The Informal Economy and the Informal State in Tatarstan, Russia
Author(s)
McCann, Leo
Abstract
Theorists of post-socialist Russia have so far been unable to account adequately for the persistence and implications of informal practices in the economy. Qualitative research of business actors in the central Russian republic of Tatarstan reveals that informality is so entrenched that the terms shadow economy and even informal economy are becoming useless as tools to explain empirical reality. Informality as enduring socio-economic practices occurs in settings other than traditional spheres such as street markets. Tatarstan has an abundance of informal small businesses and street vendors. However, informality happens at all levels of the Russian regional economy. The social structure of post-socialism makes this action so pervasive that, in the absence of formalized legal norms, informality takes centre stage. This paper, based on interviews with economic actors from the autonomous republic of Tatarstan, in the central Volga region of Russia, argues that these informal practices are becoming increasingly entrenched in economic action, and that this is not a transitional feature. It explains why this is happening, and what it means for the future.
