Identity Economics: Social Networks and The Informal Economy in Nigeria (review)

The going has gotten tough in 'God's Own State'. While the licence plate slogan in Abia State in south-eastern Nigeria hints at the profusion of religious denominations, it is, in fact, only one of many forms of networks criss-crossing - or constituting - society. In her study Kate Meagher unravels the social, economic and political networks that run through the small-scale manufacturing sectors in Aba town.

The Igbo of south-eastern Nigeria are renowned for their economic entrepreneurship and networks. However, far from constituting a culturally defined infrastructure, Meagher shows, the indigenous economic institutions of Igbo society have undergone significant shifts. In response to pressures and opportunities networks have been refashioned and restructured since colonial times. Instead of celebrating the informality of the shoe and garment sectors, the book argues that informalization and marginalization have weakened the regulatory capacity of these networks. Economic restructuring in Nigeria since the mid-1980s and more recent competition from Asian markets have challenged the small-scale industry and its organization in a fundamental way. The difficulties of organization have led in turn to marginalization of the weak, to desperate measures of protection such as the creation of vigilante groups like the (in-) famous Bakassi Boys, and ultimately to the hijacking of organizations by political entrepreneurs.

Liberalization of the Nigerian economy triggered an expansion of the shoe and garment enterprise clusters in Aba. Lay-offs in the formal sector made people turn to the informal sector, where entry costs are quite low - most producers operate with a modest set of tools and machines. The massive influx had deep effects on labour recruitment practices. Historically, apprenticeship was the way into the sector, and after 'graduation' the master would often help his apprentice to set up shop. This form of relationship is eroding: apprenticeships are getting shorter, and increasingly workshops hire labour from outside their network of 'affection'. Labour is increasingly organized through what Meagher calls 'weak ties'.

Looking at organizational life, the book discusses the web of associations in which small producers converge. Hometown unions, religious societies, producers' associations, savings clubs, and a range of social clubs and friendship societies constitute a non-state framework for regulation and resource mobilization. Most entrepreneurs are members of several such networks that ideally give access to credit, clients and contacts. However, increasingly, the benefits become limited for the small members. Credit is limited, and competition between networks such as hometown associations and evangelical churches over fees and contributions puts a strain on participation. For the wealthy, it means that reciprocity is increasingly contained within lines of class, which tend to harden. Smaller producers, on the other hand, cannot afford active membership in as many associations as before. As these networks are vital to business, to labour recruitment, and to accumulation, they are opportunities for those who can participate. For those who cannot, they become liabilities of exclusion, and non-participants must focus instead on networks of survival.

Network analysis goes beyond the separation of the world into formal and informal. By linking groups and actors, associations and unions, businesses and government agencies, a dense grid of connections is established. However, it is only when 'power' is added to the grid that clear light is shed on the political economy of small-scale producers. Networks are not inert. They are live wires of opportunities and liabilities.

Meagher details the power dynamics of segments of the networks by adding layer by layer of ascriptive, affective, business and political dimensions. However, while the structure of networks is portrayed with authority, the internal dynamics of discipline, control, hierarchy, segmentation, inclusion and exclusion in different networks are, regrettably, treated more sporadically, with a focus on the emergence of the vigilante groups. In fact, it might well be the resource mobilization, the rule making and the discipline within these networks that tell us how and why some are maintained and others erode. In...