the fund/money have been transferred to the State Treasury. Implications of research: To provide examples of practice in the field of how complicated tax administration procedures can cause unnecessary losses for taxpayers if the tax regulations are not made by taking into account the principle of ease of tax administration. It is also recommended that the tax authorities should reduce administrative burden for the implementation of rights and fulfillment of tax obligations that are too rigid to be more friendly in order to make it easier for taxpayers to carry out their tax obligations and make themselves a facilitator for taxpayers to increase cooperative tax compliance. Originality/value: Ease of carrying out tax obligations for taxpayers must be something that is facilitated by the Tax Authority rather than being subject to penalties and this can be done, one way, through the application of the principle of ease tax administration in the formulation of tax regulations.

“Impacts of neo-banks on North African migrants’ remittances and financial inclusion”

This study examined remittance trends and financial institution preferences among North African migrants in Europe and assessed neobanks' potential to foster financial inclusion and cost reductions. The main objetive was to explore how neobanks can alleviate economic pressures on North African migrants and help achieve the World Bank Group's goal of reducing remittance costs to 5 % and the UN-SDG target of 3 %. Exploratory in nature, both surveys and interviews were used for data collection. The sample consisted of 64 North African migrants from Morocco, Tunisia, and Algeria (North Africa) residing in France, Spain, and Italy (EU). Key findings revealed that North African migrants had diverse remittance behaviors, with varying frequencies and amounts sent home. Trust in traditional banks remained high due to familiarity, cultural norms, and accessibility issues in rural areas. However, neobanks offered significant cost savings, with potential annual savings ranging from €30 to €134 depending on the monthly remitted amount that ranges between a €100 and a €1000 . Adoption of neobanks was higher among younger, and digitally literate migrants with better access to technology. Barriers to wider adoption of neobanks included limited digital and financial literacy, lack of necessary technology in home countries, and cultural resistance to change. High regulatory and compliance costs for traditional banks also contributed to inflated remittance fees. To address these issues, the paper recommends enhancing market competition, improving access to new payment technologies, encouraging larger remittances through incentives, learning from successful public bank models like France's La Banque Postale, and fostering financial literacy and digital inclusion. Additionally, it suggests building trust and cultural sensitivity, investing in robust cybersecurity measures, and developing offline transaction capabilities to increase accessibility for migrants in remote areas.

Current trends in carbon emission trading: Theoretical perspectives, research methods and emerging themes

Since the inception of the EU carbon emissions trading market, it has experienced substantial growth. However, there is a shortage of comprehensive analysis on the policy implications of carbon emissions trading in the context of the low-carbon economy. The article utilizes bibliometric and content analytic methodologies to thoroughly examine the features and content of 116 relevant pieces of literature. Based on this analysis, a research model on the carbon emissions trading schemes is constructed. The study findings indicate a significant surge in the quantity of published material since 2021, with a predominant focus on terms related to the low carbon economy, such as environmental regulation and carbon emission. The research hotspots are related to transformation and upgrading and enterprise performance, etc. The research theory involves compliance cost theory, Porter's hypothesis theory, emissions trading theory and green innovation theory, empirical research is the main method of carbon emissions trading research. Emerging theme analyses are summarized in terms of the economic, environmental, technological and social effects of carbon trading. Finally, there are research conclusions and future research trends.

Towards a Sustainable Future: Examining the Symmetric and Asymmetric Effect of Unstable Macroeconomic Factors on Initial Public Offerings Variability

The research seeks to explore the symmetric and asymmetric effects of renewable energy, technological innovation, and ecological footprint on the variability of initial public offerings in the unique institutional setting of the Pakistani IPO market. The study used yearly data on the Pakistani IPO market and the macroeconomic variables from January 1992 to December 2020. Further, the study employed the linear and Non-Linear ARDL to investigate the symmetric and asymmetric nexus among variables. For that purpose, the stationarity of the variables was predetermined using Augmented Dicker Fuller (ADF) and Phillips Perron (PP) unit root tests. Additionally, the F-bound test verifies that IPO issuance and macroeconomic drivers are co-integrated. The findings show a symmetric and asymmetric relationship between IPO variability and macroeconomic variables under study. Renewable energy and technological innovation have statistically positive effects on IPO variability. On the contrary, the ecological footprint has a significantly negative impact on IPO variability. The weak condition of the Pakistani IPO market could be attributed to the slow adoption of technological innovation, the transition to renewable energy, and a high ecological footprint that attracts stringent regulatory and environmental compliance costs of going public.

