A Double-Take at the Second Economy

Abstract

Many arguments have been put forward to explain the limited impact of mainstream economics in sub-Saharan Africa, but one of the more convincing ones is based on the strength of the economy. Also referred to as the hidden, underground, or parallel economy, these are the productive and unproductive activities not captured by official statistics and therefore not likely to be reflected in the models on which so much of economic policy is founded. The argument, in a nutshell, is that standard economic reforms can have unexpected and possibly perverse consequences, because this and the way its actors behave have been ignored. As economic policy making and performance in sub-Saharan Africa are in obvious need of improvement, these two new books on the second economy are indeed welcome. Both The Real Economy of Zaire: The Contribution of Smuggling and Other Unofficial Activities to National Wealth and The Second Economy of Tanzania are largely, if not exclusively, written by nationals of the countries in question. Not only is it heartening to see more books on Africa by Africans, but those who have grown up with at least one foot in this hidden economy are likely better able to uncover it. This pair of studies is interesting, since one is by anthropologists and the other by economists. Thus, a balanced view of both the micro and macro, and the qualitative and quantitative elements of the phenomenon, seems possible, and, in fact, emerges to a certain extent. The book on Zaire starts with two short introductory chapters by the American coordinator of the study, on issues, methods, and the culture and politics of unrecorded trade in that country. Janet MacGaffey has also