86-477: The Mineral Revolution is a term used by historians to refer to the rapid industrialisation and economic changes which occurred in South Africa from the 1860s onwards. The Mineral Revolution was largely driven by the need to create a permanent workforce to work in the mining industry , and saw South Africa transformed from a patchwork of agrarian states to a unified, industrial nation . In political terms,
172-431: A "tax gap" of $ 450–600 billion. The "unrecorded economy" circumvents the institutional rules that define the reporting requirements of government statistical agencies. A summary measure of the unrecorded economy is the amount of unrecorded income, namely the amount of income that should (under existing rules and conventions) be recorded in national accounting systems (e.g., National Income and Product Accounts ) but
258-446: A black market exists to supply them. Despite law enforcement efforts to intercept them, demand remains high, providing a large profit motive for organized criminal groups to keep drugs supplied. The United Nations has reported that the retail market value of illegal drugs is $ 502 billion. Although law enforcement agencies intercept a fraction of drug traffickers and incarcerate thousands of wholesale and retail sellers and users,
344-497: A black market. Money may be exchangeable for a differing amount of the same currency if it has been acquired illegally and needs to be laundered before the money can be used. Counterfeit money may be sold for a lesser amount of genuine currency. The rate of exchange between a local and foreign currency may be subject to a black market, often described as a " parallel exchange rate " or similar terms. This may happen for one or more of several reasons: A government may officially set
430-472: A foreign currency for the local currency. The U.S. dollar is viewed as a relatively stable and safe currency and is often used abroad as a second currency. In 2012, US$ 340 billion, roughly 37 percent of all U.S. currency, was believed to be circulating abroad. The most recent study of the amount of currency held overseas suggests that only 25 percent of U.S. currency was held abroad in 2014. The widespread substitution of U.S. currency for local currency
516-522: A large labour force . These were unavailable to ordinary diggers, and the diamond mines were quickly taken over by the "mining capitalists" – large corporations with access to credit, machinery, and labour. The discovery of gold at the Witwatersrand orefields in 1886 triggered a gold rush which greatly escalated this continuing trend. The orefields, which overlapped British and Afrikaner territory, were quickly excavated of all surface deposits and
602-403: A low-profit item for the rum-runners, and they moved on to smuggling Canadian whisky , French champagne , and English gin to major cities like New York City and Boston , where prices ran high. It was said that some ships carried $ 200,000 (roughly equivalent to US$ 4.5 million in 2022 ) in contraband in a single run. The United Kingdom has some of the highest taxes on tobacco products in
688-479: A major impact on political developments in South Africa. The Cape Colony required armies of workers for the mines and support industries, and to secure a regular flow of workers to the mines, the colonial government began a series of annexations of neighbouring African states, such as Basutoland , Bechuanaland , and Pediland . In the newly annexed territories, the colonial government introduced laws such as
774-496: A new class, the "rural gentry", emerged. These middle-class farmers, midway between the large commercial farms and smallholdings, were able to significantly increase their earnings by producing cash crops such as coffee, tobacco, sugar, and grapes, which were not labour-intensive and which fetched high prices at urban markets. Animal husbandry also increased, with increasingly large swathes of land being turned over to sheep and cattle farming. Mass migration to towns, urban growth, and
860-400: A person or group (e.g., a criminal gang) indicates to a store owner that they could protect her/his store from potential damage, damage that the same person or group would otherwise inflict, while the correlation of threat and protection may be more or less deniably veiled, distinguishing it from the more direct act of extortion . Racketeering is often associated with organized crime . The term
946-522: A premium to acquire it. U.S. currency is viewed as a relatively stable store of value and, since it does not leave a paper trail, it is also a convenient medium of exchange for both illegal transactions and for unreported income both in the U.S. and abroad. More recently cryptocurrencies such as bitcoin have been used as a medium of exchange in black market transactions. Cryptocurrencies are sometimes favored over centralized currency due to their pseudonymous nature and their ability to be traded over
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#17327660133401032-401: A problem, such as for a problem that does not actually exist or that would not otherwise exist if the racket did not exist. Conducting a racket is called racketeering. The potential problem may be caused by the same party that offers to solve it, although that fact may be concealed, with the intent to engender continual patronage for the racketeer. An archetype is the protection racket , wherein
