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Die UEMOA und die CFA-Zone: Eine neue Kooperations-Kultur im frankophonen Afrika?
[The WEAMU and the Franc CFA-Zone: A new culture of co-operation within Francophone Africa?]

Author

Listed:
  • Kohnert, Dirk

Abstract

The CFA-zone is basically composed of two sub-zones, characterised by significant structural economic and political differences within and between its member countries: the West African Economic and Monetary Union (WAEMU/UEMOA) and the Economic and Monetary Community of Central Africa (EMCCA/CEMAC). The growing structural divergences between UEMOA and CEMAC have been intensified by the recent development of world oil markets, booming production in Equatorial Guinea and the arrival of Chad in the club of oil producers. Nevertheless the CFA-zone in general, and the UEMOA in particular, have been considered as model case for economic and monetary integration in Africa. Yet, neither of these sub-zones meets the classical criteria of the Optimum Currency Area (OCA). In contrast, they show a low degree of diversification of production and exports, low factor mobility (except of labour in some countries) and price and wage flexibility, different levels of infrastructure and of inflation, low intra-regional trade and a strong exposure to asymmetrical external shocks (e.g. violent political conflicts, different terms of trade development for oil- and agricultural exports). The rules of the informal sector, which are more important in structuring the CFA-zone than the institutions and policies of the formal economic sector, including its monetary institutions. For decades, prices of French imports were overpriced, due to protection by tied aid and other political and cultural non-tariff barriers. The cost of this rent-seeking was carried not only by the French Treasury, who guarantees the peg, but by the French and EU-taxpayers, who financed budgetary bail-outs and development aid, and finally by the poorer member countries and social strata (cf. the free-rider thesis). This article analyses the aims and structures of the WEAMU and its future development prospects.

Suggested Citation

  • Kohnert, Dirk, 2005. "Die UEMOA und die CFA-Zone: Eine neue Kooperations-Kultur im frankophonen Afrika? [The WEAMU and the Franc CFA-Zone: A new culture of co-operation within Francophone Africa?]," MPRA Paper 5436, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:5436
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    References listed on IDEAS

    as
    1. Xavier Debrun & Paul Masson & Catherine Pattillo, 2005. "Monetary union in West Africa: who might gain, who might lose, and why?," Canadian Journal of Economics, Canadian Economics Association, vol. 38(2), pages 454-481, May.
    2. Mr. Paul R Masson & Mr. Ousmane Dore, 2002. "Experience with Budgetary Convergence in the WAEMU," IMF Working Papers 2002/108, International Monetary Fund.
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    Cited by:

    1. Kohnert, Dirk, 2008. "EU-African Economic Relations: Continuing Dominance, Traded for Aid?," MPRA Paper 9434, University Library of Munich, Germany.
    2. Kohnert, Dirk, 2015. "Donor’s double talk undermines African agency: Comparative study of civic agency in Burkina Faso and Togo," MPRA Paper 67093, University Library of Munich, Germany.
    3. Kohnert, Dirk, 2007. "Togo: Failed election and misguided aid at the roots of economic misery," MPRA Paper 5207, University Library of Munich, Germany.
    4. Kohnert, Dirk, 2022. "Domination française des marchés en Afrique francophone : Le post-colonialisme à son meilleur ? [French domination of Francophone African markets: Post-colonialism at its finest?]," MPRA Paper 112051, University Library of Munich, Germany.
    5. Kaptouom, Patricia C., 2007. "The West African economic and Monetary Union: past and present of an exceptional north-south-south-integration," Discussion Papers 2007/19, Free University Berlin, School of Business & Economics.
    6. Kohnert, Dirk, 2005. "African Monetary Unions - Dominated by the North? On the Relevance of Rational Economic Reasoning Under African Conditions," MPRA Paper 82083, University Library of Munich, Germany.
    7. Kohnert, Dirk, 2022. "French domination of markets in Francophone Africa: Post-colonialism at its finest?," MPRA Paper 112024, University Library of Munich, Germany.

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    More about this item

    Keywords

    regional integration; currency union; Western Africa; CFA-zone;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
    • F15 - International Economics - - Trade - - - Economic Integration
    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • P25 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Urban, Rural, and Regional Economics
    • N97 - Economic History - - Regional and Urban History - - - Africa; Oceania
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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