The European Union and monetary integration in West Africa

Summary:

This paper argues that developments in Europe have been the most important variable in monetary integration in West Africa. It shows how monetary integration in West Africa has historically been influenced by two colonial powers: Britain and France and the state of the relationship between these two European countries. The consequence of the above is that Britain and France have become major stakeholders in West Africa and failure to consult them in monetary integration matters in the region has always led to suboptimal results in the integration process.

The modest monetary integration success that has been achieved by the Francophone West African countries for instance have been extensively aided by France which has acted as the agency of restraint to the arrangement. On the other hand ECOWAS wide regional integration arrangements have been mainly unsuccessful because of the sometimes divergent interests of France and Britain in the region. The consequence is that the idea of a unified West African monetary area has always failed to gain the support of the two powerful European stakeholders.