ECOWAS: the Economic Community of West African States

19791No. 6 Africa

ECOWAS: The Economic Community of West African States

by Barbara Harrell-Bond

The Economic Community of West African States seeks to create a viable, integrated economic unit out of a subregion very rich in natural resources but poor in capital. The 16 member countries differ dramatically in area, -1;rnate and topography, culture, history, 'ulation, and economic potential. The American Universities Field INSTITUTIONAL MEMBERS American Staff, Inc.,founded in 1951, is a non- profit, membership corporation of University of Alabama American educational institutions. It The Asia Society employs a full-time staff of foreign Universif ies Brown University area specialists who write from abroad and make periodic visits to Dartmouth College Staff member institutions. AUFS serves Indiana University the public through its seminar pro- Institute for the Study of World grams, films, and wide-ranging pub- Politics lications on significant develop- University of Connecticut ments in foreign societies. University of Kansas Michigan State University Ramapo College of New Jersey University of Pittsburgh University of Wisconsin

AUFS Reports are a continuing Associates of the Field Staff are series on international affairs and chosen for their ability to cut across major global issues of our time. the boundaries of the academic dis- Reports have for almost three ciplines in order to study societies in decades reached a group of their totality, and for their skill in col- readers- both academic and non- lecting, reporting, and evaluating academic-who find them a useful data. They combine long residence source of firsthand observation of abroad with scholarly studies relat- political, economic, and social trends ing to their geographic areas of in foreign countries. Reports in the interest. Each Field Staff Associate series are prepared by writers who returns to the United States periodi- are full-time Associates of the cally to lecture on the campuses of American Universities Field Staff the consortium's member institu- and occasionally by persons on leave tions. from the organizations and univer- sities that are the Field Staff's spon- sors.

THE AUTHOR BARBARA E. HARRELL-BOND is a the Afrika-Studiecentrum, Leiden. Ap- social anthropologistwho hasconducted pointed a Senior Research Fellow at the research in England and in West Africa. School of Law, University of Warwick, in Her special interests are family, urban 1976, Dr. Harrell-Bond joined the Field problems, law, and the history of the im- Staff in 1978 to report on West Africa. position of alien law in colonial Africa. She received a B. Litt. and D. Phil. in anthropology from the University of Oxford. Her publications include Modern Marriage in Sierra Leone: A Study of the Professional Group and Community Leadership and the Transformation of Freetown (1801-19761, the latter being co-researched and written with two historians, Dr. Allan Howard and Dr. David Skinner. She has also published widely in academic journals, lectured in a number of universities including the Uni- versity of Illinois (Urbana), the University @ 1979, American Universities Field of ~~l~i~ki,and the universityof HanOverf NH Warsaw, and was a Visiting Scholar at 19791No. 6 by Barbara Harrell-Bond ECOWAS: The Economic Com- Africa [BHB-1-I791 munity of West African States

