A currency union (also known as monetary union ) is an intergovernmental agreement that involves two or more states sharing the same currency . These states may not necessarily have any further integration (such as an economic and monetary union , which would have, in addition, a customs union and a single market ).
98-453: There are three types of currency unions: The theory of the optimal currency area addresses the question of how to determine what geographical regions should share a currency in order to maximize economic efficiency. Implementing a new currency in a country is always a controversial topic because it has both many advantages and disadvantages. New currency has different impacts on businesses and individuals, which creates more points of view on
196-543: A coup d'état and cancelled the election results. They also dissolved state institutions including the Judiciary, Parliament and the constitutional assembly. On 31 August 2023, army officers who seized power, ending the Bongo family's 55-year hold on power, named Gen Brice Oligui Nguema as the country's transitional leader. On 4 September 2023, General Nguema was sworn in as interim president of Gabon. In November 2024,
294-405: A referendum on a new constitution was approved, reforming the country's government. The presidential republic form of government is stated under the 1961 constitution (revised in 1975, rewritten in 1991, and revised in 2003). The president is elected by universal suffrage for a seven-year term; a 2003 constitutional amendment removed presidential term limits. The president can appoint and dismiss
392-494: A 1-party state by dissolving BDG and establishing a new party – the Parti Démocratique Gabonais (PDG). He invited all Gabonese, regardless of previous political affiliation, to participate. Bongo sought to forge a single national movement in support of the government's development policies, using PDG as a tool to submerge the regional and tribal rivalries that had divided Gabonese politics in the past. Bongo
490-650: A 15-month Stand-By Arrangement with the IMF. A three-year Stand-By Arrangement with IMF was approved in May 2007. Because of the financial crisis and social developments surrounding the death of President Omar Bongo and the elections, Gabon was unable to meet its economic goals under the Stand-By Arrangement in 2009. Gabon's oil revenues have given it a per capita GDP of $ 8,600. A "skewed income distribution" and "poor social indicators" are "evident". The richest 20% of
588-432: A 2018 Forest Landscape Integrity Index mean score of 9.07/10, ranking it 9th globally out of 172 countries. Gabon has a large number of protected animal and plant species. The country's biodiversity is one of the most varied on the planet. Gabon is home of 604 species of birds, 98 species of amphibians, between 95 and 160 species of reptiles and 198 different species of mammals. In Gabon there are rare species, such as
686-579: A PDG-controlled National Assembly. Following the death of President Omar Bongo on 8 June 2009 due to cardiac arrest at a Spanish hospital in Barcelona, Gabon entered a period of political transition. Per the amended constitution, Rose Francine Rogombé , the President of the Senate, assumed the role of Interim President on 10 June 2009. The subsequent presidential elections, held on 30 August 2009, marked
784-457: A best estimate of 9%. The second counter-argument is that further goods market integration might also lead to more specialization in production. Once individual firms can easily serve the whole OCA market, and not just their national market, they will exploit economies of scale and concentrate production. Some sectors in the OCA might end up becoming concentrated in a few locations. The United States
882-478: A closer integration of capital markets. These economic arguments are supported by social arguments as well. On every occasion when a social disturbance leads to the threat of a strike, and the strike to an increase in wages unjustified by increases in productivity and thence to devaluation, the national currency becomes threatened. Long-run costs for the nation as a whole are bartered away by governments for what they presume to be short-run political benefits. If instead,
980-527: A curfew remained in effect for over three months. In June 2010, a partial legislative by-election was held, marking the emergence of the Union Nationale (UN) coalition, primarily comprising defectors from the ruling PDG party following Omar Bongo's death. The contest for the five available seats saw both the PDG and UN claiming victory, underscoring the political tensions that persisted in the aftermath of
1078-430: A currency area for all provinces except Alberta , which could benefit from having a separate currency. Europe exemplifies a situation unfavourable to a common currency. It is composed of separate nations, speaking different languages, with different customs, and having citizens feeling far greater loyalty and attachment to their own country than to a common market or to the idea of Europe. Milton Friedman There
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#17327651220251176-697: A currency reunion of these countries might still be feasible based on the findings of economic convergence. [REDACTED] Benin [REDACTED] Burkina Faso [REDACTED] Côte d'Ivoire [REDACTED] Guinea-Bissau [REDACTED] Mali [REDACTED] Niger [REDACTED] Senegal [REDACTED] Togo Central African CFA franc users: [REDACTED] Cameroon [REDACTED] Central African Republic [REDACTED] Chad [REDACTED] Equatorial Guinea [REDACTED] Gabon [REDACTED] Republic of
