An interesting article from McKinsey about the informal economy in Brazil, which allegedly stands at around 40% while the world's average is 32.5%. Sure, I have mentioned before that, Romania's is officially at about 30% but there are voices claiming a 38-39% figure representing the informal part of the economy. It's a good read, and if you wear the Romanian hat we do have similar root causes such as high fiscal regime, weak judicial system or corruption.

However, I believe that we have better premises than the Brazilian ones. Basically a company decides to avoid operating legally when the benefits outweigh the probability and cost of being caught. And the present government IMO tries exactly to push the companies not to consider this equation any longer - reducing the fiscality burden was the number 1 item on their agenda as well as making tax evasion a criminal offense. Equally important the judicial system needs to be more efficient -- creating a better one (transparent, more efficient and credible) is the #1 priority asked by the EU. And it seems like Monica Macovei, the Romanian minister of justice, has good chances to do that.