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Author: Ali Zafar
Publisher: Springer Nature
ISBN: 3030710068
Category : Business & Economics
Languages : en
Pages : 250
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Book Description
This book provides an empirical analysis of economic and political structures impacting the CFA franc zone. Concise and practical chapters explore the history of the CFA franc zone, challenges to development, geopolitical issues, the importance of flexible exchanges rates, growth trends, and the impact of the Covid crisis. Policy reform is examined to detail economic approaches that could reduce poverty and increase the quality of life within the area. This book aims to present a macroeconomic and exchange rate framework to promote development and post-Covid recovery within the CFA franc zone. It will be of interest to students, researchers, and policymakers involved in African economics, the political economy, and development economics.
Author: Ali Zafar
Publisher: Springer Nature
ISBN: 3030710068
Category : Business & Economics
Languages : en
Pages : 250
Get Book Here
Book Description
This book provides an empirical analysis of economic and political structures impacting the CFA franc zone. Concise and practical chapters explore the history of the CFA franc zone, challenges to development, geopolitical issues, the importance of flexible exchanges rates, growth trends, and the impact of the Covid crisis. Policy reform is examined to detail economic approaches that could reduce poverty and increase the quality of life within the area. This book aims to present a macroeconomic and exchange rate framework to promote development and post-Covid recovery within the CFA franc zone. It will be of interest to students, researchers, and policymakers involved in African economics, the political economy, and development economics.
Author: Ms.Anne Marie Gulde
Publisher: International Monetary Fund
ISBN: 1589066758
Category : Business & Economics
Languages : en
Pages : 411
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Book Description
About one-third of countries covered by the IMF's African Department are members of the CFA franc zone. With most other countries moving away from fixed exchange rates, the issue of an adequate policy framework to ensure the sustainability of the CFA franc zone is clearly of interest to policymakers and academics. However, little academic research exists in the public domain. This book aims to fill this void by bringing together work undertaken in the context of intensified regional surveillance and highlighting the current challenges and the main policy requirements if the arrangements are to be carried forward. The book is based on empirical research by a broad group of IMF economists, with contributions from several outside experts.
Author: Mr.Michael T. Hadjimichael
Publisher: International Monetary Fund
ISBN: 1451857365
Category : Business & Economics
Languages : en
Pages : 40
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Book Description
Whether the prospective shift of the peg of the CFA franc to the euro would constitute an exchange rate arrangement with EMU countries would depend critically on the interpretation of the free convertibility of the CFA franc guaranteed by France. Nonetheless, this shift is likely to leave the CFA franc arrangements and operating features of the zone essentially unchanged. The current parity of the CFA franc could be considered in line with fundamentals. The potential economic consequences for the CFA franc countries could be positive over the long term, but there is a risk of a weakening of external competitiveness.
Author: Fanny Pigeaud
Publisher: Pluto Press (UK)
ISBN: 9780745341798
Category : Africa
Languages : en
Pages : 0
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Book Description
How the CFA Franc enabled France to continue its colonies in Africa.
Author: Mr.James M. Boughton
Publisher: International Monetary Fund
ISBN: 1451931999
Category : Business & Economics
Languages : en
Pages : 60
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Book Description
The CFA franc zone comprises a group of countries in central and west Africa whose currencies have been firmly linked to the French franc since 1948. It combines the features of a currency union with those of an exchange rate peg, and an analysis of its effectiveness must examine both dimensions. Viewed from the perspective of a currency union among the African countries, it would appear that the zone would not constitute an optimum currency area. But when France is viewed as an integral part of the system, the benefits—including discipline, credibility, and stability in international competitiveness—become clearer.