- Lieutenant General Obasanjo, The idea behind ECOWAS can be writing about 1600 described Benin: Nigeria's Head of State, recently traced to the late Dr. Kwame "As you enter it the town appears described the failure of the rich Nkrumah's ideal of "Pan- very great: you go into a great broad countries of the world to establish a Africanism." Africa, in Nkrumah's street, not paved, which seems to "new international economic order" view, could never prosper until it be seven or eight times broader than as blatant confirmation to the united. In pursuit of this ideal he the Warmoes Street in peoples of West Africa that the insisted that Ghana's Constitution Amsterdam.. . . The houses in this great powers are more interested in include a provision for surrendering town stand in good order, one close preserving their economic national sovereignty in favor of a and even with the other, as the advantages over the Third World wider federation. While the political houses in Holland stand.. . ." countries than in economic justice. unity sought by Nkrumah is "West African states," he advised, generally regarded as too idealistic, While the influence of lslam from "must learn to place less premium the economic realities motivated the north had an important impact on, and whenever possible reject, West African leaders to take the first on local politics, the intrusion of the sympathy and charity of the rich steps toward creating the structure Europeans beginning with the industrialized countries who for "functional" cooperation in Atlantic slave trade in the 1440s had founded their wealth on our natural order to tackle the problems of a much more dramatic effect on the resources." Obasanjo's remarks development. people. The slave trade had were part of the opening address to enormous repercussions-at least a meeting of the Board of Directors Precolonial and Colonial ten million slaves from Africa landed of the ECOWAS Fund for Background in the New World, and many died in Co-operation, Compensation and The countries which form ECOWAS the course of raids by slavers or en Development, but his argument- are situated on a part of the African route. The colonization process had that there can be no true equality in continent which before the tenth an even greater impact on West relationships between aid-giving century was the location of several African social, political, and and aid-receiving countries-was kingdoms or empires of varying size, economic life. fundamental in the debates that led wealth, power, and duration. The to the founding of this regional trans-Saharan trade from the north It was in West Africa that the organization. introduced lslam to the area and European colonizers of the written accounts dating from as eighteenth and nineteenth centuries In 1975, 15 West African Heads of early as 1067 show that the peoples had to fight some of their bitterest State met in Lagos, Nigeria, to sign of the region enjoyed and achieved battles to overcome the resistance a treaty establishing the Economic a high level of competence in a to their domination. This resistance Community of West African States. number of handicrafts. Notable never really ended, although the ECOWAS' main objective was to among these was weaving, which processes of imperialism coupled promote growth and prosperity was of a much higher quality than with their growing arms superiority through regional interdependence. that found in Europe. Agriculture, enabled the Germans, Portuguese, The founding members were Benin, mining (gold was the main export French, and British to divide the the Gambia, Ghana, Guinea, which attracted long-distance region among themselves arbitrarily. Guinea-Bissau, Ivory Coast, Liberia, trading), and metal work in bronze The administrative and economic Mali, Mauritania, Niger, Nigeria, and brass were also carried on suc- infrastructure which was Senegal, Sierra Leone, Togo, and cessfully. The kingdoms of Yoruba established during the colonial Upper Volta. The Cape Verde were noted for their large urban period was designed to exploit and Islands joined in 1977. settlements. One Dutch traveler expropriate the raw materials and natural resources of the region for SQkou Tour6 of Guinea helped to Consistent with Eyadema's plea for the benefit of the Europeans and bring the Organization of African regional interdependence, the treaty their home governments. The Unity (OAU) into existence, several provides that all citizens of member patterns of trade and political other associations of countries on a countries are to be regarded as influence established during this regional basis have been created. "community citizens" and all period that link the several countries Some of these associations never obstacles to their freedom of of the region to their colonial really got off the ground or lasted movement and residence within the capitals still persist. only a few years. Moreover, many of ECOWAS community are to be these associations were based upon eliminated. After the Second World War a the boundaries created by the "wind of change" accelerated colonial regimes which also imposed African decolonization. Ghana was distinctions of language, culture, The Objectives of ECOWAS the first black and West African and politics. The issue of competing The ECOWAS treaty aims at the country to gain independence in regional associations will be gradual elimination of customs 1957. By 1964 nearly all of the considered later. duties and other taxes and continent was formally restrictions between member independent, except for the countries, and the establishment of Portuguese colonies of common customs tariffs and Mozambique, Angola, the Cape commercial policy toward Verde Islands, and Guinea Bissau, nonmember states. The 16 signatory and the racist apartheid countries of It took more than ten years to countries have undertaken to South Africa and Rhodesia. accomplish the task of founding abolish obstacles to the free ECOWAS. The first serious movement of people, goods, The balkanization of the African proposals for subregional services, and capital among the continent on the basis of European cooperation were made in the members to promote joint interests and conflicts, rather than mid-1960s, but a number of agricultural policy, projects in on any local "logic," may be seen as problems slowed progress. The agricultural marketing and research, the cause of many of the problems most intractable, and probably the and agroindustrial enterprises. ECOWAS faces in its attempt to most serious challenge was the create a program for the integration Nigerian Civil War which began in of regional economic activities. 1967. In 1972 President Eyadema of Among the effects of this arbitrary Togo and General Yakubu Gowon division are the wide variations in of Nigeria met and rendered the idea surface areas and population of ECOWAS into a formal proposal. Inequalities, injustice, poverty, and the psychological dislocations in density. Countries range in The following year they toured 12 contemporary African society can only other West African countries to population from Nigeria with around be understood in the light of Europe's 80 million to the Cape Verde Islands solicit the support that produced the imperial history. with only 300,000 inhabitants. 1975 treaty. Now in its fourth year, Ghana has the next largest there are healthy signs that population, of ten million, but the ECOWAS is seriously grappling with rest of the member countries have the problems of creating a viable populations of six million or below- integrated economic unit out of a the rough average is just under three subregion very rich in natural million. Another characteristic of resources but very poor in terms of West Africa, despite all the publicity capital. The challenge, as articulated concerning overpopulation, is its by President Eyadema, is that relatively low population density. Niger, for example, one of the in this world where the rich largest countries in the Third World, countries are not yet prepared to has only four million inhabitants. lend an attentive ear to the The Gambia, a country of minute legitimate demands of our states, proportions, has only half a million African countries must become people. conscious of the fact that their development can be assured only by The signing of the ECOWAS treaty themselves and that each of our in 1975 can be seen to mark the end economies considered individually, of the first phase of independence. is not capable of achieving this ideal. Since the early 1960s when We are therefore destined to live Presidents Kwame Nkrumah of together if we really want to Ghana, Gamel Nasser of Egypt, and prosper. Similarly, the development of population, and economic potential. Abubakar Diab y Ouattara, the Executive transport, communications, and Nigeria, for example, boasts a $9 Secretary of ECO WAS, was born in energy infrastructures is to be a billion Gross National Product, The 7938, the second child in a family of five. community effort. The treaty aims Gambia only $50 million. Earnings His father was a peasant farmer. He studied mathematics at the Lycee de to harmonize the member states' from Nigeria's oil industry alone Verzon in France and later studied at a dwarf the other members' GNPs- economic and industrial policies and graduate business school, also in to eliminate disparities in their levels Gambia's revenues literally depend France. In 1964 he became an executive of development. Recognizing the on the export of peanuts. trainee at the Central Bank for West need for a coordinated monetary Africa, Ivory Coast branch. The policy, the treaty establishes a Collectively, the ECOWAS states following year he joined the common Fund for Co-operation, cover an area of almost 1,000,000 International Bank for West Africa and Compensation and Development. square miles, compared to 700,000 became the bank's first African square miles for the European executive. In 1965he became concerned These are far-reaching changes to with the necessity for creating a West Economic Community (EEC), African Common Market and later that be brought about gradually among although the 9-member EEC has a year organized a research team with the 16 states. Thus the treaty total population of about 170 other Africans to promote this idea. provides for a transitional period of million, 40 million more than 15 years before a full customs union ECOWAS. Per capita income In 7967 Ouattara was awarded a is operational. In April 1978, at the averages approximately $270 for the postgraduate scholarship for study in third ECOWAS summit meeting, the ECOWAS region. This contrasted the United States. He received a members decided that after May with the world average of $1,422, Master's degree in Business 1979 all customs tariffs would be and the following regional averages: Administratiot~and later earned a Ph.D. frozen and that no member state Europe $3,313, Latin America $953, for his thesis on Development Finance would be permitted to raise any Asia $479, and Africa as a whole Institutions. tariffs on goods exported to or $366. imported from another member A banking colleague describes him as a country. Over the next eight years Despite the vast differences among "savannah man; simple and open." the members will reduce and them, the ECOWAS member states Ouattara sees himself as a pragmatist ultimately eliminate import duties on share one common feature- and tries to avoid political labels. goods that originate in ECOWAS underdevelopment-and it is the countries. During the following five effort to overcome its liabilities that Ouattara feels that multinational years, ECOWAS will work toward link them in common purpose. But companies could pla y important and establishing uniform tariffs. The positive roles in the economic policy is to be implemented without development of the Third World if only disrupting the revenues of the Dr. Ouattara shaking hands after signing they were prepared to abide by the rules of the governments in the areas of their countries involved, particularly the transport and communications project agreement in the ECO WAS operation and were ready to go into joint those that are landlocked. Secretariat, Lagos. ventures with local nationals. The treaty aims to promote a balance of payments equilibrium among member states through a Commission for Trade, Customs, Immigration, Monetary and Fiscal Affairs, and Payments. Charged with responsibility for harmonizing economic and fiscal policy, the commission is to be concerned in the short term with bilateral settlement of accounts, and in the longer term with multilateral settlements between member states.

