Recently the AU have been talking about a single currency, while I like the fact that they have raised the topic, I think the AU should just plan for such only looking ahead , and when I say I say ahead, I mean 20-30years ahead. Many reasons have lead me to the above conclusion, some of which is as a result of studying the EURO currency reasons it has succeeded and about to fail (possibly).
- Conflict-resolution Mechanism: Does AU have a strong voice in resolving in-house conflicts between countries, and within regions in an African country?
- Rallying point: some African still perceive themselves as superior, this can't be solve though.
- Language barriers: this is an issue for EURO zone countries with a handful of languages, talk-less of AFRICA with over how many countries. Greek and Portugal had underlying issues the EU was not aware of in its context. And bringing it back home for example (Angola may have issues that only the locals may understand it as it grows, the Angolan government may present it in another way to the AU. the AU may not comprehend in full. until it becomes a full blown out crisis like Greece now.
- Trust: Mutual trust is expensive in Africa, I have not yet seen anything that will make me believe otherwise. This will spill into AU single currency decisions.
- Control: AU has Egypt, SA, Nigeria, as the big 3. Their population, GDP contribution may feed the other 40+ African nations. Will other countries agree that these countries takes control of such a currency? while this is feasible; just as it is in the EURO zone, any problem from the other smaller nations will affect the GDP distribution of the big3 internally.
- The Missing African Mind: So many differences in the mentality among African nations, with the situation in SA (Xenophobia); I am aware of the ideological/philosophical aspect of a single currency; As a continent primarily filled with Black people and even whites who are proud Africans, only embracing this can forge a Single currency that will work.
- Interest Rates: Interest Rates will never be equal, again using the EURO currency zone as a case-study, interest rates never balanced up, either too high for some or low. Resulting to job loss in some areas, reduced economic activities. I don't think the case for Africa will be different, especially as African nations are indebted via numerous Aid deals from EU/US.
- Transportation/Mobility: This is my main point, without which I’d say “AU just forget the it”. AFRICA is not CONNECTED. West Africa needs connection to north, South Africa, East Africa. Connected Flight between national carries should increase. Inter-Country trade routes, Educational exchange programs between universities. E.g. the cost to have a vacation to visit 7 European countries might be higher than the cost to visit 3 African countries apart (Research Needed Here).
With the above not tackled, why the single currency? Is it just a copy-cat thing'y or well thought of as a medium to drain some other nations? Lastly, AU’s response to African issues are alarming, it took them 8 months to respond to Ebola, we allow the Europeans, Asians and Americans to take the lead in such issues, thereby building up their leverage on the continent and increasing their ability to drain us when they need. Please forgive me to say I do not think AU has imposed herself as powerful/industrious enough to sustain a single currency amongst over 40nations, Though I wish they will ASAP
This article is an amateur summary of the state of things.
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