Author: Ali Zafar
Publisher:
ISBN: 9783030710071
Category :
Languages : en
Pages : 0
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Book Description
Veterans of Africa's development usually say that the countries in the CFA zone face the same challenges as the rest of the continent. It is just that they face them all at once, have little analysis of the causes, and cannot talk about their currency arrangement. That is about right. This book is a pioneer attempt at filling the knowledge gap that has, for far too long, prevented governments--and the army of donors, financiers, and academics who support them--from articulating an agenda that unleashes the economic potential of a region the world has left behind. From poverty to migration, from governance to extractives, and from business climate to climate change, it is all here. And to the delight of macroeconomists, Zafar looks at the CFA regime right in the eye: is it a vestige of colonial times or is it still the right exchange rate policy when institutions are weak and trade shocks are frequent? His answers are path-breaking and kick off a debate that is as fascinating as it is overdue. Marcelo Giugale, Professor at Georgetown University and former Director of the World Bank's Department of Financial Advisory and Banking Services When monetary unions were first established in Africa, there were reasons to believe that they might reduce transaction costs by integrating economies of member countries and promoting market efficiency, both of which should have led to better economic performance in the member countries. This book shows us how CFA Franc zones have failed to promote strong economic growth. It presents the glaring problems of institutional design in two CFA Franc Zones in Francophone Africa. It exposes how political interests, both in Africa and France, trumped the functioning of monetary and fiscal institutions. Serdar Yilmaz, Lead Public Sector Specialist, World Bank Exchange rate management is among the most important policy instruments for use by a country in its quest for rapid economic growth and external balance. Yet for over 75 years, the 14 countries of the CFA zone in Africa did not have this choice, having kept the same exchange rate and monetary arrangements with their colonial power, France. Very few studies have been pursued on this issue; it is as if the world has largely passed by these countries. Zafar fills this important knowledge gap by carefully dissecting the CFA zone, reviewing its history and analyzing the effects of the fixed exchange rate regime on these economies. He makes a substantive contribution to the current policy debate by evaluating the development outcome of this currency arrangement from different economic and political perspectives. This is a fascinating and must-read book for policy makers and anyone interested in Africa development. Hinh T. Dinh, Senior Fellow, Policy Center for the New South, Rabat, Morocco and Senior Research Fellow, Indiana University, Bloomington, Indiana, USA. This book provides an empirical analysis of economic and political structures impacting the CFA franc zone. Concise and practical chapters explore the history of the CFA franc zone, challenges to development, geopolitical issues, the importance of flexible exchanges rates, growth trends, and the impact of the Covid crisis. Policy reform is examined to detail economic approaches that could reduce poverty and increase the quality of life within the area. This book aims to present a macroeconomic and exchange rate framework to promote development and post-Covid recovery within the CFA franc zone. It will be of interest to students, researchers, and policymakers involved in African economics, the political economy, and development economics. Ali Zafar is a macroeconomist and private sector specialist with more than 20 years of experience researching policy and advising governments in sub-Saharan Africa, South Asia, and the Middle East. Over the course of his career he has served as a Senior Economist with the International Finance Corporation and World Bank, as well as a consultant to the United Nations, Gates Foundation, and USAID.
Author: David Stasavage
Publisher: Ashgate Publishing, Ltd.
ISBN:
Category : Business & Economics
Languages : en
Pages : 216
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Book Description
In this title, David Stasavage explores several alternative political economy explanations for the persistence of the Franc Zone and its macroeconomic management over the period 1945 to 2000. He addresses the issue of sustainability and asks why the Franc Zone has survived despite several major political and economic shocks that might have easily led to its dissolution. These include decolonisation, France's entry into the European Community and the growing marginalisation of Africa in world affairs. He also considers the issue of credibility and in particular the extent to which the Franc Zone arrangements commit member states to prudent macroeconomic policies.
