What is ECOWAS?: The Economic Community of West African States was founded on May 28th 1975 in Lagos, Nigeria. It comprised all the 16 independent nations of West African. Abuja and Lome serve as the administrative and fund headquarter respectively. The body was formed under the leadership of General Yakubu Gowon and President Eyadena.
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Anglophone – Nigeria, Ghana, The Gambia’s Sierra Leone and Liberia.
Francophone – Senegal, Guinea, Togo, Mali, Benin Republic, Burkina Faso, Cote de voire,
Mauritania and Niger Republic.
Busophone or Portuguese speaking countries – Cape verde and Guinea Bissau.
AIMS AND OBJECTIVES OF ECOWAS
- ECOWAS aimed at promoting cooperation and development in al fields of economic activity e.g. transport, energy, agriculture, Telecommunication, etc. among the member states.
- It aimed at liberalizing trade within the region.
- ECOWAS promotes economic stability.
- Also, ECOWAS aimed at removing trade barriers and restrictions.
- The body aimed at integrating both the fiscal and monetary policies of West African State.
- ECOWAS aimed at establishing common fund within the sub region.
- ECOWAS had helped to remove all custom duties that enhance free trade among member nations.
- The organization had established a common fund through which members are rescued.
- It had played a mediating role among member state e.g. Nigeria and Chad, Liberia, Sierra Leone etc.
- To promote peace in the sub region, ECOWAS had formed ECOMOG to restore peace in Liberia and Sierra Leone
- The eradication of Apartheid and neo-colonialism in South African can be traced to ECOWAS.
- ECOWAS had enhanced growth and expansion of market in the region
- ECOWAS had played a vital role in promoting unity in diversity among member nations.
PROBLEMS OF ECOWAS
- Some of the member nations are still tied to the apron of their colonial masters.
- The official language differs among member nations which constitute language barriers.
- Differences in ideology among member nations offer hampers togetherness of the community.
- Political instability – Most member frictions had been affected with coup e.g Nigeria.
- Fear of domination by big nations.
- Poor funding due to member nations inability to contribute to ECOWAS fund.
- Problem of where to locate investment by the body.
What is IMF?
The International Monetary Fund (IMF) was established at an international conference held in Bretton woods in 1944. It began operation in 1947 with its headquarters in the United States of America. Presently it has 138 member countries. It was established to encourage balance of payment equilibrium and to stabilize exchange rate among member countries.
OBJECTIVES AND FUNCTIONS OF IMF
- IMF helps to stabilize exchange rate among member nations.
- IMF assists members to finance balance of payment deficit.
- IMF makes recommendations to member nations on economic policies to adopt.
- IMF facilities settlement of debts in foreign transactions.
- IMF promote co-operation among member countries on financial matters.
PROBLEMS OF IMF
- Exchange rate volatility i.e. fluctuation in value of key currencies such as Dollar pounds.
- Inability of developing nations to repay loans obtained.
- Recommendation of policies to adopt to member nation leave some countries rich, while some poor e.g privatization, wage freezing etc.
- High rate of interest on loan obtained by developing nations makes repayment impossible e.g. Nigeria.
- Interference in the economic affairs of a country makes experts to see IMF as imperialist monetary fund instead of what it claimed to be.
- Since its inception, IMF had helped nations to overcome economic problem e.g. Nigeria.
- Relatively, IMF had helped to stabilize exchange value of currencies e.g. dollar in relation to other currencies.
- Debt forgiveness – due to inability of most nations to repay loan, IMF had written off these loans.
- Promotion of international trade.
What is IBRD?
The International Bank for Reconstruction and Development (IBRD) popularly known as World
Bank was founded in 1944 exactly the same period IMF was founded at Bretton woods. IBRD was its headquarter in Washington, United States of America. The World Bank started with 45 member nations at the beginning and as at 1992, the member has risen to 178 member nations.
OBJECTIVES OF IBRD
- IBRD grants long term loans for infrastructural development.
- IBRD offers expert advice development problems.
- IBRD offers training for experts.
- It conducts feasibility studies relating to economic development.
- World Bank helps to develop productive resources of member nations.
ACHIEVEMENTS OF IBRD
- IBRD had helped developed as well as developing nations in area of infrastructural development.
- Educational development – Through world bank assisted programme education to developing nation had been solved.
- Long term loan for developing nation for socio-economic development had been made feasible with the assistance of World Bank
PROBLEMS OF IBRD
- Lack of capital.
- Inability of nations to repay loan.