1118-730: A red dye in the UK, a green dye in Ireland). The saving is attractive enough to make for a black market in agricultural diesel, which was estimated in 2007 to cost the UK £350 million annually in lost tax. In countries including India and Nepal, the price of fuel is set by the government, and it is illegal to sell the fuel at a higher price. During the petrol crisis in Nepal, black marketing in fuel became common, especially during mass petrol shortage. At times, people queued for hours or even overnight to get fuel. Petrol pump operators were alleged to hoard
1204-631: A rush of prospectors descending on the town, whose population skyrocketed as increasing numbers of prospectors arrived to seek their fortune. As more diggers arrived in Kimberley, diamond-mining increased in scale, focusing in open-pit mining of three main sites. As surface deposits of diamonds were excavated, deeper pits had to be dug, propelling the Mineral Revolution into a new phase. To excavate deep deposits of diamonds, diggers needed machinery (particularly steam engines ), credit, and
1290-483: A similar pattern to Kimberley emerged – small diggers were bought out by large corporations. At Kimberley, the diamond mines fell under the monopoly of De Beers , while at the Rand orefields, land was bought up by Wiener man, Breit & Eckstein , Consolidated Gold Mines Inc. , and a number of smaller companies. The emergence of industrial-scale mining forced major demographic shifts in South Africa's population. During
1376-411: Is rent control and subsidized affordable housing , which provide housing below the market cost, there may be a black market for housing rentals. For instance, in the UK there is illegal subletting of social housing homes where the tenant illegally rents out the government-subsidized home at a higher rent. In Sweden, rental contracts with regulated rent can be bought on the black market, either from
1462-416: Is difficult. Low-tax states are generally the major tobacco producers, and have come under criticism for their reluctance to increase taxes. North Carolina eventually agreed to raise its taxes from 5 cents to 35 cents per pack of 20 cigarettes, although this remains far below the national average. As of 2010 , South Carolina has refused to follow suit and raise taxes from seven cents per pack (the lowest in
1548-488: Is illegal or highly regulated in some countries. This demonstrates the underground economy, because of consistent high demand from customers, relatively high pay, but labor-intensive and low-skilled work, which attracts a continual supply of workers. While prostitution exists in every country, studies show that it tends to flourish more in poorer countries, and in areas with large numbers of unattached men, such as around military bases. For instance, an empirical study showed that
1634-577: Is known as de facto dollarisation , and has been observed in transition countries such as Cambodia and in some Latin American countries. Some countries, such as Ecuador, abandoned their local currency and used U.S. dollars, essentially for this reason, a process known as de jure dollarization (see also the example of the Ghanaian cedi from the 1970s and 1980s). If foreign currency is difficult or illegal for local citizens to acquire, they will pay
1720-642: Is known as the Industrial Revolution and took place from the mid-18th to early 19th century. It began in Great Britain, spreading to Belgium, Switzerland, Germany, and France and eventually to other areas in Europe and North America. Characteristics of this early industrialisation were technological progress, a shift from rural work to industrial labour, and financial investments in new industrial structures. Later commentators have called this
1806-414: Is less able than the tertiary sector to accommodate both increased productivity and employment opportunities; more than 40% of the world's employees are " working poor ", whose incomes fail to keep themselves and their families above the $ 2-a-day poverty line . There is also a phenomenon of deindustrialisation , as in the former USSR countries' transition to market economies, and the agriculture sector
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#17327660133401892-494: Is no single underground economy; there are many. These underground economies are omnipresent, existing in market-oriented as well as in centrally planned nations, be they developed or developing. Those engaged in underground activities circumvent, escape, or are excluded from the institutional system of rules, rights, regulations, and enforcement penalties that govern formal agents engaged in production and exchange. Different types of underground activities are distinguished according to
1978-401: Is not. Unrecorded income is a particular problem in transition countries that switched from a socialist accounting system to UN standard national accounting . New methods have been proposed for estimating the size of the unrecorded (non-observed) economy. However little consensus exists on the size of the unreported economies of transitional countries. The " informal economy " circumvents
