Building Integrated Economies in West Africa
Back Matter

Back Matter

Author(s):
Alexei Kireyev
Published Date:
April 2016
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    Index

    Note: Page numbers followed by b indicate box, f figure, and t table.

    A

    • Agence UMOA-Titres. See WAEMU Securities Agency

    • Agricultural sector

      • export quality, 69

      • growth trends, 68, 69f

      • insurance, 291, 292f

      • Mali’s, growth inclusiveness and, 90–92

      • policies to improve trade competitiveness, 76–77b

      • policies to promote inclusive growth, 98–99

      • policies to reduce vulnerability to shocks, 3

      • poverty reduction through regional integration of, 361, 362–363

      • productivity, 76b

      • rationale for structural reforms, 28–29, 70

      • regional integration, 361–362

      • regional policy coordination, 363

      • structural reforms to promote growth, 29, 44, 74, 75–77b

      • trade patterns, 77b

      • trade restrictions, 362

    • Alcohol taxes, 167, 168, 174

    • Asymmetric macroeconomic shocks

      • current shock-smoothing mechanism, 124f

      • definition, 44

      • fiscal federalism rationale, 141

      • fiscal rule cyclicality and, 114

      • frequency, 122

      • policy response, 57

      • rationale for coordinated fiscal policy response, 44

      • regional risk-sharing mechanism, 122, 141–142, 143

      • regional stabilization mechanism, 122, 124f

      • supply shock convergence, 60, 61f

      • synchronization in WAEMU, 135, 136t

    • ATMs, 287, 288f

    B

    • Bailouts, 57

    • Banking sector

      • access, 7–8, 98, 256, 287–291, 288f, 289f, 309

      • asset concentration, 276f

      • barriers to entry, 240

      • capital adequacy ratios, 27f, 263f, 265

      • capital concentration risk, 303

      • Central Bank oversight, 22

      • competition in, 273

      • contract enforcement, 284–286

      • cross-border flows, 260–262

      • current commercial bank deposits, 256

      • current liquidity positions, 24, 25

      • current structural characteristics, 7, 256, 260–262, 261f

      • deposit and payment modes, 287–291, 290f

      • distribution of excess liquidity, 206

      • foreign assets, 205

      • foreign ownership, 256

      • government securities holdings, 235, 236f, 240

      • liquidity-associated risks, 235

      • microfinance institutions, 8, 256, 259, 265, 266f, 271

      • mobile market, 8–9, 257–258, 302

      • nonperforming loans, 263f, 303

      • prudential standards compliance, 13

      • regional groups, 9, 25, 257, 260, 261f, 301, 304

      • regional integration prospects, 364

      • reserve requirements, 207–208, 208t, 305–306

      • reserves, 205–206, 205f, 206f, 206t, 208f

      • resolution framework, 8, 257, 301, 306–308, 307t

      • return on assets, 277, 279f

      • return on equity, 277, 279f

      • soundness, 262–265, 262b, 263f, 264t

      • supervision, 2, 7, 8, 22, 28

      • WAEMU objectives, 256

      • See also Financial sector; Liquidity injections, BCEAO; Prudential standards

    • Basel II/III standards, 7, 8, 28, 256, 257, 304

    • BCEAO. See Central Bank of West African States

    • Benin

      • bank reserve requirements, 207

      • financial sector depth, 273

      • foreign aid flows to, 48

      • growth benefits of infrastructure investment, 147

      • inflation in, 221

      • interest rates, 221, 232

      • microfinance institutions in, 265

      • public spending, 155

      • shock effects in, trade flows and, 336

      • tax revenue, 150, 152, 166, 175, 181–182

      • total factor productivity, 49

      • trade, 322, 324, 326, 328–329, 332, 334, 336, 344–346b

      • See also WAEMU

    • Bond markets

      • constraints to regional financing, 110–111

      • current efforts to develop, 28, 103–104

      • investor guarantees, 302

      • ratings, 302

      • See also Securities market, WAEMU

    • Bourse Régionale des Valeurs Mobiliéres, 266–269, 270f, 275, 303

    • Burkina Faso

      • bank reserve requirements, 207

      • business cycle synchronization, 59

      • foreign aid flows to, 48

      • growth, 47

      • inflation in, 221, 242

      • interest rates, 232

      • tax revenue, 152, 175, 181

      • total factor productivity, 49

      • trade, 165, 322, 324, 326, 328–329, 332, 334, 336, 337, 341, 359

      • See also WAEMU

    • Business climate, 29, 301

      • current environment, 52f

      • growth and, 51, 53, 67–68, 68f

      • right to establishment in WAEMU, 367

    • Business cycle synchronization, 59, 59t, 271

    C

    • Cape Verde, 318

    • Capital income taxation, 164

    • Capital markets, 52

      • regulatory control, 200–201

      • in trilemma conditions, 199

    • Central African Economic and Monetary Community (CEMAC), 12, 358, 363, 364t

    • Central Bank of West African States (BCEAO), 2, 16

      • banking sector supervision, 22

      • commercial bank borrowing, 6–7, 24, 27f

      • control of capital transactions, 200–201

      • correlation of reserve money and net foreign assets, 202

      • effectiveness of inflation control policies, 197–198, 211–214, 213t, 241–243

      • effectiveness of monetary policy, 196–197, 199, 211, 214

      • effectiveness of monetary policy transmission through interest rates, 227–233, 229–231t

      • emergency liquidity assistance from, 306

      • euro area policy rates and, 201, 202t, 215–218, 216f, 217t

      • foreign assets, 196

      • future of fiscal-monetary policy coordination, 13, 31

      • indicators of monetary policy independence, 201–203

      • inflation control policies, 6, 7, 241

      • interest rate policy, 204–205, 204b, 219–221

      • monetary policy challenges and opportunities, 5–7

      • Monetary Policy Committee, 22, 33, 196, 200, 219

      • monetary policy framework, 200

      • monetary policy objectives, 21, 196

      • monetary policy transmission mechanisms, 6, 62, 196–197, 199, 203, 208–210, 209f

