Thursday, June 27, 2013

Re: USA Africa Dialogue Series - France Has Economically Enslaved West African Countries

Dear Kenneth:

First, ideally, an independent and sovereign country should have the right to design and implement its own economic policies and that includes, monetary policies. This, of course, should be undertaken with the full and effective participation of all of the country's relevant stakeholders. It would be unthinkable in the United States for Washington, D.C. to outsource central banking and monetary policy to, say, London. After all, in the end, the citizens of the country are the ones to shoulder the costs of any poorly-designed and implemented policies. Why should they outsource such policies if they are the ones to suffer if such policies are poorly articulated and implemented?

Second, keeping the issue of sovereignty aside, there are significant economic reasons why each country should have control over its development policies--the most important reason being that the closer policies are to the people that those policies actually affect, the better the policies are likely to be. In addition, designing and implementing effective economic policies requires that the policy makers have what is usually referred to as "time-and-place information"--the people at the local level (e.g., sub-Saharan Africa as opposed to Paris) usually have more access to that information than those far away. Hence, economic and monetary policies should be more effective if they are handled by national governments instead of some external actors in Paris or Washington, D.C. This implies that francophone African countries should have complete ownership of their own monetary policies.

Third, the accords that produced the CFA Franc were concluded during the colonial period. Taking into consideration the fact that colonialism was not a mutually beneficial arrangement willingly entered into by Africans and the Europeans, it would be a stretch to actually believe that any colonial era agreement, including that which created the CFA Franc Zone, was designed to benefit Africans. In fact, all colonial arrangements were specifically designed by the European countries that colonized Africa to generate as much benefits for the metropolitan economies as possible. While a few African groups and individuals benefited from colonialism, these were usually individuals and groups whose welfare was critical for the functioning of the colonial project. Thus, Europeans resident in the colonies and a few indigenous elites were benefited in an effort to sustain the colonial enterprise. Generally, the mass of Africans were severely impoverished and subjected to incredible levels of exploitation, infantilization, and degradation. Hence, I have no reason to believe that in 1958, the French suddenly decided that it was now time to abandon an enterprise that produced a lot of benefits for them and craft agreements that would make the welfare of Africans, instead of that of their citizens in the metropole, the variable to be maximized.

Fourth, the decolonization process was reluctant and opportunistic--the French and other Europeans did not want to give up colonialism and its benefits. They were forced to do so. Hence, as they prepared to leave, they designed separation agreements that protected the real properties that they had acquired during colonialism and created channels through which they could continue to protect those properties. One such channel, in the case of the French colonies, were so-called cooperation accords or agreements that would enhance their ability to access the economies of their former colonies. I believe that the CFA Franc was one such instrument. Given the inequality in negotiation capacity--the French had a significant advantage over the African colonies--it was not likely that the outcome of the "negotiations" would be agreements producing significant benefits for Africans.

Finally, while several studies have shown that the monetary arrangement between France's former colonies in sub-Saharan African countries and the French Treasury has produced some significant benefits for the African economies, the question that must be confronted is: Are these countries really independent and sovereign states when they are not able to fully govern themselves?




On Wed, Jun 26, 2013 at 9:13 PM, Anunoby, Ogugua <AnunobyO@lincolnu.edu> wrote:

There are conversations in Africa on single currency, regional and continental monetary unions that will include the CFA countries.

A major criticism of the CFA Franc is that it is a currency conceived and implanted by France to subordinate by stealth, the economies of its former African colonies-Africa's Francophone countries. A well-meaning France would have allowed parity of the CFA Franc it created, and the French Franc. She did not. The local currencies of Britain's  colonies for example had parity with the British pound  until each colony's political independence.  

 

Below is the France's Finance Minister in 1945:

 

"In a show of her generosity and selflessness, metropolitan France, wishing not to impose on her faraway daughters the consequences of her own poverty, is setting different exchange rates for their currency."

 

Read more (thanks to Ikhide)

 

http://www.africanbusinessmagazine.com/features/currency/a-brief-history-of-the-cfa-franc

 

oa

 

From: usaafricadialogue@googlegroups.com [mailto:usaafricadialogue@googlegroups.com] On Behalf Of La Vonda R. Staples
Sent: Wednesday, June 26, 2013 3:06 PM


To: usaafricadialogue@googlegroups.com
Subject: Re: USA Africa Dialogue Series - France Has Economically Enslaved West African Countries

 

Honest Question From An Ignorant American:

 

Is there any conversation or debate regarding currency which can be utilized across West Africa or the continent for that matter?  If there isn't a single currency which can be used across national boundaries why is it a problem that the franc is used?  

