Thanks for the kudos.
Sent: Wednesday, July 03, 2013 11:25 AM
To: usaafricadialogue@googlegroups.com
Subject: Re: USA Africa Dialogue Series - Fwd: France Has Economically Enslaved West African Countries
--Brother John & "Alhaji" Mbodj:
Thank both of you very much for the ongoing refresher Economics course(s) for some of us. These healthy exchanges are helping me, in particular, to improve on my Economics 101 and 102, which I took (many "moons ago" in a Liberal Arts undergraduate institution) at the time in the 1970s when I had my full dark hair and could also jog or play lawn/table tennis like anybody else in his or her 20s!
For example, when I visited People's Republic of China (and several other Southeast Asian countries) as a Fulbright-Hays Faculty Scholar, I collected several denominations of the Yuan for souvenir, but I never knew its convertibility history as you have now explained it very clearly. Also, after seeing my Yuan collection, one of my former native Chinese students told me about the introduction of the Renminbi (people's currency) as a parallel currency.
Indeed, many thanks as well for the beneficial economic lessons, which may help some of us to start (in our old age) to work on our second doctoral degrees (although a dear African brother with impeccable University of Oxford credentials told me recently that each of us requires only one terminal graduate-level degree with "D" in it either to do well or to succeed (i.e. D.Sc.; Ph. D.; M.D.; J.D.; D. Phil; or D.D.S). Maybe, if you and the other USA-AFRICA DIALOGUE Economists continue to "preach" Economic theories and theorems to us, the Historians among us can one day claim to have added the Economics discipline to become Economic Historians!
In the cherished words of VC Aluko, when it so happens, there you have it!
A.B. Assensoh.
From: usaafricadialogue@googlegroups.com [usaafricadialogue@googlegroups.com] on behalf of John Mbaku [jmbaku@weber.edu]
Sent: Tuesday, July 02, 2013 1:53 PM
To: usaafricadialogue@googlegroups.com
Subject: Re: USA Africa Dialogue Series - Fwd: France Has Economically Enslaved West African Countries
Dear Professor Mbodj:
Thanks for your thoughtful reply. Note, however, that unlike the CFA Franc Zone countries, China (PRC) has full control of its monetary policies. And, unlike the CFA Franc, the convertibility of the Yuan or Renminbi (people's currency) is not guaranteed by some foreign institution. The road to currency convertibility in China, as it should be in any country, is based on increasing and improving productivity in the country's economy. Significant improvements, during the last twenty years, in the Chinese economy, which have pushed that economy to the second largest in the world, are the factors that are making the country's currency quite attractive to investors and consumers around the world. Thus, unlike the CFA Franc, the strength of the Chinese yuan derives primarily from the strength and size of the PRC economy. The CFA Franc derives virtually all of its strength from the guarantee of convertibility granted by the French Treasury. One more thing, the relationship between the CFA Franc and the euro/French Treasury is quite unique and is different from what the Chinese are doing with their currency. With respect to the CFA Franc, the French Treasury guarantees that a holder of CFA Francs can exchange them into the euro at a fixed rate of CFAF 655.957 to one euro. Thus, the pegging done here is exclusively for the purpose of setting the guaranteed rate of exchange. Previously, the French Treasury guaranteed convertibility of the CFA Franc into the French Franc, also at a fixed rate, until the arrival of the EU and the euro currency union. Pegging in China is done for a completely different purpose.
It is true that globalization and economic integration have forced virtually all countries to give up a certain level of their sovereignty. Some of that loss involves their inability to have full and effective control over their monetary policies. However, this is not the case with the CFA Franc Zone countries. Only the CFA Franc countries have voluntarily outsourced their monetary policies, including the effective control of central banking functions, to a foreign institution. Of course, the extent to which policies and programs of such international financial institutions, such as the World Bank and IMF, affect African economies is determined by domestic policies and national laws and institutions. One need look only at the structural adjustment programs (SAPs), which destroyed a lot of African economies. These were imposed by the World Bank and the IMF and corruptly implemented by poorly-constrained African governments. Why did African governments accept them?
Did Cold War policies constrain development in Africa? Perhaps. But, in my opinion, this was due to the fact that African countries had failed at independence to arm themselves with institutional arrangements that would adequately constrained civil servants and politicians and prevented them from easily becoming servants of the cold warriors--the West (led by the United States) and the East (led by the Soviet Union). By the way, how did the Asian countries escape this Cold War curse? Actually, many of them, like South Korea, Taiwan, and Hong Kong, benefited significantly from the rivalry.