      • refinancing operations, 24

      • in regional securities market, 102–103, 112

      • reserves coverage, 24, 200

      • reserves policy, 12, 207–208, 208t

      • responsibilities and authorities, 1, 12, 18b, 21–22, 33, 37

      • role in fiscal-monetary policy coordination with Ministries of Finance, 38–40, 41–42

      • structure, 21

      • See also Liquidity injections, BCEAO

    • Central Deposit and Settlement Organization, 102, 103

    • Child mortality, 78f, 155

    • China, 59, 60t

    • Common external tariff, 15, 153, 165, 180, 319

      • adoption, 164, 341

      • macroeconomic implications, 9–10, 341, 348, 348t, 349f

      • objectives, 29

      • potential trade outcomes, 341, 344–346, 347f

      • rates, 357

      • regional trade integration and, 9–10, 358

      • revenue implications, 10, 179, 341, 342f, 346–348, 347f

      • structure, 29, 164–165, 343, 343t

    • Communauté Financière Africaine (CAF), 12, 16f, 200, 201

    • Community solidarity levy, 360–361

    • Conférence Interafricaine de la Prévoyance Sociale, 302

    • Conference of Heads of State and Government, 15, 16, 18b, 20

    • Corporate income taxes, 169–171, 175, 176t, 179, 180–181, 181f, 184

    • Corruption, 51

    • Côte d’Ivoire

      • bank reserve requirements, 207

      • consumption patterns, 24

      • credit market, 284–286

      • inflation in, 242

      • interest rates, 221, 232

      • migration patterns, 367

      • regional trade, 9

      • shock effects in, trade flows and, 336–337, 340

      • social stability, 370

      • tax revenue, 150, 152, 180

      • total factor productivity, 49

      • trade, 165, 318, 321, 322, 324, 326, 327, 329, 332–334, 336, 358

      • See also WAEMU

    • Council of Ministers, 16, 17, 18b, 33, 41

    • Court of Auditors, 17, 18b

    • Court of Justice, 17, 18b

    • Credit markets

      • access, 256, 283, 296

      • current characteristics, 260, 261f

      • deposit and payment modes, 287–291, 290f

      • depth of WAEMU financial sector, 277, 278f, 284–286

      • effectiveness of BCEAO inflation control policies, 197–198, 249–249

      • information on borrowers, 283, 284–286, 301

      • loans to firms, 291, 293f, 296

      • microfinance institutions in, 259

      • private sector credit gaps, 291, 294f

      • private use of loans, 292f

      • regional market characteristics, 266–269

      • transmission of monetary policy through, 62, 209–210

    • Credit-to-GDP ratios, 7–8, 291, 294f

    • Current account, 318

      • financing sources, 26f

      • future prospects, 25, 26f

      • patterns and trends, 2, 23, 24, 48–49, 50f, 238

    • Customs duties, 20, 164–166, 361

    D

    • Debt-to-GDP ratio, 17–19, 23, 127–128, 273–275

    • Deficit bias, 117, 118f

    • Demographic trends, 74–80, 78f

      • access to financial services, 287, 289f

      • mobile banking use, 312f

    • Dependency ratio, 79b

    • Deposit insurance, 8, 308

    E

    • Ebola, 23, 25

    • Economic Community of Western African States (ECOWAS), 318

      • common external tariff, 9–10, 15, 29, 357

      • WAEMU trade patterns, 341–342, 342f

    • Economic Partnership Agreements, 179, 357

    • Education, 67–68, 291, 292f

      • gender inequality outcomes in, 93

      • for poverty reduction, 369

      • public spending efficiency, 155, 156, 156f, 157t

    • Employment

      • demographic trends and, 74–77, 79f, 80

      • gender participation, 92, 93f

      • labor market reforms to promote inclusive growth, 98

      • sectoral distribution, 75b

    • Energy infrastructure, 368

    • Equity markets, 211, 269, 302

    • Euro area

      • cointegration of WAEMU interest rates with, 203, 215–218, 216f, 217t

      • fiscal balance criterion, 130

      • inflation in WAEMU and, 203, 251

      • policy rates, 201, 202t

      • WAEMU business cycle synchronization, 59, 60t

    • European Central Bank, 201, 202t

    • Excess Deficit Procedure, 131

    • Exchange rates

      • BCEAO resources for defense of, 200

      • as constraint to dealing with macroeconomic shocks, 57

      • constraints to fiscal and monetary policy, 35

      • historical adjustments, 12

      • international reserves and, 24

      • patterns and trends, 50

      • policy challenges and opportunities, 6

      • role of monetary policy in fixed rate systems, 196, 199

      • transmission of monetary policy through, 210

      • WAEMU policy, 1, 12, 318

    • Excise taxes, 167–169, 168t, 174–175, 174t

    F

    • Fertility rates, 74–77, 78f, 80

    • Financial sector

      • access, 7–8, 98, 256, 257, 275, 276f, 277, 287–291, 288f, 289f, 293f, 309, 366

      • central bank borrowing, 6–7, 24, 27f

      • constraints to inclusion, 296

      • cost of financing, 52

      • crisis prevention, 8, 257, 301, 305, 306–308

      • current efforts to deepen, 28

      • current level of development, 273–277, 274f, 276f

      • current structure, 7, 256, 257, 259–260

      • data collection and dissemination needs, 303, 304, 305

      • determinants of depth, 277–286

      • determinants of financial inclusiveness gaps, 291, 295f

      • future challenges and opportunities for WAEMU, 1, 25–28

      • growth benefits from development of, 365–366, 366f

      • international comparison of development in, 257, 273, 275f, 277, 279–283, 282t

      • liquidity provisions, 6

      • obstacles to growth and development, 52–53, 301

      • poverty reduction through regional integration of, 364–366, 366f

      • rationale for deepening, 128

      • regional and national coordination, 303

      • regional groups, 101

      • regional markets, 266–269