1274-689: A currency union. [REDACTED] Zimbabwe is theoretically in a currency union with four blocs as the South African rand, Botswana pula , British pound and US dollar freely circulate. The US Dollar was, until 2016, official tender. Additionally, the autonomous and dependent territories, such as some of the EU member state special territories , are sometimes treated as separate customs territory from their mainland state or have varying arrangements of formal or de facto customs union , common market and currency union (or combinations thereof) with
1372-510: A distant prospect. Furthermore, the U.S. economy, with a central federal fiscal authority, has stabilization transfers. When a state in the U.S. is in recession, every $ 1 drop in that state’s GDP would have an offsetting transfer of 28 cents. Such stabilizing transfers are not present in both the Eurozone and EU; thus, they cannot rely on fiscal federalism to smooth out regional economic disturbances. The European crisis, however, may be pushing
1470-499: A government of national unity. This arrangement broke down and the 1996 and 1997 legislative and municipal elections provided the background for renewed partisan politics. PDG won in the legislative election, and some cities, including Libreville , elected opposition mayors during the 1997 local election. Facing a divided opposition, President Omar Bongo coasted to re-election in December 1998. While some of Bongo's opponents rejected
1568-573: A historic moment as they were the first in Gabon's history not to feature Omar Bongo as a candidate. With a crowded field of 18 contenders, including Omar Bongo's son and ruling party leader, Ali Bongo , the elections were closely watched both domestically and internationally. After a rigorous three-week review by the Constitutional Court, Ali Bongo was officially declared the winner, leading to his inauguration on 16 October 2009. However,
1666-539: A majority. Following President Omar Bongo 's re-election in December 1993 with 51% of the vote, opposition candidates refused to validate the election results. Civil disturbances and violent repression led to an agreement between the government and opposition factions to work toward a political settlement. These talks led to the Paris Accords in November 1994, under which some opposition figures were included in
1764-419: A monetary union are not allowed to run sufficient deficits. The Post-Keynesian theory of Neo-Chartalism holds that government deficit spending creates money, that ability to print money is fundamental to a state's ability to command resources, and that "money and monetary policy are intricately linked to political sovereignty and fiscal authority". Both of these critiques consider the transactional benefits of
1862-527: A sector-by-sector basis, making wage concessions. He promised to open up PDG and to organize a national political conference in March–April 1990 to discuss Gabon's future political system. PDG and 74 political organizations attended the conference. Participants essentially divided into 2 "loose" coalitions, ruling PDG and its allies, and the United Front of Opposition Associations and Parties, consisting of
1960-416: A shared currency to be minor compared to these drawbacks, and more generally place less emphasis on the transactional function of money (a medium of exchange ) and greater emphasis on its use as a unit of account . In Mundell’s first model, countries regard all of the conditions as given, and assuming they have adequate information, they can then judge whether the costs of forming a currency union outweigh
2058-572: A single Optimal Currency Area. However, he found the fit of the Southeast and Southwest to be questionable. He also found that the Plains would not fit into an optimal currency area. The notion of a currency that does not accord with a state, specifically one larger than a state – formally, of an international monetary authority without a corresponding fiscal authority – has been criticized by Keynesian and Post-Keynesian economists , who emphasize
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#17327651220252156-502: A speculative capital inflow in favor of the depreciating currency. Mundell's work can be cited on both sides of the debate about the euro. However, in 1973 Mundell himself constructed an argument on the basis of the second model that was more favorable to the concept of a (then-hypothetical) shared European currency. Rather than moving toward more flexibility in exchange rates within Europe the economic arguments suggest less flexibility and
2254-695: A system of rainforests , with 89.3% of its land area forested. There are coastal plains (ranging between 20 and 300 km [10 and 190 mi] from the ocean's shore), the mountains (the Cristal Mountains to the northeast of Libreville, the Chaillu Massif in the centre), and the savanna in the east. The coastal plains form a section of the World Wildlife Fund 's Atlantic Equatorial coastal forests ecoregion and contain patches of Central African mangroves including on
2352-442: A transitional government headed by a new Prime Minister, Casimir Oye-Mba . The Gabonese Social Democratic Grouping (RSDG), as the resulting government was called, was smaller than the previous government and included representatives from some opposition parties in its cabinet. RSDG drafted a provisional constitution in May 1990 that provided a basic bill of rights and an independent judiciary and retained "strong" executive powers for
