System D refers to economic activity that occurs outside traditional regulatory and legal frameworks. It is estimated to have an economic output of $10 trillion and employ 2 out of every 3 working people worldwide by 2020. While some System D activities like drug trafficking are illegal, it also includes informal day labor and micro-businesses. Governments often contribute to the growth of System D by creating over-controlling economic barriers or causing other problems that push people into informal work.

1. SYSTEM D
The Economic Underground

2. 1. What is “System D”?
Economics that exist
OUTSIDE the traditional framework
(such as trade agreements, labor laws, copyright protections, product safety
regulations, anti-pollution legislation and a host of other political, social and
environmental policies)

3. 2. Like drug trafficking?

4. ...ok...for example?

5. ...ok...for example?

6. ...ok...for example?

7. ...ok...for example?

8. 3. What kind of money are we talking
about here?
World’s second-largest economy
Economic productivity of $10 trillion (which is
probably a low estimate).
World-wide, by 2020, will employ 2 out of every 3
working people.

9. 4. So, this growth is mostly criminal
enterprise?

10. 5. Does the government have a
solution to this system?

System D is more prevalent where the
government is the controlling barrier in the
economy

System D is more prevalent where the
government is the cause of problems

11. 6. So...then System D is good?

System D is usually a symptom of other human
rights abuses.

12. So...what?