Ocean wave energy harvesting: Utilizing buoy float to induce dielectric elastomer deformation and electret vibration for power generation

The dielectric elastomeric polymer material, characterized by its high energy output, resilience, mechanical compliance, lightweight, damage tolerance, and low cost, demonstrates significant potential as an innovative sustainable energy converter. It seamlessly adapts to the ever-changing climatic conditions of the ocean, converting the violent impacts of wave kinetics into electrical energy. This paper proposed a viable electret and dielectric elastomer wave energy harvester to convert ocean wave energy into electricity and aims to achieve self-priming operation in the conjugate components. The output voltage from the electret also functions as the bias voltage for the dielectric elastomer, based on the intrinsic variable capacitance electric translation principle. The dielectric elastomer's deformation, equivalent to variable capacitance, successfully converted the mechanical energy from the ocean waves into electrical energy. The ocean wave energy conversion is evaluated using a system-level approach, incorporating theoretical, simulation, and experimental models. In addition, electric power generation is assessed with parameters such as output voltage, electret surface potential, and bias voltage. Essentially, the electric energy produced by the electret generator can serve as the bias voltage source for the dielectric elastomer generator, providing a self-sustaining solution for ocean wave energy harvesting. The innovative power device envisions various potential configurations for ocean-based power generation.

Implementasi Sistem E-Tax Sebagai Moderasi Pengaruh Kepuasan Pengguna, Kualitas Informasi, Kualitas Sistem, dan Biaya Kepatuhan Terhadap Kepatuhan Perpajakan

This study aims to examine the role of e-tax system implementation as a moderating variable in the relationship between taxpayer attitudes and tax compliance. This study involved 214 individual taxpayers who used the e-tax system, with the sampling technique using purposive sampling. The analysis method used is Structural Equation Modelling (SEM) which is processed using IBM SPSS AMOS 26 software. The results showed that the quality of the e-tax system has a positive effect on tax compliance, while compliance costs have a negative effect on tax compliance. In addition, the implementation of the e-tax system is proven to strengthen the effect of system quality on tax compliance, and weaken the effect of compliance costs on tax compliance. These findings indicate that improving the quality of the e-tax system and managing compliance costs can be effective strategies to improve tax compliance in the digital era.

Implementation of E-Filing, Tax Compliance Costs and Social Environment on Taxpayer Compliance

Implementation of E-Filing, Tax Compliance Costs and Social Environment on Taxpayer Compliance

Analysis of Tax Impact on Employee Retention in the Hospitality Industry

This qualitative research investigates the intricate relationship between taxation policies and employee retention within the hospitality industry. Employing a systematic literature review, the study examines the impact of tax incentives and management strategies on employee satisfaction and organizational practices. Through rigorous data collection and thematic analysis, key findings emerge, revealing the nuanced dynamics at play. The research underscores the significance of tax incentives in fostering employee loyalty and commitment, albeit contingent upon organizational culture, industry-specific factors, and perceived fairness. Additionally, it highlights the challenges posed by compliance costs and the ethical dilemmas associated with aggressive tax planning. The study contributes to a deeper understanding of the complex interplay between taxation policies, organizational responses, and employee outcomes, offering insights for both academia and industry practitioners.

Environmental Regulation, Factor Marketisation Allocation and Carbon Emissions Performance: Empirical Evidence from Resource-Based Cities in China

Resource-based cities had an irreplaceable role in the process of the economic miracle in China. Advancing such cities’ carbon emissions reduction is a crucial aspect of the country’s steady realisation of the dual carbon peak and neutrality strategy. The reasonable implementation of environmental regulation and the efficiency of factor marketisation allocation are the key links for resource-based cities to improve carbon emissions performance, break the resource curse and reduce carbon emissions. Based on this, this study centres on the driving relationship between environmental regulation, the efficiency of factor marketisation allocation and carbon emissions performance as the core research problem. This study takes the panel data of 116 resource-based cities in China from 2006 to 2020 as the research sample; the non-radial meta-frontier total factor carbon emissions performance index is selected as the measurement index of carbon emission performance of resource-based cities based on the applicability analysis of the model. This study explores the characteristics of regional heterogeneity and type heterogeneity of carbon emissions performance driven by environmental regulation under the moderating effect of the efficiency of factor marketisation allocation and further explores the threshold effect, aiming to clarify the driving relationship between the three. The findings reveal that the driving effect of environmental regulation intensity on carbon emissions performance exhibits a fluctuating upward trend, the effect transformed by compliance cost and innovation compensation. The efficiency of factor marketisation allocation has a double threshold superposition effect on carbon emissions performance fluctuation that is driven by environmental regulation, indicating that market and government effectiveness can operate together to improve the carbon emissions performance. Based on these results, this study proposes countermeasures and suggestions for improving carbon emissions performance using environmental regulation and the efficiency of factor marketisation allocation.

