You are on page 1of 12

Black market

Black Market and Black money redirect here. For

other uses, see Black Market (disambiguation) and Black
money (disambiguation).
A black market or underground economy is a market

Barcelona 2015

distinction of a black market trade is that the transaction

itself is illegal. The goods or services themselves may or
may not be illegal to own, or to trade through other, legal
channels. Because the transactions are illegal, the market itself is forced to operate outside the formal economy
that is supported by the established state power. Common
motives for operating in black markets are to trade contraband, avoid taxes and regulations, or skirt price controls or rationing. Typically the totality of such activity
is referred to with the denite article as a complement
to the ocial economies, by market for such goods and
services, e.g. the black market in bush meat.

A black market in Shinbashi in 1946.

The black market is distinct from the grey market,

in which commodities are distributed through channels
which, while legal, are unocial, unauthorized, or unintended by the original manufacturer, and the white market.
The black market is considered a subset of the informal
economy, of which 1.8 billion people worldwide are
employed or which makes up 15-17% of world GDP
(averages over 1999-2007, weighted by total GDP in
Black markets have online counterparts consisting of
darknet market websites such as the Silk Road, individual
websites, forums and chat rooms. While overlaps exist,
the online markets are focused on specic areas including
A black market salesman depicted in grati in Kharkov, Ukraine drugs, compromised credentials, malware, digital goods
and weapons. Piracy specically takes place on private or
public warez and BitTorrent sites as well as various peerin which goods or services are traded illegally. The key to-peer le sharing networks.



is not so reported. A complementary measure of the unreported economy is the "tax gap", namely the dierence
between the amount of tax revenues due the scal authority and the amount of tax revenue actually collected. In
the U.S. unreported income is estimated to be $2 trillion
resulting in a tax gap of $450$500billion.[4][5]

The unrecorded economy consists of those economic

activities that circumvent the institutional rules that dene the reporting requirements of government statistical
agencies. A summary measure of the unrecorded economy is the amount of unrecorded income, namely the
amount of income that should (under existing rules and
conventions) be recorded in national accounting systems
(e.g. National Income and Product Accounts) but is not.
Unrecorded income is a particular problem in transition
countries that switched from a socialist accounting system
to UN standard national accounting. New methods have
Mercado Negro, so called Black Market, in La Paz, Bolivia.
been proposed for estimating the size of the unrecorded
(non-observed) economy.[6] But there is still little conThe literature on the black market has not established a sensus concerning the size of the unreported economies
common terminology and has instead oered many syn- of transition countries.[7]
onyms including: subterranean; hidden; grey; shadow; informal; clandestine; illegal; unobserved; unreported; un- The "informal economy" comprises those economic activities that circumvent the costs and are excluded from
recorded; second; parallel and black.[3]
the benets and rights incorporated in the laws and adThere is no single underground economy; there are many. ministrative rules covering property relationships, comThese underground economies are omnipresent, existing mercial licensing, labor contracts, torts, nancial credit
in market oriented as well as in centrally planned nations, and social security systems. A summary measure of the
be they developed or developing. Those engaged in un- informal economy is the income generated by economic
derground activities circumvent, escape or are excluded agents that operate informally.[8][9] The informal sector is
from the institutional system of rules, rights, regulations dened as the part of an economy that is not taxed, moniand enforcement penalties that govern formal agents en- tored by any form of government, or included in any gross
gaged in production and exchange. Dierent types of national product (GNP), unlike the formal economy. In
underground activities are distinguished according to the developed countries the informal sector is characterized
particular institutional rules that they violate. Five spe- by unreported employment. This is hidden from the state
cic underground economies can be identied:
for tax, social security or labour law purposes but is legal
in all other aspects.[10] On the other hand, the term black
1. criminal drugs
market can be used in reference to a specic part of the
economy in which contraband is traded.
2. the illegal economy
3. the unreported economy
4. the unrecorded economy
5. the informal economy

2 Pricing
Goods acquired illegally may exchange above or below
the price of legal market transactions:

The illegal economy consists of the income produced

by those economic activities pursued in violation of legal statutes dening the scope of legitimate forms of
commerce. Illegal economy participants engage in the
production and distribution of prohibited goods and
services, such as drug tracking, arms tracking, and

They may be cheaper than legal market prices. The

supplier does not have to pay for production costs or
taxes. This is usually the case in the underground
economy. Criminals steal goods and sell them below the legal market price, but there is no receipt,
guarantee, and so forth.

The unreported economy consists of those economic

activities that circumvent or evade the institutionally established scal rules as codied in the tax code. A summary measure of the unreported economy is the amount
of income that should be reported to the tax authority but

They may be more expensive than legal market

prices. For example, the product is dicult to acquire or produce, dangerous to handle, or not easily
available legally, if at all. If exchange of goods are
made illegal by some sort of state sanction, such as is


Sexual exploitation and forced labor

often seen with certain pharmaceutical drugs, their 4.1 Sexual exploitation and forced labor
prices will tend to rise as a result of that sanction.
Main article: Human tracking
Black markets can form part of border trade near the borders of neighboring jurisdictions with little or no border
control if there are substantially dierent tax rates, or
where goods are legal on one side of the border but not 4.2
on the other. Products that are commonly smuggled like
this include alcohol and tobacco. However, not all border
trade is illegal.

