The shadow economy as a threat to the economic security of the state

Abstract

The relevance of scientific research is determined by the need to substantiate the specifics of the impact of the shadow economy as a polysystemic phenomenon, inherent in any national economic system, on the economic security of the state. The purpose of the work was to study the size, trends of the shadow economy in Ukraine and its impact on the economic security of the state in order to form the directions of unshadowing the economy as a necessary condition for the accelerated economic growth of Ukraine. The methodical approach used for the implementation of the specified research goal is based on a combination of an integral, indicator, graphic method and a method of comparative analysis of assessments of the shadow economy and the level of economic security of the state. It has been proven that the shadow economy is a real threat to the economic security of the state, the destructive influence of which, in the case of its excessive spread, increases in the conditions of fluctuations in the market situation and economic instability. The problems of the asymmetric influence of the shadow economy on the formation of the business environment in Ukraine are considered. A direct inverse relationship between the level of shadowing of economic activity and the level of economic security of Ukraine was revealed. It has been proven that the scale of the shadowing of the national economy of Ukraine is threatening and particularly dangerous. Emphasis is placed on the need to develop and implement the policy of unshadowing and decriminalising the economy. Recommendations are provided as to unshadowing the economy in the direction of the formation of a favourable security-oriented business environment by overcoming the deep sources of the development of shadow socio-economic processes in order to minimise threats to the economic security of Ukraine. The results of the scientific work, as well as the conclusions formulated on their basis, can be used in the improvement of the state policy of ensuring the economic security of Ukraine in conditions of the European integration and increasing influence of global challenges

Problems and Priorities for Preventing Undeclared Labour in Ukraine

“…Current issues related to labour undeclared work (factors, spheres, socio-economic consequences of its spread, mechanisms and priorities for regulation, mitigation, prevention) are addressed in works devoted to: Problems of adequate remuneration of labour and functioning of wage systems (State Labour Service of Ukraine, 2021;Onyschenko, 2020;EU -ILO, 2018;National Institute of Strategic Studies, 2011); processes of shadow economy, features of functioning of its shadow segments (EU -ILO, 2018;Tsvihun, Nechyporuk, 2018;Shevchuk, 2016;Savchenko, Iordanov, 2012;National Institute of Strategic Studies, 2011); non-standard labour relations, temporary (loan) workers (State Labour Service of Ukraine, 2024; EU - ILO, 2018;Lahutina, 2015;Kurzina, 2012). In terms of employment status, the majority of undeclared workers in 2017 reported that they were unemployed (33.5%), employed (31.2%), selfemployed (18.4%), retired (10.5%) and studying (1.9%) (EU -ILO, 2018).…”

“…5 No. 1, 2024 In addition to systemic measures to increase the level of wages in Ukraine, domestic and foreign experts often include in the urgent list of nondeclaration of work that prevents such priorities as (EU -ILO, 2018;Tsvihun, Nechyporuk, 2018;Shevchuk, 2016;Savchenko, Iordanov, 2012): -Improving the tax system in the following areas: coordinated optimisation of tax administration mechanisms and the legislative framework that defines the conditions for business development and expansion at the initial stage, including the establishment of tax holidays on income tax for companies that increase their payroll and improve working conditions for full-time employees; balancing the tax burden of economic entities according to the groups of their production capacities, as well as according to the level of their involvement in programmes of modernisation and diversification of the national economy; maintaining the balance between the fiscal and regulatory functions of taxes, including increasing the transparency of the system of tax benefits; reduction of the fiscal burden on the wage fund; effective monitoring of offshore zones; justified use of amnesty mechanisms in relation to shadow capital of non-criminal origin, while opening ways for its legal investment, encouraging the investment use of legalised funds in the internal interests of the national economy; -monitoring the informal economy and the illegal labour market, in particular in terms of tracking the practice of paying wages "in an envelope"; strengthening systemic mechanisms to prevent it; -ensuring transparency of the real and service sectors of the economy; state support for innovation and investment projects in the real sector, as well as in other industries whose development contributes to the diversification, modernisation and competitiveness of the Ukrainian economy; -coordination of a set of mechanisms for identifying and bringing to legal liability business entities that are dishonest in the use of undeclared labour and tax payments; toughening penalties for corruption in the system of issuing permits and licences, as well as for raiding; -prevention of mutual settlements based on barter between business entities; monitoring of formal grounds and processes for the use of borrowed labour; -improvement of the mechanisms of compulsory social insurance in terms of collecting the unified social tax, distribution and use of these funds for their intended purpose.…”