The informal economy in the former Soviet Union and in Central and Eastern Europe

Guest editors' introduction

Workplace crime and the informal economy in Ukraine: Employee and employer perspectives

Purpose – The purpose of this paper is to explore the criminal workplace activities of both employers and employees in Ukrainian enterprises. It challenges traditional definitions of corruption and suggests that the practices that can be observed fit into the category of organised crime because of the country's economic framework. The paper also explores how the practices are partially a legacy of Soviet economic processes. Design/methodology/approach – A total of 700 household surveys were completed in three cities, Kyiv (where 450 surveys were completed), Uzhgorod (150) and Kharkiv (100). To complement these, approximately 25 in-depth interviews were undertaken with workers in each region. Furthermore, ethnographic observations and “kitchen table” interviews also played an important role in the research. Although the research was oriented towards those working in informal economies, business owners (both formal and informal) were also interviewed. Findings – As well as revealing the endemic nature of corruption in Ukrainian workplaces and the high levels of informal activity undertaken by workers, the research found that many people wish for their workplace to become more regulated. Research limitations/implications – Further interviews could have been carried out with state officials and in more locations. The implications are multiple but mainly they demonstrate the difficulty that those charged with economic reform in Ukraine must face. Originality/value – It is one of the first studies to explore these issues in Ukraine using a variety of research methods.

Everyday tactics and spaces of power: the role of informal economies in post-Soviet Ukraine

Utilising de Certeau's concepts of daily life and his delineation between strategies and tactics as everyday practices this paper examines the role of informal economies in post-Ukraine. Based on 700 household surveys and seventy-five in-depth interviews, conducted in three Ukrainian cities, the paper argues that individuals/households have developed a wide range of tactics in response to the economic marginalisation the country has endured since the collapse of the Soviet Union. Firstly, the paper details the importance of informal economies in contemporary Ukraine while highlighting that many such practices are operated out of necessity due to low wage and pension rates and high levels of corruption. This challenges state-produced statistics on the scale of economic marginalisation currently experienced in the country. By exploring a variety of these tactics the paper then examines how unequal power relations shape the spaces in which these practices operate in and how they can be simultaneously sites of exploitation and resistance to economic marginalisation. The paper concludes pessimistically by suggesting that the way in which these economic spaces are shaped precludes the development of state policies which might benefit the economically marginalised.

The end of transition?:The role of informal economies in the post-Soviet space

This book challenges the accepted notion that the transition from the command economy to market based systems is complete across the post-Soviet space. While it is noted that different political economies have developed in such states, such as Russia’s ‘managed democracy’, events such as Ukraine gaining ‘market economy status’ by the European Union and acceding to the World Trade Organisation in 2008 are taken as evidence that the reform period is over. Such thinking is based on numerous assumptions; specifically that economic transition has defined start and end points, that the formal economy now has primacy over other forms of economic practices and that national economic growth leads to the ‘trickle down’ of wealth to those marginalised by the transition process. Based on extensive ethnographic and quantitative research, conducted in Ukraine and Russia between 2004 - 2007, this book questions these assumptions by stating that the economies that operate across post-Soviet spaces are far from the textbook idea of a market economy. Through this the whole notion of ‘transition’ is problematised and the importance of informal economies to everyday life is demonstrated. Using case studies of various sectors, such as entrepreneurial behaviour and the higher education system, it is also shown how corruption has invaded almost all sectors of the post-Soviet every day.

Beyond the formal/informal economy binary hierarchy

Purpose – This paper aims to evaluate critically the conventional binary hierarchical representation of the formal/informal economy dualism which reads informal employment as a residual and marginal sphere that has largely negative consequences for economic development and needs to be deterred. Design/methodology/approach – To contest this depiction, the results of 600 household interviews conducted in Ukraine during 2005/2006 on the extent and nature of their informal employment are reported. Findings – Informal employment is revealed to be an extensively used form of work and, through a richer and more textured understanding of the multiple roles that different forms of informal employment play, a form of work that positively contributes to economic and social development, acting both as an important seedbed for enterprise creation and development and as a primary vehicle through which community self-help is delivered in contemporary Ukraine. Research limitations/implications – This survey reveals that depicting informal employment as a hindrance to development and deterring engagement in this sphere results in state authorities destroying the entrepreneurial endeavour and active citizenship that other public policies are seeking to nurture. The paper concludes by addressing how this public policy paradox might start to be resolved. Originality/value – This paper is one of the first to document the role of informal employment in nurturing enterprise creation and development as well as community exchange.