Illegal drugs

Consumer issues

Even when the underground market oers lower prices,

consumers still have an incentive to buy on the legal market when possible, because:
They may prefer legal suppliers, as they are easier to
contact and can be held accountable for faults;
In some[11] jurisdictions, customers may be charged
with a criminal oense if they knowingly participate In the U.S., cannabis has been termed as a cash crop.
in the black economy, even as a consumer;
Main article: Illegal drug trade
They may feel in danger of being hurt while making
the deal;
From the late 19th and early 20th centuries, many
countries began to ban the keeping or using of some
They may have a moral dislike of black marketing; recreational drugs, such as the United States war on
drugs. Many people nonetheless continue to use illegal
In some jurisdictions (such as England and Wales),
drugs, and a black market exists to supply them. Despite
consumers in possession of stolen goods will have
law enforcement eorts to intercept them, demand rethem taken away if they are traced, even if they
mains high, providing a large prot motive for organized
did not know they were stolen. Though they themcriminal groups to keep drugs supplied. The United Naselves commit no oense, they are still left with no
tions has reported that the retail market value of illegal
goods and no money back. This risk may make some
drugs is $321.6 billion USD.[13]
averse to buying goods that they think may be from
the underground market, even if in fact they are le- Although law enforcement agencies intercept a fraction
gitimate (for example, items sold at a car boot sale). of the illegal drugs, and incarcerate hundreds of thousands of wholesale and retail sellers, the very stable demand for such drugs and the high prot margins encourHowever, in some situations, consumers can actually be
ages new distributors to enter the market without a dein a better situation when using black market services,
crease in the retail price. Many drug legalization acparticularly when government regulations and monopotivists draw parallels between the illegal drug trade and
lies hinder what would otherwise be a legitimate competthe Prohibition of alcohol in the United States in the
itive service. For example:
Unlicensed taxicabs. In Baltimore, it has been reported that many consumers actively prefer illegal
taxis, citing that they are more available, convenient,
and priced fairly.[12]

Traded goods and services

In the United Kingdom, it is not illegal to take drugs, but it

is illegal to possess them. This can lead to the unintended
consequence that those in possession may swallow the evidence; once in the body they are committing no crime.

4.3 Prostitution

Prostitution is illegal or highly regulated in most counSome examples of underground economic activities in- tries across the world. These places form a classic study
of the underground economy, because of consistent high

demand from customers, relatively high pay, but laborintensive and low skilled work, which attracts a continual supply of workers. While prostitution exists in every country, studies show that it tends to ourish more
in poorer countries, and in areas with large numbers of
unattached men, such as around military bases.[14]


weapons, etc.), and explosives. The black market supplies the demands for weaponry that can not be obtained
legally, or may only be obtained legally after obtaining
permits and paying fees. This may be by smuggling the
arms from countries where they were bought legally or
stolen, or by stealing from arms manufacturers within the
country itself, using insiders. In cases where the underground economy is unable to smuggle rearms, they can
also satisfy requests by gunsmithing their own rearms.
Those who may buy this way include criminals to use for
illegal activities, gun collectors, and otherwise law abiding citizens interested in protecting their dwellings, families or businesses.

Prostitutes in the black market generally operate with

some degree of secrecy, sometimes negotiating prices
and activities through codewords and subtle gestures. In
countries such as the Netherlands, where prostitution is
legal but regulated, illegal prostitutes exist whose services
are oered cheaper without regard for the legal requirements or procedures health checks, standards of accommodation, and so on.
In England and Wales, certain categories of weapons used
In other countries, such as Nicaragua, where legal pros- for hunting may be owned by qualied residents but must
titution is regulated, hotels may require both parties to be registered with the local police force and kept within a
identify themselves, to prevent the rise of child prostitu- locked cabinet. Another segment of the population who
may purchase weapons on the black market are individtion.
uals who are unable to pass the legal requirements for
registration convicted felons or those suering from
mental illness for example. In some jurisdictions, collec4.4 Weapons
tors may legally keep antique weapons made incapable of
being readily restored to a ring condition.
Main article: Arms tracking
The legislatures of many countries forbid or restrict the

4.5 Illegally logged timber

Main article: Illegal logging
Illegally logged timber is a huge problem. According to Interpol, the illegal logging industry is worth almost as much as drug production industry, in some

4.6 Animals and animal products

Main articles: Ivory trade and Wildlife trade
In many developing countries, living animals are captured
in the wild and sold as pets. Wild animals are also hunted
and killed for their meat, hide, and organs, the latter of
which and other animal parts are sold for use in traditional
In several of the states within the United States, laws requiring the pasteurization of milk has created black market situations involving the transport and sale of raw milk.

4.7 Alcohol
Main article: Rum-running
Rum-running, or bootlegging, is the illegal business of
transporting (smuggling) alcoholic beverages where such
personal ownership of weapons. These restrictions can transportation is forbidden by law. Smuggling is usually
range from small knives to rearms, either altogether done to circumvent taxation or prohibition laws within
or by classication (e.g. caliber, handguns, automatic a particular jurisdiction. The term rum-running is more
A tower of conscated smuggled weapons about to be set ablaze
in Nairobi, Kenya



ment for...organs is likely to take unfair advantage of
the poorest and most vulnerable groups, undermines altruistic donation and leads to proteering and human
tracking.[24] Despite these ordinances, it was estimated that 5% of all organ recipients engaged in commercial organ transplant in 2005.[25] Research indicates
that illegal organ trade is on the rise, with a recent report
by Global Financial Integrity estimating that the illegal
organ trade generates prots between $600 million and
$1.2 billion per year with a span over many countries.