      • resources for financing growth, 3–4, 45, 101, 111–112

      • risk management, 25–28, 269–271

      • stability, 271

      • strategies to improve access, 257, 296, 297–299f, 302–303, 309

      • strategies to promote foreign investment, 10

      • strategies to promote inclusive growth, 98

      • strategies to promote market discipline, 128–130

      • strategies to promote stability and growth, 7–9, 302–303

      • structural trends, 256, 259

      • transmission of monetary policy through, 210–211, 224, 234

      • See also Banking sector; Regulation and supervision, financial sector

    • Financial Stability Board, 306–308

    • Financial Stability Committee, 196, 271

    • Financial Stability Council, 305

    • Financial Stability Fund, 308, 353

    • Fiscal balances

      • causes of deficits, 237–238

      • convergence criteria, 130

      • convergence criteria compliance, 117, 118f, 127–128

      • cyclical flexibility of fiscal rules for, 140–141

      • exclusion of foreign-financed expenditures, 130, 139–140

      • fiscal-monetary policy coordination on, 37–38

      • future prospects, 4, 13, 25, 26f, 38

      • inflation and, 251

      • patterns and trends, 2, 23–24, 26f, 39f, 130f, 237–238, 237f

      • procyclicality of fiscal policy and, 136–139

      • projections, 38

    • Fiscal consolidation, 240

      • future challenges and opportunities, 2, 4, 13

      • projections, 38

      • rationale, 23

    • Fiscal councils, 118f, 121–122

    • Fiscal-monetary policy coordination, 2, 13

      • BCEAO independence and, 36–37

      • current institutional framework for, 33, 41

      • current status, 41

      • implementation challenges, 32

      • implementation efforts to date, 31, 32

      • key areas of, 37–38, 38f

      • mutual effects of macroeconomic policies, 36, 36f

      • objectives, 33–34, 34f

      • rationale, 13, 31

      • recommendations for, 41–42

      • relations between BCEAO and Ministries of Finance in, 38–40, 40f

      • statutory provisions, 32–33, 32b

      • strategies for implementation, 31

      • types of instruments for, 34–35

    • Fiscal policy

      • achieving market discipline in absence of central fiscal authority, 125

      • constraints to, 35

      • convergence criteria, 4, 15, 17–19, 117, 119, 127, 129t

      • convergence criteria compliance, 19, 19t, 127–128

      • countercyclical rules, 114, 120–121

      • current institutional structure for, 37–38, 37f, 114

      • cyclical effects of fiscal rules, 139–140

      • cyclical patterns, 136–139, 137t, 138t

      • definition and scope, 114

      • design of regional rules, 125

      • effectiveness of current regional rules, 117

      • federalism, 141, 143

      • future challenges and opportunities, 4–5

      • as impediment to growth, 120

      • monetary policy overlap and interactions, 31–32, 36–37, 36f, 38–40

      • objectives, 31, 33–34

      • obstacle to addressing shocks, 57

      • opportunities for improving fiscal rules and compliance, 119–120

      • to reduce impact of macroeconomic shocks, 44, 57

      • regional coordination, 40, 57, 114

      • regional market discipline and, 114

      • regional risk-sharing, 122, 134, 141–142, 143

      • regional surveillance, 114

      • risk management, 4–5

      • role of regional rules, 125

      • rule flexibility, 120–121

      • significance of, for maintaining stability in WAEMU, 114, 117

      • strategies for promoting regional rule compliance, 121–122

      • time scale, 35

      • tools of, 31, 34

      • See also Fiscal-monetary policy coordination; Fiscal rules

    • Fiscal rules

      • budget deficit, 134

      • considerations for future revision of, 119–120

      • convergence criteria and, 117, 127

      • current compliance, 117, 120, 127–128

      • current effectiveness, 114, 117

      • design, 125

      • effects on cyclicality of fiscal policy, 136, 138, 139–140

      • flexibility rationale, 120–121, 142

      • to mitigate shock risk, 133, 134

      • options for allowing cyclical flexibility, 140–141

      • procyclicality of public investment and, 114, 134, 142

      • public debt ceiling, 130

      • quality of fiscal policy and, 134

      • rationale, 4, 114, 117, 125, 133–134, 142

      • role of fiscal councils in promoting adherence to, 121–122

      • strategies for promoting compliance, 120, 121

    • Fiscal space

      • challenges for WAEMU, 147

      • opportunities for enlarging, 147

      • to promote sustainable growth, 5, 115

      • raising tax revenue to enlarge, 148–153

      • for scaling up public investment, 147

      • tax coordination to create, 115

    • Foreign aid

      • cyclicality, 142

      • debt relief, 147

      • patterns and trends, 48, 49f

    • Foreign investment

      • bank ownership, 256

      • communication issues constraining, 353–354, 355

      • current state, 319

      • in government debt. See Foreign ownership of government debt

      • patterns and trends, 48, 49f

      • recommendations for regulation, 8

      • strategies to promote, 10, 319

      • WAEMU control of capital transactions, 200–201

    • Foreign ownership of government debt

      • benefits to governments, 355

      • current, 351

      • impediments to, 351, 352–355

      • strategies for encouraging, 351, 355–356

    • France, 12, 200

    G

    • Gambia, 318

    • Gender inequality, 67f

      • growth and, 45, 93–94, 94f, 95–97f, 99

      • labor force participation, 92, 93f

      • trends, 92, 93f

    • Ghana, 242, 257, 273, 277, 318

      • government debt market, 351, 352f, 353

    • Gini coefficient, 85