2450-433: Is a geographical region in which it would maximize economic efficiency to have the entire region share a single currency. The underlying theory describes the optimal characteristics for the merger of currencies or the creation of a new currency . The theory is used often to argue whether or not a certain region is ready to become a currency union , one of the final stages in economic integration . An optimal currency area
2548-621: Is a good example: financial services are centered in New York City, entertainment in Los Angeles, and technology in Silicon Valley. If specialization increases, each country will be less diversified and will face more asymmetric shocks; weakening the case for the self-fulfilling OCA argument. Gabon Gabon ( / ɡ ə ˈ b ɒ n / gə- BON ; French pronunciation: [ɡabɔ̃] ), officially
2646-531: Is beginning for an after-oil scenario. The rich Grondin Oil Field was discovered in 1971 in 50 m (160 ft) water depths 40 km (25 mi) offshore in an anticline salt structural trap in Batanga sandstones of Maastrichtian age, but about 60% of its estimated reserves had been extracted by 1978. As of 2023, Gabon produced about 200,000 barrels a day (bpd) of crude oil. "Overspending" on
2744-440: Is causing heavy deforestation that threatens this valuable ecosystem. Likewise, poaching endangers wildlife. Gabon's national flower is Delonix Regia . Oil revenues constitute roughly 46% of the government's budget, 43% of the gross domestic product (GDP), and 81% of exports. Oil production declined from its higher point of 370,000 barrels per day in 1997. Some estimates suggest that Gabonese oil will be expended by 2025. Planning
2842-412: Is composed of 102 members who are elected by municipal councils and regional assemblies and serve for six years. The Senate was created in the 1990–1991 constitutional revision, and was not brought into being until after the 1997 local elections. The President of the Senate is next in succession to the President. In 1990, the government made changes to Gabon's political system. A transitional constitution
2940-533: Is dedicated to their study. It is also home to more than half the population of African forest elephants , mostly in Minkébé National Park . Gabon's national symbol is the black panther . More than 10,000 species of plants, and 400 species of trees form the flora of Gabon. Gabon's rainforest is considered the densest and most virgin in Africa. However, the country's enormous population growth
3038-480: Is never complete labour mobility, even within single countries. How much is enough? My answer was that the advantages of a common currency in terms of information and transactions costs, etc., have to be enough to overcome any disadvantages arising from insufficient labour mobility. I argue that the gains from a common currency in Europe have been and are sufficient in the case of Europe. Robert Mundell OCA theory has been most frequently applied to discussions of
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3136-445: Is often larger than a country. For instance, part of the rationale behind the creation of the euro is that the individual countries of Europe do not each form an optimal currency area, but that Europe as a whole does. The creation of the euro is often cited because it provides the most modern and largest-scale case study of an attempt to identify an optimum currency area, and provides a comparative before-and-after model by which to test
3234-408: Is one of the wealthiest countries in Africa in terms of per capita income ; however, large parts of the population are very poor. Omar Bongo came to office in 1967 and created a dynasty , which stabilized its power through a clientist network, Françafrique . The official language of Gabon is French , and Bantu ethnic groups constitute around 95% of the country's population. Christianity
3332-552: Is the Ogooué which is 1,200 kilometres (750 mi) long. It has 3 karst areas where there are hundreds of caves located in the dolomite and limestone rocks. A National Geographic Expedition visited some caves in the summer of 2008 to document them. In 2002, President Omar Bongo Ondimba designated roughly 10% of the nation's territory to be part of its national park system (with 13 parks in total). The National Agency for National Parks manages Gabon's national park system. Gabon had
3430-441: Is the nation's predominant religion, practised by about 80% of the population. With petroleum and foreign private investment, it has the fourth highest HDI (after Mauritius , Seychelles , and South Africa ) and the fifth highest GDP per capita (PPP) (after Seychelles, Mauritius, Equatorial Guinea , and Botswana ) of any African nation. Gabon's nominal GDP per capita is $ 10,149 in 2023 according to OPEC. Pygmy peoples in
3528-520: The Chaillu Massif in the centre), and a savanna in the east. Libreville is the country's capital and largest city. Gabon's original inhabitants were the pygmy peoples . Beginning in the 14th century, Bantu migrants began settling in the area as well. The Kingdom of Orungu was established around 1700. The region was colonised by France in the late 19th century. Since its independence from France in 1960, Gabon has had three presidents . In
3626-959: The Communaute Financiere Africaine (CFA); the Organization of the Islamic Conference (OIC); the Nonaligned Movement ; and the Economic Community of Central African States (ECCAS/CEEAC). In 1995, Gabon withdrew from the Organization of the Petroleum Exporting Countries (OPEC), rejoining in 2016. Gabon was elected to a non-permanent seat on the United Nations Security Council for January 2010 through December 2011 and held
