Membership in the CFA zone : Odyssean journey or Trojan horse?
For 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.
|Date of creation:||31 Aug 1990|
|Date of revision:|
|Contact details of provider:|| Postal: 1818 H Street, N.W., Washington, DC 20433|
Phone: (202) 477-1234
Web page: http://www.worldbank.org/
More information through EDIRC
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.:
- 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.
- 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.
- Honohan, Patrick, 1990. "Monetary cooperation in the CFA zone," Policy Research Working Paper Series 389, The World Bank.
- 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.
- 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.
- Riccardo Faini & Jaime De Melo & Abdelhak Senhadji & Julie Stanton, 2015. "Growth-Oriented Adjustment Programs: A Statistical Analysis," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 5, pages 125-135 World Scientific Publishing Co. Pte. Ltd..
- 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.
- 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.
- Shantayanan Devarajan & Jaime de Melo, 2015. "Adjustment with a Fixed Exchange Rate: Cameroon, Côte d'Ivoire, and Senegal," World Scientific Book Chapters, in: Developing Countries in the World Economy, chapter 4, pages 83-123 World Scientific Publishing Co. Pte. Ltd..
When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:482. See general information about how to correct material in RePEc.
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.