Central Asia's lively, open-air markets are a dead giveaway to economists: signs of a large informal sector, or "shadow economy."
These are loose terms for transactions that take place outside the purview of government regulations. A large shadow economy is often a sign that a country's institutions are not robust. In this scenario, ordinary citizens restrict their economic activities to the informal sector for a variety of reasons: to avoid taxes, because there are limited other options or banking is poorly developed, because official administrative procedures - such as inspections by sticky-fingered officials - are onerous, or perhaps a combination of reasons.
