C I V I T TA A N N U A L R E V I E W 2 0 1 7
What we do
Helping private clients
achieve their objectives
Tobacco
Gaining insights into CEE border-town
smuggling economics
Project duration
8.5 months, ongoing
Project description:
Civitta participated in a 100 million USD global initiative, proposed by Philip Morris
International Impact, to fight illegal trade. The project ”Insights into CEE border-town
smuggling economics,” proposed by Civitta Lithuania was one of 32 projects that
received a grant in the first round of funding. Civitta conducted research to explore
the size of the shadow economy generated by cigarette smuggling in Central and
3 700
hours invested
Eastern European border towns and other towns in the region in order to develop
policy recommendations for reducing illegal trade incentives by strengthening the local
economies.
The project took a detailed look at the economic situation of 48 border towns and
96 inland towns strategically situated in eight countries: Estonia, Latvia, Lithuania,
Romania and non-EU member countries: Belarus, Moldova, Russia (including
Kaliningrad), and Ukraine.
8 offices involved
Belarus, Estonia, Latvia,
Lithuania, Moldova, Romania,
Russia (incl. Kaliningrad),
Ukraine
Results of the first phase of this project:
1. Civitta estimated the size of shadow economy by calculating shadow economy indexes
for each of the 144 municipalities that participated in the project.
2. The main differences in the smuggling activities and shadow economies between
border and inland towns were evaluated using comparative analysis.
3. A questionnaire was developed to investigate attitudes regarding and motivations
to smuggle, based on the Multiple Indicators Multiple Causes (MIMIC) model and the
results of the aforementioned comparative analysis.
4. Proposals were made to determine the factors that motivate border town
inhabitants to smuggle and to develop clear investment guidelines and action
plans for governments to reduce smuggling.
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