ECOWAS seeks to create an integrated regional economy whose market will support development according to West Africa's needs. But the 16 member countries all differ dramatically in area, climate and topography, culture, history, there are many obstalces to genuine financing the community. ECOWAS internationally or, in the case of regional integration. funds come from contributions Mauritania, Guinea, and Ghana, made by each member state, the even within other West African ECOWAS Organization and amount varying according to per states. There is also a franc zone, Financing capita income. Collection has been with most of the French-speaking The Executive Secretariat for difficult from the beginning, countries depending on France for ECOWAS is located in Lagos, however. In 1977, the Fund's the stability of the CFA franc. Nigeria, and the headquarters of the Director-General, Dr. Romeo Obstacles ECOWAS Fund for Co-operation, Horton, headed a team that visited Political division of the West Compensation and Development is ten ECOWAS states to discuss the African subregion resulted from the in Lome', Togo. The Executive Community's economic problems as imperialist adventures of European Secretary is Boubacar Diaby well as those of the individual powers during the eighteenth and Ouattara of the lvory Coast, who is countries. Still, the idea of nineteenth centuries. Two serving a four-year term. Dr. Romeo interdependence survives: the Cape ECOWAS member states were Horton, a Liberian, is Director- Verde Islands have been exempted former Portuguese colonies, the General of the Fund. There are four from payments for the next two Cape Verde Islands and Guinea- specialized commissions: Trade, years, owing to extreme economic Bissau, and only recently gained Customs, Immigration, Monetary distress, while Nigeria in 1977 their independence after a and Fiscal Affairs and Payments; promised to provide 31.9 percent of prolonged war with Portugal. The Industry, Agriculture and Natural the funds required for the ECOWAS Gambia, Ghana, Sierra Leone, and Resources; Transport, Secretariat in Lagos and the Fund Nigeria were part of the British Telecommunications and Energy; headquarters in Lom6. colonial empire. Niger, Senegal, and Social and Cultural Affairs. Mali, Mauritania. Togo. Upper The Council of Ministers, which While the Fund would prefer to Volta, lvory Coast, Guinea, and meets annually, consists of two receive its contributions in Benin were all colonized by the representatives from each country IMF-approved convertible French. Liberia, while never officially and the chairman is drawn from currencies, there is provision for a colony, is under the influence both each country in turn. Lieutenant payments in any "acceptable" politically and economically of the General Obasanjo, the current currency. This avoids problems for United States. Most of these chairman, succeeded President countries such as Guinea, whose countries achieved formal Etienne Gnassingbe Eyadema of currency is not easily convertible on independence less than 20 years ago Togo. the world money markets. In fact, and with relatively little preparation. harmonization of monetary and The ECOWAS Fund for fiscal policy is one of the toughest The region encompasses vast Co-operation, Compensation and problems ECOWAS faces. There are differences in ecological conditions. Development handles all monetary several currencies in West Africa, Several countries fall within the problems, including that of some of them not acceptable Sahel region which has been

