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Heft36 1 - SFB 580 - Friedrich-Schiller-Universität Jena

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ABEL POLESE<br />

obtain extra money from students in times of<br />

economic crisis when university expenditures<br />

are low? This also means that students,<br />

becoming a source of revenue for the university,<br />

are untouchable. To fail a student means to get<br />

into trouble as a professor, who would even<br />

risk being fired. This is an extra motivation to<br />

allow cheating on exams. The result is a huge<br />

fraud to the state, with universities producing<br />

unprepared students, while professors and<br />

faculty receive extra money and many students<br />

enter the job market with a (fake) degree. All<br />

this occurs while the state is trying to persuade<br />

universities to implement the Bologna process<br />

and teachers to use ‘interactive teaching’<br />

methods during their classes. The main looser is<br />

the job market. Students might learn a job even<br />

with little university education. The problem<br />

is that they learn that such behaviours like<br />

paying for an exam or cheating are tolerated in<br />

society and might continue this tradition when<br />

working.<br />

THE INFORMAL SECTOR: PROBLEM OR SOLUTION<br />

OF TRANSITION?<br />

What do the actors mentioned above have<br />

in common? The first element is a desire or<br />

necessity to engage in informal transactions<br />

with other fellow citizens. The nature of those<br />

relationships is always fluid, oscillating between<br />

the legal and the illegal, depending on the point<br />

of view (and on the moral code) adopted.<br />

However, they also have in common a conflictual<br />

relationship with the state or its subordinates.<br />

In the case of a public worker, this is all<br />

the more visible, as it is direct: the state either<br />

does not pay enough, pays late, or does not pay<br />

at all (Polese 2006b, 2008). The case of the<br />

pensioners is also similar, with the state not<br />

providing enough to live on. Where we have<br />

a doctor in a hospital or a teacher accepting<br />

informal payments, we have somebody else<br />

paying. The fates of the above mentioned<br />

people are, thus, entangled, each receives and<br />

gives money depending on the situation and<br />

the economy turns. Perhaps not the way the<br />

government would like, but we have circulation<br />

of liquidity and a quasi functioning economic<br />

system.<br />

The case of the private worker is less direct, but<br />

it is important to remember here that, where<br />

the state is in charge of the management of a<br />

country, it normally has two options – it either<br />

takes care of all the sectors (central planned<br />

economy) or creates the conditions for external<br />

institutions to regulate the economic life of<br />

the country. Neither of the mentioned options<br />

applies to Ukraine, where employees have little<br />

defence against their employers, who in turn<br />

have little defence against larger companies<br />

and so on.<br />

The case studies explored are situations generating<br />

tensions, directly or indirectly, between<br />

the citizen and the state. However, because of<br />

the political situation in Ukraine, it might not<br />

always be possible to directly oppose political<br />

decisions or confront the political elites, as it<br />

might happen in a country with more<br />

interaction between the political<br />

class and the people. The best way page 211<br />

people can cope is to officially accept<br />

the change but then de facto reject<br />

it. Informal economies, thus, may be seen as<br />

generated by tensions between the state and<br />

the citizen. But change, the shift of an equi-

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