Broken barrels of liquor after a police raid in 1925, in Elk Lake,


4.10 Racketeering
commonly applied to smuggling over water; bootlegging
is applied to smuggling over land. According to the PBS
documentary Prohibition, the term bootlegging was
popularized when thousands of city dwellers would sell
liquor from asks they kept in their boot leg all across major cities and rural areas.[17][18] The term rum-running
most likely originated at the start of Prohibition in the
United States (19201933), when ships from Bimini in
the western Bahamas transported cheap Caribbean rum
to Florida speakeasies. But rum's cheapness made it a
low-prot item for the rum-runners, and they soon moved
on to smuggling Canadian whisky, French champagne,
and English gin to major cities like New York City and
Boston, where prices ran high. It was said that some ships
carried $200,000 in contraband in a single run.



Main article: Racket (crime)

A racket is a service that is fraudulently oered to solve
a problem, such as for a problem that does not actually
exist, that will not be put into eect, or that would not
otherwise exist if the racket did not exist. Conducting a
racket is racketeering.[26] Particularly, the potential problem may be caused by the same party that oers to solve
it, although that fact may be concealed, with the specic
intent to engender continual patronage for this party. An
archetype is the protection racket, wherein a person or
group (e.g., a criminal gang) indicates to a store owner
that they could protect her store from potential damage,
damage that the same person or group would otherwise
inict, while the correlation of threat and protection may
be more or less deniably veiled, distinguishing it from the
more direct act of extortion. Racketeering is often associated with organized crime, and the term was coined by
the Employers Association of Chicago in June 1927 in a
statement about the inuence of organized crime in the
Teamsters union.[27]

It has been reported that smuggling one truckload of

cigarettes from a low-tax US state to a high-tax state
can lead to a prot of up to $2 million.[19] The low-tax
states are generally the major tobacco producers, and
have come under enormous criticism for their reluctance
to increase taxes. North Carolina eventually agreed to
raise its taxes from 5 cents to 35 cents per pack of 20
cigarettes, although this remains far below the national
average.[20] But South Carolina has so far refused to fol- 4.11 Transportation providers
low suit and raise taxes from seven cents per pack (the
lowest in the USA).[21]
Main article: illegal taxicab operation
In the UK, it has been reported that 27% of cigarettes
and 68% of roll your own tobacco [is] purchased on the Where taxicabs, buses, and other transportation providers
black market.[22]
are strictly regulated or monopolized by government, a
black market typically ourishes to provide transportation to poorly served or overpriced communities. In the
4.9 Biological organs
United States, some cities restrict entry to the taxicab
market with a medallion system that is, taxicabs must
Main article: Organ trade Illegal organ trade
get a special license and display it on a medallion in the
vehicle. This has led to a market in Carpooling/illegal
According to the World Health Organization (WHO), il- taxicab operation, although in most jurisdictions it is not
legal organ trade occurs when organs are removed from illegal to sell the medallions. In Baltimore, Maryland, for
the body for the purpose of commercial transactions.[23] example, it is not uncommon for private individuals to
The WHO justies these actions by stating that, Pay- provide illegal taxicab service[12] for city residents.


4.12 Housing rental

related industries. It also authorises copyright-holders to

use region-coding to discriminate against selected popuIn places where there is rent control there may be a black lations price-wise and availability-wise.
market for housing. For instance, in the UK theres ille- The comparison to car-theft, although common, is not
gal subletting of social housing homes where the tenant truly analogous. Automobile theft results in an item being
illegally rents out the home at a higher rent.[28] In Swe- removed from the owner with the ownership transferred
den, rental contracts with regulated rent can be bought to a second party. Media piracy is a crime of duplication,
on the black market,[29] either from the current tenant or with no physical property being stolen. Copyright insometimes directly from the property owner. Specialised fringement law goes as far as to deem illegal "mix-tapes"
black-market dealers assist the property owners with such and other such material copied to tape or disk. Copytransactions.[30] In India, places like Kota, New Delhi right holders typically attest the act of theft to be in the
where students are coming from all over India, getting prots forgone to the pirates. However, this makes the
high rented PG (Paying guests) or other forms of rented unsubstantiated assumption that the pirates would have
apartments without any Taxation or regulations.
bought the copyrighted material if it had not been available through le sharing or other means. Copyright holders also say that they did some work for creating their
4.13 Counterfeit medicine, essential air- copyrighted material and they wish to get compensated
craft and automobile parts
for their work. No other system than copyright has been
found to compensate the artists and other creators for
Main article: Counterfeit consumer goods
their work, and many artists do not have any alternative source of income or another job. Many artists and
Medicines and essential aircraft and automobile parts lm producers have accepted the role of piracy in me[32]
The spread of material through le
(e.g. brakes, motor parts, ...) are counterfeited on a large dia distribution.
of publicity for artists and has
been shown to build fan bases that may be more inclined
to see the performer live[33] (live performances make up
the bulk of successful artists revenues,[34] however not
4.14 Copyrighted media
all artists can make live performances, for example photographers typically only have a single source of income
Main article: Copyright infringement
which is the licensing of their photos).
Street vendors in countries where there is little enforcement of copyright law, particularly in Asia and Latin
America, often sell deeply discounted copies of lms,
music CDs, and computer software such as video games,
sometimes even before the ocial release of the title. A
determined counterfeiter with a few hundred dollars can
make copies that are digitally identical to an original and
face no loss in quality; innovations in consumer DVD and
CD writers and the widespread availability of cracks on
the Internet for most forms of copy protection technology
make this cheap and easy to do.

