Institutional change in the West African Economic and Monetary Union (WAEMU) since 1994: A fresh start after the devaluation shock?

Sven Grimm

Africa Spectrum, 1999, vol. 34, issue 1, 5-32

Abstract: Summary: Parallel to the Franc CFA devaluation in January 1994, the West African Economic and Monetary Union (WAEMU/UEMOA) was formed. It succeeded the monetary union within the Franc zone (NAMU/UMOA) and the economic community WAEC/CEAO. The WAEMU avoided some of the institutional errors and deficiencies of its predecessors, attempting to save the monetary union after the shock of devaluation. For this purpose, the economic policies of the member states have to be co-ordinated. The WAEMU treaty promotes the delegation of decisions to supranational authorities, which constitutes a novelty within West Africa. The WAEMU has autonomous sources of finance in connection with the existing Central Bank (BCEAO). The WAEMU is not only a preferential trading zone (as the WAEC/CEAO had been) but aims at the establishment of a common market. The realisation of its decisions, however, meets difficulties, arising from financial restrictions as well as from long-standing political practices of the WAEMU member states, such as insufficiencies regarding the rule of law. WAEMU does not yet address some important preconditions for a broadly-based regional integration process, such as the inclusion of the informal economic sector.

Date: 1999
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