 

La Vonda R. Staples

St. Louis MO

 

On Wed, Jun 26, 2013 at 11:07 AM, Anunoby, Ogugua <AnunobyO@lincolnu.edu> wrote:

The CFA Franc was tied to the French Franc. France gives up its Franc for the Euro. The CFA Franc becomes tied the Euro. Why not the U.S. dollar which is still the number one currency for international trade? The  inflation shelter argument used to justify the tying of a smaller/weaker economy's to the currency of a stronger economy is mostly misleading and may be spurious. A basket of currencies works better than one country's currency in my opinion. A managed floating rate does too. The Zimbabwe experience has been mostly due to her poor export trade performance (tobacco leaves for example), following her international trade issues which are midwifed (according to Mugabe) by powerful "enemy" countries, and Mugabe's mismanagement of the economy.

International economic relations are undergoing change. Traditional trade ties are weakening and new ones are replacing them. Brazil, China, India, Japan, South Korea, and to a less extent Turkey among others are becoming major players. French made cars are disappearing from roads in Francophone countries as British made cars have done in former British colonies in Africa. Japanese, German, and South Korean cars have proven to be better value all over the world including France. Will France freely give its grip on the economies of the francophone countries I doubt that it will.  As President Sarkozy famously said, France needs Africa. Countries do not need each other for altruistic reason.

 

Please see

 

http://www.thisisafrica.me/opinion/detail/1603/How-France-lives-off-Africa-with-the-Colonial-Pact

 

http://www.chathamhouse.org/sites/default/files/public/Research/Africa/0513pp_franceafrica.pdf

 

www.saiia.org.za/.../40-french-relations-with-sub-saharan-africa-under-p...

 

 

 

 

From: usaafricadialogue@googlegroups.com [mailto:usaafricadialogue@googlegroups.com] On Behalf Of kenneth harrow
Sent: Wednesday, June 26, 2013 8:56 AM
To: usaafricadialogue@googlegroups.com
Subject: Re: USA Africa Dialogue Series - France Has Economically Enslaved West African Countries

 

the cfa is tied to the euro now, not the franc, which no longer exists. is it still a french tie?
also, the risk of inflation destroying the currency, as in zimbabwe say, is removed by being tied to the dollar or euro.
on the other hand, about 20 yrs ago the french decided the cfa was overvalued, and its value was cut in half--which was the subject of djibril diop mambety's brilliant film Le France (and tons of other films at that time)
but since they devalued, african exports were half as expensive, and exports shot up.
ogugua, what is the basis for your claim that france benefited from this, rather than vice versa? i mean, are there stats somewhere that we can see that make this point? i always had the impression that the african economic component represented a small percentage of european and of french trade. and nowadays is smaller than ever, as can be seen on the streets. in the 1970s all you saw on the streets of francophone countries were peugeots and renaults etc; now its all japanese cars, some german cars, but who sees citroens any more?
ken

On 6/25/13 10:45 PM, Anunoby, Ogugua wrote:

The point here it seems to me is whether or not the lapping of the economies of the Francophone countries to the economy of France has been good for them and served them well? I would argue that it has not. The arrangement has served France much, much better and continues to do so. France was and remains economically dependent on the economies of the Francophone countries but gives the impression the relationship is the other way round. France is so dependent on these economies that it stands ready to go to war to maintain the structure. It has indeed gone to war under false pretenses in some of the countries (Chad, Central African Republic, Cote d'voire, Mali, and the Niger Republic). The non-Francophone countries that were once attracted to the CFA zone fell for the illusion prosperity and stability for some time but soon saw the light. The point may also be made that France's stranglehold on the said economies has never depended on, or been measured by the presence of Frenchmen and women in the countries. The presence that is more effective and significant it seems to me, is France's military presence in the countries.