Alex. Romeo Horton, the Director- Dean of the Business and Public General of the ECO WAS Fund, was Administration Department - which he born in 1923. His father was a had helped to found-in the University well-known Baptist preacher and a of Liberia. prominent educator. He encouraged Dr. Horton to pursue his further education Horton's personal fortune is said to run in a business college in the United "into millions of dol1ars"but he States. Horton and the late Martin expresses the view that the true value of Luther King were classmates at money is what it can do to help others Morehouse College and close friends. and to improve society. He is a firm Horton earned a Master's degree in believer in free enterprise. He is Business Administration and then described as "aggressive but gracious; embarked on a distinguished career in gregarious but correct"and he mixed banking. In 1954 he founded one of the informality with firmness. first privately owned African banking institutions in black Africa.

After serving as director of several large companies in Liberia, Horton was According to Dr. Horton, Director- invited b y President Tubman to become General of the ECO WAS Fund, "It is an the first Liberian Secretary of unpardonable indictment against Commerce and Transport, a post he ourselves to have a region so rich and held from 1964- 1969. He was the first people so poor." stricken with famine as a result of drought. The African continent is noted for its diversity of language and ethnic groups and West Africa lies within the area linguists describe as the "fragmentation belt." Nigeria, for example, includes several hundred languages within its borders. Official languages vary from Arabic and French in Mauritania, Crioulo (creole Portuguese) in the Cape Verde Islands, Guinean Crioulo in Guinea- Bissau, and French or English in the others. Literacy in the official language varies but is in no case achieved by 10 percent of the population.

