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Trade, Entrepreneurship and Real Economic Governance in South Sudan

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Trade, Entrepreneurship and Real Economic Governance in South Sudan On the State of Business: Trade, Entrepreneurship and Real Economic Governance In South Sudan Rens W. Twijnstra Thesis committee Promotor Prof. Dr Thea JM Hilhorst Professor of Humanitarian Aid and Reconstruction Wageningen University Co-promotor Dr Kristof Titeca Post-Doctoral Fellow University of Antwerp, Belgium Other members Prof. Dr Jan PM van Tatenhove, Wageningen University Prof. Dr Tom de Herdt, University of Antwerp, Belgium Dr Cherry Leonardi, Durham University, United Kingdom Prof. Dr Tobias Hagmann, Roskilde University, Denmark This research was conducted under the auspices of the Graduate School of Social Sciences On the State of Business: Trade, Entrepreneurship and Real Economic Governance in South Sudan Rens W. Twijnstra Thesis submitted in fulfilment of the requirements for the degree of doctor at Wageningen University by the authority of the Rector Magnificus Prof. Dr M.J. Kropff, in the presence of the Thesis Committee appointed by the Academic Board to be defended in public on Tuesday 1 July 2014 at 11 a.m. in the Aula. Rens W. Twijnstra On the State of Business: Trade, Entrepreneurship and Real Economic Governance in South Sudan 196 pages PhD thesis, Wageningen University, Wageningen, NL (2014) With references and summary in English ISBN 978-94-6173-997-1 I dedicate this dissertation to Rob. Anthropologist, Policymaker, Stepfather. Table of Contents Acknowledgements ................................................................................................................................ 10 Preface .................................................................................................................................................. 13 CHAPTER ONE: Introduction ............................................................................................................ 16 I. Scope ............................................................................................................................................... 17 II. Central Themes .............................................................................................................................. 21 2.1 Norms and Rules Between ........................................................................................................ 21 2.2 Negotiations Within .................................................................................................................. 23 2.3 Patron-Client Relations ............................................................................................................. 25 2.4 Policy Assumptions and Intervention Practices ........................................................................ 27 III. Research Objective and Questions ............................................................................................... 29 IV. Design and Methodology ............................................................................................................. 35 4.1 Data Collection Methods ........................................................................................................... 38 4.2 Ethics ......................................................................................................................................... 45 V. Theoretical Frameworks ................................................................................................................ 48 5.1 The Sociology of Economic Life in Fragile States ................................................................... 49 Taxation and State-Making ...................................................................................................... 52 5.2 Economic Governance Institutions in Fragile States ................................................................ 55 Weak Institutions ...................................................................................................................... 56 5.3 ‘Real’ Governance..................................................................................................................... 59 Practical norms and Informal Institutions ............................................................................... 60 Institutional ‘Bricolage’ ........................................................................................................... 62 Political Settlements ................................................................................................................. 63 Intervention Arenas .................................................................................................................. 64 Open Moments .......................................................................................................................... 65 5.4 Thesis Outline ........................................................................................................................... 67 CHAPTER TWO: Trade Networks and the Practical Norms of Taxation at a Border Crossing between South Sudan and Northern Uganda .................................................. 68 Introduction ........................................................................................................................................ 69 Networks, Institutions and Practical Norms ....................................................................................... 70 Methods .............................................................................................................................................. 72 South Sudan’s Southern Bottleneck Border ....................................................................................... 73 Regional trade networks of accumulation .......................................................................................... 74 Weapons of the Strong: Appropriating State Authority ..................................................................... 75 Local trade networks of survival ........................................................................................................ 78 Weapons of the Weak: the Moral Economy of Subsistence Security ................................................ 80 Disparate Networks Generate Disparate Norms................................................................................. 83 Conclusions ........................................................................................................................................ 85 CHAPTER THREE: Everything Changes to Remain the Same? State Reform in South Sudan ............................................................................................................... 86 Introduction ........................................................................................................................................ 87 A sprawling collection of rules and regulations ................................................................................. 89 Tax revenues and fiscal decentralisation ........................................................................................ 89 Bricolage and the Institutional Corridor ............................................................................................. 91 County and State taxation of international trade ............................................................................ 94 Insurance industry licensing practices .......................................................................................... 105 An ‘open moment’ for customs reform? ........................................................................................ 107 Conclusions ...................................................................................................................................... 109 CHAPTER FOUR:‘Recycling Oil Money’ Procurement Politics and (Un)Productive Entrepreneurship in South Sudan ............................... 113 The Rent-Fragility Nexus in State Building ..................................................................................... 114 Methods ............................................................................................................................................ 116 Rentierism in South Sudan ............................................................................................................... 116 Procurement Politics ........................................................................................................................ 118 Reaspora Entrepreneurship............................................................................................................... 122 Oil Shutdown.................................................................................................................................... 124 ‘It’s the Economy, Stupid!’ .............................................................................................................. 126 Conclusions ...................................................................................................................................... 129 CHAPTER FIVE: Blind Spots: Local Entrepreneurship and Private Sector Development in South Sudan ..................................................................................... 132 Introduction ...................................................................................................................................... 133 Methods ............................................................................................................................................ 134 Donor Discourse ..............................................................................................................................
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