1. EEC – It means the European Economic Community, popularly known as the European Common Market. It has nine (9) members. And these includes : Britain, Italy, Luxemburg, Netherland, France, Ireland, Belgium, Denmark and Western Germany.
The aim of the organization is to eliminate all the barriers to free trade. In other words, members can trade freely, and movement from one member country to another is strictly under control.
The European Economic Community hopes to use common currency in the near future.
2. ECOWAS – This means Economic Community of West African States. It was established on the 26th of May, 1975. It is made up of 15 member nations, with its headquarters in Lagos ( Nigeria ). The countries include : Nigeria, Ghana, Benin Republic, Gambia, Sierra Leone, Cote d’voire, Senegal, Guinea Bissau, Burkina Faso, Niger, Togo, Liberia and Mali.
It is ran by a council of ministers and an executive secretary. The aims include :
(a) Encouraging free trade among member country.
(b) Adoption of a protocol on non-aggression.
(c) Free movement of people, goods and services : under this arrangement citizens of member states can reside in any ECOWAS country for 90 days without a visa.
(d) Carrying out common marketing research projects.
(e) Establishing common tariff and commercial policies.
(f) They hope to adopt a community telecommunication programme.
As we all know in everything good there must be a bad side and this is not left out, below are ECOWAS problems;
- Language barrier.
- Currency : different currencies are used throughout ECOWAS states.
- Former colonial ties are still predominant among member countries.
- Failure to meet financial obligations.
- The complete economic dependence on colonial masters.
- Frequent border closures e.g Nigeria and Benin, Togo and Ghana e.t.c.
Ideological differences I.e political, economics and socio-cultural ideas among member states.
3. IMF – IMF means International Monetary Fund. It was established at the Breton Wood Conference in 1944. It is made up of 44 Allied nations. It has its headquarters in New York.
IMF Aim is as follows;
To determine the realistic exchange rates of currency all over the world.
It acts as a central banking system for the world.
- Common fund : All member countries contribute to the common fund based on the size of their national economies.
- The right to borrow from fund : All members have the right to call upon the fund for whatever currencies they needed upto a total of 25% of their quotas in any one year.
- Changes of parity : Because of the unrealistic post-war trading conditions, provision was made for devaluation or re-valuation of any member’s currency to a certain percentage.
- Scarce currencies : The fund could declare a country’s currency as scarce if that country’s stock of currency falls below 75% due to excessive demand such currency is to be rationalized out to all member countries.
- The right to deactivate against some exports : in order to restore balance of payments crisis by debtor countries, a clause was introduced which gave the debtor persistent creditor. The funds official has declared its currency to be scarce.