Where there are some permissions, there are also prohibitions, and prohibitions always cause a desire to circumvent them. One of the integral parts of the economy is the black market. What it is, whether it has any advantages for the country and individual citizens, and how participants in such trade are punished will be analyzed in this article.
What is the black market and how is it formed?
When there are restrictions or a strict ban on the trade of any product, there are always people who want to get it.
There is a demand - there is also a supply, this is how the black market is born. People who can get the product you are looking for offer it to others different ways and make a profit for it. It should be noted that in black it is much more profitable than legally, both for the seller and the buyer. First, the seller sets the price himself, regardless of antitrust laws and regulations dictated by the market. If this is a special product, then it may not have competition, and therefore the prices are simply astronomical. For the buyer, transactions on the black market are profitable because the price of the product excludes taxes and government fees, which somewhat reduces the cost. Secondly, on the black market you can get anything that may be prohibited by the laws of the state or society, from drugs to human organs.
Who controls the black market
In addition to the participants, the black market is its organizers. Typically, goods sold on the black market are associated with smuggling - where else, for example, do weapons or drugs in circulation come from? It is not difficult to guess that organized crime controls the black market.
The very rights to the goods occur through very complex connections between buyers and intermediaries or sellers, and this is not surprising, because all participants in illegal transactions become objects of persecution by regulatory government agencies.
What can you buy on the black market?
In addition to absolutely harmless ones prohibited by the state for one reason or another, people and ammunition can be purchased on the black market. Examples of such markets:
1. Alcohol. Although " flammable liquid» is legal for sale in most countries, for residents of those places where alcohol is available only on black markets. Today these are Muslim states, where even possession of alcohol is grounds for imprisonment.
2. Black market for weapons. According to official data, the legal sale of weapons significantly exceeds the turnover of weapons and ammunition on the black market. And yet, such a market has been operating since the eighties of the last century.
3. Trade in stolen antiques and works of art. Occurs mainly through online auctions and is carefully monitored by regulatory authorities in order to bring both the seller and the possible buyer to justice.
4. Rare species of reptiles, birds and animals, sale of smuggled black and red caviar. In addition to the fact that these crimes are immoral, participants in such trade can go to prison for a term of 3 years.
5. Selling people - slave trade. One of the most serious crimes that exist. Some countries impose the death penalty for the slave trade.
6. Prostitution, sale of sexual services.
7. Sale of erotic materials and porn products where prohibited.
8. Sale of human organs for operations (clonegery). Most often, donors are completely ordinary people and children who become targets of abduction.
9. Selling fake documentation. Prosecuted by law in any country, the prison term is from 3 years.
10. Sale of narcotic substances. The law punishes not only sellers, but also buyers.
11. Sale software for hacking computer programs.
If trade turnover is illegal, then purchase and sale transactions are carried out in a slightly different way, and not in the usual way that is familiar to buyers. During times Soviet Union, when not only alcohol was banned, but even ordinary jeans and other imported products, the “black market” was so widespread that people even began to denote illegal trade: “get it through connections,” “buy under the counter,” “ trade from the back door”, “get it from under the counter”.
This was no coincidence, since it was possible to flaunt in fashionable things, buy good equipment, books, foreign sound recordings only underground, through friends, in rented apartments and through dummies, because profiteering was prosecuted and punished by imprisonment.
In addition, the profession of “farmer” was also widespread, that is, a speculator in imported things (“company”). It should be noted that they traded not only genuine goods from abroad, but also consumer goods made with their own hands in the so-called “workshops” in order to make a profit.
How does illegal trade occur today?
The criminal trade in illegal products today is carried out in completely different ways than before, although the essence has not changed. Where does the black market operate and how can smuggled goods be found?
The most popular way is to use the Internet. Forums, chats, communities on a topic of interest - everywhere there are both simply curious people and people related to illegal business. In addition, auctions are often held where you can purchase stolen works of art. You just need to know which resource to go to.
Once the potential buyer and seller of the contraband find each other, they can meet on neutral territory, usually with the participation of an intermediary, and complete the transaction.
There is one thing that is even older than the oldest of all professions, and it is human cunning. People have always tried to circumvent all sorts of laws and restrictions, which is why, over time, the concept of the black market was born. Black markets carry out all types of trade that are prohibited by law. This is also called the second economy market, as well as the shadow market.
Despite being illegal, such illegal platforms are thriving these days. We do not encourage you to take a grocery basket and go buy illegal goods, but we only want to tell you what the work of black markets is based on.
1. How black markets work
Of course, any transaction is very dangerous for both the seller and the buyer. For this reason, go to the right person very difficult - it requires specific connections and acquaintances.
How difficult is it to find a place and a person who will introduce you to the underworld of illicit goods? Depends on how serious the product you are going to purchase. Finding a seller of prohibited animals is relatively easy, but buying a rare stolen antique item will not be so easy. Today in China there is a whole market for counterfeit products, which many people know about, and despite this, it functions quietly.