3724-569: The French Community , and on 17 August 1960, it became fully independent. The first president of Gabon, elected in 1961, was Léon M'ba , with Omar Bongo Ondimba as his vice president. After M'ba's accession to power, the press was suppressed, political demonstrations suppressed, freedom of expression curtailed, other political parties gradually excluded from power, and the Constitution changed along French lines to vest power in
3822-821: The Gabonese Republic ( French : République gabonaise ), is a country on the Atlantic coast of Central Africa , on the equator , bordered by Equatorial Guinea to the northwest, Cameroon to the north, the Republic of the Congo on the east and south, and the Gulf of Guinea to the west. It has an area of 270,000 square kilometres (100,000 sq mi) and a population of 2.3 million people. There are coastal plains, mountains (the Cristal Mountains and
3920-562: The Muni River estuary on the border with Equatorial Guinea . Geologically, Gabon is primarily Archaean and Palaeoproterozoic igneous and metamorphic basement rock , belonging to the stable continental crust of the Congo Craton . Some formations are more than 2 billion years old. Some rock units are overlain by marine carbonate , lacustrine and continental sedimentary rocks, and unconsolidated sediments and soils that formed in
4018-760: The Parliamentary Research Branch discussed the pros and cons of Canada adopting the American dollar. While it made no judgment on the long term political desirability of a monetary union between Canada and the United States, it stated flatly that, at that time, Canada and the United did not share the free movement of labor and capital nor a common business cycle (Canada's being tied to resource prices ) and thus did not satisfy OCA theory. A 2016 paper argued that Canada itself worked well as
Currency union - Misplaced Pages Continue
4116-616: The Trans-Gabon Railway , the CFA franc devaluation of 1994, and periods of lower oil prices caused debt problems. Successive International Monetary Fund (IMF) missions have criticized the Gabonaise government for overspending on off-budget items (in good years and bad), over-borrowing from the central bank , and slipping on the schedule for privatization and administrative reform. In September 2005 Gabon successfully concluded
4214-593: The euro and the European Union . Many have argued that the EU did not actually meet the criteria for an OCA at the time the euro was adopted, and attribute the Eurozone 's economic difficulties in part to continued failure to do so. Europe does indeed score well on some of the measures characterising an OCA (such as symmetry of shocks). Poloz (1990) concluded that a European Monetary Union should be viable since
4312-561: The 1990s, it introduced a multi-party system and a democratic constitution that aimed for a more transparent electoral process and reformed some governmental institutions. Despite this, the Gabonese Democratic Party (PDG) remained the dominant party until its removal from power during the 2023 Gabonese coup d'état . Gabon is a developing country , ranking 123rd in the Human Development Index . It
4410-413: The 1994 Paris Conference and Accords. These provided a framework for the next elections. Local and legislative elections were delayed until 1996–1997. In 1997, constitutional amendments put forward years earlier were adopted to create the Senate and the position of Vice President , and to extend the President's term to seven years. In October 2009, President Ali Bongo Ondimba began efforts to streamline
4508-663: The 19th century. The German Zollverein came into existence in 1834, and by 1866, it included most of the German states. The fragmented states of the German Confederation agreed on common policies to increase trade and political unity. The Latin Monetary Union , comprising France, Belgium, Italy, Switzerland, and Greece, existed between 1865 and 1927, with coinage made of gold and silver . Coins of each country were legal tender and freely interchangeable across
4606-402: The Congo [REDACTED] New Caledonia [REDACTED] Wallis and Futuna [REDACTED] Antigua and Barbuda [REDACTED] Dominica [REDACTED] Grenada [REDACTED] Montserrat [REDACTED] Saint Kitts and Nevis [REDACTED] Saint Lucia [REDACTED] Saint Vincent and
4704-470: The EU towards more federal powers in fiscal policy. Michael Kouparitsas ( Chicago Fed ) considered the United States as divided into the eight regions of the Bureau of Economic Analysis , (Far West, Rocky Mountain, Plains, Great Lakes, Mideast, New England, Southwest, and Southeast). By developing a statistical model, he found that five of the eight regions of the country satisfied Mundell's criteria to form
4802-594: The European System of Central Banks. The Governing Board consists of the Executive Committee of the ECB and the governors of individual national banks, and determines the monetary policy, as well as short-term monetary objectives, key interest rates and the extent of monetary reserves. Optimal currency area In economics , an optimum currency area ( OCA ) or optimal currency region ( OCR )
4900-517: The European currencies were bound together disturbances in the country would be cushioned, with the shock weakened by capital movements. A review of the literature published for the Bank of Canada in 1999 cited dozens of studies on various aspects of OCA theory with special attention to whether Canada and the United States could form one. It made no conclusion on the topic. Likewise, a 1999 report for
