The Politics of Order in Informal Markets: How the State Shapes Private Governance

Property rights are essential for economic exchange, but many governments fail to protect them. This book argues that threats from the government can force private organizations to promote trade, challenging the conventional wisdom that private good governance in developing countries thrives when the government keeps its hands off private group affairs.

Format: Paperback / softback
Length: 165 pages
Publication date: 08 December 2022
Publisher: Cambridge University Press

Property rights are crucial for economic exchange, yet many governments fail to adequately protect them. While private market organizations can provide an institutional framework to enforce agreements, their power also gives them the ability to exploit group members. Therefore, it is important to consider under what circumstances private organizations can create a stable environment for economic activity.

Based on market case studies and a representative survey of traders in Lagos, Nigeria, this book makes a compelling argument. It challenges the conventional wisdom that private good governance in developing countries thrives when the government keeps its hands off private group affairs. Instead, the author suggests that leaders among traders behave in ways that promote trade primarily due to the threat of government intrusion.

The book explores various factors that influence the behavior of traders, including the influence of social networks, trust, and reputation. It also examines the role of government institutions, such as law enforcement agencies and regulatory bodies, in promoting or hindering trade. The findings suggest that the threat of government intrusion is a significant factor in shaping the behavior of traders and that private organizations can play a crucial role in creating a stable environment for economic activity.

However, the book also raises important concerns about the potential risks and challenges associated with private organizations' involvement in trade. For example, the power dynamics within private organizations can lead to conflicts of interest and exploitation, and the lack of transparency and accountability can make it difficult for consumers to protect their rights. Additionally, the book notes that private organizations may not always have the best interests of the broader community in mind, and that their actions can have negative social and environmental consequences.

In conclusion, Property rights are essential for economic exchange, and private market organizations can play a significant role in filling the gap left by governments. However, the power and responsibilities of private organizations must be carefully considered to ensure that they promote trade in a fair, transparent, and sustainable manner. The threat of government intrusion is a significant factor in shaping the behavior of traders, and private organizations must work to build trust and accountability with consumers and the broader community.

Weight: 254g
Dimension: 151 x 229 x 13 (mm)
ISBN-13: 9781108984713