Theory question 110
ECOWASSection B (answer two questions only from this section)
Explain the meaning and uses of the ECOWAS Fund for Co-operation, Compensation and Development.
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Meaning: a financial institution of ECOWAS set up by the 1975 Lagos Treaty (headquartered in Lomé, Togo), funded by member states' contributions and other sources.
Uses: compensate member states that lose revenue from the removal of customs duties under trade liberalisation; finance development projects in member states, especially the less developed; fund regional projects such as roads, telecommunications and energy; give loans and guarantees for investment; finance feasibility studies; help states affected by natural disasters; promote balanced development among members.
(It was later restructured into the ECOWAS Bank for Investment and Development, EBID, in 2001.)
Define it and give several uses.