I first read this article in my paper copy of the magazine WIRED (Yes, I know….I know…I'll plant a tree) and thought it'd be worth sharing.
It's something that I have known for a long time, but the quantitative aspect of it being revealed makes it a good read. For those of you who are new to the idea, it's worth reading.
Having said that, I do not promote or support piracy or knock-offs as they disrupt established mainstream economies and artificially inflate the prices of consumables and good. However, there are examples where corporations team up with black markets to allow products that are needed but would not necessarily appeal to the main stream to flow out to those who need it. It is also a great source of innovation.
It has long been known that the marginal of society define the society and the direction of the society. It is not just a disruptive movement, but rather a rattling of the norm which during the adjustment period, establishes new ways to do business or new products which make life more efficient…for most.
This chart (taken from the online article without permission but credited to wired.com) highlights the distribution and size of what the journalist Robert Neuwirth refers to as System D (D for Débrouillard, the French term for what is known in the modern American connotation as a hustler or someone who easily adapts to any situation) in his new book Steal of Nations: The global Rise of the Informal Economy
Source: Friedrich Schneider et al., “New Estimates for the Shadow Economies All Over the World,”International Economic Journal, 2010
