Student Number : 0414488P -
MA research report -
School of Social Sciences -
Faculty of Humanities / This study aims at highlighting the politics of international cooperation with respect to
monetary integration in West Africa. Monetary integration was envisaged in the
Economic Community of West African States (ECOWAS) when the organization was
formed in 1975. Two decades after its formation, it was realized by member states
that limited success had been achieved as far as the objectives of the organization
were concerned. As a result, the ECOWAS Treaty was revised and significant
decisions were made in 1993, and the call for a monetary union was reiterated.
Factors which could have worked against the formation of a monetary union prior to
1993 changed in favour of monetary cooperation. The adoption of the Euro in the
European Union and more especially by France, weakened the symbolic link of the
CFA Franc zone to France, and to an extent reduced the French stigma, which had
hitherto discouraged Anglophone countries from participating in an expanded
monetary union with their Francophone counterparts. The democratic transition of
Nigeria and the accession to power of a new leader who has shown commitment to
regional integration, improved cooperation arrangements among ECOWAS states in
working towards the formalization of a monetary union. The transformation from the
Organization of African Unity (OAU) to the African Union (AU) and its strategy of
creating a common African currency as well as the emergence of the New Partnership
for Africa’s Development (NEPAD) provided extra motivations for African states to
show more commitment towards integration. Based on the above factors, several
positive steps have been taken towards the formalization of a monetary union in the
community. The West African Monetary Zone (WAMZ) was realized in 2000 and
more importantly, the West African Monetary Institute (WAMI) was created and
started operating in the same year. The Institute was created to prepare the
groundwork for the creation of the West African Central Bank. The above mentioned
factors increased the prospects of forming a monetary union in the community but
several challenges still remain. First there is the problem of the asymmetric nature of
the economies in the region. Secondly, political instability is a major factor that
militates against the formation of such a union. Domestic political instability in
Nigeria, which is heightened by ethnic and religious differences as well as the
asymmetric nature of her economy in relation to those of other states in the region,
makes it difficult for a monetary union to revolve around her. This research project is centered on Treaties, statistical analysis, theories and concepts and literature from
economic and financial institutions. We conclude by stating that the analysis here
reflects the situation on the ground and provide lessons to member states of the
community, prospects for monetary integration would be further improved if member
states work coherently to overcome such challenges.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/1748 |
| Date | 15 November 2006 |
| Creators | Kode, David Ebung |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Thesis |
| Format | 247535 bytes, 229096 bytes, 269186 bytes, 328695 bytes, 48249 bytes, 112946 bytes, application/pdf, application/pdf, application/pdf, application/pdf, application/pdf, application/pdf, application/pdf, application/pdf, application/pdf, application/pdf, application/pdf, application/pdf |
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