    • Goods and services taxes, 148, 149, 152, 154f, 160t, 167

    • Governance

      • constraints to private investment, 53, 301

      • current institutional quality, 51, 52f

      • depth of financial sector and, 278–279, 281–283

      • quality of, growth and, 51, 54

    • Growth

      • benefits of infrastructure investment, 147

      • benefits of WAEMU membership, 369

      • causes of divergence within Africa, 44, 47

      • causes of WAEMU underperformance, 52–54

      • constraints to regional financing, 110–111

      • demographic factors, 74–80

      • determinants of, 47–51, 65–68, 148f

      • differences within Africa, 44, 47, 48f, 65

      • effects of macroeconomic shocks, 44

      • emerging threats, 25

      • export diversification to promote, 44, 70–74, 73f

      • financial sector development and, 283–284, 365

      • financing challenges, 3–4

      • fiscal deficit and, 118f, 120

      • fiscal policy as impediment to, 120

      • future prospects, 25, 26f

      • gender inequality and, 45, 93–94, 94f, 95–97f, 99

      • income distribution, 83–84, 92

      • inflation and, 364

      • international comparison of low- and middle-income countries, 135, 135t

      • in Mali, 87

      • monetary policy objectives, 196

      • obstacles to, in WAEMU, 44

      • policy recommendations to sustain, 2–4, 30

      • possible effects of common external tariff, 341

      • poverty reduction and, 83, 84f, 97–98

      • public investment and, 135, 135t, 137

      • resources for financing, 3–4, 45, 101, 111–112

      • sectoral distribution, 68, 69f

      • social conflict and, 370

      • structural transformation and, 44

      • in Sub-Saharan countries, 44, 135

      • trade integration and, 359–360

      • trends and patterns, 2, 23, 24t, 26f, 30, 44, 47, 48f, 65, 66f, 360

      • variation within WAEMU, 135

      • volatility, 135

      • See also Inclusive growth

    • Growth incidence curve

      • Mali’s, 87–90, 89f

      • Senegal’s, 86–87, 88f

    • Guinea-Bissau, 59, 318, 332, 334

      • bank reserve requirements, 207

      • financial sector depth, 273

      • foreign aid flows to, 48

      • interest rates, 221, 232

      • shock effects in, trade flows and, 336, 337

      • tax revenue, 152, 175, 181

      • total factor productivity, 49

      • trade, 165, 322, 324, 326, 328, 329, 336, 337, 341–342

      • See also WAEMU

    H

    • Health community policies, 368–369

    • Health spending, 155–156, 157f, 158t, 291, 292f

    • Hirsh index, 322

    • Human capital accumulation, 65–67

    I

    • Inclusive growth

      • current status, 7–8

      • definition, 84

      • future challenges and opportunities, 8–9

      • institutional support for, 98

      • in Mali, 87–94, 89f

      • measurement, 84–85

      • rationale, 3, 94–98

      • regional integration and, 357

      • in Senegal, 85–87

      • strategies for promoting, 45, 81, 98–99

      • trends, 81

    • Income

      • financial sector development and, 283–284

      • trends, 44, 65

    • Income distribution

      • future challenges and opportunities, 3

      • growth and, 45, 83–84, 92

      • measurement, 84–85

      • patterns in Senegal, 85, 85t

      • socio-political outcomes, 92

      • trends, 81

      • See also Inclusive growth; Poverty reduction

    • Income tax, 148, 149, 152, 154f, 160t

      • corporate, 169–171, 175, 179, 180–181, 181f, 184

      • portfolio income, 171, 171t, 173, 175–176

    • Inflation

      • asymmetric transmission of monetary policy within WAEMU, 219, 221

      • BCEAO objectives, 241

      • BCEAO’s calculation of, 221

      • effectiveness of BCEAO policies, 197–198, 241–243

      • effectiveness of interest rate policies in controlling, 225–226, 241, 242, 244, 244f, 249

      • fiscal deficit and, 251

      • fiscal-monetary policy coordination, 13, 39, 40, 41–42

      • forecasting, 200

      • future policy challenges and opportunities, 2, 6, 7, 25, 26f

      • growth and, 364

      • imported, 251

      • influence of economic variables and policies on, 246–251

      • intra-African comparison, 363, 364t

      • modeling of monetary policy determinants, 244–246

      • modeling of monetary policy transmission, 226–227

      • monetary policy objectives, 196, 221

      • output gap and, 249–251, 249f

      • poverty outcomes, 363–364

      • public debt and, 197–198

      • terms of trade and, 26f

      • transmission of cental bank monetary policies to control, 6

      • trends and patterns, 2, 23, 48, 50f, 220f, 221, 243, 243f, 363, 364t

      • volatility, 363

      • WAEMU and euro area, 203, 251

      • WAEMU target levels, 364

    • Inflation expectations, 210

    • Infrastructure investment

      • financial depth and, 283

      • future challenges and opportunities, 2, 13, 23

      • growth and, 23, 147

      • poverty reduction and, 10, 368

      • shortcomings in WAEMU, 135

      • for structural reform, 29

      • transportation, 362

    • Insurance market, 274f, 275, 276f, 291, 292f

    • Interbank market, 199, 203

      • current characteristics, 206–207, 211, 227–228, 239f, 259, 260t, 266, 267f

      • lending rates, 204–205, 219–221, 266, 267f

      • obstacles to further development, 239

      • strategies for development of, 302

    • Interest rates

      • asymmetric transmission of monetary policy within WAEMU, 219, 221, 227–233, 229–231t

      • cointegration of euro area and WAEMU, 203, 215–218, 216f, 217t

      • determinants of, 45, 127, 128t

      • effectiveness of BCEAO inflation control policies, 197–198, 211–213, 213t, 241, 242, 244, 244f, 251

