The underground social economy of informal practices and networks of favor is a significant feature of many societies. This course focuses on this phenomenon in Eastern and Southern Europe. The underground social economy often serves to by-pass inefficient and corrupt regimes. But to what extent does it foster trust, honesty, and the development of social capital? Moreover, how does the underground social economy affect the prospects for democracy and civil society in the post-socialist world? The course examines `practices,' `rules,' `everyday forms of resistance,' and the relationship between the `formal' and the `informal' in Mediterranean, socialist and post-socialist societies. Topics include the ethics of informal relations and the tactics involved in establishing them, as well as the experiences of marginality, secrecy, and danger. It focuses on the political and socio-economic conditions that restrict and/or enable the development of underground practices. Special attention to: social stratification in relation to informal exchange; the shortage economy; and non-market criteria for the allocation of goods, benefits, and burdens. The course also traces the transformation of underground practices in post-socialist societies. Topics include vertical and interpersonal trust, social capital, and corruption. The course concludes with a discussion of the relation between trust, democracy, and the market. Basic concepts from social network analysis are introduced. Discussions of the underground social economy in Asia, Latin America and the West are also included. Format: lecture/discussion. Requirements: midterm paper, final exam, and a term paper. No prerequisites. Enrollment limit: 19 (expected: 19). Preference to first-year students, sophomores and majors.