Symbiosis of politics, the shadow economy, corruption, and organized crime in the territory of the western balkans: The case of the republic of serbia

Abstract

© 2016 by Taylor & Francis Group, LLC. All rights reserved. International sanctions and a total embargo on business operations of Serbia with the world (in the elds of the economy, science, and the entire international communication and exchange of ideas, and suspended cooperation of the Interpol with the Serbian police) led to not only great economic, political, social, and security consequences in the country, but also a backlash inuence outside the country. Due to the economic collapse and growth of unemployment, even the ordinary citizens who are not close to those in power got involved in the shadow economy, by way of small-scale smuggling inside the country or illegal shiing of de-cient products from abroad into the country in order to survive. e sanctions of the international community imposed on Serbia contributed to hyperination and the collapse of the domestic currency.cWhat was le of the economy also went from legal business operations into the sphere of the shadow economy, which led to shortages of goods in the legal market, and the only possibility to buy these goods was in the gray market. e Shadow economy as a deviation from the ocial economy in the time of crisis, i.e. in the period of sanctions, turned into the main ow of purchase of energy generating products and some consumer goods (Pilic-Rakic, 1997, p. 12).