Book contents
- Black Markets and Militants
- Black Markets and Militants
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Acknowledgments
- Preface
- I The Framework
- II The Institutional Context in an Era of Abundance
- 1 “The House the Boom Built”: The Informal Economy and Islamist Politics in Egypt
- 2 Investing in Islamism: Labor Remittances, Islamic Banking, and the Rise of Political Islam in Sudan
- 3 Islamic versus Clan Networks: Labor Remittances, Hawwala Banking, and the Predatory State in Somalia
- III Globalization and Institutional Change in an Era of Scarcity
- Book part
- Notes
- Bibliography
- Index
2 - Investing in Islamism: Labor Remittances, Islamic Banking, and the Rise of Political Islam in Sudan
from II - The Institutional Context in an Era of Abundance
- Black Markets and Militants
- Black Markets and Militants
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Acknowledgments
- Preface
- I The Framework
- II The Institutional Context in an Era of Abundance
- 1 “The House the Boom Built”: The Informal Economy and Islamist Politics in Egypt
- 2 Investing in Islamism: Labor Remittances, Islamic Banking, and the Rise of Political Islam in Sudan
- 3 Islamic versus Clan Networks: Labor Remittances, Hawwala Banking, and the Predatory State in Somalia
- III Globalization and Institutional Change in an Era of Scarcity
- Book part
- Notes
- Bibliography
- Index
Summary
In Sudan the era of the oil boom resulted in a flood in labor remittances that circumvented official financial institutions, thereby undercutting the state’s fiscal and regulatory capacity and fueling the expansion of the informal foreign currency trade. Initially, developments in Sudan paralleled those in Egypt as the boom witnessed the rise of an Islamist-commercial class that formed as a result of its successful monopolization of informal financial markets. However, in contrast to Egypt, by 1989 Sudanese Islamists were able to take over the levers of the state via a military-coup. This development was made possible by Sudan’s weaker state capacity and the extreme weakness of its formal banking system. As a result, the financial power of the Muslim Brotherhood continued to increase in relationship to the state as they continued to profit from participation in the lucrative speculation in black market transactions and advantageous access to import licenses.
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- Black Markets and MilitantsInformal Networks in the Middle East and Africa, pp. 92 - 127Publisher: Cambridge University PressPrint publication year: 2021