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What is the Economic Community of West African States (ECOWAS)?
Achievements | Economic Community of West African States(ECOWAS)
PhD thesis, University of Warwick. Request Changes to record. The creation of ECOWAS in May marked the successful outcome of protracted negotiations that had begun shortly after independence, and which reflected the mounting sense of unease in Africa and throughout the Third World that political independence did not signify effective control by the new states of their economies. Hence the numerous experiments at integration within the region, some mainly political and others more economic in character. The Ghana-Guinea Union attempted briefly to bridge the unfortunate linguistic and cultural divide separating former British and French territories In West Africa. The Union was restricted, however, to political cooperation between leaders with more or less compatible and radical ideologies, who were a small minority within the region as a whole. With independence the very number and diversity of West African states seemed to dictate a different and more gradual approach to unity based, initially, on economic cooperation and functional inter-dependence, and that has been the policy of every Nigerian government since
This article discusses the single currency or one currency for West Africa countries called ECO, it implication for the region, the negative and positive side of the policy with focus on the benefit and disadvantages it poses to Nigeria economy. The coordination of monetary policy is an important aspect of the modern economy and a cardinal function of central banking authorities. Single currency or one currency is hinged on the idea that there is a need to guide and regulate the value and supply of money in an economy in consonance with the level of economic activities. This is necessary because of the marked inadequacy of the market mechanism- left to itself- to regulate money supply.
It had its roots in earlier attempts at a West African economic community in the s and was spearheaded by Yakuba Gowon of Nigeria and Gnassigbe Eyadema of Togo. The primary purpose of ECOWAS is to promote economic trade, national cooperation, and monetary union, for growth and development throughout West Africa. A revised treaty intended to accelerate the integration of economic policy and improve political cooperation was signed on July 24, It set out the goals of a common economic market, a single currency , the creation of a West African parliament, economic and social councils, and a court of justice.