2064-487: Is often associated with money laundering , a process used to conceal the illegitimate source of the money. Because of the clandestine nature of the black economy, it is not possible to determine its size and scope. The literature on the black market has not established a common terminology and has instead offered many synonyms including subterranean, hidden, grey , shadow, informal, clandestine, illegal, unobserved, unreported, unrecorded, second, parallel, and black. There
2150-452: Is often the key sector in absorbing the resultant unemployment. Black market A black market , underground economy , shadow market or shadow economy is a clandestine market or series of transactions that has some aspect of illegality or is not compliant with an institutional set of rules. If the rule defines the set of goods and services whose production and distribution are prohibited or restricted by law, non-compliance with
2236-428: Is purchased on the black market". Smuggling one truckload of cigarettes from a low-tax U.S. state to a high-tax state can result in a profit of up to $ 3 million. Because traffic crossing U.S. state borders is not usually stopped or inspected to the same extent as happens at the country's international borders, interdicting this sort of smuggling (especially without causing major disruption to interstate commerce)
2322-587: Is the period of social and economic change that transforms a human group from an agrarian society into an industrial society . This involves an extensive reorganisation of an economy for the purpose of manufacturing . Industrialisation is associated with increase of polluting industries heavily dependent on fossil fuels . With the increasing focus on sustainable development and green industrial policy practices, industrialisation increasingly includes technological leapfrogging , with direct investment in more advanced, cleaner technologies. The reorganisation of
2408-422: Is traded. Goods and services acquired illegally and/or transacted for in an illegal manner may exchange above or below the price of legal market transactions: No government, no global nonprofit, no multinational enterprise can seriously claim to be able to replace the 1.8 billion jobs created by the economic underground. In truth, the best hope for growth in most emerging economies lies in the shadows. Even when
2494-523: The Cape Colony wished to neutralise any potential threats to the mines. In the aftermath of the war, thousands of young Zulu men migrated to the mines in search of work, driving down wages and exacerbating the already cramped conditions in the compounds. The 1899–1902 Second Anglo-Boer War can be traced to the Mineral Revolution. Britain's desire to control the entire Rand region (which overlapped neighbouring Transvaal ), remove potential threats to
2580-513: The Hut tax , which demanded that inhabitants pay an annual tax on their dwellings, paid in British cash. As the only way to earn British currency was via employment in the mines, this created a steady flow of workers as young men travelled to the mines to earn money, which they sent back to their families to pay the tax. The 1879 Anglo-Zulu War also had roots in the Mineral Revolution, specifically as
2666-580: The Internet . Within the European single market , it is legal for a person or business to buy fuel in one EU state for use in a vehicle in another, as well as a small amount of fuel in a container, but as with other goods, taxes (such as VAT ) will generally be payable by the final customer at the physical place of making the purchase. When fuel is transported across borders for resale, such taxes can often be recovered and then relevant taxes are payable in
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2752-561: The PBS documentary Prohibition , the term "bootlegging" was popularized when thousands of city dwellers would sell liquor from flasks they kept in their bootleg all across major cities and rural areas. The term "rum-running" most likely originated at the start of Prohibition in the United States (1920–1933), when ships from Bimini in the western Bahamas transported cheap Caribbean rum to Florida speakeasies . Rum's cheapness made it
2838-1058: The economic communities do not consider contemporary industrialisation policies as being adequate to the global south (Third World countries) or beneficial in the longer term, with the perception that they may only create inefficient local industries unable to compete in the free-trade dominated political order which industrialisation has fostered. Environmentalism and Green politics may represent more visceral reactions to industrial growth. Nevertheless, repeated examples in history of apparently successful industrialisation (Britain, Soviet Union, South Korea, China, etc.) may make conventional industrialisation seem like an attractive or even natural path forward, especially as populations grow, consumerist expectations rise and agricultural opportunities diminish. The relationships among economic growth, employment, and poverty reduction are complex, and higher productivity can sometimes lead to static or even lower employment (see jobless recovery ). There are differences across sectors , whereby manufacturing