4.15 Currency
Main article: Fixed exchange rate
Money itself is traded on the black market. This may
happen for one or more of several reasons:
The government sets (pegs) the local currency at
some arbitrary level to another currency that does
not reect its true market value.

Copyright-holders and other proponents of copyright

A government makes it dicult or illegal for its citlaws have found this phenomenon hard to stop through the
izens to own much or any foreign currency.
courts, as the operations are distributed and widespread,
transversing national borders and thus legal systems.
The government taxes exchanging the local currency
Since digital information can be duplicated repeatedly
with other currencies, either in one direction or both
with no loss of quality, and passed on electronically at
(e.g. foreigners are taxed to buy local currency, or
little to no cost, the eective underground market value
residents are taxed to buy foreign currency).
of media is zero, dierentiating it from nearly all other
forms of underground economic activity. The issue is
The currency is counterfeit.
compounded by widespread indierence to enforcing
The currency has been acquired illegally and needs
copyright law, both with governments and the public at
to be laundered before the money can be used.[35]
large. To steal a car is seen as a crime in most peoples eyes, but to obtain unauthorized copies of music or
a game is not.[31] Additionally, not all people agree with A government may ocially set the rate of exchange of
'copyright laws, as it unfairly criminalises competition, its currency with that of other currencies, typically the
allowing the copyright-holder to eectively monopolise US dollar. When it does, the peg often overvalues the

local currency relative to what its market value would be estimated that 350 million was not gained in prot as a
if it were a oating currency. Those in possession of the result of this phenomenon, in the UK.[44]
harder currency, for example expatriate workers, may
be able to use the black market to buy the local currency
at better exchange rates than they can get ocially.

5 Organized crime

In situations of nancial instability and ination, citizens

may substitute a foreign currency for the local currency.
The U.S. dollar is viewed as a relatively stable and safe
currency and is often used abroad as a second currency.
In 2012, $340 billion, roughly 37 percent[36] of all U.S.
currency, was believed to be circulating abroad.[37] The
most recent study of the amount of currency held overseas
suggests that only 25 percent of U.S. currency is presently
held abroad.[38] The widespread substitution of U.S. currency for local currency is known as de facto dollarisation,
and has been observed in transition countries such as
Cambodia [39] and in some Latin American countries.[40]
Some countries, such as Ecuador, abandoned their local
currency and now use US dollars, essentially for this reason, a process known as de jure dollarization. See also the
example of the Ghanaian cedi from the 1970s and 1980s.
If foreign currency is dicult or illegal for local citizens
to acquire, they will pay a premium to acquire it. U.S.
currency is viewed as a relatively stable store of value and
since it does not leave a paper trail, it is also a convenient
medium of exchange for both illegal transactions and for
unreported income both in the U.S and abroad.[4]
More recently cryptocurrencies such as bitcoin have been
used as medium of exchange in black market transactions.
Sometimes favored over centralized currency due to its
untraceable nature, and its ability to be traded over the
internet, thus allowing the transacting parties to remain

4.16 Fuel
In the EU, it is not illegal for a person or business to buy
fuel in one EU state for their own use in another, but as
with other goods the tax will generally be payable by the
nal customer at the physical place of making the purchase.

Main article: Organized crime

People engaged in the black market usually run their business hidden under a front business that is legal.
Often, certain types of illegal products are traded against
one another, depending on the geographical location.[45]

6 Consequences
6.1 Wars
Black markets ourish in most countries during wartime.
States that are engaged in total war or other large-scale,
extended wars often impose restrictions on home use of
critical resources that are needed for the war eort, such
as food, gasoline, rubber, metal, etc., typically through
rationing. In most cases, a black market develops to supply rationed goods at exorbitant prices. The rationing and
price controls enforced in many countries during World
War II encouraged widespread black market activity.[46]
One source of black-market meat under wartime rationing was by farmers declaring fewer domestic animal
births to the Ministry of Food than actually happened.
Another in Britain was supplies from the USA, intended
only for use in USA army bases on British land, but leaked
into the local native British black market.
For example, in the Parliament of the United Kingdom on
17 February 1945[47] members said that the whole turkey
production of East Anglia had gone to the black market
and prosecutions [for black-marketing] were like trying
to stop a leak in a battleship, and it was said that ocial
prices of such foods were set so low that their producers
often sold their produce on the black market for higher
prices; one such route (seen to operate at the market at
Diss in Norfolk) was to sell live poultry to members of the
public, and each purchaser would sign a form promising
that he was buying the birds to breed from, and then take
them home for eating.

Between the Republic of Ireland and Northern Ireland, there has often been a black market in petrol and
diesel.[42][43] The direction of smuggling can change depending on the variation of the taxes and the exchange
rate between the Euro and Pound Sterling; indeed some- During the Vietnam war, soldiers would spend Military
times diesel will be smuggled in one direction and petrol Payment Certicates on maid service and sexual enterthe other.
tainment, thus supporting their partners and their famiIn some countries, diesel fuel for agricultural vehicles or lies. If the Vietnamese civilian wanted something that
domestic use is taxed at a much lower rate than that for was hard to get, he would buy it at double the price from
other vehicles. This is known as dyed fuel, because a one of the soldiers, who had a monthly ration card and
coloured dye is added so it can be detected if used in thus had access to the military stores. The transactions
other vehicles (e.g. a red dye in the UK, a green dye in ran through the on-base maids to the local populace. AlIreland). Nevertheless, the saving is attractive enough to though these activities were illegal, only agrant or largemake a black market in agricultural diesel. In 2007 it was scale black-marketeers were prosecuted by the military.