Evaluating the motives of informal entrepreneurs: some lessons from Ukraine

To understand entrepreneurs' motivations, it has become increasingly common to distinguish between those driven by necessity (or pushed) and those driven by opportunity (or pulled) into entrepreneurship. Until now, entrepreneurs operating wholly or partially in the informal economy have been widely assumed to be necessity-driven, pushed into this enterprise as a survival strategy in the absence of alternatives. To evaluate whether this is indeed the case, this paper reports one of the first surveys of informal entrepreneurs' motives. Reporting face-to-face interviews conducted in Ukraine during 2005–06 with 298 informal entrepreneurs, the finding is although most identified themselves as necessity entrepreneurs when initially asked whether they were either pushed or pulled, subsequent questions reveal in the vast majority of cases, there were not only both push and pull factors driving their original decision to start-up informal enterprises, but also a clear shift among these entrepreneurs as their business became established away from necessity-oriented motivations and toward more opportunity-oriented motivations. The outcome is a call for a transcendence of a static either/or approach and the adoption of a dynamic both/and approach that recognizes the coexistence of necessity- and opportunity-drivers as well as the fluidity of entrepreneurs' motivations.

Entrepreneurship and the informal economy: a study of Ukraine's hidden enterprise culture

How many entrepreneurs start-up their business ventures conducting some or all of their trade in the informal economy? The aim of this paper is to answer this key question that has been seldom addressed using data from 600 face-to-face structured interviews conducted in Ukraine in late 2005 and early 2006. Analyzing the 331 entrepreneurs identified (i.e., individuals starting-up an enterprise in the past three years), just 10 percent operate on a wholly legitimate basis, while 39 percent have a license to trade and/or have registered their business but conduct a portion of their trade in the informal economy, and 51 percent operate unregistered enterprises and conduct all of their trade on an off-the-books basis. Given that some 90 percent of all business start-ups operate partially or wholly in the informal economy, and that 40 percent of all respondents depend on the informal economy as either their principal or secondary contributor to their livelihoods, the paper concludes by considering the wider implications of these findings both for further research and public policy.

Informal boundary-spanning links and networks in successful technological innovation

The sources of ideas embodied within successful technological innovation has been a subject of interest in many studies since the 1950s. This research suggests that sources external to the innovating organisation account for between one and two-thirds of the inputs important to the innovation process. In addition, studies have long highlighted the important role played by the personal boundary-spanning relationships of engineers and scientists as a channel for the transference of such inputs. However, research concerning the role and nature of personal boundary-spanning links in the innovation process have either been primarily structurally orientated, seeking to map out the informal networks of scientists and engineers, or more typically, anecdotal. The objective of this research was to reveal and build upon our knowledge of the role, nature and importance of informal exchange activity in the innovation process. In order to achieve this, an empirical study was undertaken to determine the informal sources, channels and mechanisms employed in the development of thirty five award-winning innovations. Through the adoption of the network perspective, the multiple sources and pluralistic patterns of collaboration and communication in the innovation process were systematically explored. This approach provided a framework that allowed for the detailed study of both the individual dyadic links and morphology of the innovation action-sets in which these dyads were embedded. The research found, for example, that the mobilisation of boundary-spanning links and networks was an important or critical factor in nineteen (54%) of the development projects. Of these, informal boundary-spanning exchange activity was considered to be important or critical in eight (23%).

Coherence and understanding in informal conversations between native and non-native speakers of English

This study investigates informal conversations between native English speakers and international students living and studying in the UK. 10 NNS participants recorded themselves during conversations with native speakers. The audio-recordings were transcribed and a fine-grained, qualitative analysis was employed to examine how the participants jointly achieved both coherence and understanding in the conversations, and more specifically how the NNSs contributed to this achievement. The key areas of investigation focused on features of topic management, such as topic initiations, changes and transitions, and on the impact which any communicative difficulties may have on the topical continuity of the conversations. The data suggested that these conversations flowed freely and coherently, and were marked by a relative scarcity of the communicative difficulties often associated with NS-NNS interactions. Moreover, language difficulties were found to have minimal impact on the topic development of the conversations. Unlike most previous research in the field, the data further indicated that the NNSs were able to make active contributions to the initiation and change of topics, and to employ a range of strategies to manage these effectively and coherently. The study considers the implications which the findings may have for teaching and learning, for second language acquisition research, and for non-native speakers everywhere.

