ANB-BIA SUPPLEMENT

ISSUE/EDITION Nr 436 - 15/06/2002

CONTENTS | ANB-BIA HOMEPAGE | WEEKLY NEWS


Côte d’Ivoire
Restructuring and social unrest


SOCIAL ACTION


Côte d’Ivoire is in the process of normalising its relationships with the international community; but wage claims are beginning again

Côte d’Ivoire is back!». Ever since the July 2001 election of Amara Essy as secretary-general of the Organization of African Unity (OAU), for President Laurent Gbagbo there’s only one thing that matters: «Côte d’Ivoire is back» (and by that he means «on the international scene»). And Côte d’Ivoire’s new President is right. For some time now, there’s been a constant succession of good news in Abidjan, in the sense that the country’s been setting to rights its relations with the international community.

The Ivoirian Popular Front (FPI) came to power in October 2000, following a chaotic transition period of military rule and a scandalous presidential election when all the potential candidates had been eliminated by the military. The country was cut-off from the rest of the world — nobody would offer any help because of the bad governance under the Bédié regime and the military coup d’etat. Now the country has stabilised its situation and succeeded in establishing normal relations with foreign powers. It’s also true that the October-December 2001 National Reconciliation Forum, which the international community expected great things from, was in the main, a success.

In any case, since January 2002, there’s been nothing but good news.

Let’s take a look at the Bretton Woods Institutions, because any hope of improving a country’s economic situation depends on their attitude and decisions. The International Monetary Fund (IMF) and the World Bank have recently resumed «their full and entire cooperation with Côte d’Ivoire». Why? Because these Institutions are satisfied that Côte d’Ivoire’s government has done everything possible to carry out the «Interim Structural Adjustment Programme» signed in July 2001, and which involved a six months’ trial period. The IMF has released a US $365 million credit facility for poverty reduction and for achieving economic growth. The World Bank has allocated US $280 million for eleven projects, in particular in the fields of education, health (AIDS) and improving roads. The World Bank also envisages a budgetary support amounting to $200 million to supplement the IMF‘s credit facility. This will help refloat the economy and assist the government in off-setting the negative impact of the political transition, and especially the deteriorating standard of living among the rural population.

Once all this is well under way, negotiations with the Bretton Woods Institutions will explore the possibility of Côte d’Ivoire’s eligibility to the Highly Indebted Poor Countries (HIPC) Programme. Côte d’Ivoire had previously been «placed on the list» for this Programme but this was suspended in 1998 due to bad governance under Bédié’s regime.

Billions possible, but...

The fact that Côte d’Ivoire has been able to resume relations in a normal manner with the Bretton Woods Institutions, has opened the way for other bilateral and multilateral partners to come on the scene once again: The African Development Bank (ADB) has just granted a US $172 million loan; France, Côte d’Ivoire’s traditional trading partner, has granted 183 million euros. Mr Charles Josselin, France’s Minister for Overseas Cooperation, describes this as «the most important financial assistance granted since 1995»: even the United States, which always make it clear that before any assistance is given, the country concerned must have accepted a programme of democratisation (elections!), has just begun «to re-examine the sanctions (58 of them!) which they imposed on Côte d’Ivoire following the December 1999 coup d’etat».

People are once again talking about (as they did in 1994-1995), of the «billion dollar rain» beating down on the country. But, as an immediate consequence, as if the «billions» were intended to be distributed to all and sundry, the workers rose up as one, claiming «their share». There’s all kinds of claims: for wages; demands to be upgraded, etc. Even professions such as the police and the magistrates who, usually, are forbidden to strike, have joined the bandwagon!

The government is convinced that there’s people around in the background who are out to destabilize the administration. In fact, such persons are simply following President Laurent Gbagbo’s own words. He is reported as saying on several occasions to groups of weorkers: «He who dares, wins» and «victory belongs to those who fight». And he’s even given in to the teachers and the police who were the first to demonstrate.

In February 2001, the 2nd Republic entered into office. On that occasion, Prime Minister Affi N’guessan asked for and received from the workers, guarantees of «a one-year truce (in demands for salary increases) for ten years of happiness». Unfortunately, a year later, in February 2002, he had to go back to the workers and inform them that the situation, if it has somewhat improved, is still too fragile to start handing out cash just like that. He asked for one more year, i.e. until 2003, until salaries could be increased. The workers then said: «Nothing doing!» And the civil servants clamoured: «We want our wages now!».

The IMF’s intransigence

These claims have little chance to succeed because the IMF has stuck to its guns. In a press conference on 17 April in Abidjan, the IMF‘s representative in Côte d’Ivoire, Mr. Innocent Diogo, clearly stated: «It’s impossible to start distributing salary increases. Agreements have been signed with the IMF and these have to be kept to». Mr Diogo is particularly concerned that any such action risks to upset the whole programme of economic reform.

Financial institutions are especially worried that in addition to releasing wages, there’s also problems connected with governance which could emerge because of the decentralization policy, where major resources will be transferred to decentralized administrative bodies.

Such is the situation prevailing today in Côte d’Ivoire and this gives cause for concern. The country’s «Restructuring» (the Ivoirian Popular Front (FPI)’s political agenda) is thus resulting in social unrest.

Concern is all the more serious since former Prime Minister Alassane Dramane’s Rally of the Republicans (RDR) (until now the only real opposition party), has just found a staunch «ally» with the election of Henri Konan Bédié as leader of the Democratic Party of Côte d’Ivoire-Democratic African Rally (PDCI-RDA). Bédié has every intention of making things tough for the government.

The RDR-PDCI coalition is an opposition grouping which scares the powers-that-be — especially the RDR. Why? Because the RDR is continually calling for fresh elections, especially parliamentary elections. Out of solidarity with its leader, Ouattara, who was not allowed to participate because of his «doubtful nationality», the RDR boycotted these elections. Party stalwarts say: «We can’t wait for 2005. We want power now!», and they’re all ready to drive the FPI from government.

This could be a possibility because of the present economic difficulties which are giving rise to the high cost of living. The womenfolk regularly demonstrate in front of the presidential palace shouting their dissatisfaction at what’s happening. This is a bad sign which can lead to all kinds of downward spiralling, both in politics and in the economy. But the fact that donor countries and funding agencies have once again started to fork out the wherewithal, gives reason for hope.

President Laurent Gbagbo says that «once the macroeconomic reforms have been set up, then we’ll give priority to the fight against poverty. So, let’s get on with it!»


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