      • euro area policy rates vs. WAEMU, 201, 202t

      • fiscal policy coordination in WAEMU, 4

      • government debt market, 351, 352

      • liquidity injections to control, 205, 206–207

      • modeling of monetary policy transmission, 226–227

      • monetary policy, 204–205, 204b

      • patterns and trends, 220f, 221, 222f, 223f, 238f, 268f

      • policy challenges and opportunities, 6

      • rate setting in BCEAO, 219–221

      • regional control, 196

      • securities market, 106–110

      • transmission of monetary policy through, 62, 210, 224–226, 225f, 228t

    • Intermediation rules, 311

    • International Finance Corporation, 103, 104, 111

    • International Financial Reporting Standards, 7

    • Internet coverage, 283

    • Investment codes, 164, 176–179, 178t, 184

    K

    • Kenya, 257, 273, 277, 311

    • Kola bonds and bills, 103, 104, 111

    L

    • Legal system, 1–2, 281–283

      • contract enforcement, 284–286

      • regional integration, 367

    • Liberia, 318

    • Life expectancy, 155

    • Liquidity injections, BCEAO

      • associated risks, 197, 207, 235, 238–239

      • to control interbank interest rates, 205, 206–207

      • crisis management, 306

      • as obstacle to development of interbank market, 207

      • as percentage of commercial bank reserves, 205–206, 206f, 206t

      • rationale, 205, 207

      • risk prevention, 197, 235, 239–240

      • transmission of monetary policy through, 210–211, 214

      • trends, 235–238, 236f

    • Liquidity requirements, 6, 25

    • Literacy rates, 92, 93f

    M

    • Macroeconomic performance

      • convergence criteria to promote, 4

      • depth of financial sector and, 278, 281

      • effects of common external tariff, 348, 348t, 349f

      • instability evolution, 360, 361t

      • trends and patterns, 2

    • Macroeconomic policy

      • financial sector development and, 284

      • to promote foreign investment, 10

      • to reduce vulnerability to shocks, 2–3

    • Macroeconomic shocks

      • centralized fiscal smoothing mechanism, 122, 124f

      • convergence, 60, 60b, 61f

      • current shock-smoothing mechanism, 124f

      • diffusion in trade network, 337–339

      • effective smoothing mechanisms, 62–64, 62f

      • effects on growth, 44, 47–48, 57

      • policy response options, 44, 57

      • public investment response, 138–139, 139t, 142

      • regional fiscal risk-sharing, 122, 133, 134, 141–142, 143

      • regional integration to reduce vulnerability to, 369

      • significance of, for WAEMU, 57

      • WAEMU vulnerabilities to, 58f, 59

      • See also Asymmetric macroeconomic shocks

    • Macroprudential regulation, 304–306

    • Mali, 332, 334

      • agricultural sector, 90–92

      • bank reserve requirements, 207

      • business cycle synchronization, 59

      • consumption patterns, 90, 90t

      • foreign direct investment, 48

      • growth incidence curve, 87–90, 89f

      • growth patterns, 87

      • inclusive growth in, 87–94, 89f

      • inflation in, 221, 242

      • interest rates, 232

      • poverty reduction in, 87, 90, 91f

      • sectoral distribution of growth, 92

      • shock effects in, trade flows and, 336, 337, 340

      • tax revenue, 152, 181

      • total factor productivity, 49

      • trade, 322, 324, 326, 327, 329, 336, 341

      • urban–rural differences, 90

      • See also WAEMU

    • Manufacturing sector

      • export growth, 51f

      • export quality, 69

      • growth trends, 68, 69f

      • Mali’s, 92

      • policies to reduce vulnerability to shocks, 3

      • share of GDP, 51f

      • structural reforms to promote growth, 44, 70

    • Microfinance institutions, 8, 256, 259, 265, 266f, 271, 275, 276f

    • Microprudential regulation, 8, 257, 301, 303–304, 305t

    • Migration flows, 367

    • Mining, 164, 170, 177

    • Mobile banking, 8–9, 257–258, 302

      • benefits of, 309

      • costs, 311, 313f

      • current market, 309, 310f, 315f

      • demographic patterns in, 312f

      • growth of, 309, 310–311, 310f

      • interoperability, 311

      • obstacles to, 309, 311

      • oversight, 311–314

      • strategies for promoting, 309–310, 314

      • transaction insurance, 314

    • Monetary policy

      • asymmetric transmission within WAEMU, 219, 221, 227–233, 229–231t

      • constraints to, 35, 214

      • current institutional structure for, 37–38, 37f

      • effective shock-smoothing mechanisms, 62–64, 62f

      • effectiveness of inflation control policies, 211– 214, 213t, 241–243

      • effectiveness of interest rate channel for transmitting, 224–226

      • effectiveness of transmission mechanisms, 196–197, 199

      • fiscal policy overlap and interactions, 31–32, 36–37, 36f

      • in fixed exchange rate regime, 196, 199

      • future challenges and opportunities, 1, 5–7, 214

      • institutional framework, 196

      • interest rate adjustments, 204–205, 204b

      • limitations of WAEMU’s, 196

      • macroeconomic framework, 200

      • measures of independence, 201–203

      • modeling of transmission dynamics, 226–227

      • multilateral surveillance, 19–20

      • objectives, 21, 31, 34, 196

      • poverty reduction through regional integration of, 363–364

      • recent patterns and trends, 24

      • to reduce impact of macroeconomic shocks, 57

      • refinancing rate, 24

      • regional integration, 6

      • reserve requirements, 207–208, 208t

      • response to macroeconomic shocks, 62

      • strategies for improving transmission of, 234

      • time scale, 35

      • tools of, 31, 34–35

      • transmission mechanisms, 6, 62, 203, 208–210, 209f, 224, 225f

      • transmission through financial markets, 210–211

      • in trilemma conditions, 199

      • WAEMU administrative structure, 21–22

      • See also Fiscal-monetary policy coordination

    • Monetary Policy Committee, 22, 33, 196, 200, 219

    • Monetary unions, generally

      • in franc zone, 12

      • member’s capacity to respond to shocks, 133

      • rationale, 133

      • role of fiscal rules in, 133–134

    • Money supply, inflation and, 242, 243, 243f, 249–249

    • Morocco, 260

    • Mortality risk, 92, 93f

    • Mortgage refinancing, 302

    • Mozambique, 284–286

    • Multilateral Debt Relief Initiative, 117

    • Multilateral tax treaty, 171–173, 172t

    N

    • National Credit Councils, 22, 33

    • New Partnership for Africa’s Development, 363

    • Niger, 332, 334, 337

      • bank reserve requirements, 207

      • financial sector depth, 273

      • foreign aid flows to, 48

      • foreign direct investment, 48

      • inflation in, 221, 242

      • interest rates, 221, 232

      • tax revenue, 152, 175, 181

