My Beauty Best Teacher

In Memory Bank:

...Africa’s new leaders thought they were generating modern economies, with ambitions for public expenditure to match, but in reality they were erecting fragile states whose economic base was the same backward agriculture as before. As Frantz Fanon predicted, this weakness inexorably led them to exchange the democratic legitimacy of the independence struggle for dependence on foreign powers. These ruling elites first relied on revenues from agricultural exports, then on loans contracted under dubious circumstances, finally on the financial monopoly that came from being licensed to supervise their country’s relations with global capitalism. But this bonanza was switched off in the 1980s, when foreign capital felt that it could dispense with the mediation of local state powers and concentrated on collecting debts from them. Many governments were made bankrupt and some simply collapsed into civil war.

Keith Hart writing in Memory Bank:

When I graduated to the field of development studies, the picture of West Africa’s cities was just as distorted as one you might get from boorowing a Manchester school perspective. Here the emphasis of the economists was on the new states’ ability to pursue a neo-Keynesian development program. How could ‘we’ (the politicians, bureaucrats and their academic advisers) provide the jobs and other needs of the hordes flocking into the cities at the time? It was assumed that such provision had to come through the bureaucracy and conform to state-made laws. My paper on ‘informal income opportunities and urban employment’ pointed to the wide range of economic activities that were invisible to bureacracy. But even I saw them through a statist lens (“seeing like a state”), hence the term ‘informal’, not regulated by the bureaucracy. At that time I assumed that the bulk of economic progress must come though public and private sector enterprise of a corporate type.
The informal economy was never adequately described or defined, but these days it is commonplace to read assertions that African economies are 70-90% ‘informal’. Certainly the deregulation undertaken over the last three decades of neoliberal economic policies have led to a radical informalization of the world economy, not least in Africa. But to label these activities ‘informal’ is to avoid identifying what they are positively for or how they are organized, by which social principles.
I would say that the last half-century has seen a massive transfer of population to the cities, where most people have been left to generate their own forms of commerce. The informal economy in this sense has been a holding operation allowing many people to survive in the city and some to flourish. Whatever is coming up next will draw to some extent on this sprawling self-organized economic activity. Our task is to find out more about the promising sectors spawned by such a development.