4998-530: The Gabon pangolin and the grey-necked rockfowl , or endemics, such as the Gabon guenon . The country is one of the most varied and important fauna reserves in Africa: it is an important refuge for chimpanzees (whose number, in 2003, was estimated between 27,000 and 64,000) and gorillas (28,000-42,000 estimated in 1983). The "Gorilla and Chimpanzee Study Station" inside the Lopé National Park
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#17327651220255096-2145: The Grenadines [REDACTED] Austria [REDACTED] Belgium [REDACTED] Croatia [REDACTED] Cyprus [REDACTED] Estonia [REDACTED] Finland [REDACTED] France [REDACTED] Germany [REDACTED] Greece [REDACTED] Ireland [REDACTED] Italy [REDACTED] Latvia [REDACTED] Lithuania [REDACTED] Luxembourg [REDACTED] Malta [REDACTED] Netherlands [REDACTED] Portugal [REDACTED] Slovakia [REDACTED] Slovenia [REDACTED] Spain and EU special territories : [REDACTED] French Southern and Antarctic Lands [REDACTED] Saint Barthélemy [REDACTED] Saint Pierre and Miquelon [REDACTED] Akrotiri and Dhekelia [REDACTED] Andorra [REDACTED] Kosovo [REDACTED] Monaco [REDACTED] Montenegro [REDACTED] San Marino [REDACTED] Vatican City Brunei dollar [REDACTED] Singapore and external territories : [REDACTED] Ashmore and Cartier Islands [REDACTED] Australian Antarctic Territory [REDACTED] Christmas Island [REDACTED] Cocos (Keeling) Islands [REDACTED] Coral Sea Islands Territory [REDACTED] Heard Island and McDonald Islands [REDACTED] Norfolk Island [REDACTED] Kiribati [REDACTED] Nauru [REDACTED] Tuvalu and Overseas Territories : [REDACTED] British Antarctic Territory [REDACTED] British Indian Ocean Territory [REDACTED] Falkland Islands [REDACTED] Gibraltar [REDACTED] Saint Helena, Ascension and Tristan da Cunha [REDACTED] South Georgia and
5194-552: The OCA and will be felt more symmetrically. However, caution should be employed when analysing the self-fulfilling argument. Firstly, the self-fulfilling effect's impact may not be significant. According to a recent study by Richard Baldwin, a trade economist at the Graduate Institute of International Studies in Geneva, the boost to trade within the Eurozone from the single currency is much smaller: between 5% and 15%, with
5292-665: The Presidency, a post that M'ba assumed himself. When M'ba dissolved the National Assembly in January 1964 to institute one-party rule, an army coup sought to oust him from power and restore parliamentary democracy. French paratroopers flew in within 24 hours to restore M'ba to power. After days of fighting, the coup ended and the opposition was imprisoned, with protests and riots. When M'Ba died in 1967, Bongo replaced him as president. In March 1968, Bongo declared Gabon
5390-571: The President, the Assembly unanimously adopted the constitution in March 1991. Multiparty legislative elections were held in 1990–1991 when opposition parties had not been declared formally legal. In January 1991, the Assembly passed by unanimous vote a law governing the legalization of opposition parties. After President Omar Bongo was re-elected in 1993, in a disputed election where only 51% of votes were cast, social and political disturbances led to
5488-1883: The South Sandwich Islands and Crown Dependencies : [REDACTED] Bailiwick of Guernsey [REDACTED] Bailiwick of Jersey [REDACTED] Isle of Man [REDACTED] Bhutan [REDACTED] Nepal Nepal minor usage and Realm : [REDACTED] Cook Islands [REDACTED] Niue [REDACTED] Tokelau [REDACTED] Pitcairn Islands [REDACTED] Palestine [REDACTED] Palestine ( West Bank only) [REDACTED] Abkhazia [REDACTED] South Ossetia [REDACTED] Namibia [REDACTED] South Africa [REDACTED] Eswatini [REDACTED] Switzerland [REDACTED] Turkish Republic of Northern Cyprus and insular areas : [REDACTED] American Samoa [REDACTED] Guam [REDACTED] United States Minor Outlying Islands [REDACTED] Northern Mariana Islands [REDACTED] Puerto Rico [REDACTED] United States Virgin Islands and Compact of Free Association members : [REDACTED] Marshall Islands [REDACTED] Federated States of Micronesia [REDACTED] Palau [REDACTED] Ecuador [REDACTED] El Salvador [REDACTED] Panama [REDACTED] Timor-Leste [REDACTED] Turks and Caicos Islands [REDACTED] British Virgin Islands [REDACTED] BES islands (Panama only) Note: Every customs and monetary union and economic and monetary union also has
5586-468: The United States, possibly due to language and cultural differences. In O'Rourke's paper, more than 40% of U.S. residents were born outside the state in which they live. In the Eurozone, only 14% people were born in a different country than the one in which they live. In fact, the U.S. economy was approaching a single labor market in the nineteenth century. However, for most parts of the Eurozone, such levels of labour mobility and labor market integration remain
5684-412: The alleged bombing of opposition party headquarters by the presidential guard. Between 50 and 100 citizens were killed by security forces and 1,000 arrested. International observers criticized irregularities, including unnaturally high turnout reported for some districts. The country's supreme court threw out some suspect precincts, and the ballots have been destroyed. The election was declared in favour of
5782-580: The announcement of his victory was met with skepticism by some opposition candidates, sparking sporadic protests across the country. Nowhere was this discontent more pronounced than in Port-Gentil , where allegations of electoral fraud resulted in violent demonstrations. The unrest claimed four lives and led to significant property damage, including attacks on the French Consulate and a local prison. Subsequently, security forces were deployed, and