2924-408: The government , or included in the gross national product (GNP), unlike the formal economy. In developed countries, the informal sector is characterized by unreported employment . This is hidden from the state for tax, social security, or labour law purposes but is legal in other aspects. The term black market can also be used in reference to a specific part of the economy in which contraband
3010-539: The First Industrial Revolution. The " Second Industrial Revolution " labels the later changes that came about in the mid-19th century after the refinement of the steam engine , the invention of the internal combustion engine , the harnessing of electricity and the construction of canals, railways, and electric-power lines. The invention of the assembly line gave this phase a boost. Coal mines, steelworks, and textile factories replaced homes as
3096-464: The Mineral Revolution had a significant impact on diplomacy and military affairs. Finally, the policies and events of the Mineral Revolution had an increasingly negative impact on race relations in South Africa, and formed the basis of the apartheid system, which dominated South African society for a century. The Mineral Revolution was caused by the discovery of diamonds in Kimberly in 1867 and also by
3182-490: The Rand and at Kimberley caused severe environmental damage. Open-pit mining was not only dangerous for the workers, but created deep pits which grew wider during rainfall. Urban growth placed increasing strains on water supplies and led to increasing pollution of rivers. In rural areas, commercial farming led to a steady degradation in soil quality, while increasing animal husbandry led to severe soil erosion in many places, as cattle drank scarce water supplies and pulled up
3268-401: The U.S. if aged less than 60 days. Rum-running , or bootlegging, is the illegal business of transporting ( smuggling ) alcoholic beverages where such transportation is forbidden by law. Smuggling is usually done to circumvent taxation or prohibition laws. The term rum-running is more commonly applied to smuggling over water; bootlegging is applied to smuggling over land. According to
3354-565: The USA). According to the World Health Organization (WHO), illegal organ trade occurs when organs are removed from the body for the purpose of commercial transactions. The WHO justifies its stance on the issue by stating, "Payment for... organs is likely to take unfair advantage of the poorest and most vulnerable groups, undermines altruistic donation and leads to profiteering and human trafficking." Despite prohibitions, it
3440-598: The act of theft to be in the profits forgone to the pirates. However, this makes the unsubstantiated assumption that the pirates would have bought the copyrighted material if it had not been available through file sharing or other means. Copyright holders also say that they did work creating their copyrighted material and they wish to get compensated for their work. No other system than copyright has been found to compensate artists and other creators for their work, and many artists do not have an alternative source of income or another job. Many artists and film producers have accepted
3526-535: The black market include consumer-to-consumer online auction websites and private pages on social media websites. In black market venues in Cambodia, sex toys have been seized alongside aphrodisiac products. It has been suggested that if efforts in North America to ban realistic-looking sexbots succeed, it may result in a black market. People engaged in the black market may run their business hidden behind
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3612-462: The chief of Pediland recalled all Pedi men at the mines to fight in a war against the Transvaal . The need to create a fixed, permanent labour force at Kimberley and on the Rand became the primary objective of the mining corporations and the colonial government. The increasing scale of mining operations prompted the corporations to offer very low wages. Extracting diamonds from rocks, and processing
3698-406: The colonial government, and the mining corporations, introducing a variety of schemes to keep workers on-site for lengthy periods of time. Corporate agents travelled to African states, offering fixed contracts and prearranged wages to attract young African men to the mines. At the mine sites, corporations introduced various schemes to keep workers on-site. This was partially motivated in Kimberley by
3784-461: The concept of Social class , i.e., hierarchical social status defined by an individual's economic power. It has changed the family system as most people moved into cities, with extended family living apart becoming more common. The movement into more dense urban areas from less dense agricultural areas has consequently increased the transmission of diseases. The place of women in society has shifted from primary caregivers to breadwinners, thus reducing