The impact of the JOBS act on the costs of going public: evidence from long-term audit costs

The Jumpstart Our Business Startups (JOBS) Act (2012) allows reduced compliance costs for IPOs with less than $1 billion in revenues. While prior research has focused on the Act’s ability to reduce short-term IPO compliance costs, we investigate how the Act affected key observable compliance costs – audit fees – over the five years the issuing firm is eligible for this reduced level of disclosure/compliance. In contrast to prior findings of increased short-term audit costs, we find that long-term audit costs decreased by 16.6 percent, or $172,000 for IPO firms following JOBS, relative to the change fees for in control firms unaffected by the regulation. After investigating other consequences of the Act, we find greater information uncertainty for affected firms following JOBS. However, we find lower accrual-based earnings management as responses to these information frictions. We find the reductions in earnings management is driven by firms with the greatest information uncertainty with investors, suggesting that affected firms take additional steps to mitigate the information risks in light of their inherently riskier IPOs. Overall, we present a fuller picture of the costs/benefits and risk mitigation in post-JOBS IPOs.

Cost-effective options to reduce emissions from residential firewood heating in south-central Chile

This study simulates various environmental regulation scenarios for fine particulate matter (PM2.5) caused by the massive use of firewood for residential heating. Specifically, an optimization model calibrated with microdata is proposed to minimize the total costs of meeting an aggregate emissions reduction target, considering all urban areas of central-southern Chile where an Atmospheric Decontamination Plan (PDA) has been implemented. The results show that the total compliance cost in each urban area with PDA grows at increasing rates when the targets are more demanding. The cost-effectiveness indicators vary between 1.1 and 1.8 thousand dollars for a target of 20 % but rise to values between 3.7 and 7.6 thousand dollars for a target of 99 %. The lower indicators are observed in areas with greater firewood consumption. The preferred options for households to replace their current firewood heaters are pellet heaters and hot/cold inverter air conditioning units. Surprisingly, thermal improvement on dwellings is not economically attractive. Finally, it is concluded that achieving reduction targets close to 80 % would be possible if only 56 % of households replace their firewood heaters based on the cost-effectiveness criteria, also obtaining co-benefits from lower black carbon and greenhouse gas emissions.

Antecedents and consequences of automated VAT solution adoption in Gulf cooperation countries: the case of the United Arab Emirates

Purpose This paper aims to examine the antecedents of the Automated VAT Solution (AVS) and its eventual consequence on value-added tax (VAT) compliance costs among the small and medium enterprises (SMEs) in Gulf Cooperation Countries (GCC), with the United Arab Emirates (UAE) as context. Design/methodology/approach A quantitative research design was deployed through a survey of 576 SMEs in the UAE. The data was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings The findings revealed that technological factors (IT complexity and IT competency) and organizational factors (management support and size of SME) significantly influence AVS adoption. However, only consumer pressure was found to be significant among the environmental factors, and AVS adoption was found to have a significant negative effect on the VAT compliance cost. Research limitations/implications A lower coefficient of determination for the effect of AVS adoption on VAT compliance cost meant that there may be other accounting-related technologies that improve operational efficiency and process automation and, in the long run, lower the cost of VAT compliance. These technologies should be included in future studies. Practical implications The findings imply that the adoption of AVS among SMEs is highly desirable, as it reduces VAT compliance costs. Increased regulatory pressure by the UAE’s policymakers is also desirable to accelerate AVS adoption for enhanced cost reduction and revenue maximization from the perspectives of both the government and SMEs. Originality/value To the best of the authors’ knowledge, this study could be the first to expand the Technology-Organization-Environmental (TOE) Framework through the integration of determinants of AVS adoption and VAT compliance costs among SMEs in GCC countries.

Game-theoretic analysis of governance and corruption in China's pharmaceutical industry.

With the rapid development of China's pharmaceutical industry, issues of corruption and regulatory effectiveness have become increasingly prominent, posing critical challenges to public health safety and the industry's sustainable development. This paper adopts a bounded rationality perspective and employs a game-theoretic evolutionary approach to establish a tripartite evolutionary game model involving pharmaceutical companies, third-party auditing organizations, and health insurance regulatory agencies. It analyzes the stable strategies of the parties involved and the sensitivity of key parameters within this tripartite game system. The study reveals that adherence to health insurance regulations by pharmaceutical companies, refusal of bribes by third-party auditing organizations, and the implementation of lenient regulations by health insurance agencies can form an effective governance equilibrium. This equilibrium state contributes to reducing corruption in the pharmaceutical industry, balancing the interests of all parties, and promoting healthy industry development. Pharmaceutical companies must balance compliance costs against the risks of non-compliance benefits while maximizing profits; third-party auditing organizations need to choose between fulfilling their duties and accepting bribes, considering their economic benefits and professional reputation; health insurance regulatory agencies adjust their strategies between strict and lenient regulation to maximize social welfare. The paper suggests enhancing policy support, strengthening compliance supervision, improving audit independence, and adjusting regulatory strategies to optimize governance in the pharmaceutical industry. Additionally, the research highlights the role of collaborative efforts among the three parties in achieving sustainable governance. Furthermore, the study conducts a numerical simulation analysis to demonstrate the impact of various parameters on the evolutionary stability of the system, providing practical insights into the implementation of regulatory policies. This research offers new insights for policy formulation and governance in China's pharmaceutical sector, providing significant reference value for guiding the industry's sustainable development.