The colonial experience tied these various countries to the European mother country and their educational, economic, political, Presidents William Tolbert of Liberia (left)and Siaka Stevens signing five new and cultural links continue to ptotocols to the Mano River Declaration in November 1977. The Mano River influence internal policy and Union is a regionalassociation between Sierra Leone and Liberia. behavior. These ties, coupled with among themselves. Border troubles Beninois have been forced to leave increasing nationalism, make it have occurred between Sierra Upper Volta, and more recently, difficult to establish ECOWAS on a Leone and Guinea, Togo and Benin, Gabon. Guinea also deported firm basis of subregional solidarity. Mali and Upper Volta, and Senegal Nigerians and in some cases refused and The Gambia to name only four to allow men to take their wives and Most of these countries have examples. In 1973 SBkou Tour6 children with them when the wives suffered considerable internal broke off diplomatic relations with were deemed to be indigenous to political turbulence since Senegal and Ivory Coast after Guinea. In the late 1960s, Sierra independence and half are under accusing Houphouet-Boigny and Leone used the army to drive out military regimes. Some follow a Senghor of being in league with the the thousands of illegal immigrants foreign policy of nonalignment, Portuguese authorities in Guinea- who had come to the diamond area others identify politically with one or Bissau in the war for independence. from neighboring countries, another of the great power blocs. The problems between Guinea and particularly Guinea. Mauritania, a country that has Senegal were exacerbated by recently undergone a coup d'e'tat, is Senegal's open promise to give Freedom of movement for people the scene of serious disturbances refuge to those fleeing S6kou within ECOWAS implies the with French and Moroccan troops in TourB's allegedly oppressive regime. abolition of discrimination based on the country fighting against the nationality in questions of Polisario guerrillas. Famine conditions in Niger have employment and remuneration. It sent hundreds of Nigeriens moving should mean the right of free Nigeria has been under military rule across the border into Nigeria where settlement for the self-employed, for most of its 18 years of they now represent a serious social entitlement to social security and independence and endured a bitter problem. In the cities, it is common services on the part of immigrants, civil war for 3 years. Several to see women and children from and even vocational training. Yet member countries have experienced Niger standing at the roadside the problem of population political instability precipitated by begging from motorists. distribution and migration is already progressive Marxist groups. Treason serious in West Africa. In each trials as a result of coups or Ghana has deported large numbers country there is a familiar pattern of attempted coups have been a of Nigerians, Togolese, and movement from rural to urban areas dominant feature of West African Voltaics who had been living and with a corresponding decline in politics and executions of political working in Ghana for many years. agricultural production and an adversaries has been fairly common. Sierra Leone deported an entire increase in urban unemployment. community of Ghanaian fishermen Transnational migration arises ECOWAS members also have a and their families who had been because national boundaries cut history of uneasy relationships living there for several generations. across ethnic and linguistic boundaries, and has been football team, the Enugu Rangers, Community was created to encouraged by the differentials in won a game in Senegal, they were overcome. wealth and employment severely beaten by members of the opportunities. For example, more Dakar home team. But even before lnvestment also introduces the issue than one million people from Upper this incident relations between the of foreign influence. The franc zone, Volta work in lvory Coast. Nigeria two countries were strained which dates back to the colonial era, has become another magnet for because of a dispute that arose is as much a political as an thousands of Ghanaians, Togolese, during the planning of FESTAC economic entity. Guinea-Bissau, Beninois, and Nigeriens. '77 and led to the firing of the Liberia, Sierra Leone, and the Unemployment is chronic in the Senegalese secretary of FESTAC. Gambia all link their currencies to subregion and has been estimated These tensions were preceded by a those of their former colonial at around 20 percent for most disagreement between Nigeria and mentors. The French-speaking countries. Senegal over ECOWAS countries are West Africa's most membership. Senegal had homogenous group from an More serious indications of the campaigned strongly for Zaire's economic and political standpoint. difficulties ECOWAS will face in inclusion, but Nigeria and several Eight of the sixteen ECOWAS implementing the spirit of the treaty other countries had objected. As a countries have more-or-less close are such economic measures as result Senegal was the last country commercial, shipping, air transport, Ghana's Aliens Compliance Order to sign the ECOWAS treaty and fiscal, and political links with France. (1970), lnvestment Policy Decree many Nigerians believe their Dr. Boubakar Ouattara, the (19751, and Nigeria's National subsequent squabbles can be Secretary General of ECOWAS, has Enterprises Promotion Decree attributed to this basic declared that there is much for the (1972).These pieces of legislation disagreement. Community to accomplish, "but we discriminate in favor of their own do not have to invent the bicycle. citizens and are therefore contrary Internal economic problems coupled That was done long ago and our job to the spirit of ECOWAS. with the disparity in levels of is to use the machine." development and investment Unfortunately, there are no Foreign policies present similar prospects present another comparable inventions applicable to problems. The Nigerian Civil War, fundamental obstacle to ECOWAS the problems confronting ECOWAS for example, led to differing policies success and constitute its major in its aims to promote even vis-his Biafra. During the period of challenge. Since political factors development among its members. military rule in Sierra Leone, Siaka combined with economic Stevens and many of his supporters differences will determine where Another problem for ECOWAS is were exiled to Guinea where the foreign capital will be invested, the that of overlapping or potentially training and arming of guerrillas to combined movement of people and competing organizations. French- invade Sierra Leone was undertaken capital may accelerate the speaking members of ECOWAS are by the Chinese and SBkou Tour6 unbalanced development the also members of organizations such provided troops to serve as Stevens' personal bodyguard. The invasion was unnecessary because another coup within Sierra Leone restored Siaka Stevens to power. Many of those who oppose Stevens' government live in exile in Ghana and Liberia. General Ojukwu, leader of the Biafrans in the Nigerian Civil War, now lives in exile in lvory Coast, although according to Nigerians this exile is unnecessary and self-imposed. Political tensions between ECOWAS countries have even spilled over into sports and cultural activities. In 1977, when a Nigerian General Yakubu Gowon of Nigeria, and President Gnassingbe Eyadema of Togo, two of the founding fathers of ECO WAS, during the ceremonies for the signing of the ECO WAS treaty in Lagos in 1975.

