The previous two chapters have suggested that relations of power in African countries are predominantly personal and in that sense, informal. They are not just indicative of odd behavior that goes contrary to formal authority. They are in fact the social structures that hold society together. As the discussion of the movement legacy indicated, agency occurs in the context of informal relations. The informal has been institutionalized to the point where it tends to dominate the way formal institutions operate. Formal rules, for instance, are often bent to serve informal institutions. The informal institutions are not unique to Africa, but their significance is particularly noticeable there. Nowhere else can they be studied more extensively than in African countries.

Because these institutions permeate social and political life, one can rightly speak of the presence of a fundamental social logic. This logic centers on direct, face-to-face reciprocities to get things done. Its core principles are that (a) whom you know is more important than what you know, (b) sharing personal wealth is more rewarding than investing in economic growth, and (c) a helping hand today generates returns tomorrow. Such is the essence of the informal political economy that I call the “economy of affection” (Hyden 1980).

This economy differs from capitalism as well as socialism. Money is not an end in itself, nor is the state the primary redistributive mechanism. It relies on the handshake rather than the contract, on personal discretion rather than official policy to allocate resources.