- Financing of white elephant projects i.e. unproductive project.
- Most of the Loans are directed towards the developed nations at the expense of the less developed ones
What is ADB?
African Development Bank (ADB) came into being in 1964 with its headquarter in Abidjan, Cote d’ivoire. It is a bank owned by African countries. It started full operation in 1966 with initial membership of 23 African Countries and as at 1970, membership had risen to 31.
FUNCTION / OBJECTIVES OF ADB
- To provide loan to aid social and economic development of member nation.
- It provides fund for the agricultural development of member nations.
- ADB provides fund for infrastructural facilities such as : electricity, water, transport and telecommunication.
- ADB helps to foster economic integration.
PROBLEMS OF ADB
- Lack of capital due to low economic activities in member nations.
- Poor infrastructural base of most nation in African.
- Lack of Technical expertise..
What is ECA?
The economic commission for Africa (ECA) also known as the United Nations Economic Commission for Africa was founded in 1958, with its headquarters in Addis Ababa, Ethiopia. It is an Organ of the United Nations Organization (UNO).
OBJECTIVES AND FUNCTIONS OF ECA
- ECA – ensures the economic development of African continent.
- To foster cooperation of OAU now
- ECA helps to develop manpower for the entire African continent.
- It helps to accelerate economic growth and integration in Africa.
- It helps to harmonize economic policies for African continent.
- ECA conducts research in the areas of production and technology, to aid Africa in economic development.
PROBLEMS OF ECA
- Economic community for African lack the needed capital to execute some of its projects.
- Differences in Economic policies of the country due to differences in ideology.
- To accelerate the Economic development of Africans
- To conduct research in the area of production and technology.
- To modernize Agriculture and industry in Africa
What is UNCTAD?
The United Nation Conference on Trade and Development (UNCTAD) was found in 1964 with its heaquarters in Geneva, Switzerland. It was created as an organ of the United Nations by a resolution passed by the United Nations Organisation (UN0). The first conference was held in Geneva, Switzerland in 1968, the second in New Delhi, India in 1968.
OBJECTIVES AND FUNCTIONS OF UNCTAD
- UNCTAD helps in promoting trade i.e. international trade in developing countries.
- UNCTAD assists in solving the increasing balance of payments difficulties of the developing countries.
- It helps to accelerate economic development of underdeveloped nations.
- To help in solving balance of payment deficit.
- To promote trade for developing countries.
EUROPEAN ECOMONIC COMMUNITY
The European Economic Community (EEC) was established by the treaty of Rome, Italy in 1957 by six European countries. These countries were France, West Germany, Italy, Belgium, the Netherlands and Luxembourg.
OBJECTIVES OF EEC
- To adopt a common currency known today as the Euro.
- To ensure economic and social progress.
- To eliminate trade restriction, thereby ensuring free trade between members nations.
- To eliminate barriers to free mobility of labour and capital between member states.
ACHIEVEMENTS OF EU
- The EU had developed a common market involving the free circulation of goods and capital.
- Since its origin, the EU has established a single economic market across the territory of all its members currently single currency is in use.
- The twenty-seven member state EU had an agreed budget of E120. 7 billion for the year 2007 with 46.7% for Agriculture.
- The EU is has diversified its energy supply.
- The EU seventh Framework Programme (FP7) sponsors research conducted by consortia from all EU members to work toward a single European Research Area.
- Through its support of the Bologna process the EU is supporting comparable standards and compatible degrees across Europe
PROBLEMS OF EU
- Lack of capital
- Heavy expenditure on energy importation the EU currently imports 82% of its oil.
- Religion barrier – Christian in the EU are divided among followers of Roman Catholicism, as of 2009, the EU had an estimated muslim population of 13 million.
The West African Clearing House (WACH) was established in June 1975 with its headquarters in Freetown, Sierra Leone. WACH is multi- lateral clearing house which comprises 15 – member Central Banks of West African States of Nigeria, Republic of Benin, Cote D’ivore, Niger, Senegal, Togo Burkina Faso, the Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Mauritania and Sierra Leone.
FUNCTIONS/OBJECTIVES OF WACH
- WACH enhances trade liberalization.
- It promotes the use of member national currencies for intra-sub-regional transactions.
- WACH aimed at promoting monetary co-operation in the sub-region
- It bring about savings in the use of foreign reserves.
- Outline five objective of EU
- State four objectives of WACH
- Outline five objectives of European Union.
- Mention four functions of Economic community for Africa.
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