5880-513: The area were largely replaced and absorbed by Bantu tribes as they migrated. By the 18th century, a Myeni -speaking kingdom known as the Kingdom of Orungu formed as a trading centre with the ability to purchase and sell slaves, and fell with the demise of the slave trade in the 1870s. Explorer Pierre Savorgnan de Brazza led his first mission to the Gabon-Congo area in 1875. He founded
5978-588: The area. The union's success made other states join informally. The Scandinavian Monetary Union , comprising Sweden, Denmark, and Norway, existed between 1873 and 1905 and used a currency based on gold. The system was dissolved by Sweden in 1924. A currency union among the British colonies and protectorates in Southeast Asia, namely the Federation of Malaya, North Borneo, Sarawak, Singapore and Brunei
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#17327651220256076-473: The benefits. However, another school of thought argues that some of the OCA criteria are not given and fixed, but rather they are economic outcomes (i.e., endogenous) determined by the creation of the currency union itself. Consider goods market interaction as an example: if the OCA criteria were applied before the currency union forms, then many countries might exhibit low trade volumes and low market integration; which means that OCA criteria are not met. Thus,
6174-493: The breakaway Morena Fundamental and the Gabonese Progress Party . The April 1990 conference approved political reforms, including creation of a national Senate , decentralization of the budgetary process, freedom of assembly and press, and cancellation of an exit visa requirement. In an attempt to guide the political system's transformation to multiparty democracy, Bongo resigned as PDG chairman and created
6272-467: The country should be run by someone the people really wanted. He selected 19 ministers for his government, and the entire group, along with hundreds of others, spent the night at the United Nations headquarters. On January 26, the government dissolved Mba Obame's party. AU chairman Jean Ping said that Mba Obame's action "hurts the integrity of legitimate institutions and also endangers the peace,
6370-484: The currency union might not be formed based on those current characteristics. However, if the currency union was established anyway, its member-states would trade so much more that, in the end, the OCA criteria would be met. This logic suggests that the OCA criteria can be self-fulfilling. Furthermore, greater integration under the OCA project might also improve other OCA criteria. For example, if goods markets are better connected, shocks will be more rapidly transmitted within
6468-401: The economy so that Gabon becomes less reliant on petroleum, to eliminate corruption, and to modernize the workforce. Under this program, exports of raw timber have been banned, a government-wide census was held, the work day was changed to eliminate a long midday break, and a national oil company was created. On 25 January 2011, opposition leader André Mba Obame claimed the presidency, saying
6566-552: The first country to receive payments for reducing emissions resulting from deforestation and forest degradation. Additionally, in June 2022, Gabon, along with Togo , joined the Commonwealth of Nations , signalling its commitment to multilateral engagement and cooperation. In August 2023, following the announcement that Ali Bongo had won a third term in the general election , military officers announced that they had taken power in
6664-407: The global monetary policy (interest rates) will not be fine tuned for the particular situation of each constituent region. The four often cited criteria for a successful currency union are: Additional criteria suggested are: Here Mundell tries to model how exchange rate uncertainty will interfere with the economy; this model is less often cited. Supposing that the currency is managed properly,
6762-540: The government. In an effort to reduce corruption and government bloat, he eliminated 17 minister-level positions, abolished the Vice Presidency and reorganized the portfolios of some ministries, bureaus and directorates. In November 2009, President Bongo Ondimba announced a new vision for the modernization of Gabon, called "Gabon Emergent". This program contains three pillars: Green Gabon, Service Gabon, and Industrial Gabon. The goals of Gabon Emergent are to diversify
6860-416: The idea, but others point to earlier work done in the area by Abba Lerner . Kenen (1969) and McKinnon (1963) were further developers of this idea. Published by Mundell in 1961, this is the most cited by economists. Here asymmetric shocks are considered to undermine the real economy, so if they are too important and cannot be controlled, a regime with floating exchange rates is considered better, because
6958-489: The incumbent Ondimba. The European Parliament issued two resolutions denouncing the unclear results of the election and calling for an investigation on the human rights violations. A few days after the controversial presidential election in August 2023, a group of military officials declared a military coup and that they had overthrown the government and deposed Ali Bongo Ondimba. The announcement came hours after Ali Bongo
7056-415: The individual regions, since the devaluation will reduce its buying power. So despite a less fine tuned monetary policy the real economy should do better. A harvest failure , strikes , or war, in one of the countries causes a loss of real income, but the use of a common currency (or foreign exchange reserves) allows the country to run down its currency holdings and cushion the impact of the loss, drawing on
