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1. The Soviet Union as a Development Actor in West Africa: An Interview with Alessandro Iandolo on Arrested Development

Author:
Alessandro Iandolo and Mirek Tobiáš Hošman
Publication Date:
04-2023
Content Type:
Commentary and Analysis
Institution:
The Toynbee Prize Foundation
Abstract:
The recently published work Arrested Development: The Soviet Union in Ghana, Guinea, and Mali, 1955–1968 (Cornell University Press, 2022) explores the Soviet Union’s economic partnership with three newly-independent countries in West Africa during the Nikita Khrushchev era. The Toynbee Prize Foundation interviewed the author, Alessandro Iandolo, on the story and the main arguments of his book. Alongside discussing the emergence of the Soviet Union as an international development actor and the challenges it encountered in post-colonial Africa, Iandolo explained the characteristics of the Soviet development model, its similarities and differences to the Western alternatives, and why the Soviet development assistance in Ghana, Guinea, and Mali was not primarily oriented around spreading the communist ideology. Alessandro Iandolo is a historian of the Soviet Union and the world. His research interests cover the USSR’s economic, intellectual, and political interactions with external ideas, states, and people. His current project investigates intellectual exchanges between Soviet and Latin American economists on theorizing “backwardness” and “dependency.” He is a Lecturer in Soviet and Post-Soviet history at University College London.
Topic:
Foreign Policy, Development, Economics, Partnerships, and Interview
Political Geography:
Africa, Soviet Union, West Africa, Ghana, Mali, and Guinea

2. On the economic desirability of the West African monetary union: would one currency fit all?

Author:
Cécile Couharde, Carl Grekou, and Valérie Mignon
Publication Date:
02-2021
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
In this paper, we investigate from a policy coordination viewpoint the desirability of the West African monetary union project, ECO. Our approach is built around the inclusion of national objectives in the regional integration perspective. Thanks to cluster analysis, we identify two groups of countries with relatively homogenous sustainable exchange rate paths in West Africa. We also find that no single currency peg nor a freely floating exchange rate regime would be preferable for any of the countries or groups of economies. Overall, our findings argue in favor of two ECOs —at least in a first step, i.e., one for each of the two identified zones. Each ECO would serve as a virtual anchor —with some flexibility— for the considered group, and would be determined by a basket of currencies mainly composed of euro and US dollar.
Topic:
Economics, International Political Economy, Monetary Policy, and Currency
Political Geography:
West Africa

3. Weather Shocks and Migration Intentions in Western Africa: Insights from a Multilevel Analysis

Author:
Simone Bertolia, Frédéric Docquier, Hillel Rapoport, and Ilse Ruyssen
Publication Date:
02-2020
Content Type:
Working Paper
Institution:
Centre d'Etudes Prospectives et d'Informations Internationales (CEPII)
Abstract:
We use a multilevel approach to characterize the relationship between weather shocks and (internal and international) migration intentions. We combine individual survey data on migration intentions with measures of localized weather shocks for Western African countries over 2008-2016. A meta-analysis on results from about 310,000 regressions is conducted to identify the specification of weather anoma-lies that maximizes the goodness of fit of our empirical model. We then use this best specification to document heterogeneous mobility responses to weather shocks, which can be due to differences in long-term climatic conditions, migration percep- tions, or adaptation capabilities. We find that droughts are associated with a higher probability of migration intentions in Senegal, Niger and Ivory Coast. The effect on international migration intentions are only significant in Niger. These effects are amplified, but qualitatively similar, when restricting the sample to rural low-skilled respondents.
Topic:
Economics, International Political Economy, Migration, Labor Issues, Skilled Labor, and Weather
Political Geography:
West Africa, Senegal, Ivory Coast, and Niger

4. Twin Deficits Phenomenon in the West African Economic and Monetary Union Countries: Panel Data Analysis

Author:
Kouassi Yeboua
Publication Date:
01-2020
Content Type:
Research Paper
Institution:
African Economic Research Consortium (AERC)
Abstract:
For a long time, the West African Economic and Monetary Union (WAEMU) countries have been experiencing persistently high budget and current deficits. This study was undertaken to empirically test the “Twin Deficits Hypothesis” in these countries. The analysis was conducted within the framework of the Panel Vector autoregressive (VAR) approach over the period 1975–2013. In contrast to the conventional view which claims a one-way relationship between budget and current account deficits, the results show that budget deficits lead to a deterioration in the current account balance, and vice versa (bilateral relationship). We also found that budget deficits have an impact on current account balance mainly through imports.
Topic:
Economics, Monetary Policy, Budget, Economic Policy, and Macroeconomics
Political Geography:
Africa and West Africa

5. Trade And Foreign Direct Investment Nexus In West Africa: Does Export Category Matter?

Author:
Chukwuka Onyekwena, Idris Adermuyiwa, and Eberechukwu Uneze
Publication Date:
08-2019
Content Type:
Working Paper
Institution:
Centre for the Study of the Economies of Africa (CSEA)
Abstract:
This paper examines the effect of inward FDI in West Africa on exports to EU countries. It investigates from a host country perspective, the impact of FDI on different export categories: primary, intermediate, and final goods.
Topic:
Economics, Foreign Direct Investment, European Union, Exports, and Trade
Political Geography:
Africa and West Africa