Indian black-money

Further information: Indian black money, Corruption in

India and Black Money (Undisclosed Foreign Income
and Assets) and Imposition of Tax Bill, 2015
The black money market situation in India is epidemic.
India currently tops the list for illegal monies in the entire
world, estimated to be almost US$1,456 billion stored in
Swiss banks in the form of unaccounted money.[48] According to the data provided by the Swiss Banking Association, India has more black money than the rest of the
world combined.[49][50][51] Indian Swiss bank account assets are worth 13 times (1300%) the countrys national
debt, and, if this black money is seized and brought back
to the country, India has the potential to become one
of the richest countries in the world.[52] Allegations of
Indians holding trillions in black money in Switzerland
are, however, in dispute. Later reports, including those
by Swiss Bankers Association and the Government of
Switzerland, claim that these allegations are false and fabricated, and the total amount held in all Swiss banks by
citizens of India is about US$2 billion.[53][54]



A classic example of creating a black market is the

Prohibition of alcohol. In the United States, many
organized crime syndicates took advantage of the lucrative opportunities in the resulting black market in banned
alcohol production and sale. Most people did not think
drinking alcohol was particularly harmful nor that its buyers and sellers should be treated like common criminals.
This led to the illegal speakeasies, and organizations such
as the Maa grew tremendously more powerful through
their black market activities distributing alcohol. This
lasted until repeal of Prohibition.

See also
Business ethics
Darknet market
Grey market
Household electricity approach
Hungers Rogues black market in post WWII Europe
Informal economy
Jangmadang black and grey markets in post famine
North Korea


Unreported employment
Wide boy

8 References
[1] Neuwirth, Robert (August 18, 2011). Global Bazaar:
Street Markets and Shantytowns Forge the Worlds Urban
Future Shantytowns, favelas and jhopadpattis turn out to
be places of surprising innovation. Scientic American:
5663. Retrieved 2012-03-05.
[2] Buehn, A.; Schneider, F. (2012). pp. 139-171. Shadow
economies around the world: novel insights, accepted
knowledge, and new estimate. International Tax and
Public Finance (19/1).
[3] Feige, Edgar L. (December 11, 2003). Dening And
Estimating Underground And Informal Economies: The
New Institutional Economics Approach. World Development. Elsevier, 18 (7): 9891002. doi:10.1016/0305750x(90)90081-8. Retrieved 2012-03-05.
[4] Feige, Edgar L. & Cebula, Richard (January 2011).
Americas Underground Economy: Measuring the Size,
Growth and Determinants of Income Tax Evasion in the
U.S.. Retrieved 2012-03-05.
[5] Feige, Edgar L. (September 2009). New estimates of
overseas U.S. currency holdings, the Underground economy and the Tax Gap"". Retrieved 2012-03-05.
[6] OECD (2002) Measuring the Non-Observed Economy A
Handbook, Paris France.
[7] Feige, Edgar L.; Urban, Ivica (2008). Measuring
underground (unobserved, non-observed, unrecorded)
economies in transition countries: Can we trust GDP?".
Journal of Comparative Economics 36 (2): 287306.
[8] De Soto, Hernando, The Other Path: The Invisible Revolution in the Third World. Harper and Row, New York,
[9] Portes, Alejandro; Sassen-Koob, Saskia (1987). Making it underground: Comparative material on the informal
sector in western market economies. American Journal
of Sociology 93 (1): 3061. doi:10.1086/228705.
[10] Colin C. Williams (2005). A Commodied World?: Mapping the limits of capitalism. Zed Books. pp. 7374.
ISBN 1-84277-355-0. Retrieved 2012-03-06.
[11] Feige, Edgar L. (1985-06-07). NJA 1985 s. 444 (in
Swedish). Retrieved 2012-03-05.
[12] Christina Royster-Hemby (April 21, 2004). Feature: A
Baltimore Way of Life. Retrieved 201203-05.
[13] World Drug Report 2005. United Nations Oce on
Drugs and Crime. Archived from the original on 200607-20. Retrieved 2012-03-05.

[14] Lena Edlund & Evelyn Korn (2002). A Theory of Prostitution (pdf) 110 (1). Journal of Political Economy. Retrieved 2012-03-06.
[15] Illegal logging news. Retrieved 14 September 2014.
[16] Illegal logging industry worth almost as much as drug production industry
[17] Murphy, Mary (1994). Bootlegging Mothers and Drinking Daughters: Gender and Prohibition in Butte Montana. American Quarterly 46 (2).
[18] Prohibition (miniseries), Episode 1, A Nation of Drunkards. Directed by Ken Burns & Lynn Novick. Distributed by PBS.
[19] Horiwitz, Sari (8 June 2004). Cigarette Smuggling
Linked to Terrorism. The Washington Post. p. A04. Retrieved 2012-03-05.
[20] Matthew L. Myers (August 5, 2005). North Carolinas
Cigarette Tax Increase Is A Small Step In The Right Direction But Kids and Taxpayers Will Miss Benets of
Greater Increase. Campaign for Tobacco-Free Kids. Retrieved 2012-03-06.
[21] State Sales, Gasoline, Cigarette, and Alcohol Tax Rates
by State, 2000-2010. Tax Foundation. April 1, 2010.
Retrieved 2012-03-06.
[22] Scottish Grocers Federation (2009-02-25). Illegal
Cigarettes Partnership Must Address All Aspects of Black
Market. Retrieved 2012-03-05.
[23] Jafar, Tazeen H. (2009).
Organ Tracking:
Global Solutions for a Global Problem. American
Journal of Kidney Diseases 54 (6): 11451157.
[24] Ambagtsheer, F.; Weimar, W. (2011). A Criminological Perspective: Why Prohibition of Organ Trade Is Not
Eective and How the Declaration of Istanbul Can Move
Forward. American Journal of Transplantation 12 (3):
571575. doi:10.1111/j.1600-6143.2011.03864.x.
[25] Shimazono, Yosuke (2007). The State of the International Organ Trade: A Provisional Picture Based on Integration of Available Information. Bulletin of the WHO
85 (12). doi:10.1590/S0042-96862007001200017.
[26] Racketeering. Retrieved 2012-06-29.
[27] David Witwer, "'The Most Racketeer-Ridden Union in
America': The Problem of Corruption in the Teamsters
Union During the 1930s, in Kreike, Emmanuel, Ed.;
Jordan, William Chester, Ed. (2004). Corrupt histories.
Rochester, New York: University of Rochester Press.
ISBN 1-58046-173-5.
[28] Tracking down Englands council house sublet cheats,
Panorama, BBC, 4 May 2011
[29] 'Egalitarian' Stockholm rents feed black market, The Local, 30 Aug 2010
[30] Hyrestvan r din fr 300 000 (in Swedish, The rental
one-bedroom [apartment] is yours for 300 000 [SEK]"),
Svenska Dagbladet, 5 May 2013

