CHAPTER ONE

INTRODUCTION

1.1 Background of the study

According to Deflem and Henry, 2001 cited in Ferzangan (2008), smuggling can be defined as the clandestine import of goods from one jurisdiction to another. Another definition says that smuggling is the evasion of excise taxes on goods by circumvention of border controls (Merriman, 2003).

According to Ferzangan (2008), regardless of the different approaches to definitions of smuggling, the effects of smuggling are numerous and economically significant. From the finding of Dominguez (1975) cited in Ferzangan (2008), For instance, smuggling creates losses in public revenues, it affects the internal structure of a society by creating powerful illegal institutions, and it changes the patterns of consumption. Furthermore, it may have a negative effect on official indicators such as growth and income distribution.

According to Ferzangan (2008), it can be argued that the primary forces of supply and demand drive smuggling. Whenever state Intervention drives a wedge between international and domestic prices there is an incentive for underground activities. Smuggling is an activity that is used to earn income from carrying goods through the state border in violation of existing rules (Ferzangan 2008).

According to Lithuanian Free Market Institute (2004), Smugglers seek to generate income by avoiding state control, regulations and related costs. It involves bribery and other forms of corruption and is of a criminal nature. Returning to the actual illegal trade, Marshall (2006) estimated that between 1996-2000, British Customs officials confiscated about 570 illegal items. According to the U.S.

Department of Labor illegal is defined as: income generated from activities that are illegal in themselves (e.g., winnings from illegal gambling; from illegal prostitution; smuggling; illegal trade in drugs, tobacco, firearms, and alcohol; skimming of receipts; loan sharking; theft; and other activities specially banned by law) (Schoeptle et al., 1992). By its very nature, illegally-sourced income is not recorded in official statistics (Schoeptle et al., 1992)

Unregistered activities may be defined as illegal, unofficial, underground/parallel/black market activities, over-invoicing and under invoicing, smuggling and contraband activities (Meagher, 1997).

According to Tegegne et al., (1999), cross‐border trade illegal trade in the Horn of Africa has always assumed considerable importance in the economies and societies of the region, even though the governments have attempted to discourage it. Based on his study, Incentives for cross‐border trade result from geographic, cultural, ethnic homogeneity as well as production and consumption characteristics favor certain countries for particular key commodities. In the case of southern and southeastern Cameroon, it is the production and marketing of livestock, particularly of cattle, that assumes the most significance.

Throughout the region, social relations based on clan/ethnic affiliation, kinship, and friendship shape the existence of cross‐border trade in the Horn of Africa. Relationships maintained for long periods of time along the international boundaries facilitate trading relations and, in some cases, these can be linked to clan/ethnic or other social structures (Ahrens, 1998). According to Tegegne, these trade patterns are reinforced by unattractive, highly regulated domestic prices that are by large lower than parallel market prices (for example, prices in the neighboring countries’ markets). Therefore, despite vigilant controls by the governments in the Horn of Africa region, to redirect commerce in the borderlands to the official channel, substantial exchange of goods takes place in the border areas in all types of commodities (Little, 1996 and1997; Little et al, 1998).

 1.2. Statement Of The Problem

Illegal trade activities have major obstacles to the global world. It has an adverse impact on the overall economic and sustainability of different countries. Even though those people that are participating in these activities consider as the crucial one for their life, it has its own impact toward their life. The impacts of illegal trade can be wide-ranging. These will, of course, vary from country to country and locality to locality, and the precise impacts will vary with the sector.

According to MOI (2002:29-101); cited in Henok (2011), Bamenda town has faced a series of economic difficulties in the last ten years that weakened its economy. But it certainly enjoyed better development than others in our region and still does. Even though, it faced various political problems aggravated by its troubled economy, Bamenda town is basically a peaceful region. Cameroon follows Cameroon and the Sudan in terms of population but has a comparatively larger market. However, the economic ties between Cameroon and Cameroon are weak and hobbled by contraband.