6. A Year after the Start of the Saudi-Emirati Blockade against Qatar. What Are the Consequences for West Africa?

Author:
Benjamin Augé
Publication Date:
10-2018
Content Type:
Commentary and Analysis
Institution:
Institut français des relations internationales (IFRI)
Abstract:
On June 5th 2017, Saudi Arabia, the United Arab Emirates, Egypt and Bahrain broke off diplomatic relations with Qatar and agreed to isolate the Emirate via an air and land blockade. These countries decided to punish Qatar under the pretext of a speech the Emir of Qatar, Tamim bin Hamad Al-Thani, would have made on May 23rd, which reiterated the strong ties between his country and Iran.[1] The situation has been at a deadlock for a year, and Qatar refuses to apply the Emirati and Saudi Arabian list of the 13 demands. The latter mainly include the closure of the Al Jazeera TV station and the Turkish military base on its territory, downgrading diplomatic relations with Iran, as well as a total separation with movements such as Hezbollah or even the Muslim Brotherhood.[2] However, although this crisis only pits Persian Gulf countries against each other, apart from Egypt, both sides have tried to win support. Donald Trump has adopted the stance of the Saudi-Emirati side[3] – but the State Department under Rex Tillerson (2017-2018) has always remained cautious –, Europe remains neutral with no leader daring to choose one side rather than another. The confrontation was particularly marked in West Africa. Four countries in this area – Senegal, Mauritania, Chad and Niger – quickly downgraded their diplomatic relations with Qatar shortly after the start of the crisis. However, their strategy vis-à-vis this wealthy gas Emirate has changed considerably over the last twelve months, as Doha's efforts to obtain new support in the rest of West Africa has started to bear fruit.
Topic:
International Relations, Diplomacy, and Economics
Political Geography:
Saudi Arabia, West Africa, Senegal, Qatar, United Arab Emirates, Chad, Mauritania, Niger, and Gulf Nations

7. Credit-constrained in Risky Activities? The Determinants of the Capital Stocks of Micro and Small Firms in Western Africa

Author:
Jann Lay, Michael Grimm, and Simon Lange
Publication Date:
01-2012
Content Type:
Working Paper
Institution:
German Institute of Global and Area Studies
Abstract:
Micro and small enterprises (MSEs) in developing countries are typically considered to be severely credit constrained. Additionally, high business risks may partly explain why the capital stocks of MSEs remain low. This article analyzes the determinants of the capital stocks of MSEs in poor economies focusing on credit constraints and risk. The analysis is based on a unique, albeit cross-sectional but backward-looking, micro data set on MSEs covering the economic capitals of seven West-African countries. The main result is that capital market imperfections indeed seem to explain an important part of the variation in capital stocks in the early lifetime of MSEs. Furthermore, the analyses show that risk plays a key role in capital accumulation. Risk-averse individuals seem to adjust their initially low capital stocks upwards when enterprises grow older. MSEs in risky activities owned by wealthy individuals even seem to over-invest when they start their business and subsequently adjust capital stocks downwards. As other firms simultaneously suffer from capital shortages, such behaviour may imply large inefficiencies.
Topic:
Development, Economics, International Trade and Finance, Markets, and Foreign Direct Investment
Political Geography:
West Africa

8. Are Borders Barriers? The Impact of International and Internal Ethnic Borders on Agricultural Markets in West Africa

Author:
Jenny C. Aker, Michael W. Klein, Stephen A. O'Connell, and Muzhe Yang
Publication Date:
04-2010
Content Type:
Working Paper
Institution:
Center for Global Development (CGD)
Abstract:
This paper addresses two important economic issues for Africa: the contribution of national borders and ethnicity to market segmentation and integration between and within countries. Market pair regression analysis provides evidence of higher conditional price dispersion for both a grain and a cash crop between markets separated by the Niger-Nigeria border than between two markets located in the same country. A regression discontinuity analysis also confirms a significant price change at the international border. The international border effect is lower, however, if the cross-border markets share a common ethnicity. Ethnicity is also linked to higher price dispersion within Niger; we find a significant intranational border effect between markets in different ethnic regions of the country. This suggests that ethnic similarities diminishing international border effects could enhance international market integration, and ethnic differences could contribute to intranational market segmentation in sub-Saharan Africa. We provide suggestive evidence that the primary mechanism behind the internal border effect is related to the role of ethnicity in facilitating access to credit in agricultural markets. We argue that the results are not driven by differences in price volatility or observables across borders.
Topic:
Agriculture, Economics, Ethnic Conflict, and Markets
Political Geography:
Africa, West Africa, and Nigeria

9. Foreign Aid And The Real Exchange Rate In The West African Economic And Monetary Union

Author:
Eberechukwu Uneze
Publication Date:
09-2010
Content Type:
Working Paper
Institution:
Centre for the Study of the Economies of Africa (CSEA)
Abstract:
This paper examines the relationship between foreign aid and the real exchange rate to determine how the competitiveness of the West African Economic and Monetary Union (WAEMU) is affected by foreign aid.
Topic:
Economics, Foreign Aid, Exchange Rates, Competition, and West African Economic and Monetary Union (WAEMU)
Political Geography:
Africa and West Africa

10. Stopping Guinea's Slide

Publication Date:
06-2005
Content Type:
Working Paper
Institution:
International Crisis Group
Abstract:
Guinea risks becoming West Africa's next failed state. Its economy is faltering, the government has nearly ceased to provide services, and in 2004, there were isolated uprisings in at least eight towns and cities in all regions of the country. Getting it wrong in Guinea now could have disastrous consequences. Getting it right will require a greater engagement by both the Guinean population and the diplomatic and donor communities, including a focus much more on reforming institutions than on the immediate personnel issues involved in the succession to the ailing and dictatorial president, Lansana Conté.
Topic:
Conflict Prevention, Development, and Economics
Political Geography:
Africa, West Africa, and Guinea