Deforestation in Cote d'Ivoire (IVORYWD)

     CASE NUMBER:     318
     CASE MNEMONIC:   IVORYWD
     CASE NAME:       Cote d'Ivoire's Deforestation

A. Identification

1. Issue

French colonialism is renowned for the levels that it went to to change
the way of life of the people in its colonies.  Not unlike other European
colonialists the French did not reinvest in to Cote DžIvoire to the level
that would have insured its development into a diversified western type
economy.  Although the country is seen as wealthy and stable in relation
to other African countries it is completely dependent upon a small
number of primary industry goods.  The French colonial legacy is
evident today in Cote d'Ivoire which continues to hamper the country
and keep it tied to a select number of goods.  The countries market was
never diversified and subsequently it has been plagued with economic
stagnation when world prices for cocoa and coffee decrease.  This was
the case in the 1980s and early 1990s forcing the country to become even
more reliant upon the export of wood and related products to make up
the difference.  Such an ingrained  policy has lead to large areas of
deforestation in the country to the level that Cote džIvoirežs rainforest
is now in danger of extinction.

2. Description

It has been argued that the partition of Africa was an extension outside
Europe of a power struggle simply too dangerous to be indulged in
within Europe, or that the decision to annex or not to annex was part of
domestic European politics and the susceptibility of European
governments to lobbies and pressure groups.  Such an explanation is
particularly applicable to French colonialism in Africa.  Following her
defeats to the Prussians in 1870 and her loss of Alsace-Lorraine and
subsequent industrial inferiority, the proud nation of France was
motivated to obtain land, material resources and manpower in an attempt
to strengthen its seriously diminished international position.

French policy in Cote d'Ivoire was to destroy all old affiliations and
loyalties in order to mold the country to fit into a French political and
social empire.  As the French became more established in Africa direct
administration was introduced.  A central office in Dakar for the
Governor-General and individual colonial governors officežs in each
country were created.  The hierarchy of control instituted to eradicate
all previous forms of order was so bureaucratic that it descended as far
as the village headman.  Further evidence of the pains that the French
went to is the example of West Africans being encouraged to become
French citizens, even though the notion of sovereignty was completely
foreign to the native people.

In 1893 France officially established Cote d'Ivoire as a French colony,
but continued to battle local uprisings until 1914.  For the French
colonists the country became a rich resource base for agriculture and
the export of exotic forestry resources.  By the end of the 1940s,
following the building of a railway to Burkina Faso, Cote džIvoire became
the richest colony in Franco phone West Africa accounting for more than
50% of export revenue for the entire region.  In 1960 France followed
the lead set by its European ally, Britain, and gave Cote džIvoire its
independence.  French reluctance to give up its colonies is evidenced by
its continued dreams of French union with Franco phone Africa, and also
by the violent struggles it endured in Vietnam.  The dream was given
new life with the second coming of General Charles de Gaulle and his
vision of a French Community, but even the charismatic president could
not hold on to past colonial spoils.
  
During the 1960s and 1970s Cote d'Ivoire emerged as one of Africažs most
prosperous and well managed states.  The period was attributed to the
leadership of president Houphouet-Boigny.  He was, until his death in
1993, heralded as Africažs most successful free-market capitalist.  Cote
džIvoire was used as an example for other African countries to follow as
they were thrown into ideological and ethnic disputes.

French influence in the country continues to be particularly strong as
evidenced by its heavy share in most sectors of the economy.  Francežs
influence is perhaps most notable throughout western Africa for its
creation of the Franc Zone which has brought a degree of stability to
market minded countries like Cote d'Ivoire in the form of low inflation
and a generally open economy.  Cote d'Ivoire's banking and foreign
exchange is closely tied to other Franco phone West African countries
through the Communaute Financiere Africaine, and the Union Economique
et Monetaire de lžAfrique de l'Oeste (UEMOA).  The currency issued by
the central bank of the UEMOA is the CFA franc and is convertible
(guaranteed by the French Treasury) against the French franc.  

Following a five year period in which GDP continuously fell the January
1994 CFA Franc devaluation (the first realignment in more than forty
years) aided Cote džIvoirežs economy and has allowed GDP to again move
into positive numbers, 1.3% in 1994.  The primary reason for the change
in Cote džIvoirežs GDP fortunes can be attributed to the increase in the
price competitiveness of the countries major exports of coffee, cocoa and
wood products.  This example clearly high lites the degree to which Cote
džIvoirežs fortunes rely upon France.  Had France not agreed to the
devaluation of the CFA franc Cote d'Ivoire would remain in economic
stagnation. 

