Cross-Border Trade and the Parallel Currency Market-Trade and Finance in the Context of Structural Adjustment: A Case Study from Kano, Nigeria

Abstract

A "new regionalism" seems to be gathering pace in West Africa, underpinned by the growing activities of informal cross-border traders. These traders appear to be succeeding through their operations in effecting an extensive, de facto market integration in West Africa, a development which many commentators have contrasted to the sub-region have been pursuing for some time now. This report, based on a study of one of the most important parallel currency markets in West Africa, argues, however, that some of the assumptions and conclusions of those who have studied the "new regionalism", including the World Bank, are questionable. Of particular interest is the suggestion that the expansion that has taken place in informal cross-border trade is a vindication of the market-liberalising thrust of structural adjustment and that adjustment policies have, in an organic manner, improved the effectiveness of an "independent" bourgeoisie that is allegedly emerging out of this trade as an agent...