[31] Charles W. Moore (August 8, 2003). Is music piracy

stealing?". Retrieved 2012-03-06.
[32] Documentary Filmmaker Supports BitTorrent Uploader. TorrentFreak. May 14, 2009. Retrieved 201203-05.
[33] Verkaik, Robert (8 July 2009). Illegal downloading:
What happens if you're caught?". The Independent (London). Retrieved 2012-03-05.
[34] Cory Doctorow (November 13, 2009). Labels may be
losing money, but artists are making more than ever. Retrieved 2012-03-05.
[35] Oriana Zill & Lowell Bergman. Drug Wars: Special Reports: The Black Peso Money Laudering System. PBS
Frontline. Retrieved 2012-03-06.
[36] Feige, Edgar L. (April 2012). New Estimates of U.S.
Currency Abroad, the Underground Economy, and the
Tax Gap"". Crime Law and Social Change. Retrieved
17 March 2014.
[37] Federal Reserve Flow of Funds Z.1 Table 204. U.S.
Federal Reserve. December 8, 2011. Retrieved 2012-0305.
[38] Feige, Edgar L. (2 February 2012). The myth of the
cashless society": How much of Americas currency is
overseas?". Retrieved 14 September 2014.
[39] Edgar L. Feige, Dynamics of Currency Substitution, Asset Substitution and De facto Dollarisation and Euroisation in Transition Countries, Comparative Economic
Studies, September, 2003, Vol. 45 #3 pp. 358-383.
[40] E. L. Feige et al. Unocial Dollarization in Latin America: Currency Substitution, Network Externalities and Irreversibility, in Dean, Salvatore and Willett (eds.) The
Dollarization Debate, Oxford Press, 2003.
[41] Follow The Bitcoin: How We Got Busted Buying Drugs
On Silk Roads Black Market.
[42] Tom Peterkin (January 31, 2006). IRA fuel smuggling
'drove oil giants to abandon Ulster'". The Daily Telegraph
(London). Archived from the original on 2011-05-01.
Retrieved 2012-03-06.
[43] Fuel smuggling down say customs. Belfast: BBC. May
3, 2001. Retrieved 2012-03-06.
[44] Red diesel abuse costs UK millions. What Car?
(Haymarket Group). November 7, 2007. Retrieved 201203-06.
[45] Chart showing which products are traded against one another depending on the location. WIRED. Retrieved 14
September 2014.
[46] The Home Front (facsimile ed.). London: Imperial War
Museum. July 1945. ISBN 1-904897-11-8.
[47] Daily Telegraph Saturday 17 February 1945, reprinted on
page 30 Daily Telegraph Tuesday 17 February 2015



[48] V. Venkateswara Rao (August 13, 2010). Black, bold

and bountiful. The Hindu Business Line. Retrieved 201203-05.
[50] Meetu Jain (January 25, 2011). Govt to reveal stand on
black money on Jan 25. IBN Live. Retrieved 2012-0305.
[51] Govt To Reveal Stand On Black Money On Jan 25. Current News India. Archived from the original on 2011-0430. Retrieved 2012-03-05.
[52] VM Sathish (February 12, 2011).
Tehelka says
Manorma Group has account. Emirates 24-7. Retrieved
[53] Banking secrecy spices up Indian elections. SWISSINFO - A member of Swiss Broadcasting Corporation.
14 May 2009.
[54] White Paper on Black Money (PDF). Ministry of Finance, Government of India. 2012.

Further reading
Breusch, Trevor.
Estimating the Underground Economy using MIMIC Models (PDF).
Ideas.repec. Retrieved 2005.
Cebula, R. (2014). Where Has the Currency Gone?
And Why? The Underground Economy and Personal Income Tax Evasion in the US, 1970-2008,
Review of Economic Analysis, Rimini Centre for Economic Analysis, vol. 6(1), pages 3652, June.
Feige, Edgar L. (2007) [1989]. The Underground
Economies:Tax Evasion and Information Distortion.
Cambridge: Cambridge University Press. p. 378.
ISBN 0-521-26230-5.
Feige, Edgar L. (December 11, 2003). Dening
And Estimating Underground And Informal
Economies: The New Institutional Economics
Approach. World Development. Elsevier, 18 (7):
9891002. doi:10.1016/0305-750x(90)90081-8.
Schneider, Friedrich; Enste, Dominik H. (2000).
Shadow Economies: Size, Causes, and Consequences. Journal of Economic Literature (American Economic Association) 38 (1): 77114.
doi:10.1257/jel.38.1.77. JSTOR 2565360.
Schneider, F., and Willams, C.C. (2013). The
shadow economy. IEA, Institute for Economic Affairs, London.
Feld, L., and Schneider, F. (2010). Survey on the
shadow economy and undeclared earnings in OECD
countries. German Economic Review, 11/2, pp.


