The Remnants of Colonization Series - Colonization Hand Control: When will France Let Go?

By: Danielle D. Rogers

Dead hand control is the attempt to control property after an individual’s death. The right of a property owner to dispose of her property at death on the terms that she prescribes is unique amongst modern legal systems, especially in American succession law. However, this form of control after death can be taken out of the context of succession law and applied to an international law and policy standpoint pertaining to neocolonialism. As the remnants of colonization continue to plague countries, the effects of cultural homogenization prove dire for postcolonial countries to move forward.[1] Dead hand control is synonymous with neocolonialism where postcolonial countries are “de jure independent but in reality constrained through their economic systems so that policy is directed from the outside.”[2] Several former French colonies continue to suffer from the control of France even after the former colonies gained independence.[3] Ndongo Samba Sylla, Senegalese Economist, stated that "France agreed to grant independence to its sub-Saharan Africa colonies, provided they accept to use the CFA franc and [France retained] a monopoly on their raw materials."[4] CFA franc is the form of colonial era currency that is still currently used in several of the former French colonies in Africa.[5] France created CFA franc in the late 1940s to serve as the legal tender in the former colonies and the value of CFA franc is pegged to the euro.[6]

The African CFA (Communauté Financière Africaine or Financial Community of Africa) franc zone currently consists of fourteen countries with one of the two monetary unions: the West African Economic and Monetary Fund or the Central African Economic and Monetary Union.[7] Benin, Burkina Faso, Côte D’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo consist of the West African Economic and Monetary Fund, founded in 1994.[8] The other six countries-Cameroon, Central African Republic, Chad, Republic of Congo, Equatorial Guinea, and Gabon-consist of the Central African Economic and Monetary Union.[9] The French Treasury guarantees to exchange the currency of CFA franc for “French Franc (now Euros) at a fixed rate.”[10] The two central banks, mentioned above, issue the single currency of CFA franc and the currency is convertible with French Franc at the rate of 100 CFA franc for 1 French Franc.[11] Additionally, through a formal agreement, the Cooperation Conventions with the franc zone members, France requires that the members assemble together a minimum of “65 percent of their international reserves, corresponding to 20 percent of the monetary base of each central bank, into an Operations Account at the French treasury.”[12] Although the pegs are defined as adjustable, such adjustments can only occur for economic reasons after consultation with the French government and a unanimous vote of all members.[13] Since France is the main trading partner of CFA franc zone countries, the economic growth of the African countries largely depends on the demand from France and the price of raw materials.[14] However, the depreciation of the CFA franc resulted in a drastic decrease in growth and export revenues for most African countries in the zone.[15] As a result, the government budget deteriorated as tax revenues fell.[16] In 1993, the countries began to finance the budget deficit by borrowing from abroad until France threatened to cease support to its former colonies unless they agreed to adopt a plan supported by the IMF.[17] Sources the use of CFA franc causes continued underdevelopment, a dependency of external actors in the West African economy, “net transfers of resources and national wealth to foreigners,” and a large wealth disparity on African countries apart of the CFA franc zone.[18]

Around August 2017, Kemi Seba, a Franco-Beninese activist, led a protest in opposition to the colonial currency and burned a 5,000 CFA note.[19] As a result, the Central Bank of West African States sought court action against Kemi Seba for the destruction of their property and authorities made an arrest.[20] After Kemi Seba’s arrest, more anti-CFA currency protests occurred.[21] Eventually, a court in the Senegalese capital, Dakar, acquitted Kemi Seba. Sources indicate that many protestors believe the end of CFA franc will effectively end the influence and control that France exerts over its former colonies.[22] On January 22, 2019, Italy’s Prime Minister of Foreign Affairs, Luigi di Maio, asked the European Union to enforce sanctions against France for its policies in Africa.[23] The Prime Minister of Foreign Affairs explicitly stated that France had “never stopped colonizing tens of African states” and that France strives on the exploitation of the African countries it exerts influence over.[24] Additionally, he alleged that CFA franc stunts the economic development of African countries which contributes to the pressures on Africans to migrants.[25]

Recently, around December 21, 2019, West Africa’s monetary union agreed with France to rename the CFA franc to the “Eco” and cut some of the financial ties with Paris.[26] Although the Eco will still be pegged to the euro, African countries in the bloc will not have to keep 50% of their reserves in the French Treasury and a French representative will no longer be a representative on the currency union’s board.[27]  The Ivory Coast’s President Alassane Ouattara stated that the change to the Eco is a “historic day for West Africa.”[28] This change marks a step forward for the African countries affected by neocolonialism to break colonial chains and gain independent sovereignty.

#CFAfranc #WestAfrica #Colonialism #Neocolonialism #Eco #BlogPost #DanielleDRogers

[1] Maya Berinzon and Ryan Briggs, 60 years later, are colonial-era laws holding Africa back?, Washington Post (Jan. 20, 2017), https://www.washingtonpost.com/news/monkey-cage/wp/2017/01/20/60-years-later-are-colonial-era-laws-holding-africa-back/; Verkijika G. Fanso, History explains why Cameroon is at war with itself over language and culture, Conversation (Oct. 15, 2017), https://theconversation.com/history-explains-why-cameroon-is-at-war-with-itself-over-language-and-culture-85401; John Wright, British colonialism laid the ground for the crises in Hong Kong and Kashmir, RT (Aug. 16, 2019), https://www.rt.com/op-ed/466639-kashmir-hong-kong-british-colonialism/.

[2] Ian Taylor, France à fric: the CFA zone in Africa and neocolonialism, 40 Third World Quarterly 1064 (2019).

[3] Christopher Giles and Jack Goodman, African migration: Is the CFA franc forcing people to leave?, BBC (Jan. 25, 2019), https://www.bbc.com/news/world-africa-46960532.

[4] Id.

[5] Lamine Konkobo, African protests over the CFA 'colonial currency', BBC Africa (Aug. 30, 2017), https://www.bbc.com/news/world-africa-41094094.

[6] Id.

[7] David Fielding, The Macroeconomics of Monetary Union: An Analysis of the CFA Franc Zone (2002); What is the CFA franc zone?, IMF, https://www.imf.org/external/pubs/ft/fabric/backgrnd.htm.

[8] Id.

[9] Id.

[10] Id.

[11] Id.

[12] Rogelio Garcia-Contreras, Colonial Hangover: The Case of the CFA, 46 Journal of Asian and African Studies 56

[13] Id.

[14] Id. at 59.

[15] Id.

[16] Id.

[17] Id.

[18] See Taylor supra note 4, 1066.

[19] Konkobo, supra note 7.

[20] Id.

[21] Id.

[22] Id.

[23] France summons Italian envoy over Africa remarks, BBC (Jan. 22, 2019), https://www.bbc.com/news/world-europe-46955006.

[24] Id.

[25] See id.

[26] Ange Aboa, West Africa renames CFA franc but keeps it pegged to euro, Reuters (Dec. 21, 2019), https://www.reuters.com/article/us-ivorycoast-france-macron/west-africa-renames-cfa-franc-but-keeps-it-pegged-to-euro-idUSKBN1YP0JR.

[27] Id.

[28] Id.