2. What kind of people work in black markets?
You may have a stereotype that every black market seller is a bandit with a scar covering half his face, but that's not quite the case. These activities involve people of different social classes, races and continents. Drug dealers, prostitutes, human and weapons dealers, mafia members and simple businessmen who are trying to sell stolen goods.
Often these are people who consider themselves businessmen, ready to take risks to make money more money. And other sellers consider themselves art experts, because they can offer rare paintings that cannot be found in any museum. All you have to do is agree on the price.
3. What is sold on the black market
As you understand, you can buy absolutely everything on this trading platform. Things such as drugs, weapons, and the slave trade immediately come to mind, but this is not all, but only one part of the illegal segment. Horns, animal skins, as well as animals listed in the Red Book are popular. Unfortunately, there are more creepy products, such as human organs. Having money, today you can even buy them. The most ordinary, but expensive items are also in demand.
These products are so popular because the purchase is not subject to taxes and fees, and in the future the buyer will not be asked where he purchased a specific product, because this purchase is not reflected in any documents.
4. What services are provided on the black market
Of course, prostitution and trade of various kinds are far from the only services on the black market. Corruption and many shadow economic schemes flourish here.
It works like this: a well-connected person brings together interested parties who come to an agreement with each other. One party transfers a certain amount to the other, for example, for patronage in a matter he needs. Plus, many sales and purchase transactions are carried out here, which, if formalized, would be subject to tax. None government regulation and complete lawlessness - this is exactly what dishonest businessmen are looking for.
5. The main reasons for the formation of black markets
The first reason is the state tax system. Many people, trying to avoid paying taxes, resort to shady schemes to save their money. The second reason is the shortage of goods, and they do not necessarily have to be illegal. Remember even the times of the USSR, when store shelves were empty and everything had to be taken out from under the counter. And, of course, the specificity of some goods that are prohibited from production and sale throughout the world. They can only be obtained on the black market.
6. How the black market appeared
It is very difficult to tell how it came about, because both sellers and buyers are trying with all their might to keep their identity secret. But it is known that the first illegal markets began to appear in China, and they offered exactly the same products that can be found from regular sellers, but at a lower price. Competition was the reason here. In Europe, the formation of illicit markets occurred around 1315 due to a great famine. People speculated in grain, the sale of which was strictly limited and prohibited.
7. In what form do black markets exist today?
Of course, this is not a classic bazaar, where you are offered a wide variety of illegal goods to choose from. Today, most transactions take place on the Internet using various web technologies that hide the identity and location of the user. Many of these sites use technology that is named after the god of thunder and son of Odin, you get the idea. This provides businessmen with security and quiet work, if you can call it that.
8. Scale
It is very difficult to estimate the size of the black market due to its secrecy and inaccessibility. It is almost impossible to collect accurate data, but it is known that its profitability can compete with the economies of many countries. If you are interested in numbers, albeit approximate ones, then the annual turnover is about 10 trillion dollars. A very significant amount, don’t you think?
9. Is it possible to overcome the black market?
The problem is that there will always be a demand for the services and products provided that the black market offers. And complete anonymity makes this task even more difficult. Of course, operational work is underway to find sellers and buyers, but due to the fact that illegal activities move onto the World Wide Web and lose some of their physical component, this task becomes more and more difficult from year to year.
10. How the global economy affects black markets
Exactly the same as for legal ones. Before the development of the global world economy, which connected continents and countries, black markets were local and satisfied the demand of a specific region. Today, with the development of connections, globalization and the widespread introduction of the Internet, this phenomenon has become global. Many sellers make their services and products extremely attractive due to their availability and the ability to ship anywhere. This dubious customer focus attracts more and more buyers.
11. Who suffers from black markets
Such activities, in addition to being illegal, bring a lot of suffering to people, especially those who are commodities in the illicit market. Slave trade, prostitution - today about 2.5 million people are commodities that are bought and sold.
Women are forced into prostitution, and even in those countries where it is legalized, there are special, forbidden, perverted forms of this craft, which few people will agree to of their own free will. Men are sold as slaves labor, but who knows what will be on the mind of the next crazy client?
12. Can the black market system help anyone?
Oddly enough, yes. In many third world countries, the underground economy is the main way of existence for many people. Due to the fact that transactions made outside the law are not subject to tax, many people choose to sell their legal goods in a less legal way. The goods include food, daily necessities - everything that is necessary for life, but at a reasonable price.
13. Is it possible to prevent the formation of black markets?
Illicit markets thrive in contexts where populations lack access to large selection goods, but the state does not want to provide them. The more products available at a normal price, the fewer options that a large-scale black market will be formed in a particular state. In other words, the better developed the state’s economy, the less likely it is that a black market will be created and organized within its borders.
The economic policy of the state is also important, because where people are pressured by taxes, prices for goods rise, and wages remain at the same level, people simply have no choice. They have to find various goods cheaper, and they are mostly illegal because they are not taxed. But will this worry the head of the family, who can barely make ends meet?