3870-429: The corporation's fear that workers were stealing diamonds and selling them on the black market . To counteract this assumed threat, De Beers introduced strip searching , whereby workers leaving the mines at the end of a shift would be undressed and searched for diamonds. A more extreme measure was taken in the early 1880s by De Beers, when the company introduced corporate compounds. These enclosed compounds were built in
3956-423: The costs of, and is excluded from the benefits and rights incorporated in, the laws and administrative rules covering property relationships, commercial licensing, labor contracts, torts, financial credit, and social security systems. A summary measure of the informal economy is the income generated by economic agents that operate informally. The informal sector is part of an economy that is not taxed , monitored by
4042-627: The country of sale, but there are no customs checks on borders between countries within the European Union Customs Union . Differences in tax rates can thus lead to opportunities for arbitrage even when prices before tax are equal, in a form that is illegal as a form of tax evasion . For example, between the Republic of Ireland and Northern Ireland , there has often been a black market for petrol and diesel . The direction of smuggling can change depending on variation in
4128-488: The courts, as the operations are distributed and widespread, traversing national borders and thus legal systems. Since digital information can be duplicated repeatedly with no loss of quality, and passed on electronically at little to no cost, the effective underground market value of media is zero, differentiating it from nearly all other forms of underground economic activity. The issue is compounded by widespread indifference to enforcing copyright law, both with governments and
4214-642: The current tenant or sometimes directly from the property owner. Specialized black-market dealers assist the property owners with such transactions. Items such as medicines as well as essential aircraft and automobile parts (e.g. brakes, motor parts, etc.) are counterfeited on a large scale. Street vendors in countries where there is little enforcement of copyright law , particularly in Asia and Latin America, often sell copies of films , music CDs , and computer software such as video games , sometimes even before
4300-581: The demand for such drugs and profit margins encourage new distributors to enter the market. Drug legalization activists draw parallels between the illegal drug trade and the Prohibition of alcohol in the United States in the 1920s. The laws of many countries forbid or restrict the personal ownership of weapons . These restrictions can range from small knives to firearms , either altogether or by classification (e.g., caliber , handguns , automatic weapons , and explosives ). The black market supplies
4386-773: The demands for weaponry that cannot be obtained legally or may only be obtained legally after obtaining permits and paying fees. This may be by smuggling the arms from countries where they were bought legally or stolen, or by stealing from arms manufacturers within the country itself, using insiders. In cases where the underground economy is unable to smuggle firearms, they can also satisfy requests by gunsmithing their own firearms. Those who may buy this way include criminals to use for illegal activities, gun collectors, and otherwise law-abiding citizens interested in protecting their dwellings, families, or businesses. In England and Wales, certain categories of weapons used for hunting may be owned by qualified residents but must be registered with
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#17327660133404472-525: The discovery of gold in Witwatersrand in 1886. The mineral mining revolution laid the foundations of racial segregation and the control of white South Africans over black South Africans. The Mineral Revolution changed South Africa from being an agricultural society to becoming the largest gold producing country in the world. The Mineral Revolution began with the discovery of diamonds at the town of Kimberley in 1867. The discovery of diamonds led to
4558-457: The early stages of mining, labour had been primarily provided by young men from the African states, primarily Pedi men. The young men would travel to the mines during the summer to provide temporary labour and earn enough wages to buy status symbols, such as cattle or guns, before returning home. This system, though, was too unreliable to provide a permanent labour force and was not acceptable to
4644-470: The economy has many unintended consequences both economically and socially. As industrial workers' incomes rise, markets for consumer goods and services of all kinds tend to expand and provide a further stimulus to industrial investment and economic growth . Moreover, family structures tend to shift as extended families tend to no longer live together in one household, location or place. The first transformation from an agricultural to an industrial economy