      • total factor productivity, 49

      • trade, 322, 324, 328, 329

      • See also WAEMU

    • Nigeria, 242, 260, 318

      • government debt market, 351, 353

    • Nonperforming loans, 25, 27f, 263f, 303

    O

    • Oil prices, 25

    • Organization for the Harmonization of Business Law in Africa, 367

    P

    • Pan-African banking groups, 9, 25, 260, 261f, 301, 304

    • Per capita GDP, 47, 48f, 83, 84f

      • growth benefits of infrastructure investment, 147

      • growth trends, 65, 66f

    • Petroleum products

      • oil prices, 25

      • subsidies, 169

      • taxes, 169, 177

    • Political functioning

      • deepening of regional integration, 366–367

      • effects on growth, 53, 54

      • financial depth and, 283

      • social conflict, 51, 52f, 53–54, 370

      • See also Governance

    • Poverty gap, 82

    • Poverty line, 82

    • Poverty reduction

      • agricultural sector integration and, 361–363

      • benefits of WAEMU membership, 369–370

      • community policies for, 368–369

      • deep integration in WAEMU and, 366–370, 371f

      • education promotion for, 369

      • financial integration and, 364–366, 366f

      • future challenges and opportunities, 3

      • growth and, 83, 84f, 97–98

      • inflation effects, 363–364

      • in Mali, 87, 90, 91f

      • monetary integration and, 363–364

      • regional integration and, 10, 319, 357

      • in Senegal, 81–84, 83f, 83t

      • strategies to promote, 10, 357

      • trade integration and, 358–361, 360f

      • trends, 81, 82f

      • WAEMU performance to date, 2

    • Private bonds, 105–106

    • Private investment

      • effects on growth, 52

      • financing costs, 52

      • loans to firms, 291, 293f, 296

      • patterns and trends, 53f

      • return on investment, 52–53

      • securities market financing, 102

      • tax policy, 171, 171t

    • Productivity

      • agricultural sector, 76b

      • strategies to reduce vulnerability to shocks, 3

    • Program for Infrastructure Development, 368

    • Property rights, 51, 301

    • Prudential standards

      • current compliance, 2, 13, 23, 25, 27f, 256, 259, 263f, 265

      • opportunities for improving compliance, 8, 25–28

      • reserve requirements, 207–208

      • WAEMU objectives, 256

    • Public debt

      • ceilings, 120, 130, 134

      • convergence criteria compliance, 117, 118f, 127–128

      • current fiscal rules, 134

      • deficit bias contributing to, 117, 118f

      • fiscal-monetary policy coordination on, 37–38

      • future prospects, 25, 26f

      • holdings of, 237f, 268f, 269, 273–275

      • inflation and, 198

      • market characteristics, 352, 354f

      • patterns and trends, 23, 39f, 117, 119t, 149f

      • projections, 38

      • See also Foreign ownership of government debt

    • Public investment

      • convergence criteria, 133

      • cyclical patterns, 5, 114, 133, 134, 136–139, 139t, 142

      • efficiency, 68f, 115, 147, 154–156

      • fiscal deficits and, 23

      • fiscal space for, 5, 115, 147

      • growth and, 23, 30, 54, 67–68, 135, 135t, 137

      • international comparison of low- and middle-income countries, 135, 135t

      • opportunities for creating fiscal space for growth, 147

      • patterns and trends, 49, 50f

      • policies to promote sustainable growth, 5

      • recent patterns and trends, 23–24

      • response to external shocks, 138–139, 139t, 142

      • safeguards, 5

      • securities market financing, 102

      • strategies for improving efficiency of, 157

    R

    • Real estate markets, 210, 211

    • Regional Council for Public Savings and Financial Markets, 16, 102, 103, 201, 271

    • Regional Economic Program, 368

    • Regional integration

      • in absence of central fiscal authority, 125

      • agricultural policy, 363

      • banking sector, 260–262

      • budget centralization, 141

      • business cycle synchronization, 59, 271

      • convergence criteria, 4, 15, 17–19

      • deep, 366–370, 371f

      • distributive effects, 357

      • financial, 364–366

      • fiscal policy coordination, 40, 114

      • fiscal policy to promote, 4–5

      • freedom of movement, 20, 21, 367

      • future challenges and opportunities for WAEMU, 1

      • legal, 367

      • lessons from trade network analysis, 340

      • monetary policy, 6, 196, 363–364

      • poverty reduction and, 10, 319, 357

      • securities market, 101–102

      • tariff policy, 9–10

      • WAEMU objectives, 15–16, 29

      • See also Tax coordination; Trade integration

    • Regional Stock Exchange, 102, 103

    • Regulation and supervision, financial sector

      • barriers to entry, 240

      • capital mobility, 200–201, 352–353

      • constraints to foreign investment in government debt, 352–353

      • crisis management, 306

      • of cross-border groups, 304

      • current efforts to improve, 25–28

      • future challenges and opportunities, 2, 7, 8, 12, 23, 257, 301

      • intermediation rules, 311

      • macroprudential, 304–306, 305t

      • microfinance institutions, 265

      • microprudential, 8, 257, 301, 303–304, 305t

      • mobile banking, 311–314

      • obstacles to mobile banking, 311

      • regional banking groups, 301, 304

      • regional vs. national, 271, 303

      • securities market, 112

      • See also Prudential standards; Surveillance

    • Remittances, 309, 310f, 314f

    • Return on investment, 52–53, 277, 279f

    • Risk assessment and management

      • banking sector, 262–265, 262b, 264t, 303–304

      • challenges to financial sector stability and growth, 301

      • countercyclical fiscal rules, 114, 134

      • data collection and dissemination to enhance, 304, 305

      • financial crisis prevention, 8, 257, 301, 305, 306–308, 366

      • financial sector development, 25–28, 259

      • fiscal, 4–5, 122, 133, 141–142, 143

      • liquidity injections by BCEAO, 197, 207, 235, 238–240

      • mobile banking, 314

      • recovery and resolution, 306–308, 307t

      • in securities market, 111

      • strategies for improving, 301, 303–306

      • systemic, 269–271

    S

    • Sanctions regime, 19–20, 121, 128

    • Savings-investment gap, 24, 26f

    • Securities market, WAEMU, 259, 268f

      • auctions, 190, 302

      • borrowing costs, 127

      • commercial bank holdings of government securities, 235, 236f, 240

      • constraints to regional financing, 110–111

      • educational and outreach activities, 192

      • encoding of securities, 191

      • enhancing capacity to finance regional growth in, 111–112, 187

      • future prospects, 187

      • government debt issues, 104–105, 105f, 106t, 125–127, 126t, 187–188, 193t, 194t

