By just demonetization of two types of banknotes, government decreases the level of informal economy, enlarge number of digital payments, that makes economy transparent and secure, and increase the country's GDP at the same time. Simultaneously, a big amount of digital transaction and significant decrease of cash flows in country also influence the informal labor market - the biggest part of informal economy in the region and in India too. If all transactions are digitalized and transparent, it is hard to hide workers' salary and employer is forced to employ formally or partly formally. Comparing 2015 and 2018 there is significant difference in a percentage of informal workers in non-agriculture activity - nearly 90% and 62,5% respectively International Labor Organization Survey - “Women and men in the informal economy: a statistical picture” 2018. Moreover, the development of digital market created lots of jobs in formal sector as well as formal businesses. Formalization of economy plays a key role in developing of the country.

Presently we can see the result of digitalization of economy in India. For population of 1,3 billion they have 1,21 billion users of mobile phones Data from The Internet and Mobile Association of India, more than 600 million internet users Ibid, more than 20 percent of employees are engaged in formal digital sector and almost 30 percent fewer people are in informal economy, numbers of digital transactions increased 1 500 times and more than 50% growth of e-commerce Buying or selling something on online services or over the Internet. For today India has the world's seventh-largest economy by nominal GDP with average 7% growth of country's GDP Hooda, Sapna. "A study of FDI and Indian Economy." (2018).. For the last 5 years India's economy is the fastest growing economy in the world, exceed even China Perdikis, Nicholas. The Indian Economy: Contemporary Issues. Routledge, 2018.. Digitalization obviously accelerate the economy of India and give the opportunity for Government to develop country - invest more in social programs, secure and in international activities.

According to Richard H. Thaler, the Government's will to increase number of digital payments for reducing the level of informal economy and making the economy transparent can be described as a choice architecting Thaler, Richard H., and Cass R. Sunstein. Nudge: Improving decisions about health, wealth, and happiness. Penguin, 2009 . It means that Government create conditions for society to change their habit to pay by cash to the habit of using digital payments. People do their own choice to alter something in their lives and do not fell the direct pressure from government. So, we have the government initiative, then the changing of people's habits and developing the technical infrastructure - all this create the demand on digitalization both in society and in the Government.

Conclusion

In this research we have defined modern vision and understanding of informal economy. It was stated that the majority of African and Middle Eastern population for various reasons have to use informal finance. Types of informal financial relations were defined, as well as their characteristic features. Major principles of the blockchain technology were studied, perspectives of its implementation into informal financial relations were defined. The research has shown that modern technologies has effected all spheres of people's everyday life. This gives an opportunity to create absolutely new products and services that will fulfill the needs of users more effectively. Technology will change wellbeing of every person, not just of selected ones. Today billions of people are excluded of the global economy because they do not have access to the technology. Digitalization will give an opportunity to those people to participate in economy. As a result, the way of distributing wealth will change as way of its creation. Implementation of the digital technologies into informal financial relations will solve all or almost all problems connected to usage of informal finance. As a result, informal relations will become formal. The government will be able to track all the transactions made in the system and more thoroughly understand how many people participate in economy in order to conduct their policies more effectively. According to the reviewed cases of implementation а digitalization in informal economy in such countries as Kenya and India and the city of Dubai, we could state that the advanced hypothesis is proved. All three factors are important for successful digitalization in informal economy. Even the prevalence of a single factors cannot replace the lack of another. In our cases we considered three different situations of digitalization of informal finance and got varied results of it. In cases where with the presence of all factors the digitalization has significantly decrease the level of informal economy. At the same time, the absence of some factors led to unsuccessful attempts to change the situation with IE.

Bibliography

1. "UAE Economy: UAE Seeks to Boost its Competitiveness and Global Profile." EIU ViewsWire, Dec 01, 2017.

2. Ayyagari, M., Demirgьз-Kunt, A., & Maksimovic, V. (2010). Formal versus informal finance: Evidence from China. The Review of Financial Studies, 23(8), 3048-3097.

3. Bill Gates, “How mobile banking can change the lives of the poor”, 9 January 2015

4. Chen, M. A. (2005). Rethinking the informal economy: Linkages with the formal economy and the formal regulatory environment(Vol. 10, pp. 18-27). United Nations University, World Institute for Development Economics Research.

5. Christidis, K., & Devetsikiotis, M. (2016). Blockchains and smart contracts for the internet of things. IEEE Access, 4, 2292-2303.

6. Daseking C. Debt: how much is too much? //Finance & Development. - 2002. - Т. 39. - №. 4. - С. 12-12.

7. Feige, Edgar L. "Defining and estimating underground and informal economies: The new institutional economics approach." World development 18.7 (1990): 989-1002.

8. Garg, Krishan, and Savita Devi. "Digital Payment Systems In India." Business Management and Social Innovations: 349.

9. Gasparлnienл, Ligita, Rita Remeikienл, and Friedrich Georg Schneider. "Concept, motives and channels of digital shadow economy: consumers' attitude." Journal of Business Economics and Management 18.2 (2017): 273-287.

10. Kulkarni, Amol, and Swasti Gupta. "Users' perspectives on digital payments in India." Gates Open Res 3 (2019).

11. Passas, N. (2003). Hawala and other informal value transfer systems: how to regulate them? Risk management, 5(2), 49-59

12. Passas, N. (2003). Hawala and other informal value transfer systems: how to regulate them?. Risk management, 5(2), 49-59.

13. Passas, N. (2005). Informal value transfer systems and criminal activities. WODC.

14. Pearce, Katy E. "Phoning it in: Theory in mobile media and communication in developing countries." Mobile Media & Communication 1.1 (2013): 76-82.

15. Perdikis, Nicholas. The Indian Economy: Contemporary Issues. Routledge, 2018.

16. Pilkington, M. (2016). 11 Blockchain technology: principles and applications. Research handbook on digital transformations, 225.

17. Powell, Martin, ed. Understanding the mixed economy of welfare. Understanding Welfare: Social, 2019.

18. Schaeffer, E. C. (2008). Remittances and reputations in hawala money-transfer systems: Self-enforcing exchange on an international scale. Journal of Private Enterprise, 24(1), 95.

19. Schiliro, Daniele. "Diversification and development of the UAE's economy." (2013).

20. Schneider, F. (2002, July). Size and measurement of the informal economy in 110 countries. In Workshop of Australian National Tax Centre, ANU, Canberra.

21. Takavarasha Jr, Sam, and Carl Adams, eds. Affordability Issues Surrounding the Use of ICT for Development and Poverty Reduction. IGI Global, 2018.

Размещено на Allbest.ru