Other evidence of Frances influence can be seen in the countries's
foreign policy.  During South Africa's apartheid period Cote d'Ivoire
kept an open dialogue with South African and a trade office was set up in
Abidjan in 1989.  In addition, in 1992, Cote džIvoire was the first African
nation to open full diplomatic relations with South Africa.  Such a policy
was not seen favorably by most other African nations, or as a supportive
move for those South Africans under the grip of apartheid.  Moreover,
the country is reliant upon France's military to act as a buffer against
the civil strife of neighboring Liberia and the traditionally strained ties
with the increasingly unstable Nigeria.  

The education system in Cote d'Ivoire provides yet another example of
Frances continued dominance in the country.  It is molded after the
French system as seen with the baccalaureate examination, and at the
secondary level the brevet džetudes du premier cycle.  However, unlike
the system in France there is an increasingly high fail rate in Cote
džIvoire.  At the tertiary level the rate is 86% and at the secondary level
the rate is 92%, in all cases the results are much higher than they were
upon independence in 1960.  These figures represent a daunting
reminder of the continued affects of colonialism        

During the 1960s and 1970s Cote džIvoire became so prosperous that the
numbers of French citizens working in the country exceeded those of
pre-independence.  However, because it relied heavily upon its rich
agricultural land, the 1980s collapse in the world prices for cocoa (of
which Cote džIvoire is the worlds largest producer) and coffee placed an
incredible strain upon the country forcing it into a programme of
structural readjustment.  However, even today Cote d'Ivoire's economy
is one of the most impressive in West Africa.  1993 figures indicate that
the country had the second largest GDP after Nigeria and the second
lowest inflation rate after Senegal while still posting one of the lowest
rates of GDP growth.  

Cote džIvoire, like so many other African countries, is currently
undergoing a phase of privatization.  Following independence from
France Cote d'Ivoire's government became intricately involved in the
economy to shelter it from the riggers of trading in the international
market and thus a major parastatal system was developed.  However, as
is usually the case, the bureaucracy of the parastatal system began to
eat away at profits and it was evident that fat needed to be trimmed to
remain competitive.  In 1992 the government announced plans to
privatize more than 60 enterprises and to date most have been
successfully transferred over to private hands.  Without close
government oversight the deregulation of the forest industry will prove
disastrous.

The agriculture sector accounts for one third of Cote džIvoirežs GDP,
provides three quarters of its export revenues and almost 79% of all
Ivorian people are engaged in some form of agricultural activity.  Add
that to the fact that foreign trade accounted for 60% of the countries GDP
in 1993 and the daunting reality of Cote džIvoirežs economic position is
understood.

Table 1 - Cote d'Ivoire's Exports  in 1994:

ExportsCFAfr. (Billion)% of TotalCocoa and products49132.1Sawn timber and
products1409.2Coffee and products1117.3Canned fish 654.2Raw Cotton644.2Natural rubber382.5Bananas312.0Logs281.8Unrefined palm oil221.5Pineapples191.2Totals1,530100.0  
Table 1 indicates the importance of wood to the Cote džIvoirien economy. 
Sawn timber and logs combined account for 11% of the countries exports. 
The country lacks the ability to diversify itself following its colonial ties. 
The fragility of the countries economic situation was demonstrated
during the price crashes of both cocoa and coffee during the 1980s and
early 1990s.  The strains placed the government in a situation where by
it had to increase timber production to make up for the severe decreases
in revenue from the countriesž two traditional cash crops.

Following the conclusion of World War II Europe became the largest
buyer of Cote d'Ivoire's wood products.  Prior to the war Europe had
relied upon traditional Eastern European sources, but the iron curtain
rendered them inaccessible.  The industrialized countries of Europe
provided a lucrative market for Cote d'Ivoire's wood industry and
production rapidly increased.  However, the government did not
instigate a replanting policy and the rainforests are being rapidly
depleted.  Western economists and environmentalists have blamed the
country for not insuring one of its major natural resources, but their
claims do not take into consideration the inability of Cote džIvoirežs
authorities to instigate such policies. 

