The Informal Sector in Eastern Europe

Abstract No society works exactly like its constitution, and no organization functions exactly according to its official administrative guidelines. In the life of all societies and all bureaucratic organizations — East and West — there exist a whole variety of "informal structures" by which people accomplish their delegated tasks or through which they achieve their own personal goals. In the West, we speak of such informal structures in terms of "networks" or "connections." Those who "know somebody" can go around the bureaucratic queue or obtain free goods and services which others have to pay for. When the use of such connections becomes too blatant, we call it "nepotism" or "corruption." When they take on an openly acknowledged market value we call it "bribery."