1. Critically evaluate whether a single currency would be potentially disastrous for the West African economies.
2. In light of the above article, highlight the benefits of regional integration for African countries
[25] Read the following extract and answer the questions that follow: "You should first improve the implementation of existing ECOWAS trading agreements West African 'single currency' dream gives economists nightmares then improve the physical infrastructure," Nevin said. For decades it was a dream of West African finance ministers: ushering in a regional "The third more pressing issue would be the ability to trade in every country's native single currency to boost trade and growth. But some economists say plans to launch currency. without using a third currency like euro or dollars." "the eco" remain unrealistic and potentially disastrous for the region's economies, ECOWAS was set up in 1975 and is today comprised of Benin, Burkina Faso, Cape Almost 30 years since the goal was first sketched out, the Economic Community of Verde, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Niger, West African States, better known as ECOWAS, will meet in Abuja on Saturday to Nigeria, Senegal, Sierra Leone and Togo - representing a total population of around accelerate plans for what they see as an African version of the euro, the European 385 million inhabitants. Union's single currency that was forged out of national units over two decades ago. Eight ECOWAS countries (Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, The African 15-nation bloc had previously committed to creating a common currency, Niger, Senegal and Togo) jointly use the CFA franc. They are moored to the single European currency and are gathered in an organisation which supporters argue would significantly boost cross border trade in West Africa, by called the West African Monetary Union, or WAMU 2020. But the seven other ECOWAS countries have their own currencies, none of them freely ECOWAS leaders have already acknowledged that target date is unlikely to be met but convertible. have vowed to push on, while accepting there are numerous stumbling blocks, including Bunching them all together under "the eco", many economists argue, could be a step a mega-country-sized one: Nigeria. too far. "It is difficult to see Nigeria agree to being in a monetary union if it is not the boss," said Former senior economist at the International Monetary Fund (IMF) Abdourahmane Sar economist Ndongo Samba Sylla from the Rosa Luxemburg Foundation in Dakar. "It (the believes West African leaders must face up to a number of choices - including officially currency) would be launched into a void," he argued. postponing the 2020 launch date. Nigeria, whose oil-dependent economy accounts for two-thirds of the region's GDP The eco, as currently envisaged, "would have the same congenital disadvantages as would likely dominate a future monetary zone and has so far been sceptical about its the euro," Sarr said, who now heads the financial development think tank CEFDEL in benefits. Dakar. Economists compare the "Nigeria factor" to Germany's dominance in the eurozone, At Saturday's summit, ECOWAS leaders will examine preparatory work adopted earlier questioning whether sometimes disparate economies with varying levels of debt and this month including consensus on the name "eco", preferred over "afri" and "kola". deficits can successfully share the same currency. They will also discuss the "criteria of convergence" - not one ECOWAS country has The multi-year eurozone debt crisis, many argue, was proof that single currencies - consistently met the economic goals for the currency. when badly implemented -- can have a catastrophic economic impact. "To me what's more important than a possible single currency is that there is an ability "(A single currency) seems a little bit premature considering that Nigeria hasn't even to trade between countries in their native currency," said Nevin. signed up for regional integration in ECOWAS," said Andrew S. Nevin, chief economist (Source: https://www.france24.com/en/20190628-west-african-single-currency at PWC West Africa. dream-gives-economists-nightmares] He argued that a West African single currency should not necessarily be the top priority