4730-462: The fuel and sell it to black marketeers. Black marketing in vehicle/cooking fuel became widespread during the 2015 Nepal blockade ; even after it was eased and petrol imports resumed, people were not getting the fuel as intended, and resorted to the black market. In some countries including Saudi Arabia, Thailand, and India sex toys are illegal, and are sold illegally, without compliance with regulations on safety, etc. Platforms used to sell sex toys on
4816-542: The grass holding the soil together. Mechanised farming and over-grazing led by 1910 to the appearance of immense Harries, P., 1982. Pre-Industrial South Africa-Economy and Society in Pre-Industrial South Africa. Edited by Shula Marks and Anthony Atmore. London: Longman, 1980. Pp. ix+ 385.£8.95 (paperback£3.95). The Journal of African History, 23(1), pp. 125–126. Industrialisation Industrialisation ( UK ) or industrialization ( US )
4902-413: The increasingly urban demand for rural produce prompted the development of South Africa's transport and communications infrastructure. Railways were greatly expanded to link towns to each other and to the countryside, and ports such as Durban and Cape Town were expanded to cope with increasing immigration and commercial activity, greatly stimulated development in South Africa. The Mineral Revolution had
4988-457: The legal requirements or procedures—health checks, standards of accommodation, and so on. In other countries, such as Nicaragua , where legal prostitution is regulated, hotels may require both parties to identify themselves, to prevent child prostitution . Personally identifying information , financial information like credit card and bank account information, and medical data are bought and sold, mostly in darknet markets . People increase
5074-468: The local police force and kept within a locked cabinet. Among those who may purchase weapons on the black market are people who are unable to pass the legal requirements for registration—convicted felons or those suffering from mental illness for example. The illegal logging of timber , according to Interpol , is an industry worth almost as much as the drug production industry in some countries. In many developing countries, living animals are captured in
5160-403: The low-quality gold ore at the Rand, was very labour-intensive and required armies of workers. To offset the cost of employing so many workers, and to compensate for the high salaries offered to machine supervisors and administrators, the companies offered very low wages to ordinary labourers, resulting in falling living standards in urban areas. The need to create a fixed labour force resulted in
5246-469: The mines, and encourage industrial expansion by replacing the slow and inexperienced Afrikaner bureaucracy with British laws and regulations led to increasing tension between the British colonies and the Afrikaner states, resulting in the outbreak of war in 1899. The Second Anglo-Boer War united South Africa as a single state (initially British, but granted independence in 1910). Mining operations at
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#17327660133405332-442: The mining corporations. Young men arriving at the mines were often exhausted from their journey and had to be given two weeks' rest, at company expense, before they were fit to work in the mines. Workers who were not paid on time or did not like their living conditions (which were often very harsh due to bad food and disease) tended to drift away, and workers were at risk of being recalled to their own countries, as happened in 1876 when
5418-724: The most important criticisms of industrialisation is that it caused children to stay away from home for many hours and to use them as cheap workers in factories. Between the early 1960s and 1990s, the Four Asian Tigers underwent rapid industrialisation and maintained exceptionally high growth rates. As of 2018 the international development community ( World Bank , Organisation for Economic Co-operation and Development (OECD) , many United Nations departments, FAO WHO ILO and UNESCO , endorses development policies like water purification or primary education and co-operation amongst third world communities . Some members of
5504-555: The number of children per household. Furthermore, industrialisation contributed to increased cases of child labour and thereafter education systems. As the Industrial Revolution was a shift from the agrarian society, people migrated from villages in search of jobs to places where factories were established. This shifting of rural people led to urbanisation and an increase in the population of towns. The concentration of labour in factories has increased urbanisation and
5590-466: The official release of the title. A determined counterfeiter with a few hundred dollars can make copies that are digitally identical to an original with no loss in quality; innovations in consumer DVD and CD writers and the widespread availability of cracks on the Internet for most forms of copy protection technology make this cheap and easy to do. Copyright-holders and other proponents of copyright laws have found this phenomenon hard to stop through