BENIN: Exports: 1,236 (million sylis) Monetary Unit: Khoum Major import sources: France, ltaly Imports: 8,072 (million)* Official Language: French Major export destinations: Norway, Exports: 8,013 (million) Area: 43,484 sq. m. German Democratic Republic, Major import sources: France, United Population: 3,297,000 U.S.A. Kingdom, Senegal Capital: Porto Novo Major export sources: France, Spain, Monetary Unit: CFA franc GUINEA-BISSAU: ltaly Imports: 32,106 (million) Exports: 9,797 (million) Official Language: Guinean crioulo "Recorded transactions only. Trade Major import sources: France, Germany, Area: 13,948 sq. m. crossing land frontier (i.e., smuggling) is United Kingdom Population: 950,000 underestimated. Major export destinations: France, Capital: Bissau China, Nigeria Monetary Unit: Guinea peso NIGER Imports: 1,006,321 ('000 pesos) CAPE VERDE: Exports: 162,424 ('000 pesos) Official Language: French Major import sources: Portugal, Area: 489,191 sq. m. Official Language: Crioulo (creole U.S.S.R. Population: 4,727,000 Portuguese) Major export destinations: Portugal, Capital: Niamey Area: 1,557 sq. m. Cape Verde Monetary Unit: CFA franc Population: 306,046 Imports: 21,889 (million CFA) Capital: Praia IVORY COAST Exports: 19,556 (million CFA) Monetary Unit: Escudo Major import sources: France, German Imports: 91 1,404 ('000 escudos) Official Language: French Democratic Republic Exports: 48,034 ('000 escudos) Area: 124,503 sq. m. Major Export destinations: France, Major import sources: Portugal, Population: 6,670,912 Nigeria Netherlands Capital: Abidjan Major export destinations: Portugal, Monetary Unit: CFA franc NIGERIA: Angola Imports: 31 1,608 (million CFA) Exports: 389,775 (million CFA) Official Language: English GAMBIA: Major import sources: France, U.S.A. Area: 356,669 sq. m. Major export destinations: France, Population: 64,750,000 Official Language: English Netherlands, U.S.A. Capital: Lagos Area: 4,361 sq. m. Monetary Unit: Naira Population: 494,279 LIBERIA Imports: 5,140.8 (million N) Capital: Banjul Exports: 6,749.9 (million N) Monetary Unit: Dalasi Official Language: English Major import sources: United Kingdom, Imports: 169,082 ('000 dalasi) Area: 43,000 sq. m. German Democratic Republic, U.S.A. Exports: 106,713 ('000 dalasi) Population: 1,503,368 Japan Major import sources: United Kingdom, Capital: Monrovia Major export destinations: U.S.A., Taiwan Monetary Unit: Liberian dollar (LS) Netherlands, United Kingdom, Major export destinations: United Imports: 399.3 ($US million) France Kingdom, Netherlands, Portugal Exports: 459.6 ($US million) Major import sources: U.S.A., German SENEGAL: GHANA: Democratic Republic Major export destinations: German Official Language: French Official Language: English Democratic Republic, U.S.A., ltaly Area: 75,750 sq. m. Area: 92,100 sq. m. Population: 5,085,388 Population: 10,309,000 MALI Capital: Dakar Capital: Accra Monetary Unit: CFA frabc Monetary Unit: Cedi Official Language: French Imports: 124,616 (rnillion CFA) Imports: 943,706 ('000 cedis) Area: 478,767 sq. m. Exports: 99,101 (million CFA) Exports: 840,933 ('000 cedis) Population: 6,308,000 Major import sources: France, U.S.A. Major import sources: United Kingdom, Capital: Bamako Major export destinations: France German Democratic Republic, Monetary Unit: Mali franc ($US =454.75 Communist countries, U.S.A. mali francs) Major export destinations: United Imports: 71,510 (million mali francs) SIERRA LEONE: Kingdom, Communist countries, Exports: 47,120 (million mali francs) U.S.A. Major import sources: France Official Language: English Major export destinations: Ivory Coast, Area: 27,699 sq. m. GUINEA: France Population: 3,111,000 Capital: Freetown Official Language: French MAURITANIA Monetary Unit: Leone Area: 94,926 sq. m. Imports: 171,258 ('000 Leone) Population: 5,143,284 Official Language: Arabic, French Exports: 11 1,482 ('000 Leone) Capital: Conakry Area: 397,950 sq. m. Major import sources: United Kingdom Monetary Unit: Syli Population: 1,420,000 Major export destinations: United Imports: 1,976 (million sylis) Capital: Nouakchott Kingdom TOGO:

