I had never heard of the CFA Franc until I started reading Alex Gladstein's books https://alexgladstein.com/home/books/
It looks like French neo colonialism in Africa may be coming to an end soon, and that end may not be pretty. For the past few years, many of these African governments have experienced military coups. These include Niger, Gabon, Burkina Faso, Chad, Mali, and Guinea. The anti-French sentiment is understandable and getting more intense. To get a good sense of the history of the region, as well as a synopsis of recent events, watch this video. I admit the title might be a bit sensational and click baity, but I don't know the reality on the ground. https://youtu.be/fiD24uEvY1U
Recently there has been talk of the creation of a new West African currency to replace the CFA Franc. https://allafrica.com/stories/202403150007.html
The Russian mercenary Wagner Group is supporting the anti French faction.
I'm suspicious of videos like this, though I know the CFA can't be seen as anything less than an economic time bomb. Do any stackers have personal knowledge of the current situation?
126 sats \ 7 replies \ @freetx 31 Mar
Not directly related (nor 100% true), but a friend of mine once remarked about the colony-rank guide:
  • English Colonies: Successful mostly 1st world countries.
  • Spanish Colonies: Functional countries
  • French / Belgian Colonies: Complete Disasters
The reason for this is subtle.
The English method of "control" was to institute law education and court systems. Then English companies would engage in contracts with colony....and since their law system shared a common base, it made business possible
Spanish Method used the Church as the main method of control....with some less amount of success but still successful.
French/Belgian method was straight-up Might Makes Right and they just took what they wanted.
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This is interesting, and probably at least partially based in fact. I'm not a historian, and all my knowledge of colonialism is Anglo/ English. I have been only learning about the French African history recently. I must say, it's damning if accurate.
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Gandhi was a lawyer in South Africa, extensive knowledge of English common law. Civil disobedience was a legalistic strategy
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I think this is right.
Portugal is similar to the Spanish model
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Look at Haiti vs Dominican Republic 🇩🇴
French vs Spanish
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My friend said this to me today :
I have a rule of thumb about non white countries:
  1. If you were colonized by Britain or the Netherlands, there's half a chance you're at least OK.
  2. If you were colonized by Spain or Portugal, there's a low but nonzero chance you're OK.
  3. If you were colonized by France of Belgium, it's almost guaranteed you're a shithole country.
Your friend and my friend agree 99 percent
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It's true for French African colonies in second colonization wave, but completely different story in the first one (North America).
Having Russians there won’t end well for them, unfortunately. We have the saying: Where the Russian plants his foot, no grass grows.
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Russians have saying "там хорошо, где нас нет", which is synonym for "the grass is always greener on the other side", but literal translation is "it’s good where we aren’t" and I would agree it's mostly better where Russians aren't. Have Russian friends who when plan holidays, look for the places that aren't popular destinations for Russian tourists.
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Russia's naive useful idiots on the continent have only caused massive poverty, wars, dictatures etc. The real tragedy is that they are regarded as heroes and semi gods by the majority of Africans. To name a few: Sankara, Nkrumah, Mandela, Mugabe etc. 😔
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107 sats \ 6 replies \ @398ja 31 Mar
France has its faults, but her credit, she has done a lot of good things on the continent, same as the British.
Russia? NO, thanks.
Here is an alternative viewpoint: The colonisation of the continent was a period where native Africans experienced social mobility on a large scale, for the first time, thanks to an unprecedented economic boom, made possible by modern institutions, health care, governance etc, and, more importantly, the presence of millions of European settlers, who emigrated to the continent to take advantage of the many opportunities. As a result, many African countries in the 60s had GDPs rivaling with those of South Korea, Vietnam, Singapour etc! And the CFA contributed to it. Is it perfect? Of course not. Its it still justified? It's complicated.
Please remember that no African country is forced to adopt it. Many have left the monetary union in the past, e.g. Tunisia, Morocco, Algeria, Mali (temporarily), Guinea etc. Equatorial Guinea, a former Spanish colony, joined it. The Comores Islands have different agreements with France, their CFA has a different peg to the euro. My point is, there are options, including the option to leave. But why don't we leave, if we're not forced to stay? Because it is clearly the lesser of two evils. Look at Nigeria, Zimbabwe, DRC, Egypt. You see my point? The CFA is relatively immune to the kind of devaluation common to most native African currencies. Its a choice. Perfect, I don't know, and probably not, but it's justified.