Stay well. John
--
On Tue, Jul 2, 2013 at 10:50 AM, Mohamed Mbodj <Mohamed.Mbodj@mville.edu> wrote:
--Dear Prof. Mbaku,
Thank you for starting the thread and the thoughtful contributions.
First, I gave China as an example of a country (just the biggest economy among many) that pegs its currency to a n imperialist nation's currency, without relinquishing its sovereignty symbolically or otherwise. A second point is that many countries have very little latitude to protect their monetary "sovereignty" when it comes to their monetary policies since they depend on SDRs and IMF conditionality (SAP). Third, it is easy for us to analyze the last 50/60 years of Africa's failure from a high ground of nationalist political principles. As well thought they could be, these principles cannot prevail in the deep of the Cold War for newly born states created by French colonial policies.
I agree with you that "one of the most important aspects of self-determination is for a country or community to determine its own laws and institutions--that is, the rules that would govern socio-political interaction, provide citizens with the wherewithal to organize their private lives (e.g., engage in entrepreneurial activities to create the wealth that they need to meet their needs), enhance peaceful coexistence, etc.". Let's face it: where do we find that or not in West Africa? Can we reduce the analysis of Senegal's situation today as only related to the CFA? Furthermore, I personally do not see any exorbitant costs associated with the CFA as compared to the non-CFA countries. And yes, I appreciate stability and predictability of economic and political systems.
For the future, I concur with you that ECOWAS at least, should work towards some monetary union at a brisker pace, although the recent problems in the Euro zone should be taken into account.
My best,
From: usaafricadialogue@googlegroups.com [mailto:usaafricadialogue@googlegroups.com] On Behalf Of John Mbaku
Sent: Sunday, June 30, 2013 8:14 PM
To: usaafricadialogue@googlegroups.com
Subject: Re: USA Africa Dialogue Series - Fwd: France Has Economically Enslaved West African Countries
Dear Professor Mbodj:
Thank you for writing. Alright, let us remain on the CFA issue. The question is: Why should France continue to make monetary policy for independent and sovereign states in Africa? Even if the policies made turn out to be beneficial to the African peoples, that continued (involuntary) dependence of Africans on France dependence does not augur well for successful poverty alleviation efforts. Africans must take ownership of their problems and seek ways to resolve them.
It is unfortunate that many African countries, including Guinea under Touré, failed at independence and in the post-independence period, to sufficiently transform the critical domains and provide themselves with institutional arrangements that adequately constrain the state and, prevent civil servants and politicians from engaging in opportunism (e.g., corruption and rent seeking)--behaviors that are growth-inhibiting and that continue to contribute to poverty. Hence, even though Guinea was able to disengage itself from the French Community at independence, it, like many other new countries in the region, did not engage in the type of institutional reforms that would have deepened and institutionalized democracy and prevented the type of authoritarian and non-participatory governance that came to characterize the first 50 years of independence.
Yes, it is true that the right to self-determination was legally exercised when these francophone countries were set up in 1958-1960. However, in practical terms, this was not the case. In my opinion, one of the most important aspects of self-determination is for a country or community to determine its own laws and institutions--that is, the rules that would govern socio-political interaction, provide citizens with the wherewithal to organize their private lives (e.g., engage in entrepreneurial activities to create the wealth that they need to meet their needs), enhance peaceful coexistence, etc. The development of such institutional arrangements, for a new country must start with constitution making. For it to be effective and produce outcomes beneficial to the diverse populations that exist in the new country, constitution making must be bottom-up, participatory, inclusive, and people-driven. This process-driven constitution making was not undertaken in the francophone countries at independence or even afterwards--the model adopted, in some cases, almost verbatim, was the French Constitution of 1958. Hence, I do not believe that what happened in these countries during the 1958-1960 period was true self-determination.
Guinea, by rejecting de Gaulle's offer, had the right approach, but failed to follow through and hence, ended up with the same type of anachronistic and dysfunctional governance institutions that have pervaded its neighbors for years.
I am sorry, but I did not understand the reference to China.
It is true that the CFA Franc Zone has provided its participants with some level of financial stability, but the question is, at what cost? But the bigger issue is, why can't these countries and perhaps, many more, form a currency union without guarantees from the French Treasury or some other outside party?
Stay well.
On Sat, Jun 29, 2013 at 12:27 PM, kenneth harrow <harrow@msu.edu> wrote:
[please reenrol professor mbodj on the list]
Purchase, NY 10577
Phone: 914-323 7183
Email: mohamed.mbodj@mville.edu
_______________________________From: Mohamed Mbodj
Sent: Friday, June 28, 2013 10:53 PM
To: usaafricadialogue@googlegroups.com
Subject: RE: USA Africa Dialogue Series - Fwd: RE: CFADear Professor Mbaku,
I am trying to send this, but previously I failed to get through, so bear with me, just in case I need Ken Harrow's link again.
