This paper evaluates how the undeclared economy is being tackled
in FYR Macedonia. Reporting the findings on the extent and nature of the
undeclared economy in this country, FYR Macedonia is shown to have the
largest undeclared economy of all European countries and such work is
prevalent across all sectors and business types. Examining how the undeclared
economy is being tackled, it is revealed that there is a need not only to move
away from the current fragmented approach by establishing a single agency or
committee to better coordinate the fight against undeclared work in FYR
Macedonia but also for a shift away from the current focus upon deterrents and
for more attention to be paid to a wider range of measures that enable
undeclared work to move into the declared economy. Unless such an approach
is pursued then it is likely to remain difficult to make further headway in
tackling undeclared work.