Observation

Most candidates who attempted the question performed well in 7a. However their performance in 7b was poor. Some candidates wrote the functions of the West African clearing house instead of the objective as required in the question. 

The expected responses to the question include:

7.(a)  Objectives of the European Union

• To eliminate all tariffs and quotas between member countries.
• To establish a common external tariff on all goods from outside the union.
• To evolve common policies on agriculture, transport and communication.
• To stabilize currency fluctuations between member countries and introduce a   common currency.
• To maintain a free trade area within the union through the removal of trade barriers.
• To promote peace among member nations.
• To establish a unified economic and monetary system.
• To promote inclusion and combat discrimination.
• To encourage technological and scientific developments.

       
(b) Objectives of the West African Clearing House

• To serve as a multilateral payment facility to promote trade within the region.
• To promote the use of national currencies in trade transactions within the sub-region and no other currencies such as the dollar and pound.
• To serve as a channel for clearing and settlement of cheques among member banks.
• To collect and disseminate information on trade for member central banks.

• To undertake studies on issues relating to fiscal and monetary cooperation among member countries.
• To define policies and programmes to promote monetary and fiscal harmonization.
• To ensure the establishment of a single monetary zone in West Africa.
• To enhance the possibility of establishing one common currency.