The shadow economy, a complex phenomenon influenced by factors such as regulatory overreach, lack of fiscal discipline, labor market dynamics, and the efficiency of inspection services, poses significant challenges. Its elusive nature makes accurate measurement difficult, hindering the development of effective economic and social policies.
Recognizing this, LAG Agro Leader is launching the initiative “Change Starts at the Local Level”. This project, supported by the regional SMART Balkans initiative—Civil Society for a Connected Western Balkans, is implemented in collaboration with organizations such as Centar za Promociju Civilnog Društva (CPCD), the Center for Research and Policy Making (CRPM), and the Institute for Democracy and Mediation (IDM), with financial backing from the Norwegian Ministry of Foreign Affairs.
Project Mission:
To enhance citizen and civil society engagement by providing a statistical overview of informal employment in Pelagonia’s agricultural sector, focusing on workers often invisible and vulnerable.
Specific Objectives:
- Enhancing Local Economic Insights: Provide municipalities in Pelagonia with better data on key economic trends.
- Identifying Informal Workers: Map the scope and structure of informal labor in the agricultural sector.
- Promoting Financial Sustainability: Lay the groundwork for municipalities to achieve greater financial independence and support deeper decentralization.
Tangible Outcomes:
By executing targeted activities, the project aims to deliver measurable results:
- Monitoring Network Formation: Establish a coalition of civil society organizations to research and monitor the shadow economy in agriculture.
- Problem Identification: Detect root causes and contributors to the shadow economy in Pelagonia’s agricultural sector.
- Policy Recommendations: Publish a comprehensive public document with actionable recommendations and indicators.
- Stakeholder Engagement: Host meetings and press conferences with institutions and municipalities to spotlight the shadow economy’s extent.
- Improved Financial Stability: Create conditions for financially stronger, more autonomous municipalities in Pelagonia.
This project’s innovative approach combines research, policy advocacy, and community collaboration to address the pressing issue of informal employment, creating a model for tackling the shadow economy from the ground up.