7154-409: The larger the area, the better. In contrast with the previous model, asymmetric shocks are not considered to undermine the common currency because of the existence of the common currency. This spreads the shocks in the area because all regions share claims on each other in the same currency and can use them for dampening the shock, while in a flexible exchange rate regime, the cost will be concentrated on
7252-524: The last 2.5 million years of the Quaternary . The rifting apart of the supercontinent Pangaea created rift basins that filled with sediments and formed the hydrocarbons. There are Oklo reactor zones, a natural nuclear fission reactor on Earth which was active 2 billion years ago. The site was discovered during uranium mining in the 1970s to supply the French nuclear power industry. Its largest river
7350-523: The mainland and in regards to third countries through the trade pacts signed by the mainland state. The European currency union is a part of the Economic and Monetary Union of the European Union (EMU). EMU was formed during the second half of the 20th century after historic agreements, such as Treaty of Paris (1951) , Maastricht Treaty (1992). In 2002, the euro , a single European currency,
7448-403: The outcome as fraudulent, some international observers characterized the results as representative "despite many perceived irregularities". Legislative elections held in 2001–2002 were boycotted by a number of smaller opposition parties and were criticized for their administrative weaknesses, produced a National Assembly dominated by PDG and allied independents. In November 2005 President Omar Bongo
7546-464: The president. It is divided into 9 provinces which are subdivided into 50 departments . The president appoints the provincial governors, the prefects, and the subprefects. The provinces are (capitals in parentheses): Gabon is located on the Atlantic coast of central Africa on the equator , between latitudes 3°N and 4°S , and longitudes 8° and 15°E . Gabon has an equatorial climate with
7644-702: The president. After further review by a constitutional committee and the National Assembly, this document came into force in March 1991. Opposition to PDG continued after the April 1990 conference, and in September 1990, two coup d'état attempts were uncovered and aborted. With demonstrations after the death of an opposition leader, the first multiparty National Assembly elections in almost 30 years took place in September–October 1990, with PDG garnering
7742-434: The presidential transition. The political landscape was further disrupted in January 2019 when a group of soldiers attempted a coup against President Ali Bongo. Despite initial unrest, the coup ultimately failed, but it highlighted the ongoing challenges facing Gabon's political stability. Against this backdrop of political volatility, Gabon achieved significant milestones on the international stage. In June 2021, it became
7840-403: The prime minister, the cabinet, and judges of the independent Supreme Court. The president has other powers such as authority to dissolve the National Assembly, declare a state of siege, delay legislation, and conduct referendums. Gabon has a bicameral legislature with a National Assembly and Senate. The National Assembly has 120 deputies who are popularly elected for a five-year term. The Senate
7938-416: The principles of the theory. In theory, an optimal currency area could also be smaller than a country. Some economists have argued that the United States, for example, has some regions that do not fit into an optimal currency area with the rest of the country. The theory of the optimal currency area was pioneered in the 1960s by economist Robert Mundell . Credit often goes to Mundell as the originator of
8036-406: The resources of the other country until the cost of the adjustment has been efficiently spread over the future. If, on the other hand, the two countries use separate monies with flexible exchange rates, the whole loss has to be borne alone; the common currency cannot serve as a shock absorber for the nation as a whole except insofar as the dumping of inconvertible currencies on foreign markets attracts
8134-442: The role of deficit spending by a government (formally, fiscal authority) in the running of an economy, and consider using an international currency without fiscal authority to be a loss of "monetary sovereignty". Specifically, Keynesian economists argue that fiscal stimulus in the form of deficit spending is the most powerful method of fighting unemployment during a liquidity trap . Such stimulus may not be possible if states in
8232-533: The rotating presidency in March 2010. In 2022, Gabon joined the Commonwealth of Nations . In 2024, ruling junta leader Brice Oligui Nguema assured American and French leaders that Gabon would be an ally of the West moving forward, as a part of his broader plan to solve the ongoing debt crisis. It has a professional military of about 5,000 personnel, divided into army , navy , air force , gendarmerie , and police force. A 1,800-member guard provides security for
8330-457: The same or at least very similar goals. The European Monetary Union (EMU) is a contemporary model for forming currency unions. Membership in the EMU requires that countries follow a strictly defined set of criteria (the member states are required to have a specific rate of inflation, government deficit , government debt , long-term interest rates and exchange rate ). Many other unions have adopted
