INTERNATIONAL STATISTIC INSTITUTE °°°°°°°°°@°°°°°°°°° INTERNATIONAL ASSOCIATION FOR OFFICIAL STATISTICS °°°°°°°°°@°°°°°°°°° LONDON INTERNATIONAL CONFERENCE ON NEW ECONOMY °°°°°°°°°@°°°°°°°°° CONTRIBUTED PAPER : International comparisons, case of West African Economic and Monetary Union Author : Mister VIGAN Fortune Evariste Organisation : Réseau d’Information et de Formation sur le Developpement –Bénin/ ONG Address : 03 BP 4249 Town : Cotonou Country/state : Republic of BENIN Postal Zip : 229 Telephone : (229) 40 34 20/ (229) 30 93 04 Fax number : (229) 31 38 77 E-mail : email@example.com , firstname.lastname@example.org Cotonou, april 2002 CONTENT Abstract .......................................................................................................................................... 3 introduction .................................................................................................................................... 4 1. International comparisons concepts ...................................................................................... 4 1.1. International comparisons roles ......................................................................................... 5 1.2. International comparisons and regional integration in west africa............................... 6 2. International comparisons tools used by waemu ................................................................. 6 2.1. Use’s difficulties ..................................................................................................................... 8 2.2. Solutions .................................................................................................................................. 8 3.conclusion .................................................................................................................................... 9 ABSTRACT Humanity’s history has proved that the norms like international comparisons of the sizes have always existed in order to appreciate: - the vitality of an entity to an other on the microeconomic plan, and - the performances of an economy to another on the macroeconomic plan. Like illustrates if well the theory of advantage comparatives in the International Commerce; that's why some countries are specialized in the exclusive production of some goods while these same countries prefer to import goods for which the costs of manufacture are highest. In the context of the globalisation of economy, it is important to show that developing countries are concerned by the control of international comparisons tools. So, the process of their development depend on these tools. It’s why, our contributed paper tries to show the necessary conditions that these countries must to have in order to participate to the new economy. In this logic, we will take a case of West African Economic And Monetary Union in order to describe the policies applied. Equally, it will be the place to relate some difficulties that covers the United Nations System in economic indicators often used to realize comparison. Introduction The requirements of the new economy are further coercive contrarily to a recent times, all remaining equal things by elsewhere. The industrialised countries to the example of those in sees of development to conform to some political of convergence rigorously without protocol for the stragglers. The emergence of the economical blocks is an of it demonstration vivid political who is of remainder, based on a [panel] of harmonized indicators facilitating the exercise of comparison of the concerned savings. So, the system of the United Nations, with his range of tools of international comparison, succeeded in establishing a ladder of size between the countries of the planet. This translates the cohabitation of country poor stories to the sides of the rich countries. In these two together, one distinguishes: · The countries in sees of development; · The least advanced countries; · The countries to intermediate incomes; · The countries newly industrialized; and · The industrialized countries. In spite of the diversity of the appellations knew mentioned, these concepts are based on some indicators no less applicable who used to measure the economical competitiveness some nations. So to speak, these indicators are constructed following a panoply of socio-economic criteria who allows to compare the signals of an economy to an other. He doesn't stay of it less than indicators it is partly biased because resulting of the consideration of doubtful criteria (otherwise regularly put in causes). Despite this state of thing, he is comfortable of noting that throughout elsewhere these instruments made their proof, and sees today used by number of nations in order to purify the public finances and of addition confer the considered savings a certain fruitfulness. It is in this context that the Economical and Monetary Union of the Africa of the West (WAEMU) is translated in the reality like the first economical whole of the west African region of which the noble ambition is of creating an economical embedded space covering a surface of 3.5 millions of kilometres square with more than 67millions of consumers. This whole drains 33% of Interior Raw Product of the Africa of the West. The presents communication will attempt to coming out again the foundations of the politics of economical convergence who are only the stake opens and the efficient use of the aforementioned indicators. It will be the opportunity of coming back also on the reserves given out by the scientific and economical surroundings on the conception those indicatory. 1. International comparisons concepts One would not know how to surround the contours of the indicators of international comparison fully if he one refers an any to their genesis. This brings us to make a brief historic recall on the birth of the socio-economic tools of comparison. The deep incentive who under offers the development then the adoption of the tools of analysis making the object of the present communication resides in the permanent worry of scientist of could compare some sizes of all nature. So, he one could notice that the rules of conversion governing the metric system in truth the arithmetic is an eloquent illustration of the importance of the tools of measurement that is the indicators of international comparison. Without no doubt, if this tool didn't exist it fails it invent. This simple report shows to what dawns our society has need of an arsenal [efficient] of comparison so much. In the case of the nations, the reality resides in the multitude and the diversity of the savings in presence. These savings are actually condemned to cohabiting on the same planet, all the more reason to surround of adequate instruments could facilitate the exchanges and well of something else. In so doing, the commercial transactions who make between different monetary zones achieve on the basis of the precise exchange