Côte d'Ivoire Economy
Côte d'Ivoire is primarily an agricultural nation. Producing 40% of the world.s supply of cocoa, agriculture, forestry, and fisheries make up more than one-third of the GDP and two-thirds of all Ivoirian exports. Between 60% and 70% of citizens are engaged in some form of agricultural work. As a result, the economy is extremely sensitive to world prices and weather patterns. Oil refining, truck and bus assembly, building materials, and electricity are also important national industries.
In terms of raw materials, Côte d'Ivoire exports include rubber, pineapples, coffee, cotton, bananas, and palm kernels. The country is also a producer of petroleum, diamonds, and gold. Most exports go to the United States, France, Germany, or the Netherlands; the majority of imports come from France, Nigeria, the United States, EU member nations, and Japan. Côte d'Ivoire imports rice, wheat, plastic materials, resins, Kraft paper, agricultural chemicals, telecommunications, and oil and gas equipment. France is by far the most important foreign investor, accounting for between 55% and 60% of total foreign investment capital and approximately one quarter of total capital in national enterprises.
As a result of government-directed development and World Bank and IMF standards, Côte d'Ivoire is an example of well-developed infrastructure in a formerly colonial nation. The country boasts more than 8,000 miles of paved roads, as well as railways, regular air service, and two good ports. The telecommunications industry is strong, and Ivoirians have access to cell phones and internet connection. Yamoussoukro is one of the most modern cities in the region, and the American- and French-based educational system is similarly ranked locally speaking. Further development is in question as the nation.s move toward privatization has resulted in less government participation and guidance in the electricity, water, petroleum, telecommunications, and transportation sectors. National economic well-being is also threatened by the political and economic instability resulting from the continuing conflict, and planned public investment programs have been postponed, disallowing the country from making necessary infrastructure changes.
The economy picked up from its downward trend of the 80s during the early 90s as the CFA franc devalued and prices for cocoa, pineapples, and rubber went up. Economic performance was boosted as new oil and gas resources were found, limited liberalization of trade and banking policies took affect, and French lenders rescheduled debt. The government privatized the state electric utility, Compagnie Electricite Ivoirienne (CIE) in 1990, and scheduled the privatization of other oil-based industries upon the success of the CIE in the private sector.
Adherence to donor-mandated reforms resulted in increased growth through the late 90s, but as time went on the standards were harder to meet. World Bank stopped giving financial assistance from 1999, when Robert Guei came to power in a coup d.etat; due to government fiscal mismanagement, the economy was already suffering and foreign investment dropped off immediately after the military junta took over.
The civil war has had a profound impact on the nation.s economy, driving it farther down from its already low state in 1999. During the middle of 2002, there were signs that the economy was on the rebound. Unfortuatenly the social and polticial crisis that began that September hurt relations between Côte d'Ivoire and the World Bank and the IMF. Economic revival will be impossible until the war is over.
LINKS
Côte d'Ivoire is a part of the Economic Community of West African States (ECOWAS), an economic union which promotes economic growth and development in Western Africa. Read more about ECOWAS here
The World Bank's Côte d'Ivoire Page
IMF's Côte d'Ivoire Page
~SW