5676-446: The particular institutional rules that they violate: The "illegal economy" consists of economic activities pursued in violation of legal statutes that define the scope of legitimate forms of commerce. Illegal-economy participants produce and distribute prohibited goods and services , such as drugs , weapons , and prostitution . The "unreported economy" circumvents or evades institutionally established fiscal rules as codified in
5762-455: The place of work. By the end of the 20th century, East Asia had become one of the most recently industrialised regions of the world. There is considerable literature on the factors facilitating industrial modernisation and enterprise development. The Industrial Revolution was accompanied by significant changes in the social structure, the main change being a transition from farm work to factory-related activities. This has resulted in
5848-495: The public at large. Additionally, not all people agree with copyright laws, on the grounds that they unfairly criminalize competition, allowing the copyright-holder to effectively monopolize related industries. Copyright-holders also may use region-coding to discriminate against selected populations price-wise and availability-wise. Copyright infringement law goes as far as to deem illegal " mixtapes " and other such material copied to tape or disk. Copyright holders typically attest
5934-488: The rate of exchange of its currency with that of other, "harder" currencies. When it does so, the peg may overvalue the local currency relative to what its market value would be if it were a floating currency . Those in possession of the harder currency, for example, expatriate workers, may be able to use the black market to buy the local currency at better exchange rates than they can get officially. In situations of financial instability and inflation, citizens may substitute
6020-453: The role of piracy in media distribution. The spread of material through file sharing is a source of publicity for artists and builds fan bases that may be inclined to see the performer live (live performances make up the bulk of successful artists' revenues, however not all artists can make live performances, for example, photographers typically only have a single source of income: the licensing of their photos). Money itself may be subject to
6106-589: The rule constitutes a black-market trade since the transaction itself is illegal. Such transactions include the illegal drug trade , prostitution (where prohibited), illegal currency transactions, and human trafficking . Participants try to hide their illegal behavior from the government or regulatory authority. Cash is the preferred medium of exchange in illegal transactions, since cash transactions are less easily traced. Common motives for operating in black markets are to trade contraband, avoid taxes and regulations, or evade price controls or rationing. Typically,
6192-579: The size of settlements, to serve and house the factory workers. Family structure changes with industrialisation. Sociologist Talcott Parsons noted that in pre-industrial societies there is an extended family structure spanning many generations who probably remained in the same location for generations. In industrialised societies the nuclear family , consisting of only parents and their growing children, predominates. Families and children reaching adulthood are more mobile and tend to relocate to where jobs exist. Extended family bonds become more tenuous. One of
6278-540: The style of open-air prisons, where workers were required to live by the terms of their contract, in exchange for food, accommodation, and cheap beer provided by the company. In reality, workers had to pay for things out of their paltry wages, while the compounds themselves were notorious for disease, malnutrition, and death. In 1886 white workers at the De Beers compound in Kimberley elected a local member of parliament who successfully campaigned for white employees to live in
6364-666: The supply of prostitutes rose abruptly in Denver and Minneapolis in 2008 when the Democratic and Republican National Conventions took place there. Prostitutes in the black market generally operate with some degree of secrecy, sometimes negotiating prices and activities through codewords and subtle gestures. In countries such as Germany or the Netherlands , where prostitution is legal but regulated, illegal prostitutes exist whose services are offered more cheaply without regard for
6450-424: The tax code. A summary measure of the unreported economy is the amount of income that should be reported to the tax authority but is not so reported. A complementary measure of the unreported economy is the " tax gap ": the difference between the amount of tax revenues due the fiscal authority and the amount of tax revenue actually collected. In the U.S. unreported income is estimated to be $ 2 trillion resulting in
6536-515: The taxes and the exchange rate between the Republic's euro (and previously punt ) and Northern Ireland's pound sterling ; indeed sometimes diesel will be smuggled in one direction and petrol the other. In some countries, diesel fuel for agricultural vehicles or domestic use is taxed at a much lower rate than that for other vehicles. This is known as dyed fuel , because a colored dye is added so it can be detected if used in other vehicles (e.g.