Frey, B.S., and Schneider, F. (2015). Informal

and Underground Economics. In: James D. Wright
(ed.), International Encyclopedia of the Social and
Behavioral Sciences, 2nd edition, Vol. 12. Oxford:
Elsevier, pp. 5055.

10 External links
Havocscope Black Markets - Database and statistics
on black market activities
Ocial March 2000 French Parliamentary Report
on the obstacles on the control and repression of nancial criminal activity and of money-laundering in
Europe by French MPs Vincent Peillon and Arnaud
Montebourg, third section on Luxembourgs political dependency toward the nancial sector: the
Clearstream aair (pp. 83111 on PDF version)
The Underground Economy from National Center
for Policy Analysis (1998)
Going Underground: Americas Shadow Economy by
Jim McTague (2005)
The Underground Economy: Global Evidence of Its
Size and Impact (1997)
The Eects of a Black Market Using Supply and
A lengthening shadow: Shadow economies have
grown since the nancial crisis began 11.August.2010 The Economist
The Secret Strength of Pakistans Economy April 5,
2012 BusinessWeek



Text and image sources, contributors, and licenses


Black market Source: Contributors: Roadrunner, Edward, Gabbe, Ronz,

Bogdangiusca, Kaihsu, Samw, GCarty, Selket, Omegatron, Chuunen Baka, Robbot, ChrisO~enwiki, Jredmond, Scott McNay, Wayland,
Alan Liefting, Orangemike, Orpheus, Ezhiki, Andycjp, Alexf, Beland, Piotrus, Billposer, Bumm13, Kmweber, Neutrality, Mike Rosoft,
Rich Farmbrough, KillerChihuahua, Vsmith, Smyth, YUL89YYZ, Bender235, CanisRufus, El C, Lycurgus, Bobo192, Circeus, Harley
peters, Smalljim, Johnteslade, Giraedata, VBGFscJUn3, Anthony Appleyard, John Quiggin, Andrew Gray, NTK, Velella, Saga City,
Knowledge Seeker, Danhash, RJII, Yurivict, Woohookitty, Camw, LOL, Wafry, Before My Ken, Fleetham, BD2412, Kbdank71, Rjwilmsi,
Vegaswikian, Wragge, Nihiltres, Lmatt, Chobot, Knife Knut, Roboto de Ajvol, YurikBot, Rapido, Yllosubmarine, NawlinWiki, MadMax, Nirvana2013, Deku-shrub, Superiority, PGPirate, SONORAMA, WAS 4.250, Sandstein, Little Savage, BorgQueen, Ultrogothe,
Allens, Katieh5584, RG2, Eykanal, Akrabbim, Sardanaphalus, Veinor, Chronosilence, SmackBot, Davewild, Kintetsubualo, PeterSymonds, Gilliam, Portillo, Ohnoitsjamie, Skizzik, Angelbo, Maxgrin, Bidgee, Da Vynci, Hgrosser, Famspear, Bowlhover, Hgilbert, Mion,
Ck lostsword, BlackTerror, Amartyabag, Keizaijungakushi, Kuru, Joelee, Lapaz, Tazmaniacs, SilkTork, Disavian, Mr.Clown, Goodnightmush, IronGargoyle, JHunterJ, Levineps, OnBeyondZebrax, Courcelles, Weaverem, DangerousPanda, CmdrObot, Ivan Pozdeev, Jago25
98, Vision Thing, Mb webguy, Mika1h, Dgw, N2e, Neelix, Cydebot, Mato, Gogo Dodo, Daniel J. Leivick, Epbr123, Kiwi137, Headbomb, RFerreira, Big Bird, Pekinduck, Xuaeded, Grenbrier, JAnDbot, D99gge, Skomorokh, Robina Fox, RubyQ, Xeno, CptNautilus,
Geniac, Yahel Guhan, VoABot II, TiaF, Maheshkumaryadav, Hifrommike65, CCWilliams, Philg88, MartinBot, Keith D, Ash, Exarion, USN1977, Johnbod, Mikael Hggstrm, Gurchzilla, NewEnglandYankee, Olegwiki, Sunderland06, Funandtrvl, Vranak, Jpsousa4,
VolkovBot, Wxidea, Oshwah, Clarince63, E3bonz, Broadbot, StillTrill, Wykypydya, Eubulides, Lamro, Crashie, Kvrettos, Michellecrisp,
SieBot, Caltas, Ravensre, Flyer22 Reborn, Blackmarketdata, Oxymoron83, SimonTrew, Maelgwnbot, Answerkiller, Sulakers, Ascidian,
Sachaztan, Sab128, Mr. Granger, Loren.wilton, Martarius, ClueBot, Dakinijones, The Thing That Should Not Be, EoGuy, Podzemnik, Drmies, Uncle Milty, Foofbun, Lbertolotti, Worldkacitizen, Excirial, Karlhendrikse, EeepEeep, John Nevard, Nagika, Aseld, 7&6=thirteen,
Frozen4322, Bentu, Apparition11, Tobking, XLinkBot, Dthomsen8, Mitch Ames, WikHead, Daxmac, Linkmarine, Addbot, C6541, Some
jerk on the Internet, Haruth, Noozgroop, Morning277, Glane23, Chzz, Kyle1278, 5 albert square, Tide rolls, Lightbot, David0811, Jarble, Vizu, Crt, Yobot, Vitalie Ciubotaru, TaBOT-zerem, Donfbreed, BrohanP, Alusayman, Bugnot, Reenem, AnomieBOT, Gtz, Rikiki,
Equaaldoors, RandomAct, Materialscientist, Pitke, Quebec99, Xqbot, 4twenty42o, GrouchoBot, ProtectionTaggingBot, Coltsfan, RibotBOT, Wikieditor1988, Mathonius, Qwertyzzz18, Smallman12q, Bandishbhoir, Trathus, Samwb123, FrescoBot, Recognizance, DoostdarWKP, Meishern, Ragha joshi, Citation bot 1, I dream of horses, Jasonbluere, Jonesey95, Hamtechperson, GreenZeb, Beao, Pristino,
Elekhh, FoxBot, Thrissel, Sweet xx, Lotje, Vrenator, Jmfriesen, David Hedlund, Flkitty98, Specs112, Tbhotch, Stroppolo, Reach Out
to the Truth, RjwilmsiBot, DexDor, Beyond My Ken, Slon02, RenamedUser01302013, Qrsdogg, TuneyLoon, Lucas Thoms, Fishsteak,
Cogiati, Josve05a, Evanmcmike, AOC25, H3llBot, SporkBot, Exioms2050, Mr edit man, Erianna, L Kensington, Narayannat, Pun,
Whoop whoop pull up, ClueBot NG, Smtchahal, This lousy T-shirt, Raghith, Lord Roem, Nickjc182, Widr, Evildevilofcanada, Helpful
Pixie Bot, Kgelfman, Guest2625, Plantdrew, Jeraphine Gryphon, BG19bot, EvilResident, Kai Ojima, Northamerica1000, Lolpwnzlmao,
ZombieRamen, ApostleVonColorado, Hurutch, Atomician, DennisDeWitt, Alexxxpiu, Snow Blizzard, Zubaidahlui, CeraBot, BattyBot,
Guitarmike612, AMS351996, Neverything~enwiki, Sniewip, Epicgenius, CsDix, I am One of Many, Melonkelon, Hendrick 99, Plkkyposkisolisti, FrozenIcicle96, WPGA2345, Fixuture, AshleyWae, I.yeckehzaare, Antrocent, Jasonmcaus, Shishirgpt, Ceosad, Bobby4545,
Blackmarketgoods, Defalt311, Loraof, Freddyfrazberry, BobbyMclain, KasparBot, Jimbo.sheeld, Johngot, George Trujillo, SuperCarnivore591, Henry Keen, AmberHenely, Hod grinder, Happymanhornymansucksit1212 and Anonymous: 378



