ABSTRACT
Credit is a vital economic institution without which trade becomes very limited. In the industrial Western societies, where it is highly developed, it operates through formal, standardised arrangements and procedures by which the solvency of the debtor is closely assessed, securities against possible default are provided, and the conditions of the agreement are documented and endorsed by the parties concerned. Ultimately, these arrangements and procedures are upheld by legislated rules and sanctions administered by central, bureaucratised, fairly impartial, efficient, and effective courts and police. In West Africa, on the other hand, where long-distance trade has been fostered by varying ecological circumstances, such organisation has not yet evolved, particularly for long-distance trade. Nevertheless extensive systems of credit have been developed.
