Pdf on jan 1, 2014, vincent itai tanyanyiwa and others published challenges and opportunities for regional integration in africa. What sri lanka can learn from poland patryk kugiel, shari cooray1, thileni wickramaratne2 although poland and sri lanka are distant and differ significantly, a comparison of their experiences with regional cooperation reveals a few interesting observations. The money we get from the african union is rarely used for projects in egypt, south africa or nigeria. Great insights, which brings together a number of insights and perspectives on some of these characteristics and dimensions that shape various regional integration initiatives in africa. Africa, but also to start the process of regional political and economic integration between these socalled frontline states. Bilateral agreement, multilateral agreement, common market, single market, single economy, economic integration, independent state, underdeveloped country, developing country, developed country, trade liberalization, globalization, multinational corporation. Regional integration can also improve a countrys terms of trade, which strengthens the incentives to act collier, 1979. Towards agenda 2063 provides a ready and accessible resource for trade policymakers, parliamentarians, the private sector, academia and civil society, as well as the general public. For example, progresses have been uneven, so far, among the eight regional economic communities recs recognized by the african union commission auc 3 and supposed to be the building block of regional integration in africa. A case study of the economic community of west african states. The benefits of regional integration trademark east africa. The importance of regional economic integration in africa by.
May 10, 20 the world economic forums africa competitiveness report 20 sheds light on the key barriers that prevent africa from reaping the full benefits of international trade, and hence increased regional integration. The panafrican developmental regional integration agenda has to do with regional integration for the political unification of africa. Member countries have a wider selection of goods and services not previously available. However, supplyside constraints may be more important. This dissertation will focus primarily on the economic aspects of regional integration, and the importance of regional economic integration to africa. This paper examines the history of regional integration in africa, what has motivated it, the different initiatives that african governments have pursued, the nature of the integration process, and the current challenges. This tends to focus on border measures such as the import tariff. Making african integration a reality africa renewal. The issues of monetary coordination, foreign exchange volatility, taxation, savings and macroeconomic convergence are investigated from a regional perspective. Regional economic integration in west africa diery seck. The formation of the east african community eac in 1999 by the united republic of tanzania, the republic of kenya and the republic of uganda was the achievement of the trios cooperation since the collapse of the original eac in 1977. A case of east african community eac, authorombeni n.
The healthy effects of such a regional economic integration are presumed to be as follows. Mwasha abstract regional economic integration rei refers to the commercial policy of discriminatively reducing or eliminating trade barriers only between the states joining together. Assessing regional integration in africa i united nations. Africas regional integration will benefit all africa renewal. Cultural differences between and within states will continue to exist both in europe and in east africa. The advantages and disadvantages of economic integration. In view of this, it is appropriate to briefly reexamine whyregional integration is pursued, whatis understood by regional integration and preconditions and principles for regional integration in subsaharan africa. The southern african customs union sacu is the oldest customs union in the world but has relatively little to show for its longevity. In east africa we see the potential that exists in regional organisations. To move the regional integration process forward, african countries have also adopted the new partnership for africas development nepad, the overarching development framework for the region, recognized by the united nations and its agencies and such global bodies as the g8 industrial countries.
Secondly, regional integration implies the lowering of barriers to trade, thus benefiting the economy and increasing the. The disadvantages of regional economic integration bizfluent. Jun 27, 2018 regional integration refers to various types of political and economic agreements that form closer ties between sovereign countries. Regional integration presents unique opportunities to drive africas transformation and development. Regionalism in africa has always had a strong political motive.
Thirdly, education and cultural exchanges have the potential to enhance regional integration for the benefit of all members. Africas integration journey towards a more connected, competitive and businessfriendly continent is underway and its roadmap is, in some areas, under construction. The purpose of this report is to provide a brief overview of the various components of the regional 1 article 352 of the cotonou agreement states that economic and trade cooperation shall build on regional integration initiatives of acp states, bearing in mind that regional. Regional integration and nontariff measures in the economic. A handbook on regional integration in africa commonwealth. A preference area constitutes to weakest form of integration and an economic union the strongest form of integration. Regional integration is an approach to economic liberation setting a distinctions between preferences are, free trade are, customs union, common markets, and economic union. This chapter considers the experience of regional integration schemes in subsaharan africa ssa. Regional integration in subsaharan africa experience and prospects faezeh foroutan the emphasis of regional integration in subsaharan africa should shift from the integration of goods markets to the regional coordination of macroeconomic and microeconomic policies, the harmonization of administrative rules and regulations, and.