File:15-10-27-Vista_des_de_l'esttua_de_Colom_a_Barcelona-WMA_2834.jpg Source:

commons/a/a4/15-10-27-Vista_des_de_l%27est%C3%A0tua_de_Colom_a_Barcelona-WMA_2834.jpg License: GFDL 1.2 Contributors: Own work Original artist: Ralf Roletschek
File:Black_market_in_Shinbashi.JPG Source:
JPG License: Public domain Contributors: Japanese book Japan seen by GHQ published by Sekaibunka-Sha. United States Armed
Forces owns this original photograph. Original artist: US military Photograph
File:Commons-logo.svg Source: License: ? Contributors: ? Original
artist: ?
File:Emblem-money.svg Source: License: GPL Contributors: Original artist: perfectska04
File:Gun_pyre_in_Uhuru_Gardens,_Nairobi.jpg Source:
Uhuru_Gardens%2C_Nairobi.jpg License: CC BY 2.0 Contributors: Peace eorts Original artist: Fredrick Onyango from Nairobi, Kenya
File:Mercado_Negro,_La_Paz,_Bolivia.JPG Source:
La_Paz%2C_Bolivia.JPG License: CC BY-SA 1.0 Contributors: Own work Original artist: User: (WT-shared) Shoestring at wts wikivoyage
File:Raid_at_elk_lake.jpg Source: License: Public domain Contributors: (archives de l' Ontario) Original artist: C.H.J
Snider fonds
File:Text_document_with_red_question_mark.svg Source:
with_red_question_mark.svg License: Public domain Contributors: Created by bdesham with Inkscape; based upon Text-x-generic.svg
from the Tango project. Original artist: Benjamin D. Esham (bdesham)
File:Wiktionary-logo-en.svg Source: License: Public
domain Contributors: Vector version of Image:Wiktionary-logo-en.png. Original artist: Vectorized by Fvasconcellos (talk contribs),
based on original logo tossed together by Brion Vibber
File:Yellow_Cannabis_strain.jpg Source: License:
CC BY 2.0 Contributors: otrs:2009060510011997 Original artist: otrs:2009060510011997




File:...8__VizuIMG_3671.JPG Source:

83%D0%BB%D1%8F%D0%BD%D1%82_VizuIMG_3671.JPG License: CC BY-SA 3.0 Contributors: Own work Original artist: V.


Content license

Creative Commons Attribution-Share Alike 3.0