6622-493: The taxicab market with a medallion system (taxicabs must get a special license and display it on a medallion in the vehicle). In most such jurisdictions it is legal to sell the medallions, but the limited supply and resulting high prices of medallions have led to a market in unlicensed carpooling / illegal taxicab operation . In Baltimore , Maryland , for example, it is not uncommon for private individuals to provide illegal taxicab service for city residents. In places where there
6708-499: The totality of such activity is referred to with the definite article, e.g., " the black market in bush meat". The black market is distinct from the grey market , in which commodities are distributed through channels that, while legal, are unofficial, unauthorized, or unintended by the original manufacturer, and the white market, in which trade is legal and official. Black money is the proceeds of an illegal transaction, on which income and other taxes have not been paid. Black money
6794-410: The town, but black workers, who had no vote, were forced to remain on the compounds. The growth of towns and cities across South Africa prompted changes in rural areas, as farms lost labourers to the mines and demand for food and agricultural produce increased. By the 1870s, "agrarian capitalism" had emerged, with large commercial farms buying up smallholdings and producing commercial goods for sale in
6880-451: The towns. This resulted in tens of thousands of black and white farmers losing their jobs, and being forced to work as wage-labourers on commercial farms or migrate to the cities in search of work. These changes greatly increased South Africa's agricultural output as commercial farms were more efficient and had greater access to farming machinery than small farms, and saw social changes in rural areas. The peasantry effectively disappeared, and
6966-605: The underground market offers lower prices, consumers may still buy on the legal market when possible, because: However, in some situations, consumers may conclude that they are better off using black market services, particularly when government regulations hinder what would otherwise be a legitimate competitive service. For example, in Baltimore , many consumers actively prefer illegal taxi cabs, citing that they are more available, convenient, and fairly priced. Some examples of underground economic activities include: Prostitution
7052-420: The value of the stolen data by aggregating it with publicly available data, and selling it again for a profit, increasing the damage that can be done to the people whose data was stolen. From the late 19th and early 20th centuries, many countries began to ban the possession or use of some recreational drugs , such as in the United States' war on drugs . Many people nonetheless continue to use illegal drugs, and
7138-467: The wild and sold as pets. Wild animals are also hunted and killed for their meat , hide, and organs, the latter of which and other animal parts are sold for use in traditional medicine. In several states in the United States , laws requiring the pasteurization of milk have created black markets in raw milk , and sometimes in raw milk cheese which is legal in a number of EU countries but banned in
7224-592: The world and strict limits on the amount of tobacco that can be imported duty-free from other countries, leading to widespread attempts to smuggle relatively cheap tobacco from low tax countries into the U.K. Such smuggling efforts range from vacationers concealing relatively small quantities of tobacco in their luggage to large-scale enterprises linked to organized crime . British authorities have aggressively tried to detect and confiscate such illegal imports, and to prosecute those caught. Nevertheless, it has been reported that "27% of cigarettes and 68% of roll your own tobacco
7310-581: Was coined by the Employers' Association of Chicago in June 1927 in a statement about the influence of organized crime in the Teamsters union. Where taxicabs, buses, and other transportation providers are strictly regulated or monopolized by government, a black market typically flourishes to provide transportation to poorly served or overpriced communities. In the United States, some cities restrict entry to
7396-412: Was estimated that 5% of all organ recipients engaged in commercial organ transplant in 2005. Research indicates that illegal organ trade is on the rise, with a recent report by Global Financial Integrity estimating that the illegal organ trade generates profits between $ 600 million and $ 1.2 billion per year across many countries. A racket is a service that is fraudulently offered to solve
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