In Mali and Senegal, those who have work in what we call the formal sector of the economy are almost wholly limited to the urban elite. This is the part of the economy that is under public or state control. Those who deal with commerce are ensured certain rights here, but they also have obligations in the form of taxes and fees. However, the fact that most people survive shows that a great portion of the economic activity in the two countries is completely or partially beyond the control of the state. This does not mean that chaos reigns here, but that there are other rules that prevail. Naturally enough, the informal economy includes the poorest, those without education, money and the right contacts to obtain permanent work.
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| Heaps of shoes for sale |
The informal economy includes much of the trade that takes place in the markets and that offers possibilities for those who are inventive and possess sufficient "go-ahead" spirit. That the markets are informal means that at least parts of trade and commerce conducted there are not recorded. This involves everything from trade in illegal goods like medicines and narcotics, to a seller who avoids paying rent to the authorities on his stall, avoids paying customs duties on imported goods and taxes on what he or she has managed to sell. In the eyes of the state, the informal economy is considered to be a threat. It undermines state control and revenues, and is often described as a type of activity that hinders the modernization of the economy.
Despite efforts by the state to take over control, informal commerce in the markets is experiencing sharp growth in very many cities across West Africa today. One reason is that important institutions like the World Bank and the International Monetary Fund (IMF) have, in recent years, demanded a liberalizing of the economy in countries like Mali and Senegal by, among other things, privatization and lower import tariffs.
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| Young cosmetic sellers |
From the perspective of the local shopper, the markets are popular for many reasons. As a rule, the traders in the markets are the first to offer a newly-sought commodity that has been imported with the help of relatives in New York, or has been produced locally. As well, the markets offer the same goods as the shops, but at lower prices. The setting of prices is more flexible and at times approaches a point where profit-taking is almost nil.
Sources: Pederesen, P. O. and D. McCormick. 1999. African business systems in a globalising world. The Journal of Modern African Studies, 37(1):109-135. Laguerre, Michel S. 1994. The Informal City. Berkeley: University of California Press.
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