rate. The exchange rate of the currencies in question serves of stallion for the purchase of the possessions and services of a country to an other. However, these transactions respect the real fluctuations some currencies to the rise like to the decrease, intervening in the time. Outside of the historic aspect who has been just makes, he is acceptable to come back on the criteria of conception of the tools of international comparison. It is necessary to say that the united nations worked out a range of serving credential of basis of comparison and of analysis between the nations of the planet. It is to this title that the national accounting put places an of it certain number of economical concepts in order to value the wealth of the nations. In order to one don't go farther could mention the worked out system and put in 1968 in force that a lot of country of Africa (south Sahara) continues using in the confection of the national amounts. This system of national accounting made the object of applicable critiques who led to his overhaul in 1993. Of stroke, one imagines that the mistakes contained in the first are an any corrected and reduced correctly. If the United Nations himself try to endow the savings of the countries of this tool it is in order to facilitate the comparison of the economical indicators unanimously admitted and normalized. Imagining a world without this compass, I don't dare to conclude. 1.1. International comparisons roles She carried some tools of international comparison are unanimously acknowledged. Nowadays, where the globalisation] of the economy progresses to big and the constitution of regroupings economical one affirms further would be to attempt to put these processes on account of the only interests or of profit. But the tools making the object of present paper constitutes the part hidden of the iceberg. So to speak, no investment achieves without the analysis of risk or of the survey of feasibility of project of investment. This conducts us to speak of role of the tools of international comparison in the concert of the nations. The role of the tools of international comparison is not anymore to demonstrate in this sense that many situations of taking of decision was the fruit those tools. For proof, he was sufficient of seeing the room that takes care the national accounting in the macro economy. Especially the contribution of the tools mentioned in the explanation of some economical phenomenon. When we take the case of the financial economy, the norms to respect is so much of indicators of international comparison who permit the well attended and the assessment of the political stakes in opens in the sector. Master it some budgetary disciplines, to know · Doorstep of indebtedness; · Engagements · public Expense · monetary Mass in circulation · Cashes fiduciaries · electronic Currency · Rate of discounts · Rate of interest 1.2. International comparisons and regional integration in West Africa Before enter in the quick of topic of the present section, he matters of making a summary presentation of the WAEMU space. This organization under regional, localised in the big known under the nominative of CEDEAO, regroups seven French-speaking country and one. It was about: 1. Benin; 2. Burkina Faso; 3. Côte-d'Ivoire ; 4. Guinea Bissau, (only Portuguese country), 5. Mali; 6. Niger; 7. Togo; 8. Senegal. With a view to the realization of the economical integration of the ECOWAS space, the authorities of the West African zone judged good of going methodically and progressively. To this end, they have divided the big west African zone in two under zones. The first regroups the English countries to know: Nigeria, Ghana, Liberia, Sierra Leone and Gambia; while the second fact reference to the countries previously cities, those of the WAEMU. The objective being of arriving to the economical partial and separate integration some two entities leave to finally launch of amount the big market of the Africa of the West with the fusion of the two aforementioned entities. This last realization will materialize the economical market of the CEDEAO to the example of the European Union. This strategy of development will lead to long term to the unique African market where the microphone savings will make room to an economical strength of size. In order to close this bracket, signals that our communication is oriented on the West African Economic and Monetary Union (WAEMU). One would not know how to pursue without relating the historic fundamental signals of the organization. Indeed, the WAEMU was created on the ruins of the old WAMU in January 1994 at Dakar, Senegalese capital. She took body to the following day of the all first devaluation of Straightforward CFA (11 January 1994). 2. International comparisons tools used by WAEMU The presents section allows to speak of panel of tools put in practice by the countries of the Union in order to arrive to the realization of the economical integration so much wished. Being given that the concerned countries have some economical disparities, and of addition of level of different development. In order to achieve this objective, it was necessary to put places an of it [harmonisation] and normalization of the concepts in order to facilitate the comparability of the economical aggregations between the countries of the Union. To this effect, the thickest stain was the one of sitting down the elements of the national accounting of these country on the same bases. It is the place of recalling that most of the country continues using the system of the national amounts worked out by the united nations in 1968. This demonstrates the ampleness of the progresses to accomplish in order to endow these savings in presence of a reliable barometer to same of leading to the economical integration. It is necessary to mention how alone the Mali uses the new system of the national amounts, the one of 1993. This observation shows how many time the scientific surroundings must try in order to lead to the communal utilization of new system. So, a common basis will be adopted in order to permit to realise the comparability of the indicators of economic performance per one good well attended assessment of the progresses recorded to the thread of the budgetary exercises. In spite of these disparities of national amounts, a certain of number of advancing could be makes since little. To the title of these progress, it is necessary to stipulate that economic operators of some States members of the Union succeeded in putting in places some economical reforms based on the [harmonisation] and the normalization of the concepts in several sectors of the economical activity. One could mention: · The harmonisation of fiscal and border policy; · The organization for the harmonisation of right some business; · The system accountant of the WAEMU (SYSCOA); · The harmonisation of the nomenclatures of the activities and some products achieved by AFRISTAT; · The