Self-interest blinded the French to unequal benefits of development

Evidence

Ultimately, we are in the presence of a mechanism that defies belief: France uses its presumed role of ‘guarantor’ as a pretext and as a tool to blackmail its former colonies in order to keep them in its orbit, both economically and politically, as we will see in Chapters 4 and 5. Worse, the African states not only guarantee the convertibility of the CFA franc with their own reserves, but continue, in fact, to ‘guarantee’ France’s leading position in the global economy, by accruing important benefits to its economy. All the foundations of the CFA system are based on a mug’s game. Therefore, it is not surprising that African leaders, following their countries’ independence, immediately mobilised against the CFA franc. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 146 (#expands, via linked claim)

Instead of receiving the funds they had been promised in exchange for the devaluation, the countries were forced to adopt so-called ‘structural adjustment plans’, consisting mainly of the privatisation of public enterprises – often for the benefit of French groups – and of major budget cuts in various sectors (education, health, agriculture, etc.). These budgetary restrictions led, among other things, to massive redundancies in the public administration and/or significant wage reductions. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 215 (#exemplifies, via linked claim)

Categorization

• XREF: connects to: France’s strong-franc policy worsened CFA countries’ competitiveness; Devaluation coerced African states into structural adjustment benefiting French firms. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 215; The CFA guarantee arrangement secretly benefits France at Africa’s expense — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 146 (+1 more)

Related

• The CFA guarantee arrangement secretly benefits France at Africa’s expense (similarity 0.90)
• Devaluation coerced African states into structural adjustment benefiting French firms. (similarity 0.88)
• CFA convertibility guarantee is cheap only because African economies stay small. (similarity 0.86)
• The CFA franc persists because French and African elites both profit from it (similarity 0.86)
• France’s guarantee is backed by pooled African reserves and French central bank seats (similarity 0.86)
• The CFA franc’s real purpose was draining colonial wealth to France. (similarity 0.85)
• The CFA franc was a colonial instrument depriving African actors of credit. (similarity 0.85)
• The French guarantee of the CFA franc was illusory since African reserves exceeded debts (similarity 0.85)
• African deputies publicly exposed the CFA franc as a tool of the colonial pact (similarity 0.85)
• Currency independence alone cannot succeed without a self-centred development model (similarity 0.85)
• The CFA franc was a political choice that deprived non-adapting African actors of credit (similarity 0.84)
• CFA franc’s real aims were draining colonial wealth into France, not African progress. (similarity 0.84)
• The CFA franc’s fixed peg forced colonies to absorb French devaluations helplessly (similarity 0.84)
• The CFA franc’s parity was set without regard for local economic realities (similarity 0.84)
• France’s own anti-inflation policies against the mark caused the CFA overvaluation that forced crisis. (similarity 0.84)

Broader Connections

• The CFA guarantee arrangement secretly benefits France at Africa’s expense #expands (0.75) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 146
• France’s strong-franc policy worsened CFA countries’ competitiveness #expands (0.70)
• Devaluation coerced African states into structural adjustment benefiting French firms. #exemplifies (0.65) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 215
• Currency independence alone cannot succeed without a self-centred development model #expands (0.60)