Franc zone growth is uneven and often strongly negative

Evidence

If the socioeconomic performance of the countries of the franc zone leaves much to be desired, it is largely due to four handicaps imposed by the CFA system: an excessively rigid exchange rate regime, a problematic pegging to the euro, the underfinancing of the African economies and a free movement of capital that generates a massive financial bleed-out. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 293 (#expands, via linked claim)

An analysis of the long-term statistics thus shows that, while the Ivory Coast has achieved noteworthy results in recent years, its real GDP per capita – or ‘average income’, for simplicity’s sake – in 2016 was more than a third lower than that recorded at the end of the 1970s. The same is true of Senegal, which has also achieved good results in recent years: its current average income is equal to that of 1960. These two states, therefore, are not ‘catching up’ with the other so-called emerging countries, but rather they are slowly recovering their previous levels of economic activity. More generally, ten states of the franc zone recorded their highest levels of average income before the 2000s. In Gabon, for example, the highest average income was recorded in 1976: just under $20,000. Forty years later, it has shrunk by half. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 282 (#expands, via linked claim)

Categorization

• XREF: connects to: Demographic reversal will erode France’s capacity to underwrite franc zone currencies; The CFA system only works while franc-zone economies stay small; Four structural handicaps explain the franc zone’s poor socioeconomic performance — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 293 (+4 more)

Related

• Franc zone economies have stagnated since independence, with most growing under 1 percent yearly (similarity 0.93)
• Recent franc zone growth only recovers past peaks, not net progress (similarity 0.93)
• Franc zone growth falls below the sub-Saharan average. (similarity 0.90)
• Four structural handicaps explain the franc zone’s poor socioeconomic performance (similarity 0.87)
• Franc zone growth mostly reflects multinational activity, not local productive capacity (similarity 0.86)
• The CFA system only works while franc-zone economies stay small (similarity 0.84)
• Demographic reversal will erode France’s capacity to underwrite franc zone currencies (similarity 0.83)
• Euro appreciation deteriorates franc zone trade balances (similarity 0.79)
• Seventy years in, franc zone states still export unprocessed raw materials to Europe (similarity 0.79)
• Fixed exchange rate countries in sub-Saharan Africa grow 1-2 points slower (similarity 0.79)
• Demographic reversal will erode France’s capacity to back the CFA currencies (similarity 0.79)

Broader Connections

• Four structural handicaps explain the franc zone’s poor socioeconomic performance #expands (0.70) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 293
• Franc zone growth falls below the sub-Saharan average. #corroborates (0.60)
• Recent franc zone growth only recovers past peaks, not net progress #expands (0.55) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 282
• Franc zone growth mostly reflects multinational activity, not local productive capacity #expands (0.55) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 315
• Franc zone economies have stagnated since independence, with most growing under 1 percent yearly #expands (0.50) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 281