8428-421: The security and the stability of Gabon." Interior Minister Jean-François Ndongou accused Mba Obame and his supporters of treason . The UN Secretary-General , Ban Ki-moon , said that he recognized Ondimba as the only official Gabonese president. The 2016 presidential election was disputed, with "very close" official results reported. Protests broke out in the capital and met a repression which culminated in
8526-710: The system most likely to promote rapid economic growth. It involved itself in mediation efforts in Chad , the Central African Republic , Angola , the Republic of the Congo , the Democratic Republic of the Congo (D.R.C.), and Burundi . In December 1999, through the mediation efforts of President Bongo, a peace accord was signed in the Republic of the Congo (Brazzaville) between the government and most leaders of an armed rebellion. President Bongo
8624-478: The town of Franceville and was later colonial governor. Some Bantu groups lived in the area when France officially occupied it in 1885. In 1910, Gabon became a territory of French Equatorial Africa , a federation that survived until 1958. In World War II , the Allies invaded Gabon in order to overthrow the pro- Vichy France colonial administration. On 28 November 1958, Gabon became an autonomous republic within
8722-427: The usefulness of currency unions. As a consequence, governmental institutions often struggle when they try to implement a new currency, for example by entering a currency union. Convergence in terms of macroeconomics means that countries have a similar economic behaviour (similar inflation rates and economic growth ). It is easier to form a currency union for countries with more convergence as these countries have
8820-485: The variability of real exchange rates in Europe was similar to that between Canadian regions .This work was cited by the European Commission itself in the 1990 report One Market, One Money . By looking at the correlation of a region's GDP growth rate with that of the entire zone, the Eurozone countries show slightly greater correlations compared to the U.S. states. However, it has lower labour mobility than
8918-440: The view that convergence is necessary, so they now follow similar rules to aim the same direction. Divergence is the exact opposite of convergence. Countries with different goals are very difficult to integrate in a single currency union. Their economic behaviour is completely different, which may lead to disagreements. Divergence is therefore not optimal for forming a currency union. The first currency unions were established in
9016-500: Was adopted by 12 member states. Currently, the Eurozone has 20 member states. The other members of the European Union are required to adopt the euro as their currency (except for Denmark, which has been given the right to opt out), but there has not been a specific date set. The main independent institution responsible for stability of the euro is the European Central Bank (ECB). Together with 15 national banks it forms
9114-445: Was drafted in May 1990 as an outgrowth of the national political conference in March–April and later revised by a constitutional committee. Among its provisions were a Western-style bill of rights , creation of a National Council of Democracy to oversee the guarantee of those rights, a governmental advisory board on economic and social issues, and an independent judiciary. After approval by the National Assembly, PDG Central Committee, and
9212-487: Was elected for his sixth term. He won re-election, and opponents claim that the balloting process was marred by irregularities. There were some instances of violence following the announcement of his win. National Assembly elections were held in December 2006. Some seats contested because of voting irregularities were overturned by the Constitutional Court , and the subsequent run-off elections in 2007 yielded
9310-531: Was elected president in February 1975; in April 1975, the position of vice president was abolished and replaced by the position of prime minister, who had no right to automatic succession. Bongo was re-elected President in December 1979 and November 1986 to 7-year terms. In 1990, economic discontent and a desire for political liberalization provoked demonstrations and strikes by students and workers. In response to grievances by workers, Bongo negotiated with them on
9408-461: Was established in 1952. The Malaya and British Borneo dollar, the common currency for circulation was issued by the Board of Commissioners of Currency, Malaya and British Borneo from 1953 until 1967. Following the cessation of the common currency arrangement, Malaysia (the combination of Federation of Malaya, North Borneo, Sarawak), Singapore and Brunei began issuing their own currencies. Contemporarily,
9506-826: Was involved in the continuing D.R.C. peace process, and played a role in mediating the crisis in Ivory Coast . Gabon is a member of the United Nations (UN) and some of its specialized and related agencies, and of the World Bank ; the IMF ; the African Union (AU); the Central African Customs Union/Central African Economic and Monetary Community (UDEAC/CEMAC); EU/ACP association under the Lomé Convention ;
9604-536: Was officially re-elected for a third term. General Brice Oligui Nguema was appointed as the transitional leader. This event marked the eighth instance of military intervention in the region since 2020, raising concerns about democratic stability. Since independence, Gabon has followed a nonaligned policy, advocating dialogue in international affairs and recognizing each side of divided countries. In intra-African affairs, it espouses development by evolution rather than revolution and favours regulated private enterprise as
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