 

oa

 

From: usaafricadialogue@googlegroups.com [mailto:usaafricadialogue@googlegroups.com] On Behalf Of kenneth harrow
Sent: Tuesday, June 25, 2013 8:02 PM
To: usaafricadialogue@googlegroups.com
Subject: Re: USA Africa Dialogue Series - France Has Economically Enslaved West African Countries

 

two quick questions:
hasn't the cfa been seen as desirable by non-francophone countries, who have sought admission into the cfa zone?
secondly, also, though the french still have some influence, hasn't it been very largely diminished and replaced by the EU and the IMF, World Bank?
a figure i am aware of that reflects this: on independence, there were 50,000 frenchies in senegal. the latest figure i heard was 10,000
and of course, we could say, on independence, there were zero chinese in almost all african countries. now china is the largest actor, largest financial investor and builder on the continent.
[as always, since i am a non-specialist in this area, these are questions, not assertions]
ken

On 6/25/13 9:40 AM, Anunoby, Ogugua wrote:

Thank you JM. I would say that it is the leaders of the francophone countries and not France, that enslave their countries by the choices that they continue to make. France seems to me to be one of the instrument employed of the leaders in their misguided enterprises.  

 

oa

 

From: usaafricadialogue@googlegroups.com [mailto:usaafricadialogue@googlegroups.com] On Behalf Of John Mbaku
Sent: Tuesday, June 25, 2013 10:14 AM
To: usaafricadialogue@googlegroups.com
Subject: Re: USA Africa Dialogue Series - France Has Economically Enslaved West African Countries

 

As a critic of French and other forms of colonialism, I fail to see the point that the author of this piece is trying to make. In 1958, Charles de Gaulle, as president of the French Fifth Republic, offered France's colonies in sub-Saharan Africa, under the auspices of the Constitution of the Fifth French Republic, free association as autonomous republics within the Communauté française (French Community). Among all the colonies in what was then referred to as Afrique noire, Guinea was the only country to vote "non" to de Gaulle's offer. The rest of the colonies voted "oui" (yes) and hence, joined a community that provided them certain benefits, one of which was a common currency, the CFA franc. Along with the single currency came two central banks, one for West Africa (Banque centrale des états de l'Afrique de l'ouest--BCEAO) and one for Central Africa (Banque des états de l'Afrique centrale--BEAC). One of the early arguments given in support of this arrangement was that the French Treasury would solve one of the most important problems that new currencies, especially those issued by relatively weak economies, have and that is, convertibility--the French Treasury was to take on the job of guaranteeing convertibility of the CFA franc. Of course, any student of Economics 101 (and I am sure that they were many such students in these countries in 1958) would tell you that there is no such thing as a free lunch. By taking on the responsibility of guaranteeing convertibility, the French Treasury was not assuming this enormous financial risk out of its benevolence for beloved Africa--the French Treasury expected to be paid and these countries should have known that. Apparently, the Guineans were quite aware of the ramifications of the 1958 accords on each country's political and economic autonomy and that is why their leaders chose to turn down de Gaulle's offer. Of course, in retaliation for Guinea's exercise of its democratic right to vote no, the French colonial authorities in Conakry destroyed the country's embryonic infrastructure. In 1959, Guinea introduced its own currency, the franc guinéen. 

 

French colonies in West and Central Africa were not forced to join the CFA franc zone. Their leaders did so voluntarily as evidenced by Guinea's actions. Guinea survived French sabotage and is today, not any worse than many of the other former French colonies. It is, thus, ironic that many of these leaders, whose countries voluntarily allowed the proverbial camel to put its nose in the tent for warmth are now crying that the same camel has taken over the entire tent and driven them out into the cold. Again, ECONOMICS 101: There is no free lunch!

 

By the way, why cannot these countries exit the CFA Franc Zone and form their own currency union? After all, people break contracts everyday. Are not these countries independent, sovereign states? If France is, indeed, enslaving these economies, it is doing so with the complicity of their leaders. Thus, rather than blame the French, citizens of these countries should ask their leaders why, after more than 50 years of independence, these countries are still looking up to Europe for salvation.

 

On Mon, Jun 24, 2013 at 7:07 PM, Ajamu Nangwaya <anangwaya@gmail.com> wrote:

 

France Has Economically Enslaved West African Countries

Posted by Editor / June 20, 2013

http://theafricaneconomist.com/economically-enslaves-west-african-countries-by-france/?fb_source=pubv1#.Ucjs3zu1FMg

The French government continue to control the economies of its former colonies. The former president of the Ivorian National Assembly, former Finance Minister and economist, Professor Mamadou Koulibaly, labeled the French-led CFA franc arrangement as 'financially repressive, unfair and morally indefensible', in an interview with the London-based New African Magazine.