Official Language: French Area: 21,622 sq. m. Population: 2,283,000 Capital: Lome Monetary Unit: CFA franc Imports: 44,420 (million CFA) Exports: 24,914 (million CFA) Major import sources: France Major export destinations: France ECOWAS

UPPER VOLTA: \ AFRICA Official Language: French \ Area: 105,870 sq. m. Population: 5,572,712 Capital: Ouagadougou Monetary Unit: CFA franc Imports: 34,420 (million CFA) Exports: 12,690 (million CFA) Major import sources: France Major export destinations: France, Ivory Coast are immediate neighbors. Among majority of the population-in some and diamonds (Sierra Leone). There other things, it is hoped that cases as much as 90 percent - is is little or no industrial processing or ECOWAS' efforts to coordinate engaged in agriculture. There is transformation of these raw services will eliminate the very nevertheless a growing food materials before export, so that questionable policies of scarcity and all the Community mineral and agricultural multinationals which sell to West members are, to some extent, commodities have no real link with Africa. In Port Harcourt, Nigeria, for dependent upon imports. The the Community's industry. For example, telephones are reasons are complicated and example, the VALCO smelter in permanently out of order, despite beyond the scope of this Report, but Ghana, a joint venture of the enormous expenditures since can be explained in part by the vast U.S.-based Kaiser Corporation and independence. The Post Office has ecological differences and, by the Ghanaian government, thousands of dollars' worth of implication, differences in produces aluminum, not from the equipment that has been purchased agricultural potential within the bauxite which is mined in Ghana-it from abroad. Engineers who region. Forest, savannah, and is exported- but from imported attempt to put the system right have coastal belts run from Jamaican alumina. discovered that Nigeria has been Guinea-Bissau to Nigeria; near- sold components that do not match, desert conditions prevail in the Coordination of agricultural, and as a result are useless. Sahelian regions of Mauritania, industrial, and economic policies Senegal, Mali, Niger, Upper Volta, among ECOWAS members would Energy is another sector where the and in the northern portions of also eventually include price harmonization of policy is of central Nigeria and Ghana. Only lvory Coast standardization for agricultural and importance to the Community's is virtually self-sufficient in food mineral exports. Disparities in development. Nigeria has abundant production. A better organized and official export prices have been a oil, lvory Coast and Ghana lesser coordinated agricultural policy is a major cause of smuggling and a quantities. Guinea, lvory Coast, and necessary step toward the solution serious source of tension among Ghana have enormous hydroelectric of this problem. members. In 1970-71, for example, potential. Ghana already supplies Ghana lost some 57,000 tons of Togo and Benin with electricity Ideally, harmonization will diminish cocoa as a result of smuggling to although, ironically, most Ghanaians raw material imports from neighboring Togo and lvory Coast, are without it. Nigeria sells electric nonmember countries, another where the official price of cocoa was power to Niger although it cannot facet of the present problem of higher than in Ghana. Smuggling in supply all its own domestic underdevelopment. ECOWAS West Africa is "big business": Togo requirements. countries today are largely exports gold which it does not dependent for foreign exchange produce; transistor radios are Initially, the member countries have earnings upon the export of smuggled to the Gambia from undertaken to exchange information minerals or agricultural products Senegal; Liberia has been one of the on research, to plan joint training, such as cocoa, peanuts, coffee, oil, main markets for diamonds and to coordinate mineral and iron ore, bauxite, uranium (Niger), smuggled out of Sierra Leone. energy resource policy and practice. A second stage will see a common ECOWAS policy for research and for the production, distribution, and processing of energy and mineral resources.

Agriculture and Industrial Harmonization Coordination of agriculture and industry is absolutely vital for West African development, an important feature of present under- development being the absence of links between these two major economic sectors. In all the countries of the subregion, the

Crowds standing on the street in Banjul to greet the Heads of State of the members of the "Sahel Club" which met in the Gambia in December 7977. Foreign-owned banks have cooperated by remitting money deposited in dollars in Monrovia back to the smuggler's account in Sierra Leone payable in leones. When the Sierra Leone government tried to curb these practices the private banks refused to cooperate.

