The Solidarity and Norms of the Economic Activities of Urban Small-Scale Traders

Abstract

The economic liberalization policy since 1986 has brought a rapid influx of imports such as second hand clothes into Tanzania. These imported goods opened new economic opportunities for the urban poor and vitalized a small-scale commercial sector called Machinga. This paper analyzes the unique transaction of Machinga in the trade of second hand clothes. I will then discuss the social relationships and norms relevant to their economic activities.In Mwanza, the second largest city of Tanzania, the middlemen and micro-scale retail traders conduct a credit transaction called mali kauli. In this mali kauli transaction, the middlemen make an advance on merchandise to the retail traders without security and allow the retail traders to return the unsold merchandise and also renegotiate the purchase prices. If the retail traders fail to raise enough profit, they are given monetary assistance by the middlemen.Previous reports in urban study argued that urban migrants tend to make closed groups according to kinship, village of origin and ethnic affiliation. Also the credit transactions including reciprocal help tend to be operated within that closed group. However, in the case of the mali kauli transaction, it builds business relationship with the people who have the personal quality called “Ujanja (‘ecunning’ or ‘eslyness’ in Swahili language)” rather than with relatives or member of the same ethnic group. Ujanja is the creed to life required for “survival” in urban society and build up a sense of fellowship of “we are Wamachinga”. Furthermore, Ujanja is almost the negotiating skills required in the retail business, meeting the requirements for the middlemen's economic benefits.The mali kauli transaction offers a variety of economic benefits to both traders. In sum, the middlemen can ensure many regular clients and mobilize them to distribute merchandise swiftly and effectively. The retail traders can minimize their business risks.On the other side, when the retail traders have complaints about the negotiations with the middlemen, they make various forms of resistance by exercising their “cunning” over the middlemen such as sabotage, overdraft of sustenance money or escaping with merchandise. It is thought that the background for maintaining such unstable transaction is the sense of solidarity among Wamachinga.In conclusion this researcher insists that the economic activities of the small-scale traders are influenced by their creed to urban life and urban fellowship. The reciprocal economic relationships are not always based on the “moral” originating in the tradition of the rural community, but rather they are based on urban solidarity.