Political Pre-Conditions for a West African Monetary Union : Assessing the Progress so Far

What factors have inhibited the progress towards closer monetary integration in West Africa? Answers to this question usually place premium on the lack of microeconomic convergence in strengthening the economies of member states, and the lack of political will and leadership to implement policies and actions in the creation of a common monetary union. Missing in this debate, however, is an assessment of the institutional requirements for a successful monetary union. In particular, what prior institutions are needed to achieve a common currency? Using West African level data from the African Development Bank and the Economic Commission for Africa, this paper argues that West African countries have experienced slow progress in monetary integration because of the absence of sub-continent wide political institutions needed to deal with sub-continent crises and issues