Author: Paul R. Masson
Publisher: Rowman & Littlefield
ISBN: 9780815797531
Category : Business & Economics
Languages : en
Pages : 248
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Book Description
Africa is working toward the goal of creating a common currency that would serve as a symbol of African unity. The advantages of a common currency include lower transaction costs, increased stability, and greater insulation of central banks from pressures to provide monetary financing. Disadvantages relate to asymmetries among countries, especially in their terms of trade and in the degree of fiscal discipline. More disciplined countries will not want to form a union with countries whose excessive spending puts upward pressure on the central bank's monetary expansion. In T he Monetary Geography of Africa, Paul Masson and Catherine Pattillo review the history of monetary arrangements on the continent and analyze the current situation and prospects for further integration. They apply lessons from both experience and theory that lead to a number of conclusions. To begin with, West Africa faces a major problem because Nigeria has both asymmetric terms of trade—it is a large oil exporter while its potential partners are oil importers—and most important, large fiscal imbalances. Secondly, a monetary union among all eastern or southern African countries seems infeasible at this stage, since a number of countries suffer from the effects of civil conflicts and drought and are far from achieving the macroeconomic stability of South Africa. Lastly, the plan by Kenya, Tanzania, and Uganda to create a common currency seems to be generally compatible with other initiatives that could contribute to greater regional solidarity. However, economic gains would likely favor Kenya, which, unlike the other two countries, has substantial exports to its neighbors, and this may constrain the political will needed to proceed. A more promising strategy for monetary integration would be to build on existing monetary unions—the CFA franc zone in western and central Africa and the Common Monetary Area in southern Africa. Masson and Pattillo argue that the goal of a creating a s
Author: Ndongo Sylla
Publisher: Ohio University Press
ISBN: 0821444891
Category : Business & Economics
Languages : en
Pages : 193
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Book Description
This critical account of the fair trade movement explores the vast gap between the rhetoric of fair trade and its practical results for poor countries, particularly those of Africa. In the Global North, fair trade often is described as a revolutionary tool for transforming the lives of millions across the globe. The growth in sales for fair trade products has been dramatic in recent years, but most of the benefit has accrued to the already wealthy merchandisers at the top of the value chain rather than to the poor producers at the bottom. Ndongo Sylla has worked for Fairtrade International and offers an insider’s view of how fair trade improves—or doesn’t—the lot of the world’s poorest. His methodological framework first describes the hypotheses on which the fair trade movement is grounded before going on to examine critically the claims made by its proponents. By distinguishing local impact from global impact, Sylla exposes the inequity built into the system and the resulting misallocation of the fair trade premium paid by consumers. The Fair Trade Scandal is an empirically based critique of both fair trade and traditional free trade; it is the more important for exploring the problems of both from the perspective of the peoples of the Global South, the ostensible beneficiaries of the fair trade system.
Author: Ali Zafar
Publisher: World Bank Publications
ISBN:
Category : Euro
Languages : en
Pages : 33
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Book Description
"The author estimates the degree of misalignment of the CFA franc since the introduction of the euro in 1999. Using a relative purchasing power parity-based methodology, he develops a monthly panel time series dataset for both the Economic and Monetary Community of Central Africa (CEMAC) zone and the West African Economic and Monetary Union (UEMOA) zone to compute a trade-weighted real effective exchange rate indexed series from January 1999 to December 2004. The author's main finding is that the real effective exchange rate appreciated by close to 8 percent in UEMOA and 7 percent in CEMAC, influenced by volatility in the euro-dollar bilateral exchange rate and conservative monetary policies in the two zones, resulting in a partial loss of competitiveness in export markets. The lower appreciation in Central Africa can be explained by lower inflation in CEMAC than in UEMOA and by the greater trade with higher inflation East Asian countries, partially offset by the peg to the dollar. However, the inclusion of "unrecorded trade" results in an appreciation of only 6 percent in the UEMOA zone and 6 percent in the CEMAC zone due to higher inflation in the two countries with unmonitored cross-border flows, Ghana and Nigeria. Using time series econometrics, an Engle-Granger two stage procedure for cointegration, and an error correction framework, a single equation modeling of the real exchange rate from 1970 to 2005 as a function of terms of trade, economic openness, aid inflows, and a dummy representing the 1994 devaluation, the author finds little statistical evidence of a long-run equilibrium exchange rate that is a vector of economic fundamentals. The dummy explains most of the real exchange rate behavior in the two zones, while openness in UEMOA has contributed to an appreciation of the real effective exchange rate. "--World Bank web site.