stake in force of Outside Common Tariff since January 1999; · The backing of the structures of collection and of treatment of the statistical information; · The bets in opens next of Program Statistical Common Minimum piloted by AFRISTAT; · The rationalization of the public finances some countries of the Union · The harmonisation of the political and projects in matter of transport. The list is not exhaustive but representative. The instruments in order to facilitate the healthy competition between the countries consisted in to adopt a common rating to the borders. This tackles permit to the countries of exercising an identical taxation to the entrance especially, because the WAEMU knows a strong dependence of the imports lives to screw of remainder of world. The reality of this disposition is the Outside Common Tariff. The British tradesman who exports some products towards of the region hire the same whichever impositions the country of destination. This is true per one identical quantity of product. Besides, with this TEC, the inflation is solved an any. On the plan of the public fiscality, the [harmonisation] of the political fiscal permits besides to the national enterprises of spreading their activities in the communal space consecrating thus, the integration to the basis. Undoubtedly the reach of these political economical of convergence is of preparing these disparate savings to become competitive. The competitiveness will result of the restraint of the possibilities of specialization of way to reinforce the exchanges communal [intra] to the detriment of remainder of world. The bets in opens of the whole of these political is supervised by the Central Bank some States of the Africa of the West who bends on the monetary politics of the Union. This structure comes in balance to the competent cells of the Union. So, the Blackboard of the Financial Operations is published every year for the well attended some exercise’s realities, by the different country. The budgetary discipline is in passes of being consummate by the n ministrations loads some finances of the Union. It is actually a crucial point of the economy of the WAEMU. Outside of the Côte-d'Ivoire Coast and of Senegal, the economical growth observed in the other country stays fiscal. Of where the necessity of reinforcing the productive cloth. On this plan the countries like the Burkina Faso test of reversing the tendency. Since his indicator of human development improved to the course of the last decennia. 2.1. Use’s Difficulties All is not yet pink for the Union. The countries know some difficulties in the stake in opens some political of economical convergence aiming the integration of the concerned savings. Of point of seeing of the fiscality, the reforms linger to be stakes in opens for some nationalistic considerations. Indeed, to the picture of the construction of the European Union the one of the WAEMU meet some problems and the phobia of some of being absorbed by the powerful. Simply because the integration is going to cause the disappearance of the monopolies on one hand and a rough and healthy competition of the enterprises of the under region. Nothing that to see the bets SYSCOA accountant in application of system, with soon four (4) years of execution a lot of enterprises are again to the former. Before this report, he comes back to the signatory States of treating of Union of reinforcing the measurements of repression so that the adoption is efficient. For this who of the stake in opens Statistical Common Minimum piloted by AFRISTAT of Program, many remain to make for the vulgarisation of the nomenclatures newly adopted. Besides, seen the inability of the States to dispose of statistical reliable expertise in a context of diminution of the facilities, some major obstacles point to the horizon in the happy concretisation of this program. In order to finish, he matters to raise that the countries members of the Union to weak productive cloth know of fail in to earn no less negligible in the common fiscality. That's why, they require some mechanisms of compensation. 2.2. Solutions To him seen of these difficulties, some beginnings of solutions were found. For him fails in to earn fiscal, the Union put places an of it Funds of Aide to the Regional Integration destined to making up for them of a certain manner having right. For the program of AFRISTAT, this structure hears to fold back on the institutions of statistical national and the public administrations for the execution of program. In the same way, an overhaul of the approach of vulgarisation is admitted. To the look of these solutions, he comes that the success is to reach of hand if on top of it the States members put it of serious and of the ambition. The economical integration of the under region is in right line with of the next creation of the Economical Community some States of the Africa of the West. Add in order to finish that the countries of the WAEMU understand some poor countries and some countries to intermediate incomes (Côte-d'Ivoire Coast). The adherence to these categories is based on some concepts established by the United Nations and who is decried besides in addition nowadays. That's why, he one makes reference to the Development Human Indicator of who takes many more henceforth in counts some considerations socio- cultural like the rate of literacy, the rate of children going to school and the welfare. 3.Conclusion In order to conclude the present paper, it is necessary now and already say that the international comparison is a strategic domain of measurement or of control of the socio- economic performances some nations. This paper allowed to coming out again the advantages strengths who result of the application or of the stake in opens of politics of economical convergences between some countries who have a become common. Becoming common allowing to operate some applicable comparisons between some sizes of many sectors of the savings in presence. This is translated by the experience of the young WAEMU who is data for ambition of achieving the economical integration some countries members. He comes out again of this experience of the certain acquirements like the bets in opens of outside Common Tariff and well some other. To short term, the specialization of the countries members are going to accelerate in the context of the globalisation of the economy. With the political of economical convergence of the region, the [comparability] becomes efficient between these savings to the disparate departure. Of addition the tools of international comparison are progressively manipulated and compete thus to some holds of specific and efficient decisions. To him staying, whichever the given content to the IDH of the considerable progresses observes in the WAEMU space. Being given that the science always knows some meaningful progresses, one will arrive to middle term to give a content less biased to some indicators.