In developing countries, where government intervention is often used as a tool to achieve economic and political goals, parallel markets arise as producers and consumers seek to evade official regulations. By lessening the effectiveness of controls, parallel markets can also diminish the benefits realized when controls are removed. Understanding how these markets work is therefore necessary for predicting the outcome of deregulation. Only recently, however, have parallel markets become direct objects of research. This volume is a copublication of the International Center for Economic Growth and the Harvard Institute for International Develop- ment. It is based on papers presented at a workshop sponsored by HIID to address issues relating to the dynamics of parallel markets. The authors investigate the realities of parallel markets including fragmented and black markets for consumer and producer goods, labor, currency, and credit in sub-Saharan Africa, the Philippines, and Taiwan. Several chapters delineate the economic and social contribution that parallel markets make in addressing needs not met by formal markets.