Kosovo’s informal economy, a cycle of tax evasion by businesses, elusive governmental oversight and exploitation of workers, will continue to run until political will to formalize the system emerges.
As the old saying goes, “When a French peasant paints the devil, he paints him in the guise of a tax collector.” A few hundred years later, this expression is as poignant as ever.
Kosovo’s high rate of unemployment and citizens living below the poverty line are infamous. These rates are inflated by the slow development of rule of law and lack of governmental infrastructure to monitor and regulate Kosovo’s economy and taxation framework, leaving many Kosovo citizens in the most precarious of financial situations.
Whether you are selling your trade on the streets of Prishtina, working in a call center with no employment contract or finding work day to day on construction sites around the city, you are participating in what is called the informal economy.