Cocoa Traders braced for price rise as Ivory Coast bans exports (FT.com)
By Javier Blas and Orla Ryan in London
Published: January 23 2011 17:11 | Last updated: January 23 2011 17:11
Summary
President Ouattara, the newly elected president in the former election, beating the former president Mr. Gbagbo, declared that Ivory Coast will ban exporting the cocoa. Its aim is to prohibit the money flow available from cocoa trading to go to Mr. Gbagbo, who has the privilege of cocoa exports. Mr. Gbagbo now denies to step down from the presidency after the UN-observed election with Mr. Ouattara. In response to this decision, the commodity market price of cocoa will rise towards a 33 year high, because the share of Ivory Coast in international cocoa exporting market is 40 per cent.
Commentary
This news is about the price increase of cocoa in the global commodity market, but the more complicated political story behind the numbers, as FT. com wrote. Although it is said that the presidential election has fairly been done under the control of the United Nations in November 2010, the former president Mr. Gbagbo did not admit to resign his presidency after the election. He is tightly connected with the economic benefits from cocoa, which accounts 40 per cent of global exports of cocoa. The purpose of the election must have included that the Ivory Coast government cut its relationship which benefits specific politicians with power.
"Wars, Guns, and Votes" by Paul Collier mentions that such corrupt political forces exist in African countries. The author says that these problems are found in many cases and researchers can observe many African countries to write papers about the unlawful elections. This incident will add one more evidence to the claim of Paul Collier that a corrupt political power longs with illegal votes. It is unbelievable as a citizen of a developed countries, but not only Mr. Gbagbo but also the other African countries are not always prosecuted or arrested for breaching the law related to the election.
Although stopping the money flow to Mr. Gbagbo is immediately required, banning huge amount of exporting goods of a country is excessively harmful to the economy of Ivory Coast. Rather, it could be better that the UN and the new president Mr. Ouattara find records of the illegal behavior conducted by Mr. Gbagbo to sue him as a political or economical criminal. Power balance of the former president and the current president are still not clear from this article, but legal procedure of taking presidency by Mr. Outtara will be mush less harmful than the large scale of the economic sanction.
By Javier Blas and Orla Ryan in London
Published: January 23 2011 17:11 | Last updated: January 23 2011 17:11
Summary
President Ouattara, the newly elected president in the former election, beating the former president Mr. Gbagbo, declared that Ivory Coast will ban exporting the cocoa. Its aim is to prohibit the money flow available from cocoa trading to go to Mr. Gbagbo, who has the privilege of cocoa exports. Mr. Gbagbo now denies to step down from the presidency after the UN-observed election with Mr. Ouattara. In response to this decision, the commodity market price of cocoa will rise towards a 33 year high, because the share of Ivory Coast in international cocoa exporting market is 40 per cent.
Commentary
This news is about the price increase of cocoa in the global commodity market, but the more complicated political story behind the numbers, as FT. com wrote. Although it is said that the presidential election has fairly been done under the control of the United Nations in November 2010, the former president Mr. Gbagbo did not admit to resign his presidency after the election. He is tightly connected with the economic benefits from cocoa, which accounts 40 per cent of global exports of cocoa. The purpose of the election must have included that the Ivory Coast government cut its relationship which benefits specific politicians with power.
"Wars, Guns, and Votes" by Paul Collier mentions that such corrupt political forces exist in African countries. The author says that these problems are found in many cases and researchers can observe many African countries to write papers about the unlawful elections. This incident will add one more evidence to the claim of Paul Collier that a corrupt political power longs with illegal votes. It is unbelievable as a citizen of a developed countries, but not only Mr. Gbagbo but also the other African countries are not always prosecuted or arrested for breaching the law related to the election.
Although stopping the money flow to Mr. Gbagbo is immediately required, banning huge amount of exporting goods of a country is excessively harmful to the economy of Ivory Coast. Rather, it could be better that the UN and the new president Mr. Ouattara find records of the illegal behavior conducted by Mr. Gbagbo to sue him as a political or economical criminal. Power balance of the former president and the current president are still not clear from this article, but legal procedure of taking presidency by Mr. Outtara will be mush less harmful than the large scale of the economic sanction.
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by intldev
| 2011-01-25 08:17
| Africa