What has Russia done in Africa? She infiltrated the continent during the cold War, trained charismatic leaders to Marxism with the mission to spread their toxic ideology. As a result, you had greed, civil (independence) wars, millions of the European settlers were forced out (please look up "the coffin or the luggage"). Those settlers lived together, side by side with Africans on the continent, they traded with them, went to the same schools etc.
I see the same scenario playing out today, and I'm not optimistic at all...
Bitcoin can help the continent, but the underlying narrative to support it is extremely biased.
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Thanks for posting this alternative viewpoint. It's obviously a complicated history.
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10 sats \ 0 replies \ @398ja 31 Mar
I wrote this on the train after a long day of mountain biking, without much editing, and it shows.The text is a bit clumsy, but I hope it makes sense to the reader. 😅 😔
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Also, you cannot forget the fact that the colonies were viewed as part of the French empire. Until 1975, you could travel to France without visa, only a passport was necessary. Until the mid 80s, you could take your CFA notes to France, and either use them in some shops in Paris, or exchange them for French Francs, at no cost in any bank. This is how strong the bonds were, and obviously, such divorces are always messy.
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It’s the opposite of El Salvador and what Milei is trying in Argentina, move to a stronger currency
Liberia was not a French colony. It was liberated from France and USA
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10 sats \ 1 reply \ @398ja 1 Apr
ES and Argentina adoption of a foreign currency followed the failure of their respective local currencies. I suspect that the decision to switch to the usd makes sense because the US are their biggest trading partner? In a way, it's actually a similar situation with France and their former African colonies, no?
I was initially very hopeful the Central African Republic would follow ES steps, but it became clear very early that they were actually setting up a gigantic scam. Our next best shot at adopting bitcoin will be the deployment of the strike wallet.
I don't understand your reference to Liberia in this context...
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Liberia was a country created by emancipated slaves in USA. They thought life would be better in Africa than in USA. They were wrong
Regarding Argentina I said it’s the reverse because CFA is ending , Argentina is doing the opposite
How many times have people been hopeful about Africa only to be disappointed?
Stop being hopeful about Africa. Until the people get smarter and less corrupt and less violent nothing will change
Every empire comes to an end, anti-French sentiment in Africa has been growing for a long time, but, when these people emigrate to another country, France seems to be their first destination, it's ironic, isn't it?
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the opposite is the case though. The end of neocolonial exploitation also means the end of enforced poverty through resource drain, which eases migration pressure.
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Exactly. And until then, maybe those migrants figure after all these years they'll let France support them for a while. Turnabout is fair play.
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Your points of view are very interesting, I had not seen it like that.
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Reparations for French colonies?
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Ironic but not surprising
A lot of anti western sentiment is posturing
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This looks like a great resource. Thanks for posting.
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This is basically true, yes. the French keep an overlord status over the currencies of these countries through the CFA, and this is one of the major sources of French wealth. It used to be pegged to the French Franc and, after the end of the century, then to the Euro, strictly, but overvalued. That means, like other Euro countries, these countries have no monetary sovereignty and lack policy options to align budgetary and monetary policies. (The same thing sunk Greece.) The fact that it was overvalued made their resources horrendously expensive and ensured that they would only flow to France, which could print their money to buy it, ensuring raw material flow to France. At the same time, these countries are forced to hold at least 50% of their foreign reserves in Franc (and now Euro), strengthening the status of that currency on the world market and, of course, gains them those reserves.
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The video I linked to explained this pretty well too. I believe the French initially set the exchange rate at 2 French Francs to 1 CFA Franc
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The Duran podcast is a goldmine for people interested in this kind of stuff. I remember episodes they did on this subject.
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I will search it on Fountain. Thanks for the recommendation.
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It's a while ago they commented on it, because other bigger events happening in the world. This is the last time they talked about Niger: https://www.youtube.com/watch?v=rHMtFPfQEv0
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I wouldn't underestimate the influence of French, but it's certainly possible that it could decline. Maybe over the course of a decade?
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I know Alex Gladstein believes bitcoin can help.
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