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Black Economy

Prof . Zaid Mohammed Al-Rommany

Published On: 19/6/2021 A.D. - 9/11/1442 H. Visited: 4802 times

Black Economy

The recent link between incomes in the hidden economy and domestic and global terrorist activities and the promotion of violence around the world is no secret.

Given the close link between the hidden economy and economic crimes, interior ministries around the world have tended to establish specialized departments of economic security, prosecute dirty money laundering, track economic crimes, expose their relationship with terrorism, violence and extremism, while deepening ties of international cooperation to prevent economic crimes associated with the hidden economy or the black economy.

Some studies have shown that black market mafia profits in some countries now account for 50% of the national economy. These studies showed that in one-year the mafia's profits from the hidden economy amounted to about $150 billion, demonstrating the control of either the invisible or the black economy in various developing and developing countries of the world.

This is further complicated by the proliferation of money laundering of income generated under the hidden economy in recent years at rapid rates in some countries of the world.

Unfortunately, gangs of the invisible economy, drug mafias and dirty money have been able to achieve high incomes from black market transactions, currency and gold trade, alcohol, gambling, prostitution and drugs.

The hidden economy is the set of activities not registered within the framework of national accounts. Undeclared legal production in sectors includes agriculture, industry, construction and construction, internal trade, tourism, hotels, transport and transportation, finance and insurance, and public and social services.

The hidden economy also includes the production of prohibited goods and services, the production of drugs, the distribution of hashish, the distribution of smuggled cigarettes, the entry of bets, gambling and prostitution and the theft of raw materials and industrial materials.

Economists have been divided towards the hidden economy between supporters and opponents, explaining its advantages and pros, and detailing its flaws and disadvantages.

Some economists believe that some activities of the invisible economy raise the level of economic well-being under certain circumstances, usually constrained.

Most economists also believe that the hidden economy negatively affects the added value of public businesses and government, as the additional work of workers elsewhere affects their poor productivity in public companies, and therefore personal income is undervalued, negatively affecting national income.

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