Such industry as exists has a narrow base, being confined to the manufacture of some basic consumer commodities which are substitutes for imports (beer, Coca-Cola, tobacco, umbrellas, matches, vaseline, footwear, soap, textiles, etc.). While the value of raw material exports depends on price fluctuations in distant markets, domestic industries have a small internal market and an even smaller or nonexistent export market. Thus industry within the Community has a very small foreign exchange earning capacity and accounts for only 10 percent of economic activity, although it represents an extraordinary burden on balance of payments through its expensive import requirement (machines, capital investment, raw materials, and often management and consultancy services).

Moreover, the composition and ownership of industry is still dominated by foreign interests, particularly those of multinational companies, although there is a trend Most of the ECO WAS members have little airline companies struggling to break toward government participation. even. Col. Moussa Traore disembarking from an Air Maliplane to attend a Its employment-generationg meeting of the "Sahel Club," the regional association of the Sahelian countries. capacity tends to be low because it the more developed- Nigeria, lvory coal or oil. Both Ghana and the lvory is capital- and not labor-intensive. Coast, Ghana - produce goods Coast have substantial electric The large- and medium-sized ranging up to the assembly of potential and could supply power to industries are normally located near consumer durables, including neighboring countries. A new the capital city or biggest port. They vehicles. ECOWAS aims to cement factory, a joint effort among enjoy cheap labor, fiscal privileges, overcome this by pooling lvory Coast, Ghana, and Togo and tax holidays, and relatively easy experience and coordinating located in Togo, is a first step in the repatriation of profits, dividends, projects and research into the direction of genuine industrial and capital while getting high development of raw materials for coordination. Eventually, the plant returns on investment. Community industries and for the will supply most ECOWAS transfer of technology. countries. Apart from all the communications and transport problems affecting No Community member has yet Sharing experts and training both agricultural and industrial established heavy industries despite facilities is another area where development, another obstacle to high potential in Ghana, Guinea, ECOWAS hopes to have an impact. the harmonization of trade and lvory Coast, Liberia, Mauritania, and According to Dr. Horton, Director of economic policy among ECOWAS Nigeria. Guinea, for example, could the ECOWAS Fund, "Vast sums are countries is that they all tend to become a center for an iron and being spent by member countries produce the same products. Only steel industry sustained by Nigerian out of their development budgets to pay for experts from nonmember countries, while there are hundreds, yes thousands, of highly skilled Community citizens." Yet the human resources are as disparate among ECOWAS states as are the natural resources, with each affecting the potential to insure a uniform investment climate.

Provision has been made for the free exchange of goods within the Community that are wholly produced by enterprises whose headquarters are located in the Community and in which there is at least a 51 percent participation by member governments or citizens. The latter must include 50 percent control of the board of directors. There will be a steady increase in tax on goods imported into the Community from nonmember Sir Dawda Jawara, President of the Gambia, acting as host to the members of countries. the "Sahel Club."

"Dumping" is to be prohibited and from military dictatorships to formal The experiences of two decades of all members are to give each other parliamentary democracies, from formal independence has taught "most favored nation" treatment. governments which are avowedly Africans an important lesson: The treaty expressly prohibits Marxist to those that are explicitly political independence has no real national legislation that either capitalistic or committed to substance or meaning without directly or indirectly discriminates free-trade liberalism. The instability economic self-reliance. If ECOWAS against products of member states. inherent in this already volatile mix is successful in building a stable A fund has been established within can be easily sparked by economic and political unit it may ECOWAS that will provide developments in international partially fulfill Kwame Nkrumah's compensation to members who politics, as when the dream of a truly independent and suffer from the treaty's application French-speaking states tacitly united Africa. and, in a crisis, the treaty allows supported France's move to send in members to take protective paratroopers to quell the Shaba war (March 1979) measures with the approval of the in Zaire, an action which brought Ecowas Council of Ministers. The strong protest from other ECOWAS ECOWAS Commission for Trade, members. Gabon was involved in an Customs, Immigration, Monetary attempt by mercenaries to and Fiscal Affairs and Payments is overthrow the professed to strive constantly to maintain the Marxist-Leninist government of balance of payments equilibrium Benin. that is the Community's long-term objective. Ultimately, economic cooperation requires agreement on development strategies which in turn require some basic political decisions on It is obvious that ECOWAS needs a which all can agree. Solidarity far greater degree of harmony of within ECOWAS threatens to upset economic and political views if it is the present dependence of the to succeed. Economic development subregion on major industrialized is not a neutral or simply a technical countries. matter. Economic changes are based upon political choices and these combine into different strategies for social development. The 16 ECOWAS countries have different political systems ranging