The Impact of Data Privacy Laws on Digital Marketing Practices

Purpose: The general study focused on investigating the impact of data privacy laws on digital marketing practices. Methodology: The study adopted a desktop research methodology. Desk research refers to secondary data or that which can be collected without fieldwork. Desk research is basically involved in collecting data from existing resources hence it is often considered a low cost technique as compared to field research, as the main cost is involved in executive’s time, telephone charges and directories. Thus, the study relied on already published studies, reports and statistics. This secondary data was easily accessed through the online journals and library. Findings: The findings reveal that there exists a contextual and methodological gap relating to the impact of data privacy laws on digital marketing practices. Preliminary empirical review revealed that privacy laws such as GDPR, CCPA, APPI, and LGPD significantly transformed digital marketing practices, necessitating a shift towards more ethical and transparent data handling. These regulations increased compliance costs and administrative burdens but also improved data security and consumer trust. Companies that proactively adapted to these regulations by investing in robust data protection measures experienced enhanced consumer engagement and brand loyalty. The study highlighted the critical role of privacy-enhancing technologies in facilitating compliance and maintaining effective marketing strategies. Overall, the impact of data privacy laws was profound, requiring ongoing adaptation and innovation in digital marketing practices to balance regulatory compliance with consumer trust. Unique Contribution to Theory, Practice and Policy: The Theory of Planned Behaviour (TPB), Institutional Theory and Technology Acceptance Model (ATM) may be used to anchor future studies on data privacy laws. The study recommended several strategies for advancing the understanding and implementation of data privacy laws in digital marketing. It suggested that future research should explore the relationship between data privacy regulations and consumer behavior to develop effective marketing strategies. Businesses were advised to adopt proactive compliance measures, invest in data protection technologies, and educate consumers about their privacy rights. Policymakers were encouraged to develop balanced regulations through stakeholder collaboration and to harmonize international data privacy standards. The study also emphasized the importance of promoting privacy-enhancing technologies through public-private partnerships and government incentives to safeguard consumer data while supporting marketing innovation.

Dynamic optimisation of carbon allowance considering inter-provincial energy resources trade for emissions reduction: Case of China southern power grid

As the main carrier of natural resources into energy, the power industry is the world's largest carbon emitter, and its sustainable development will have far-reaching impacts on the utilization of natural resources and economic growth. Carbon trading market is a widely used tool to promote proactive emissions reductions in the electricity industry in different regions. On this basis, inter-provincial trading in the power industry creates a hidden carbon transfer between producers and consumers of energy resources. Therefore, it is necessary to construct systematic multi-period emission reduction measures to deal with the conflict and coordination of the operation of the two systems. In this study, to promote orderly emission reductions in the power industry in areas with different natural resource endowments, a two-tier decision-making model for carbon allowances allocation based on interactive model predictive control technique is constructed. The model readjustss the overall allowances by tracking the implied carbon transfer flows between regions and implementing a production-oriented allowance compensation mechanism, forming an optimisation strategy for carbon compliance cost and emission intensity in the power sector. The experimental results show that adjusting the regional allowance distribution in inter-provincial transmission can alleviate the impact of high emission reduction pressure on the overall carbon compliance cost, while the rolling horizon optimisation of the carbon baseline value can approach the expected emission reduction target in stages. Taking the Southern Power Grid as an example, this study ultimately provides policy recommendations for sustainable emission reductions under multi-period inter-provincial trade in energy resources.

The impact of the informal sector on supply chains in Africa

ABSTRACT The informal sector adds a systemic layer of uncertainty and risk for the performance of Food Supply Chains in sub-Saharan Africa. Based on interviews conducted among all the agents directly involved in the FSCs and international statistics, we analysed how the informal sector affects five mango FSCs in Burkina Faso in their economic, social and environmental performance. The informal sector accounts for about 30% of the total FSCs value, 67% of the total production, and 99% of the workforce. The lack of statistics, lack of legal compliance, lack of public infrastructure, increases the probability and severity of any given risk and therefore hinders investments. Firms internalise the risks with horizontal and vertical integration, the support of subsidies, or by avoiding the costs of international standards compliance. As a result, we distinguish subsidised resilience from informal resilience. FSC's resilience in sub-Saharan Africa will depend on how the level of state intervention, legal compliance and law enforcement will affect the informal sector.