Formal or Informal, Legal or Illegal: The Ambiguous Nature of Cross-border Livestock Trade in the Horn of Africa

Abstract

In this article, we address cross-border trade from the perspectives of state institutions and their agents, on the one hand, and private merchants and pastoralists, on the other. It will be shown that at times their agendas strongly conflict, but in other situations workable accommodations and policy interpretations are found even while acknowledging the illegality of the actions. Because of the extensive border zones in the Horn with few custom posts and banking facilities, the state often has no recourse but to turn a “blind eye” to cross-border trade. Throughout the paper, it is shown how vastly different border policies and international relationships among neighboring countries (i.e. Ethiopia, Kenya, and Somalia) in the region challenge generalizations about informality and cross-border trade. In the conclusion we assess recent attempts by government authorities to coerce the trade into formal channels, but with minimal success.

Acknowledgements

The materials presented in the paper are based on the senior author's (Little's) prior work in the region dating back to the 1990s and on a recent research program on livestock trade that involves Little, Tiki, and Debsu (2011–present). The authors, of course, assume full responsibility for the contents of this article and none of its findings should be attributed to USAID or any other institution.

Funding

The work of Little on cross-border trade has received funds from The Global Livestock Collaborative research Support Program (GL-CRSP) (2000–2006), the BASIS CRSP (1998–2001), and the John D. and Catherine T. MacArthur Foundation (2001–2003). The more recent study by Little, Tiki, and Debsu is supported by the Innovation Lab for Adapting Livestock Systems to Climate Change (ALS-CC) [USAID Grant No. EEM-A-00-10-00001].

Notes

1 Somaliland (northern Somalia) formed its own autonomous government in 1994 and declared its independence from Somalia. Its independence is not recognized by the African Union or the United Nations and the status of Somaliland versus the new government in Somalia remains a highly contested issue in the region. We do not wish to engage this debate in this article. However, when referring to northern Somalia, the article often refers to the region as Somaliland because that is how it is frequently addressed in publications and reports regardless of whether or not it is internationally recognized as an independent country.

2 With the exception of the Ethiopia/Sudan border trade, all cross-border trade in livestock that is discussed in this paper is informal. Thus, when the phrase cross-border livestock trade is presented, it assumes an informal activity. We also are well aware of the problems associated with the use of the term informal economy or sector (including its trade dimensions), which numerous scholars have addressed (Chen 2007; Hansen and Vaa 2004), but opt to use it for lack of a better term.

3 Some NGOs and government organizations operating in the area collect prices on different types of animals, grain and fuel wood. However, the dissemination is limited to areas where mobile phone connection is available and their market coverage is limited. Moreover, even when it is available herders and livestock traders rarely use this information.

4 Rift Valley Fever (RVF) is a particularly deadly mosquito-borne disease that causes deaths of livestock and humans who consume undercooked livestock products from infected animals. There have been two serious outbreaks (1998 and 2008) of the disease in the Kenya/Somalia borderlands during the past 17 years.

5 This refers to the situation pre-2013 before the heavy Kenyan military presence along the border and apparent changes in some of the cross border trade.

6 The lasseiz-faire nature of the economy and the absence of a central government in Somalia did not mean there were no governance structures or restrictions on commerce in place. Northern Somalia (Somaliland), in particular, has a functioning government and administration with a constitution, parliament, and elected President.

7 This section draws on materials from Little (2014, 184–185).

8 There also is a concern among dalala (brokers) that the government is trying to eliminate their positions in the market system by introducing livestock auctions in rural areas and requiring weigh scales for animals to be used at markets. Both of these interventions would threaten the jobs of dalala.