Peer mentoring in Higher Education:a reciprocal route to student success

This paper provides an introduction to the findings of a large HEFCE/Paul Hamlyn-sponsored project, which aimed to investigate and analyse the value of peer mentoring in facilitating a successful transition into higher education.

Peer mentoring works!

This report draws on the findings of a three year study into peer mentoring conducted at 6 Higher Education Institutions (HEIs), 5 of which were in the UK, 1 of which was in Norway. Following a multiple case-study design, quantitative and qualitative research was conducted in collaboration with the project partners. The research findings provide empirical evidence that peer mentoring works! In particular the report provides: - An Executive Summary outlining the main project findings - A synopsis of the relevant literature – and a link to a much larger literature review undertaken at the beginning of the study - A working conceptual framework and set of research questions - An overview and rationale of the methodological approach and tools - Evidence of the value of peer mentoring in promoting a ‘smooth’ transition into university - Evidence that peer mentoring works by providing the means by which new students can access peer support in both social and academic spheres throughout their first year - Identification of the main challenges of peer mentoring - Evidence of the manner in which writing peer mentoring works by providing bespoke help for individual students - A discussion section in which a new approach to peer mentoring, Transition+, is proposed. The report concludes with recommendations for: Higher Education Institutions: Students: Policy Makers: and, Individuals within HEIs wishing to establish peer mentoring.

Peer mentoring works! How peer mentoring enhances student success in Higher Education:evaluation toolkit

This toolkit, published by the HEA, provides colleagues across the Sector with the practical and methodological tools to empirically evaluate peer mentoring and tutoring. This evaluation kit provides two data collection tools that may be adopted and adapted to meet institutional requirements. The first of these is a survey, developed out of the original survey used in the Peer Mentoring Works Project. Some questions have been added as a result of reflexive application of colleagues and students input as the project has progressed. The second part of the toolkit comprises a qualitative interview guide. This guide is similar to the one used in the research, but again it has been further developed as a result of the project. It may be adapted for use in focus groups or one-to-one interviews. The final document within the kit is a sample consent form.

Peer mentoring works! Institutional manual

Institutional guidance and recommendations pertaining to peer mentoring

Peer mentoring and experiential learning:the pathway to success

An analysis of the value of peer mentoring as an experiential learning approach

Writing for success:mentoring as a pedagogical tool – a cross- institutional study

The prominent position given to academic writing across contemporary academia is reflected in the substantive literature and debate devoted to the subject over the past 30 years. However, the massification of higher education, manifested by a shift from elite to mass education, has brought the issue into the public arena, with much debate focusing on the need for ‘modern-day' students to be taught how to write academically (Bjork et al., 2003; Ganobcsik-Williams, 2006). Indeed, Russell (2003) argued that academic writing has become a global ‘problem' in Higher Education because it sits between two contradictory pressures (p.V). On one end of the university ‘experience' increasing numbers of students, many from non-traditional backgrounds, enter higher education bringing with them a range of communication abilities. At the other end, many graduates leave university to work in specialised industries where employers expect them to have high level writing skills (Ashton, 2007; Russell, 2003; Torrence et al., 1999). By drawing attention to the issues around peer mentoring within an academic writing setting in three different higher education Institutions, this paper makes an important contribution to current debates. Based upon a critical analysis of the emergent findings of an empirical study into the role of peer writing mentors in promoting student transition to higher education, the paper adopts an academic literacies approach to discuss the role of writing mentoring in promoting transition and retention by developing students' academic writing. Attention is drawn to the manner in which student expectations of writing mentoring actually align with mentoring practices - particularly in terms of the writing process and critical thinking. Other issues such as the approachability of writing mentors, the practicalities of accessing writing mentoring and the wider learning environment are also discussed.