Tuesday, December 12, 2006

Ghetto Capitalism


Sudhir Venkatesh's new book unravels the mystery of the underground economy

In his efforts to demonstrate that this shadow economy is anything but the desperate Hobbesian scramble an outsider might assume, Venkatesh can at times sound like Jane Jacobs extolling the civic merits of Manhattan's West Village. "Beneath the closed storefronts, burned-out buildings, potholed boulevards, and empty lots, there is an intricate, fertile web of exchange, tied together by people with tremendous human capital and craftsmanship," he writes. In this view, even Big Cat is a "stakeholder" in the neighborhood, with an interest in seeing norms adhered to and order preserved. "It's not a crack house," as an old Onion headline had it. "It's a crack home."

But these very bonds of mutual dependence that hold the neighborhood together can breed severe dysfunction and seriously compromise pillars of the licit establishment. Eunice, who sells soul food for a living, pays a teacher $20 a week to let her grandchildren out of school to make deliveries. Cops take bribes and enforce justice selectively.

Perhaps the most surprising aspect of Venkatesh's account is the role of neighborhood ministers. Clergy resolve disputes, but they don't do it for free. Numerous ministers accept "contributions" from gangs and drug dealers for their services. They take other forms of payment, as well; Bird, the prostitute, has serviced "most of the preachers in this community." Other ministers have been known to hide guns, drugs, and stolen property for a fee. Nannies rely on preachers for referrals to families but must pay a 10 percent commission. The residents are unshocked by all of this. They conclude that it would be impossible to navigate the community without making certain allowances. "We are poor people. And so are our ministers," one congregant says. "We need [a minister] to be our leader, not perfect or without sin."


full article...

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