STATE SUBSTITUTION AND MARKET LIBERALIZATION IN NORTHERN KIVU, ZAIRE

This paper presents the economy of the Nande in Eastern Zaire where th e state has never been active in the organization of agricultural prod uction, processing, marketing, and rural development. With roots in pr e-colonial, colonial, and post-colonial times, the economy functions r emarkably well and remains within the Zairean chaos like an enclave of economic survival. Consultations and co-operation between the traders , but also involving the whole population, are of great importance. It is concluded that there are cases in Africa where agricultural market ing functions without the state, but that these cases of 'state substi tution' are tied to a series of conditions. Thus, general policy procl amations regarding state withdrawal are indiscriminate and misplaced.