The case of sadc find, read and cite all the research you need. Regional integration refers to various types of political and economic agreements that form closer ties between sovereign countries. What are the advantages of regional economic integration. Despite the limited growth of intraeac trade, the eac is considered the most successful among all the regional economic communities in africa, having received the highest score among those communities on the regional integration index of the united nations economic commission for africa uneca. This is an endeavour that ecdpm is committed to, including with this issue of. The economic community of west african states ecowas is among the major african regional economic communities that has been shaping the evolution of regional integration in western africa. The aim of regional integration is to uplift the least developed countries, and this is the. There is no doubt that regional integration will offer more economic opportunities in terms of investment, economic growth, production capacity, creation of value chains and trade promotion. Define the following terms and concepts related to regional integration. A rationale for economic integration pambazuka news.
Panafricanism, as an expression of continental identity and coherence, distinguishes regional integration in africa from other regions in the developing world mccarthy, 1995. This book presents a number of key studies pertaining to the most pressing challenges of economic regional integration in west africa. Advancing regional integration in southern africa an evidencebased, forward looking study on regional trade and integration in the tripartite region, focusing primarily on southern africa final report april 2014. Such policies vary from trade agreements to extensive treaties in. Part of the problem may lie in the paradigm of linear market integration, marked by stepwise integration of goods, labour and capital markets, and eventually monetary and fiscal integration. If africa is to prosper it will have to place much greater emphasis on substantive regional integration than in the past and it has to decide that economic progress trumps political solidarity. Pdf the benefits of regional economic integration for. Benefits of global and regional financial integration in. While market access is relatively open and the regulatory environment conducive to trade in comparison with other regions regional.
Rhetorically the advantages of regional integration in africa were recognised even before the creation of the oau in 1963. In the main, peopletopeople relations should be prioritised. Tweet append below in salient points the advantages and disadvantages of economic integration. Regional integration is a must for africa world economic forum. Regional economic integration can be further enhanced in fields like energy and infrastructure. Advantages of regional integration summary free essay example. Dynamics of equity in trade, education, media and labour east african integration dynamics of equity in trade, education, media and labour. The discussion is concluded by a few observations on challenges facing regional integration in eastern and southern africa esa. Regional economic integration agreements are treaties between member states in a particular region of the world such as subsaharan africa or the middle east. The record of regional integration in africa so far has been a sobering one, and many regional groupings are marked by uncoordinated initiatives, political conflicts and low levels of intra.
These agreements are usually made between nations with smaller economies in order to promote trade within the region. Regional integration arrangements 9 benefits of regional integration 10 the necessity of regional integration in africa 17 how can regional integration help africa. Special issue on the 20 african economic conference on regional integration in africa. The benefits of regional economic integration for developing.
The benefits of regional economic integration for developing countries in africa. Trade gains are one of the major advantages of regional integration for individual member states. On one hand, it is a development strategy aimed at aggregating africas small countries into one large. Africas regional integration index is an action tool measuring the progress of an africa on the move. In relation to this, this paper will explore the several attempts made at regional economic integration in africa and the problems encountered so far.
However, the regional integration process is not necessarily smooth and linear. Promotion of regional integration remains an important economic and political goal in africa. The objectives of this paper are to study the literature related to regional economic integration and identify the general benefits which can be obtained from economic integration schemes. Common currency areas could reduce uncertainty and minimize transaction costs, which also improve trade. Some countries have made these choices botswana and rwanda come to mind, as do others but in many instances the work of good governance, building. Challenges and opportunities for regional integration in. It is because of this that regional integration is needed in africa, as this will assist in enhancing economic development and growth. Since a regional common market obviously provides a much larger market than that offered by the domestic market of a single country, economies of scale, both internal and external, become possible with the widened size of the market.
114 1334 646 113 593 164 228 585 823 161 432 1006 1021 1589 1414 42 1581 213 1281 378 215 45 1644 131 1645 676 1404 1134 1354 333 588 385 578 321 1450 384 454 401 386