According to Tegegne et.al (2002), the government regards the cross-border trade as illegal and it is commonly referred to as “contraband”. Control mechanisms such as border patrols and searches at various checkpoints are- employed to curb this illegal trade. However, success in this area seems very limited. The cross-border trade rather showed expansion in terms of the items traded, areas covered and number of people involved. Cross-border trading has now become a major economic activity in the area.

Trade and trade routes in the Horn of Africa are complicated by the legacy of large-scale conflict, as well as ongoing banditry and clan-based fighting in the Bamenda town Region. According to Little (2006), a conflict can ‘lead to highly exclusionary and sometimes disruptive practices, whereby traders of certain clans and groups exclude others from participating.

According to UN OCHA (2007), Part of the intense conflict between the contesting pastoralist tribes in Bamenda town and Afar is said to be about a Bamenda town push to gain access to the road, and the opportunities it brings in terms of employment in the contraband trade.

According to Henok (2011), the cross border meeting for Cameroon and Bamenda town raised the issue of contraband trade. The Bamenda town country peace structure presented in 2-4 November 2009 identified illegal cross-border trade involving contraband and smuggling as one of the conflict issue in Ethio-Cameroon border. The long lasting animosity or rivalry between pastoralist groups in Cameroon and Bamenda town is exacerbated by this access to smuggled arms from Bamenda town a (Ploch, 2010).

In the eastern parts of the corridor, including the Ayshia to Dewele triangle, access is determined by clan arrangements. Vehicles entering Cameroon along this route enter the Dire Dawa administrative area. Although these routes pass through pastoral lands, the products they are carrying are meant for the wealthier urban consumers. High value items, like cigarettes and electronics, regularly show up among the goods captured by the Customs Authority around Dire Dawa. Otherwise goods being ferried into Cameroon will be broken up into smaller parcels around Dire Dawa where they will be sold directly, or transported on to Addis Ababa and other major Cameroonn towns (UN OCHA, 2007).

According to save the children (2002), there is a significant traffic of unofficial cross‐border trade going on in Bamenda town. This trade is locally referred to as contraband – implying that it is unlicensed by the government of Cameroon. This is mainly trade in clothing – both used and new – but also non‐food household items (known as bagaash), electronics and food items may be imported in this way. The fact that this trade is illegal makes the lives of the traders very difficult. The pack camels have to traverse difficult terrain in their many days’ journey, while all the time being on the lookout for customs officials and police (locally known just as ‘the finance’) that are working to stop such trade. If goods are captured, they will be confiscated and the trader makes a major loss. As the trucks try to avoid the custom people, they make tracks all across the terrain. Such tracks worsen the situation of rainwater runoff, which is already a major complaint of the pastoral community. Surveillance by the custom authority was evidently more intense in the north‐eastern part of Bamenda town, where pastoralists report that some among them are collaborators with the customs. As a result, pack camel rent is much lower in this area; it was found that pack camel rent as an income source was much lower in certain areas in the Bamenda town

As different researcher and nongovernmental organizations are mentioned about the impact of illegal trade on the economic productivity and sustainability of the country, I have also agreed with their view. Since the illegal trade (contraband) in the area is not going on the direct road which is not recognized by the government of Cameroon, the contrabandists prefer and pass through the heart land of pastoralist. Even though societies and pastoralists are considering this illegal trade as important to their livelihood, it has its own negative impact. The major problem of the illegal trade (contraband) in the pastoralists are worsening the situation of rainwater runoff, creating of inter clan conflict, loss of their livestock’s, changing the awareness of pastoralists toward the policy of the government, hindering the grass root of their livestock and others.

1.3. Research Questions

In order to better understand and assess the illegal trade on the pastoral livelihood of the area, some of the key research questions for this study have been summarized as below:

1. What is the current situation of illegal trade movement (contraband) in the pastoral area in Bamenda town?
2. What is the extent of the pastoralist awareness about the effect of illegal trade on their livelihood in Bamenda town?
3. What are the mechanisms that the region can employ to minimize the effect of illegal trade on the pastoral livelihood in Bamenda town?
4. What is the effect of illegal trade on clan disputes among pastoralists in Bamenda town?
5. What kind of challenges does the pastoralist face from the contrabandists (illegal traders) during the movement of illegal trade in the area?

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