Economic Community of West African States (ECOWAS)

Description
Consists of 15 West African countries
Was founded on 28 May 1975 with the signing of the Treaty of Lagos
Its mission is to promote economic integration across the region

Economy
At the beginning of the 21st century, West Africa was
the world’s poorest region
Every ECOWAS member state except Nigeria and Cape Verde was among the world’s poorest 50 countries per capita in both nominal and purchasing power parity terms
The absolute majority of the regional population lived on less than one dollar per day, with over 80% living on less than two dollars per day.
Within ECOWAS, there are few real outliers from this pervasive poverty. Only Cape Verde, Ghana, Côte d’Ivoire and Nigeria are classified as above Least Developed Country status

Structure
Conference of Heads of State and Government
Council of Ministers
Community Tribunal
Community Court of Justice
Executive Secretariat
ECOWAS Parliament
Specialized Commissions
Food and Agriculture
Industry, Science and Technology
Energy
Environment and Natural Resources
Transport, Communications and Tourism
Trade, Customs, Taxation, Statistics
Political and Legal Affairs
Regional Security and Immigration

Overview

West African Economic and Monetary Union
The West African Economic and Monetary Union (also known as UEMOA from its name in French, Union économique et monétaire ouest-africaine) is an organization of eight West African states
OBJECTIVES
Greater economic competitiveness, through open markets, in addition to the rationalization and harmonization of the legal environment
The convergence of macro-economic policies and indicators
The creation of a common market
The coordination of sectoral policies
The harmonization of fiscal policies

West African Monetary Zone
Formed in 2000, the West African Monetary Zone (WAMZ) is a group of six countries within ECOWAS that plan to introduce a common currency, the Eco, by the year 2015.

ECO (currency)
For the Eco to be implemented, ten criteria, set out by the West Africa Monetary Institute (WAMI), must be met.
A single-digit inflation rate at the end of each year
A fiscal deficit of no more than 4% of the GDP
A central bank deficit-financing of no more than 10% of the previous year’s tax revenues
Gross external reserves that can give import cover for a minimum of three months.
Prohibition of new domestic default payments and liquidation of existing ones.
Tax revenue should be equal to or greater than 20 percent of the GDP.
Wage bill to tax revenue equal to or less than 35 percent.
Public investment to tax revenue equal to or greater than 20 percent.
A stable real exchange rate.
A positive real interest rate.
Up to the fiscal year 2011, only Ghana have been able to meet all the primary criteria in any single fiscal year