Indigenous African Institutions and Economic Development

Abstract

In the attempt to establish institutions which foster economic development in the third world, economists often look to the West as a model. This indeed has been the case in Ghana, West Africa. In Ghanas urban centers, the large buildings which house Barclays Bank, Standard Charter Bank, and Ghana Commercial Bank loom over the traditional market stalls and street traders. This sight might be heartening to those who recognize third world entrepreneurs limited access to capital as the primary constraint in advancing economic development. Indeed, these institutions play an important role in financing large scale industry and high volume import and export exchange. But this is only a small proportion of market activity in Ghana, The majority of business people never enter the doors of such institutions.

Keywords: West African entrepreneur, indigenous credit. mutual assistance, indigenous institutions

JEL Classification: M13, J16, D4