Monopolized credit forced growers into dependence that competition later dissolved
Evidence
The functioning of the banking system of the franc zone also served to orient the allocation of resources in such a way as to further benefit the metropole and its operators: bank credit was mainly reserved for those sectors whose products were exported to the metropole and generated foreign currency, to the detriment of productions destined for national markets. … Because of this handicap, associated with other non-monetary barriers such as the lack of infrastructure and trade protection, African companies often found themselves in the position of not being able to compete with foreign economic operators on their national markets. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 128 (
#exemplifies, via linked claim)
Categorization
- XREF: connects to: Franc-zone bank credit allocation suppressed African firms competing with French companies — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 128; Splitting LOGCAP contracts among firms produced mini-monopolies, not competition.; Closed plantation units were paradoxically dependent on external markets — Édouard Glissant, Poetics of Relation, 387
Related
- Franc-zone bank credit allocation suppressed African firms competing with French companies (similarity 0.85)
- Monopsony and export duties drove African crop prices artificially low (similarity 0.81)
- The CFA franc structurally denied credit to economic actors outside colonial accumulation (similarity 0.78)
Broader Connections
- Franc-zone bank credit allocation suppressed African firms competing with French companies
#exemplifies(0.80) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 128 - Splitting LOGCAP contracts among firms produced mini-monopolies, not competition.
#exemplifies(0.72)