A five-day regional workshop on practical aspects of economic and financial analysis for journalists, organised by West African Institute for Financial and Economic Management (WAIFEM) has just ended in Lagos, Nigeria.

In his presentation, Dr Osi Itsede, Director-General of WAIFEM, said globalisation and economic regionalism are the defining features of the second half of the last century. This growing phenomenon of regionalism, he said, is also manifested in West Africa, with the formation of Ecowas, and its monetary cooperation, which was adopted in 1997 with the ultimate objective of a common currency.

Dr Osi Itsede said the concept of monetary union is an area within which exchange rates bear permanently fixed relationship to each other and where members’ currencies are fully convertible to each other.
He added that the benefits of monetary integration include the exchange rate and price stability, optimal deployment of external reserves and also reduction in uncertainty, owing to exchange rate risks.

For his part, Mr. Chris R Nemedia, Monetary, Financial and Economic Management Consultant highlighted the difference between macro-economic and micro-economic levels, noting that macro-economic deals with the aggregate level of economic analysis, while micro-economic is concerned with the analysis of disaggregated or small  atomistic levels of economic activity.

According to Mr. Nemedia, in most developing economies, the agricultural sub-sector dominates the productive sector. He revealed that ADB’s African development report 2001 indicated that agriculture employs about two-thirds of Africa’s total labour force, and accounts for about one-third of the Gross Domestic Product (GDP).

Outlining their objectives in developing countries, Nemedia said it is conceived, based on promoting accelerated and balanced growth and development of the economy in order to achieve full employment, poverty alleviation or improving the standards of living of its people.

On Fiscal Policy Management, Mr. T O Okunrounmn, said fiscal policy is the changes in the level of government expenditures, taxes and other revenues and borrowings.

Fiscal policy, he added, is an element of economic policy or the national budget. He also dwelled on the objectives of fiscal policy, which among others, include price stability, economic growth, full employment, balance of payment equilibrium, etc.

According to him, there is always a need for a country to meet its external payment obligations without default, exchange of goods and services between countries involved in the use of different currencies, hence the need for an exchange rate relating to one’s country’s.