Eight West African states form the West African Economic and Monetary Union (UEMOA). UEMOA was created by a Treaty signed in Dakar on 10 January 1994, by the heads of state and governments of Benin, Burkina Faso, Côte d'Ivoire, Mali, Niger, Senegal, and Togo. On 2 May 1997, Guinea-Bissau became the organisation's eighth (and only non-Francophone) member state. This union set to use the same currency, CFA Franc that was pegged to the Euro.

In the same New African report mentioned above, Senegalese President Wade was clear and direct: 'Central bank reserves of member states must be returned to member states in one way or another. I insist on this, and particularly because we have been raising this issue for a long time'. President Wade 'deplored the fact that close to 1,500 billion CFA francs generated from the surplus of West African states' foreign reserves are placed on the foreign stock markets and out of the reach of the Africans who own the money.'

The French Treasury is holding billions of dollars owned by the African states of the francophone nations of West and Central Africa in its own accounts and invested in the French Bourse or Stock Exchange. The Africans deposit the equivalent of 85% of their annual reserves in these accounts as a matter of post-colonial agreements and have never been given an accounting for how much the French are holding on their behalf, in what have these funds been invested, and what profit or loss there have been.

The French have been acquiring and holding the national reserves of 14 countries since 1961. Even allowing for losses and expenditures in keeping the CFA franc viable, the French are holding about at least 400 billion dollars of African money, wholly unaccountably to the money's putative owners, the African states. Even Bernie Madoff couldn't have constructed a Ponzi scheme that large without being exposed.

This 'bargain' was made between the African former colonies and the French as part of the Pacte Coloniale which accompanied their independence and controlled through a single currency, the CFA franc. This was largely the work Jacques Foccart, the chief adviser for the government of France on African policy as well as the co-founder of the Gaullist Service d'Action Civique (SAC) in 1959 with Charles Pasqua, which specialised in covert operations in Africa.

It was Foccart 'the eminence grise' who negotiated the Pacte Coloniale with the evolving French West African states who achieved their 'flag independence' in 1960. Not really having planned for it, de Gaulle had to improvise structures for a collection of small newly independent states, each with a flag, an anthem, and a seat at the UN, but often with precious little else. It was here that Foccart came to play an essential role, that of architect of the series of Cooperation accords with each new state in the sectors of finance and economy, culture, education, and the military.

It is crucial for the CFA franc to acquire its own existence, free of colonial stranglehold…After the break; the ex-CFA zone must construct its own system based on simple principles or free trade, and economic cooperation.

No country should be financially or economically enslaved by another country. And no country is so esteemed to colonize another.

A LUTA CONTINUA!

 



In solidarity


Ajamu Nangwaya
Membership Development Coordinator, Network for Pan-Afrikan Solidarity

"We must practice revolutionary democracy in every aspect of our...[organization's] life. Every responsible member must have the courage of his responsibilities, exacting from others a proper respect for his work and properly respecting the work of others. Hide nothing from the masses of our people. Tell no lies. Expose lies whenever they are told. Mask no difficulties, mistakes, failures. Claim no easy victories ...." - Amilcar Cabral - Revolution in Guinea

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-- 
kenneth w. harrow 
faculty excellence advocate
distinguished professor of english
michigan state university
department of english
619 red cedar road
room C-614 wells hall
east lansing, mi 48824
ph. 517 803 8839
harrow@msu.edu

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La Vonda R. Staples, Writer

BA Psychology 2005 and MA European History 2009

 

"If your dreams do not scare you, they are not big enough."

 

Ellen Johnson Sirleaf, This Child Will Be Great; Memoir of a Remarkable Life by Africa's First Woman President.

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--
JOHN MUKUM MBAKU, ESQ.
J.D. (Law), Ph.D. (Economics)
Graduate Certificate in Environmental and Natural Resources Law
Nonresident Senior Fellow, The Brookings Institution
Attorney & Counselor at Law (Licensed in Utah)
Presidential Distinguished Professor of Economics & Willard L. Eccles Professor of Economics and John S. Hinckley Fellow
Department of Economics
Weber State University
3807 University Circle
Ogden, UT 84408-3807, USA
(801) 626-7442 Phone
(801) 626-7423 Fax

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