Explain the meaning and uses of the ECOWAS Fund for co-operation, compensation and development

Explanation

The ECOWAS fund for co-operation, compensation and development has its headquarters in Lome, Togo. The ECOWAS fund is financed by member states, grants from different sources, loans, revenue from community enterprises, etc. The ECOWAS fund has the responsibility of compensating member states that have suffered losses following their implementation of ECOWAS treaty and promoting economic activities.

The following are the uses of ECOWAS fund for Co-operation, compensation and development:

(i) It was agreed that the fund should be used to finance joint development projects within ECOWAS sub-region.

(ii)The fund was also meant to be used in compensating member states that may have suffered losses as a result of their implementation of ECOWAS treaty.

(iii)Promotion of developmental projects:The fund is used to assist in developing some projects in less developed states of the body.

(iv)Compensation: Member states that have suffered badly from the outcome of trade liberalisation and from the location of community enterprises are compensated from this fund, and other forms of assistance.

(v)Foreign. investments: The fund guarantees foreign investment initiated by member states concerning the establishment of the enterprises and in the pursuance of the harmonisation of industrial policies.