Contacts with the shadow economy still concern nearly one in three Lithuanian residents. According to the latest social survey, almost a third of respondents know people who, over the past 12 months, engaged in undeclared work relationships or received wages “in an envelope”. The community of Transparency Ambassadors, White Wave, is organizing the traditional campaign “No Country for Shadow”, inviting the public to pay attention to this situation and to remember that funds circulating in the shadow economy are untapped opportunities to strengthen the country’s defense and security.
“Let’s support the White Wave campaign “No Country for Shadow”. The more transparency, the less space for the shadow, the stronger the state. The future directly depends on our civic responsibility today”, encourages the campaign patron, President Dalia Grybauskaitė.
Campaign organizers note that although the scale of the shadow economy in Lithuania has steadily decreased, it still remains relatively large. It is estimated that the shadow economy could exceed 7 billion euros, with over 900 million euros lost annually due to uncollected value-added tax (VAT), which does not reach the national budget.
“These are funds that could be used for the country’s defense. A transparent, healthy, and growing economy opens up more sources for defense funding, thereby creating and strengthening the security of us all. Therefore, transparency and the fight against the shadow economy are today a fight for our freedom and greater security”, emphasizes Rūta Skyrienė, Chairperson of the White Wave Council and strategic consultant of the Investors’ Forum association.
2 out of 5 residents consciously avoid the shadow
The fourteenth edition of Lithuania’s transparency campaign “No Country for Shadow”, began at a government-hosted conference titled “From the Shadow – to Defense”. At this event, the latest survey results were presented, showing that 30% of residents encounter manifestations of the shadow economy. The survey conducted by Spinter Research in April highlights that unregistered services or goods are most commonly purchased at markets or fairs. Some respondents also noted that unregistered services are characteristic of beauty salons.
On the other hand, 2 out of 5 respondents indicated they have recently not contributed to the shadow economy — they did not purchase unregistered goods or services. Residents believe that more than half (51%) of businesses in the country operate entirely transparently.
“This government’s program allocates significant attention to fighting the shadow economy. However, tangible results can only be achieved through cooperation with businesses, supervisory authorities, government, business associations, NGOs, and other alliances. Here, the focus should be on transparency, public education, and fostering civic responsibility, rather than punitive measures”, stated Government Chancellor Laimonas Rudys at the conference.
A symbolic barricade in the center of Vilnius
This year, the campaign’s symbol is an extraordinary installation — a barricade made of contraband goods, placed in the center of Vilnius, at V. Kudirkos Square.
Speaking at the symbolic barricade, R. Skyrienė emphasized that by buying Belarusian and Russian illegal goods, Lithuanians not only weaken their own country but also financially contribute to the aggressor’s war machine. She cited cigarette smuggling from Belarus as an example—neighbouring country heavily interested in illegally flooding the Lithuanian and wider European Union market with tobacco products.
The White Wave initiative, which promotes transparent business, organizes the civic campaign “No Country for Shadow”, annually since 2012. The campaign aims to actively spread awareness about transparency and increase support for its principles. This year, on May 29, the slogan of the campaign encourages the public to “From the Shadow — to Defense”, emphasizing that everyone can support transparency, and each active citizen’s contribution helps strengthen the country’s defense as Russia devastates Ukraine and conducts hybrid warfare against other nations.
The campaign is initiated by the community of Transparency Ambassadors White Wave and the Investors’ Forum association, with Patronage from President Dalia Grybauskaitė. Long-term partners and supporters include the Government of Lithuania, the Ministry of Finance, the Ministry of Economy and Innovation, the State Tax Inspectorate, the State Labour Inspectorate, Sodra (Social Security Agency), the Employment Service, the National Health Insurance Fund, the Lithuanian Customs, the Financial Crimes Investigation Service, Junior Achievement Lithuania, and others.