Mass exports of wood are not the only source of Cote džIvoirežs
deforestation problem.  The problem is further compounded when
farmers clear the land to make way for cash crops such as coffee, cocoa,
cotton, palm oil and gum.  The crops pose large profits for the heavily
dependent agriculturally based country and thus as demand increases
they are forced to meet it by increasing supply.  Cote džIvoire has an
extremely high population growth rate which reached 3.8% in 1995.  The
rapid increase in the population is also worsening the deforestation
problem.  Most of the rural population relies heavily upon wood for
fuel and therefore, the demand is growing much faster than forest
regeneration can occur.

The environmental impacts of deforestation in Cote d'Ivoire are immense. 
It is not difficult to comprehend that when such a diverse and immense
ecosystem such as a rainforest is attacked its natural cycle is severely
altered.  In the case of Cote džIvoire countless plants, animals and
insects are in danger of extinction.  The rainforest is not a separate
micro entity, but rather an intricate part of the equilibrium of the macro
environment.  Changes to the rainforest have wide ranging impacts from
decreases in the amount of oxygen produced which causes higher levels
of CO2 in the atmosphere, to desertification causing changes in climates
over huge landmasses.
 
In the case of Cote džIvoirežs decreasing rainforest many rare plants,
animals, and insects which are native only to that portion of Africa could
become completely extinct.  However, some insects and species will adapt
to their new surroundings.  In some cases biologists have determined
that by changing the habitats of disease carrying insects increases in
malaria and river blindness are occurring within rural communities. 
Cote džIvoiriens will inevitably be the first to suffer from such
environmental changes.  First, wood for fuel will become scarce, then as
desertification sets in fertile land will also become scarce.  Within a
relatively short amount of time Cote džIvoirežs current environment
could become unrecognizable leading to civil strife, famines and
epidemics.  

There is no simple solution to Cote džIvoirežs deforestation problem. 
The country is, simply stated, a result of European colonialism and thus
has been unable to shake the colonial legacy and its long term
debilitating ties.  The government can not afford to reduce deforestation
and it can not afford not to.  Therefore, without substantial guidance
from unbiased developed countries one of the few African success
stories could easily turn into another African nightmare. 

3. Related Cases

AFRICA Case
ANGFISH Case
ANGDIAM Case
BENDL Case
CHILE Case
GHANA Case
GHANGOLD Case
MALAY Case
THAILOG Case
USCANADA Case
USWOOD Case
 
4. Draft Author: Sean Morris, May, 1996

B. LEGAL CLUSTERS

5. Discourse and Status: DISagree and INProgress
Cote džIvoiriens who rely upon the wood industry for a living are in
disagreement with the government which has attempted, albeit half
heartedly, to implement restrictions on the amount of wood forested. 
Local people claim customary law rights which the government has found
difficult to counter.

6. Forum and Scope: Cote d'Ivoire and Many

7. Decision Breadth: 1

Restrictions upon the wood industry would also adversely affect the
ability for the cocoa and coffee industries to expand.
 
8. Legal Standing: TREATY

Cote d'Ivoire's legal system is fashioned after the French system.  To
date those laws limiting the further cutting of timber in the rainforests
are limited in both scope and enforcement.  So far the best restriction is
the treaty signed by the 11 member African Timber Organization (ATO)
which, although loosely worded, recognizes the importance of conserving
the forests.

C. GEOGRAPHIC CLUSTERS

9. Geography:

     Continental Domain: Africa
     Geographic Site: Western Africa [WAFR]
     Geographic Impact: Cote džIvoire and Western Africa 

10. Sub-National Factors: No

11. Type of Habitat: TROPical  

In Abidjan, the hottest weather is February-April; the coldest month is
August; the driest month is January; the wettest month is June.

D. TRADE CLUSTERS

12. Type of Measure: Import Standard [IMSTD]

French colonial rulers introduced log supply quotas in Cote džIvoire in
an attempt to conserve forested areas.  However, such quotas have
subsequently been increased or ignored.  

