Membership in the CFA zone : Odyssean journey or Trojan horse?
AbstractFor most of the 13 African members of the CFA Franc Zone, the 1980s have been a decade of slow or negative growth in per capita gross domestic product, worsening balance of payments, debt crises, financial crises declining competitiveness, and an apparent failure to adjust to the changed environment they inherited from the 1970s. This paper reassesses the costs and benefits of membership in the CFA Franc Zone in light of its members'poor performance in the 1980s. The assessment is based on comparisons of the members'performance indicators with indicators for comparator groups: other countries in sub-Saharan Africa, other low- and middle-income countries, and other exporters of fuel and primary goods. Performance indicators for members of the CFA Zone deteriorated more than indicators for other groups. Growth and investment rates fell more for CFA countries. This decline is attributed to the CFA members'declining competitiveness as other countries undertook adjustment programs that emphasized depreciation of the real exchange rate. The burden of adjustment appears to have fallen disproportionately on reduced spending, particularly reduced investment.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 482.
Date of creation: 31 Aug 1990
Date of revision:
Achieving Shared Growth; Environmental Economics&Policies; Macroeconomic Management; Economic Theory&Research; Economic Stabilization;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Devarajan, Shantayanan & de Melo, Jaime, 1987. "Evaluating participation in African monetary unions: A statistical analysis of the CFA Zones," World Development, Elsevier, vol. 15(4), pages 483-496, April.
- Guillaumont, Patrick & Guillaumont, Sylviane & Plane, Patrick, 1988. "Participating in African monetary unions: An alternative evaluation," World Development, Elsevier, vol. 16(5), pages 569-576, May.
- Dani Rodrik, 1988. "The Welfare Economics of Debt Service," NBER Working Papers 2655, National Bureau of Economic Research, Inc.
- Faini, Riccardo & de Melo, Jaime & Senhadji-Semlali, Abdel & Stanton, Julie, 1990.
"Growth oriented adjustment programs : a statistical analysis,"
Policy Research Working Paper Series
426, The World Bank.
- Faini, Riccardo & De Melo, Jaime & Senhadji, Abdelhak & Stanton, Julie, 1991. "Growth-oriented adjustment programs: A statistical analysis," World Development, Elsevier, vol. 19(8), pages 957-967, August.
- O'Connell, Stephen A., 1989. "Uniform trade taxes, devaluation, and the real exchange rate : a theoretical analysis," Policy Research Working Paper Series 185, The World Bank.
- Honohan, Patrick, 1990. "Monetary cooperation in the CFA zone," Policy Research Working Paper Series 389, The World Bank.
- Devarajan, Shantayanan & de Melo, Jaime, 1987. "Adjustment with a Fixed Exchange Rate: Cameroon, Cote d'Ivoire, and Senegal," World Bank Economic Review, World Bank Group, vol. 1(3), pages 447-87, May.
- Chhibber, Ajay, 1991. "Africa's rising inflation : causes, consequences, and cures," Policy Research Working Paper Series 577, The World Bank.
- Aaron Tornell & Andres Velasco, 1995.
"Fixed versus Flexible Exchange Rates: Which Provides More Fiscal Discipline?,"
NBER Working Papers
5108, National Bureau of Economic Research, Inc.
- Tornell, Aaron & Velasco, Andres, 2000. "Fixed versus flexible exchange rates: Which provides more fiscal discipline?," Journal of Monetary Economics, Elsevier, vol. 45(2), pages 399-436, April.
- Tornell, Aaron & Velasco, Andres, 1995. "Fixed Versus Flexible Exchange Rates: Which Provides More Fiscal Discipline," Working Papers 95-06, C.V. Starr Center for Applied Economics, New York University.
- Boccara, Bruno & Devarajan, Shantayanan, 1993. "Determinants of inflation among franc zone countries in Africa," Policy Research Working Paper Series 1197, The World Bank.
- Balogun, Emmanuel Dele, 2008. "An Empirical Test of Trade Gravity Model Criteria for the West African Monetary Zone (WAMZ)," MPRA Paper 7083, University Library of Munich, Germany.
- Bakoup, Ferdinand & Tarr, David, 1998. "How integration into the Central African Economic and Monetary Community affects Cameroon's economy: general equilibrium estimates," Policy Research Working Paper Series 1872, The World Bank.
- Patrick Plane, 1996. "La privatisation dans les pays en développement : déterminants et conséquences macro-économiques," Économie et Prévision, Programme National Persée, vol. 125(4), pages 19-36.
- Elbadawi, Ibrahim & Majd, Nader, 1996. "Adjustment and economic performance under a fixed exchange rate: A comparative analysis of the CFA zone," World Development, Elsevier, vol. 24(5), pages 939-951, May.
- Elbadawi, Ibrahim & Majd, Nader, 1992. "Fixed parity of the exchange rate and economic performance in the CFA zone : a comparative study," Policy Research Working Paper Series 830, The World Bank.
- Balogun, Emmanuel Dele, 2008. "An alternative reconsideration of macroeconomic convergence criteria for West African Monetary Zone," MPRA Paper 11367, University Library of Munich, Germany.
- Kuikeu, Oscar, 2011.
"Comment la dernière crise financière a relancé le débat relatif à l'arrimage du fcfa à l'euro
[How the recent financial crisis have revived the debate on the parity between fcfa and euro]," MPRA Paper 32077, University Library of Munich, Germany.
- Giorgio Barba Navaretti & Riccardo Faini & Bernard Gauthier, 2006.
"The Impact of Trade Liberalization on Enterprises in Small Backward Economies: the Case of Chad and Gabon,"
Review of Development Economics,
Wiley Blackwell, vol. 10(3), pages 452-465, 08.
- Giorgio Barba Navaretti & Ricardo Faini & Bernard Gauthier, 2002. "The Impact of Trade Liberalisation on Enterprises in Small Backward Economies: The Case of Chad and Gabon," Cahiers de recherche 02-05, HEC Montréal, Institut d'économie appliquée.
- Giorgio Barba Navaretti & Riccardo Faini & Bernard Gauthier, 2003. "The Impact of Trade Liberalisation on Enterprises in Small Backward Economies: The Case of Chad and Gabon," Development Working Papers 176, Centro Studi Luca d\'Agliano, University of Milano.
- Shantayanan Devarajan & Dani Rodrik, 1991.
"Do the Benefits of Fixed Exchange Rates Outweigh Their Costs? The Franc Zone in Africa,"
NBER Working Papers
3727, National Bureau of Economic Research, Inc.
- Devarajan, Shantayanan & Rodrik, Dani, 1991. "Do the benefits of fixed exchange rates outweigh their costs? The Franc Zone in Africa," Policy Research Working Paper Series 777, The World Bank.
- Savvides, Andreas, 1998. "Inflation and monetary policy in selected West and Central African countries," World Development, Elsevier, vol. 26(5), pages 809-827, May.
- Tandian, Dieynaba, 1998. "Les suites de la dévaluation du franc CFA de janvier 1994," L'Actualité Economique, Société Canadienne de Science Economique, vol. 74(3), pages 561-581, septembre.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi).
If references are entirely missing, you can add them using this form.