by Yacinthe Diene, Senegal, 4 April, 1997
THEME = ECONOMY
Guinea-Bissau received its "entry ticket" into UEMOA on 5 March, during an official ceremony presided over by President Jaoa Bernardo Vieyra of Guinea-Bissau, and in the presence of Prime Minister Manuel Saturnino Dacosta, and the president of UEMOA's Economic Commission, Moussa Touré. 2 May is the date set for the change-over, with the Act of Admission and completion of those financial details necessary for determining the exchange rate. (Which will be 65 Pesos for one CFA Franc). The rate quoted reflects present market trends and guarantees a smooth transition into the new monetary zone, while respecting agreements already in existence with Portugal, the International Monetary Fund and UEMOA.
In January 1994, the CFA Franc was devalued and people thought now the time had come for Guinea-Bissau to enter the Franc zone. But UEMOA's monetary authorities were far too busy, trying to help those members who were fighting against inflation and to adjust their economies to the newly devalued franc. Even after the 1995 decision mentioned above, Guinea-Bissau's request was once again blocked in October 1996 by the National Assembly, who refused to ratify the necessary changes to the country's Constitution. A two-thirds majority was required and this was not attained. Parliament called on the government to first of all undertake an awareness campaign among the population, explaining what the effects of entering the Franc zone would mean for the people. The Prime Minister agreed to this, and so on 26 November 1996, the necessary Constitutional changes were voted in. (Guinea-Bissau's application to join UEMOA was encouraged by neighbouring Senegal, and supported politically and financially by France).
* Regarding Persons and Institutions : The following appointments must be made 1) A magistrate for the Court of Justice in Abidjan (Cote d'Ivoire); Five Members of Parliament to the Inter-Parliamentary Committee to be set up in Bamako (Mali); A Commissioner to the Economic Commission in Ouagadougou (Burkina Faso); Senior banking officials for the Central Bank of West African Countries (BCEAO) in Dakar (Senegal); The setting up of a National Committee for Economic Policy. This Committee will be composed of senior civil servants, senior officials from the Ministry of Finance and from the BCEAO. The Committee will check that UEMOA's economic, social and monetary policies are carried out.
* Regarding The country's economic policy: There has to be a certain control over Guinea-Bissau's economy. (As in all other member-countries of UEMOA). To carry this out, the Economic Commission has laid down strict rules concerning budget deficiencies, public investments, internal and external debts. All with the aim of encouraging a well coordinated economic growth. * Regarding The application of UEMOA's current methods and procedures: The Central Bank of Guinea-Bissau has accepted to subordinate its activities to those of the BCEAO which controls the CFA Franc in use in Togo, Niger, Benin, Burkina Faso, Côte d'Ivoire, Mali, Senegal and Guinea- Bissau.
* Regarding Price Increases: Prices will have to rise because of the CFA Franc's devaluation. The Peso, in use since independence in 1975, attracted a low exchange rate.
Economically: This admission will be economically profitable for all the member-states. Guinea-Bissau stands to gain from the stability and the convertibility of the CFA Franc. In the context of a global economy, it is both necessary and vital these days to belong to an economic financial zone.
Guinea-Bissau has joined those countries who have attained monetary integration and who are now aiming at economic integration. The way in which the world is developing, it can't afford to be left behind. Even though this admission may look like a "marriage of convenience" with the French- speaking zone, it is the only way to launch the economy. Guinea- Bissau is among the world's ten poorest countries, with a Gross National Product of 44 US million dollars, and an income per head of 220 US dollars. But the future looks promising as the country lies fallow and is rich with enormous mineral, agriculture and other resources. The Franc zone and UEMOA provide a framework within which individual member-states can profit from and contribute to a wider economy.
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