      • growth financing from, 3–4, 45, 101, 102

      • institutional framework, 102–103, 102f, 112, 188–189

      • interest rate determinants, 106–110, 127, 128t

      • investment instruments, 103–104

      • investor base, 110, 111, 191, 302

      • issuance maturity trends, 192, 192f

      • issuance procedures, 103, 190, 191

      • lessons from WAEMU experience, 188–189

      • long-term issues, 105–106, 107t, 110, 111, 112

      • need for standardization of issuances, 188

      • obstacles to development of, 115, 187

      • operations, 104–106, 105f

      • opportunities for future development of, 115–116

      • origins and growth of, 101–102, 125–127, 187

      • Primary Dealers System, 191

      • principal component analysis, 109–110, 109f

      • regional activity, 266–269

      • regulation, 112

      • role of WAEMU Securities Agency, 187, 189–190, 189b

      • secondary market, 110–112, 115, 188, 302, 352

      • strategies for enhancing function of, 190–192, 302

      • systemic risk in, 111

      • transmission of monetary policy through, 211

      • transparency in, 111, 191

    • Securitization, 302

    • Senegal, 59, 332, 334

      • agricultural sector policies, 98

      • bank reserve requirements, 207

      • consumption patterns, 85, 86f

      • financial sector depth, 273

      • growth benefits of infrastructure investment, 147

      • growth incidence curve, 86–87, 88f

      • growth trends, 83, 84f

      • income distribution patterns, 85–87, 85t

      • inflation in, 221, 242

      • interest rates, 221, 232

      • microfinance institutions in, 265

      • ownership of government debt, 351, 352f

      • policies to promote inclusive growth, 98

      • poverty patterns in, 81–84, 83f, 83t

      • regional trade, 9

      • shock effects in, trade flows and, 336–337, 340

      • tax revenue, 152, 175, 182, 361

      • total factor productivity, 49

      • trade, 165, 318, 321, 322, 324, 326, 327, 329, 358

      • See also WAEMU

    • Service sector

      • growth trends, 50, 68, 69f

      • regional integration, 367–368

    • Sierra Leone, 318

    • Small and medium-sized enterprises, 29, 283, 302–303

    • Smuggling, 168

    • Social conflict, 51, 52f, 53–54, 370

    • Stock markets, 256, 259–260, 266–269, 270f, 274f, 275

      • access for small and medium-sized enterprises, 302–303

      • transmission of monetary policy through, 210

    • Structural reforms

      • demographic trends and, 80

      • growth and, 44, 50–51, 65, 70–74, 73f

      • obstacles to, 65

      • rationale, 28–29

      • recommendations for policies to promote, 65, 74, 74b

      • to reduce vulnerability to shocks, 3

      • strategies, 29

      • trade competitiveness, 50–51, 318

      • WAEMU commitment to, 29

    • Sub-Saharan Africa

      • financial sector development, 273

      • growth, 44, 47, 48f, 65, 81

      • inflation in, 242, 363, 364t

      • tax revenues, 148, 181

    • Subsidies, petroleum products, 169

    • Supervision. See Regulation and supervision, financial sector

    • Surveillance, 2

      • compliance with regional tax directives, 184

      • current convergence criteria compliance, 127–128

      • current regional macroeconomic framework, 127

      • data collection, 130–131

      • fiscal behavior, 114

      • fiscal policy coordination, 4

      • fiscal rule compliance, 121

      • sanctions procedure, 19–20, 121, 128

      • strategies to promote market discipline, 128–131

      • WAEMU administration, 19–20

      • See also Regulation and supervision, financial sector

    T

    • Tariffs

      • current practice, 341, 342

      • current revenue, 342

      • Harmonized System classification, 165

      • to promote regional integration, 9–10

      • regional coordination, 164–166

      • tax transition goals, 179

      • See also Common external tariff

    • Tax coordination, 5

      • adherence among WAEMU members, 173–179, 184

      • capital income taxation, 164

      • competition and, 164, 170–171

      • corporate income taxes, 169–171, 175, 176t, 184

      • current, 115, 163

      • customs duties, 20, 164–166, 361

      • to encourage foreign investment in government debt, 356

      • to enlarge fiscal space, 115

      • evolution in WAEMU, 163–164

      • excise taxes, 167–169, 174–175, 174t

      • future prospects, 179, 184

      • harmonization and, 115, 163–164, 184

      • implementation challenges, 183–184

      • lessons from WAEMU experience with, 5, 115, 163, 183–184

      • to mobilize revenue, 179–183

      • multilateral tax treaty, 171–173, 172t

      • objectives, 163, 164

      • portfolio income, 171, 171t, 173, 175–176

      • special tax regimes, 176–179, 184

      • value-added tax, 166–167, 173–174

    • Tax policy

      • collection efficiency, 154f

      • constraints to foreign investment in government debt, 355

      • convergence criterion, 148

      • credibility of institutional framework, 184

      • exemptions for Kola bills and bonds, 104, 111

      • government debt market, 302

      • harmonization, 5, 115, 163–164

      • indirect rates, 148

      • opportunities for creating fiscal space for growth, 147

      • policymaking structure in WAEMU, 114

      • to promote sustainable growth, 5

      • raising revenue to enlarge fiscal space, 148–153

      • reliance on trade taxes, 115, 147

      • revenue collection trends, 148–150, 149f, 150f, 151–153, 153f, 180, 180f, 182f, 183f, 185t