14. How do people feel about this phenomenon?
It all depends on the sale of specific goods and services provided. If we are talking about drugs, weapons, trafficking in people, animals, then these activities will be condemned. But if goods are sold there common use or products in short supply, then people are unlikely to be against the existence of such a shadow market. For example, in America, during Prohibition, alcohol became unaffordable, and its production was mainly controlled by criminal gangs, so many citizens, although they did not support the mafia, committed a crime by buying alcohol on the black market. Once again, demand created supply, and shortages created a new black market.
The dollar exchange rate on the black market is much more attractive than in official exchange offices and banks. The presence of this system allows people to make profitable sales and purchases of currency. But is everything so simple and what should you pay attention to?
The illegal market is a long-established scheme where you can make attractive purchases and sales of both the dollar and other currencies. Compared to the illegal market, the rate in official banks is much higher, so you will have to pay a significant amount to make a purchase. When it comes to selling, an unofficial transaction can fetch a lot more foreign money.
The main advantages of the illegal market are:
- unlimited purchase and sale;
- high price sales, minimum purchases;
- possibility of exchanging any currency (euro, rubles, hryvnia, dollars).
Unfortunately, many banks have restrictions on the purchase of dollars. And on the black market or with money changers, you can exchange any amount of money, the main thing is that the person has it in stock. This is the only way to buy dollars without restrictions and without the participation of several people. In many cases, this exchange option is the most acceptable and the only one. In particular, if a person plans to purchase an apartment, but it is not possible to exchange all his savings into dollars in one bank transaction.
As for the sale of currency, the situation here is even more attractive, because the official price in banks is lower than that of money changers. Selling a small amount will not affect a person's overall income. If the savings are impressive, preference is always given to currency traders. This is not only profitable, but also profitable.
Previously, the black market was not particularly popular; at the moment, almost 80% of the population not only in Russia, but also in all CIS countries resort to its help.
How to get into the black market and its pricing policy
The rate offered by currency traders is much more favorable than at official exchange offices. This information has been mentioned several times above. How much more profitable is the value of the dollar from the money changers, and should you trust them? To do this, you need to understand current exchange rates.
Sales at an official Russian bank are 65-66 rubles per dollar. For $1000 a person will receive approximately 6500-6600 rubles. If you turn to currency traders with such a proposal, the result of such an operation will be 6700-6900 rubles. By exchanging one thousand dollars, a person receives 200-300 rubles of net profit. With an impressive amount, the pleasant bonus can be significantly higher.
As for the purchase, the situation here is almost the same, so it also has its advantages. If you need to purchase $1000, you will have to shell out approximately 6700-6800 rubles. If you carry out this operation from currency traders, then on average they will not take more than 6,500 rubles. Which again saves the budget. From this point of view, the black market is certainly in the lead.
Having analyzed the price from the “changers” and official sources, most people prefer the first exchange option. But in this situation you need to be careful. If problems arise with the exchange, fraud or receipt of counterfeit bills, it is almost impossible to achieve justice.
Competent law enforcement agencies will not help in this matter. After all, using the “services” of currency traders is punishable by law. By complaining about the offender, a previously law-abiding citizen may be subject to a fine, including confiscation of all currency valuables.
Unfortunately, many participants in the black market both in Russia and other CIS countries have everything covered. Therefore, any complaint is of no value. On the contrary, people may suffer even more in this situation a common person, who decided to buy and sell on the black market.
For example, trading “from the back door”, when store sellers held back the shortage and sold it to “their own”. There was also trade “from under the counter”. The seller hid the deficit and took it out again if “his own” appeared, or kept it for himself. There was trade "under the counter", usually on the street: scarce goods were hidden and carefully taken out only when a potential buyer appeared. Purchasing goods “through connections” was very common. To do this, you had to have friends in the trade. Sometimes they became friends with a person only because they could get something through him. In the USSR, the term “buy” was very often replaced by the term “get it.” Store workers could “write off” good product like a marriage, so that you can resell it and put the money in your pocket. Sometimes the goods were hidden “under the counter”, then they were marked down - supposedly no one was taking the item - and sold to someone from “their own”. Factory workers often sold their products on the black market. There were “farmers” who bought imported goods from foreigners and then resold them to “ours.” Fartsovka was often carried out by employees of hotels where guests from abroad stayed - maids, bartenders, cleaners. They resold the goods to resellers. The resellers themselves were on duty for days at Intourist and Metropol, paying the doormen so that they would not drive them away. The black marketers had their own places where they handed over the goods to the buyers. But they could do this in an ordinary yard, and even in public toilet. And finally, there were the so-called “guild workers”. In underground workshops, they sewed fashionable clothes, often attaching labels with foreign brands to them and passing them off as imported, and then selling them. All this activity was, of course, criminally punishable. Moreover, the goods were most often resold not at face value, but at an inflated price, and this was already an article for speculation. It could have given him five to seven years with confiscation of property. For commercial intermediation in the acquisition of scarce products, they were given three years. With the end of the Soviet Union, this ugly form of economics ceased to exist. However, the black market still exists today, where you can buy weapons, drugs, human organs and even... slaves.