I am not sure why you inject Apartheid here, even if you equate it to colonialism. And I agree with you about colonial policies objectives. On the other hand, I just want to remain on that CFA issue. I am aware of the kind of the studies you mentioned, and I have participated in a few since the late 1970s when I was still teaching at UCAD. My point is I still do not see how much France has robbed so much UMOA countries though the CFA system. Yes again, monetarist policies alone do not build economic performance! I am not the one making that point. The sovereignty issue you invoke if more of a spurious claim as it does not feed the populations, nor does it make a country like Guinea "bigger than they are really"!. In countries dominated by a Sekou Toure, where are the decisions made by the "citizens"? Ghana may be doing "better" than its CFA neighbors, but it was already the case in the 1950s! Is the right of self-determination linked to an independent currency? Then how id China doing? And for my own self-esteem, I rather use the CFA non figurative notes and coins than currency adorning the founding father's picture. By the way, "the right to self-determination" was exercised when these governments were set up in 1958-1960, unless you consider that only Guinea has exercised these rights "correctly".
Mohamed Mbodj, Ph.D.
Professor,
History Department and
African & African-American Studies
Manhattanville College
2900, Purchase Street
Purchase, NY 10577
Phone: 914-323 7183
Email: mohamed.mbodj@mville.edu
-------- Original Message --------
Subject:
France Has Economically Enslaved West African Countries
Date:
Sat, 29 Jun 2013 03:10:02 +0000
From:
Mohamed Mbodj <Mohamed.Mbodj@mville.edu>
To:
Ken,
Just sent this, but I got send failure message back!
Mohamed Mbodj, Ph.D.
Professor,
History Department and
African & African-American Studies
Manhattanville College
2900, Purchase Street
Purchase, NY 10577
Phone: 914-323 7183
Email: mohamed.mbodj@mville.edu
_______________________________From: Mohamed Mbodj
Sent: Friday, June 28, 2013 10:53 PM
To: usaafricadialogue@googlegroups.com
Subject: RE: USA Africa Dialogue Series - Fwd: RE: CFADear Professor Mbaku,
I am trying to send this, but previously I failed to get through, so bear with me, just in case I need Ken Harrow's link again.
I am not sure why you inject Apartheid here, even if you equate it to colonialism. And I agree with you about colonial policies objectives. On the other hand, I just want to remain on that CFA issue. I am aware of the kind of the studies you mentioned, and I have participated in a few since the late 1970s when I was still teaching at UCAD. My point is I still do not see how much France has robbed so much UMOA countries though the CFA system. Yes again, monetarist policies alone do not build economic performance! I am not the one making that point. The sovereignty issue you invoke if more of a spurious claim as it does not feed the populations, nor does it make a country like Guinea "bigger than they are really"!. In countries dominated by a Sekou Toure, where are the decisions made by the "citizens"? Ghana may be doing "better" than its CFA neighbors, but it was already the case in the 1950s! Is the right of self-determination linked to an independent currency? Then how id China doing? And for my own self-esteem, I rather use the CFA non figurative notes and coins than currency adorning the founding father's picture. By the way, "the right to self-determination" was exercised when these governments were set up in 1958-1960, unless you consider that only Guinea has exercised these rights "correctly".
Mohamed Mbodj, Ph.D.
Professor,
History Department and
African & African-American Studies
Manhattanville College
2900, Purchase Street
Purchase, NY 10577
Phone: 914-323 7183
Email: mohamed.mbodj@mville.edu
This electronic message contains information from Manhattanville College, which may be confidential, privileged or otherwise protected from disclosure. The information is intended to be used solely by the recipient(s) named. If you are not an intended recipient, be aware that any review, disclosure, copying, distribution or use of this transmission or its contents is prohibited. If you have received this transmission in error, please notify us at the reply email address.
--kenneth w. harrowfaculty excellence advocatedistinguished professor of englishmichigan state universitydepartment of english619 red cedar roadroom C-614 wells halleast lansing, mi 48824ph. 517 803 8839harrow@msu.edu
--
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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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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
You received this message because you are subscribed to the "USA-Africa Dialogue Series" moderated by Toyin Falola, University of Texas at Austin.
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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
You received this message because you are subscribed to the "USA-Africa Dialogue Series" moderated by Toyin Falola, University of Texas at Austin.
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