13. Direct vs. Indirect Impacts: DIRect

14. Relation of Measure to Impact: Indirect

a. Directly related to product: Yes WOOD
b. Indirectly related to product: No
c. Not Related to product: No
d. Related to process: Yes DEFORestation

15. Trade Product Identification: WOOD

16. Economic Data

Timber is the second largest export commodity in Cote džIvoire and so
the government can ill afford to reduce the amount of wood harvested
without injuring the economy.  Further compounding the problem, the
country relied heavily upon the wood trade during the 1980s and early
1990s when the world price for cocoa and coffee plummeted.

17. Degree of Competitive Impact: MEDium 

18. Industry Sector: WOOD

19. Exporter and Importer: Cote d'Ivoire and Many

E. ENVIRONMENTAL CLUSTERS

20. Environmental Problem Type: DEFORestation

21. Species Information: 

Names: Afromosia, Odum, Mahogany, Iroko
Type: Plants, Angiospermae, Dicots
Diversity: 1,059 higher plant species per 10,000 km/sq

Western Africa is home to more than 8,500 plant species.  The impact of
the wood trade on the tropical forest environment is great.  There is a
plethora of plants, animals and insects that are in danger of at least
regional extinction if the cutting down of the rainforest continues at its
current rate. The deforestation will have repercussions on other
environments adding to the global warming and further bio-diversity
problems.

22. Impact and Effect: HIGH and REGULatory

Experts have estimated that at the current rate of depletion Cote
d'Ivoire's rainforest could be completely gone within 40 years.  This will
cause a knock on effect for other ecosystems in the country and
desertification will become a real problem.

23. Urgency and Lifetime: High and 40-80 years

24. Substitutes: RECYcling

The recycling of many products would aid in reducing demand for Cote
d'Ivoire's wood.  The government should also consider planting fast
growing trees that are meant just for harvesting rather than using only
native mature (old growth) trees.

25. Culture: Yes

Colonialism did have an effect on the people that now reside in Cote
d'Ivoire.  When the country was arbitrarily created in an agreement
among the European countries active in West Africa, France attempted to
institute many of its own customs and ways.  The most obvious of these is
the fact that the official language of the country is French even though
the country is comprised of more than 60 ethnic groups with many
different dialects.  In addition, like many of its neighboring countries,
the people of Cote d'Ivoire are traditionally closely connected to the
forest depending upon it for their livelihoods.

26. Human Rights: No

27. Trans-Boundary Issues: Yes

The problem of deforestation is not restricted to Cote džIvoire and thus
eleven West African countries formed the African Timber Organization
(ATO) in an attempt to slow the depletion of the rainforests in West
Africa.  

28. Relevant Literature:

Brunshwig, Henri, French Colonialism, 1871-1914: Myths and Realities,
1966, Praeger Press, New York, U.S.A.

Chand, Sheetal K., Transition to Market Studies in Fiscal Reform, 1992

Congressional Research Service, Africa: U.S. Foreign Assistance Issues,
11/9/95, The Library of Congress, Washington, DC.

Morgan, W.B., and Pugh, J.C., West Africa, 1969, Butler and Tanner Ltd.,
London, U.K.

Obichere, Boniface, I., West African States and European Expansion, 1971,
The Colonial Press, Inc., Clinton, Massachusetts, U.S.A.

Pakenham, Thomas, The Scramble for Africa: The White Manžs Conquest
of the Dark Continent from 1876-1912, 1991, Ransom House, New York,
U.S.A.

Schroth, Peter W., Doing Business in Sub-Saharan Africa, 1991, American
Bar Association Section of International Law and Practice, USA.
 
Sudarkasa, Michael E. M. The African Business Handbook: A Practical
Guide to Business Resources for U.S./Africa Trade and Investment, 1993,
21st Century Africa, Inc. Washington, D.C.

Weiskel, Timothy, C., French Colonial Rule and the Baule Peoples:
Resistance and Collaboration, 1889-1911, 1980, Clarendon Press, Oxford,
U.K.

Whetham, Edith and Currie, Jean, The Economics of African Countries,
1969, Cambridge University Press, U.K.

Wickins, Peter, An Economic History of Africa From the Earliest Times to
Partition, 1981, Oxford University Press, Cape Town, South Africa

The World Bank: Africa Region, A Continent in Transition: Sub-Saharan
Africa in the Mid-1990s, November 1995.

The World of Information, Africa Review 1993/94, The Economic and
Business Report, 1994, Kogan Page and Walden Publishing/Unwin
Brothers Ltd., Woking, U.K.