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The 1969 Franc Devaluation and the Ivory Coast Economy

Published online by Cambridge University Press:  11 November 2008

Monique P. Garrity
Affiliation:
Department of Economics, University of Massachusetts at Boston

Extract

As a member of the franc zone, the devaluation of the Ivory Coast currency – the C.F.A. franc – was automatic upon the French devaluation of August 1969. The purpose of this short article is to analyse the implications and consequences of the French action for the Ivory Coast, in the hope that this will throw some light on the pros and cons of such a centre–periphery monetary union.

Type
Africana
Copyright
Copyright © Cambridge University Press 1972

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References

Page 627 note 1 Côte d'Ivoire: l'économie au début de Ia deuxième decennie', in Europe-France-Outre-Mer (Paris), 04 1971, pp. 25–9Google Scholar; and Bédié, Henri K., ‘La Politique économique du gouvernement de la République de Côte d'Ivoire’, in Banque centrale des états de l'Afrique de l'Ouest: notes d'information (Paris), 06 1971.Google Scholar

Page 627 note 2 Ministère de l'économie et des finances, Bulletin mensuel de statistique (Abidjan), passim.

Page 627 note 3 International Monetary Fund, Surveys of African Economies (Washington), vol. III, p. 261.Google Scholar

Page 627 note 4 Amin, Sansir, Le Développement du capitalisme en Côte d'Ivoire (Paris, 1967), p. 261.Google Scholar

Page 628 note 1 Surveys of African Economies, vol. III, p. 278.Google Scholar On the evolution of the franc area, see Bloch-Laine, F.et al., La Zone franc (Paris),Google Scholar and Leduc, M., Les Institutions monétaires africaines (Paris, 1965)Google Scholar; for the present arrangements, see Abdel-Salam, O. H., ‘The Evolution of African Monetary Institutions’, in The Journal of Modern African Studies (Cambridge), VIII, 3, 10 1970, pp. 339–62.Google Scholar

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Page 628 note 3 International Monetary Fund, Balance of Payments Yearbook (Washington), XXII, 09 1971, p. 5.Google Scholar

Page 628 note 4 International Monetary Fund, International Financial Statistics (Washington), XXIV, 11, 11 1971, p. 375.Google Scholar

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Page 629 note 2 See, for example, F.A.O., World Coffee Economy (Rome, 1961), p. 31Google Scholar, and E.E.C., Le Marché du café, du cacao et des bananes dane les pays de la C.E.E. (Brussels, 1963).Google Scholar

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Page 630 note 1 Bulletin mensuel de statistique, 07 1971, p. 9.Google Scholar

Page 630 note 2 L'Economie ouest africaine, 04 1970, p. 10Google Scholar, and Surveys of African Economies, vol. III, p. 244.Google Scholar

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Page 631 note 1 Source: Le Commerce extérieur des associés, pp. 314–18. Algeria, Morocco, and Tunisia did not follow the 1969 French franc devaluation, and are not included under ‘Other franc countries’.

Page 631 note 2 Bulletin mensuel de statistique, passim.

Page 631 note 3 Surveys of African Economies, vol. III, p. 228.Google Scholar

Page 632 note 1 Bulletin mensuel de statistique, passim. On the price freeze, see Ministére de l'économie et des finances, Situation économique de Ia Côte d'Ivoire en 1969 (Abidjan, 1970), pp. 34.Google Scholar

Page 632 note 2 Banque centrale des états de l'Afrique de l'Ouest, Indicateurs économiques U.M.O.A. (Paris), 04 1970, p. 7.Google Scholar

Page 633 note 1 ‘La Dette extérieure de la Côte d'Ivoire’, in Marchés tropicaux et méditeranéens (Paris) 11 02 1972, p. 387Google Scholar; also ‘Un Rapport du F.M.I. remet en question le miracle ivorien’, in Le Monde diplomatique (Paris), 03 1972, p. 4.Google Scholar

Page 633 note 2 ‘To summarise: monetary union between the underdeveloped countries and the metropolitan powers provides exceptional possibilities to speed up local development. It helps to maintain an economic equilibrium, and eases the process of modernisation’ (my translation). Boucier de Carbon, loc. cit. p. 10.

Page 633 note 3 Henri K. Bédié, Ministre de l'économie et des finances, loc. cit. p. 8.

Page 633 note 4 On African integration and joint planning as the only way towards economic independence, see Nkrumah, Kwame, Africa Must Unite (London, 1963)Google Scholar, and Green, Reginald H. and Seidman, Ann, Unity or Poverty? the economics of pan-Africanism (Harmondsworth, 1968).Google Scholar