      • revenue implications of common external tariff, 341, 342f, 346–348, 347f

      • revenue implications of regional integration, 360–361

      • revenue potential, 150–151, 159–160t

      • transition, 179

      • See also Tariffs; Tax coordination

    • Tax revenue-to-GDP ratio, 19, 23

    • Tax-to-GDP ratio, 148, 180

    • Tobacco tax, 167, 168, 174

    • Togo, 332, 337

      • bank reserve requirements, 207

      • business cycle synchronization, 59

      • financial sector depth, 273

      • foreign direct investment, 48

      • inflation in, 221, 242

      • interest rates, 221, 232

      • public spending, 155

      • shock effects in, trade flows and, 336–337

      • tax revenue, 149, 181

      • total factor productivity, 49

      • trade, 165, 322, 324, 326, 328–329, 334, 358

      • See also WAEMU

    • Total factor productivity

      • obstacles to growth in, 49–50, 65–67, 67f

      • patterns and trends, 49, 50f

    • Trade

      • export diversification to promote growth, 44, 70–74, 73f

      • export patterns and trends, 58f

      • export quality, 69, 70b, 72f

      • export trends, 68–69, 70b

      • obstacles to growth, 50–51

      • tax revenue from, 148, 150f, 152, 153, 154f, 159t

      • tax transition goals, 179, 180

      • WAEMU vulnerability to macroeconomic shocks, 58f, 59

      • See also Trade, intraregional; Trade network, WAEMU

    • Trade integration

      • agricultural, 361–363

      • constraints to, 358

      • global trade and, 358–359

      • growth and, 359–360

      • international food price fluctuations and, 362–363

      • objectives, 358

      • poverty and, 358–361, 360f

      • services, 367–368

      • tax revenue and, 359, 360–361

    • Trade, intraregional

      • agricultural products, 362

      • ban on trade restrictions within WAEMU, 20–21

      • common market objectives of WAEMU, 20–21

      • community solidarity levy, 360–361

      • comparative openness, 50, 51f

      • coordination of customs tariffs, 164–166

      • current import duties, 342, 342f

      • current structure, 9, 50–51, 51f, 318, 321

      • econometric analysis, 358

      • efficiency, 358

      • excise taxes, 167–169, 168t

      • export concentration, 358

      • growth potential, 9, 318

      • informal, 348

      • lessons from trade network analysis, 340

      • patterns and trends, 9, 50–51, 51f, 165–166, 165f, 318, 321, 322, 326, 341–342, 342f, 358

      • potential impact of common external tariff, 319

      • price elasticities of import demand, 343–344, 343t, 344t

      • revenue from import duties, 342, 342f

      • strategies for promoting, 29

      • trends, 58f

      • WAEMU objectives for promoting competitiveness in, 20, 21

      • WAEMU policy goals, 321

      • See also Common external tariff; Trade integration; Trade network, WAEMU

    • Trade network, WAEMU, 318

      • clique structure, 329

      • cohesion properties, 322–323, 323t

      • cohesion properties dynamics, 323–324, 324f

      • core-periphery structure, 326–329, 328t

      • dependency matrix, 336, 336t

      • graphic representation, 321–322, 322f

      • hierarchical clustering, 329–332, 330f, 331t, 333t, 334t

      • implications for regional integration, 340

      • network effects, 335–337, 337t, 339

      • overall architecture, 332–335, 335f, 339

      • patterns of trade in, 322, 323

      • power properties, 324–326, 325t, 327f

      • shock diffusion in, 337–340

      • signal diffusion, 335–336, 339–340

    • Transparency, 8, 35, 111, 121–122, 179, 257, 301

    • Transportation system, 362, 368

    • Treasury bills, 23, 103, 104, 105f, 108–109, 108f, 110, 125–127, 126t, 187–188, 188f, 211, 268f, 269

    • Treasury bonds, 103, 104, 108, 187–188, 188f, 268f

    • Trilemma, 199

    U

    • Urban–rural differences

      • agricultural product trade and prices, 363

      • income distribution, 81, 90

    V

    • Value added tax, 152, 166–167, 173–174, 182

    W

    • WAEMU Banking Commission, 16, 271, 303, 304, 306–308

    • WAEMU Commission, 2, 7, 17, 18b, 29, 41, 114, 121, 184, 368

      • fiscal-monetary policy coordination and, 32b, 33

      • future of fiscal-monetary policy coordination, 13

      • surveillance program, 19–20

    • WAEMU Parliament, 17, 18b

    • WAEMU Securities Agency, 10, 28, 41, 112, 115, 187, 189–190, 189b, 192, 319, 355

    • WAEMU Treaty, 15, 16, 17, 32–33, 32b, 128, 163

    • Wages and salaries-to-tax revenue ratio, 19

    • Watts index, 85

    • West African Development Bank, 16, 105, 368

    • West African Economic and Monetary Union (WAEMU)

      • access to financial services, 256, 287–291, 288f, 289f

      • accomplishments to date, 12–13, 15

      • benefits of membership in, 369–370

      • budget, 17

      • business cycle synchronization, 59, 59t, 271

      • Central Bank. See Central Bank of West African States (BCEAO)

      • convergence criteria, 17–19

      • convergence criteria compliance, 19, 19t

      • cost of electronic payments, 313f

      • cross-border flows, 260–262

      • financial sector depth, 273–277

      • future challenges and opportunities, 1–2, 13, 15

      • gender inequality patterns, 92, 93f

      • growth variation within, 47, 135

      • interest rate patterns, 220f, 221, 222f, 223f, 238f, 268f

      • international comparison of growth in low- and middle-income countries, 135, 135t

      • macroeconomic instability evolution, 360, 361t

      • membership, 1, 12. See also specific country

      • objectives, 1, 12, 15–16, 17, 256

      • obstacles to growth, 44, 47–54, 57, 65–68, 101

      • operating principles, 12

      • origins, 12, 15

      • private sector credit, 291, 294f, 296

      • public spending efficiency, 154–157

      • right of free movement in, 20, 21, 367

      • securities market. See Securities market, WAEMU

      • structure, 12, 16–17, 18b, 37–38, 37f

      • tax revenue collection trends, 148–150, 149f, 150f, 151–153, 153f, 179–183, 182f, 185t

      • See also Trade, intraregional

    • West African Monetary Union (WAMU), 12, 16–17

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