benefits of regional integration in africa

Accepted 12 September, 2008 Regional integration is increasingly being accepted as essential in … Against an international backdrop of changing political and economic priorities, Africa must plot a new course for its industrialisation and economic development, using the momentum of regional integration. A dispute settlement mechanism, similar to that set up by the World Trade Organization is embedded in the agreement. Metzger, M. (2008) Regional Cooperation and Integration in Sub-Saharan Africa, Geneva: United Nations Conference on Trade and Development. First, regional integration is an important building block in deterring violent conflicts between nations. For regional integration in Africa to be a success, Africa’s leaders will have to move beyond grand gestures and abstract visions. The paper concludes by outlining that regional integration is a diverse component that entails the private While other regions have successfully used their On one hand, it is a development strategy aimed at aggregating Africa’s small countries into one large THE IMPORTANCE OF REGIONAL ECONOMIC INTEGRATION IN AFRICA CHAPTER ONE INTRODUCTION 1.1 Background The importance of regional economic integration is a very pertinent issue in Africa, particularly in light of existing political and economic weaknesses. In the case of both the European Union and the East African Community there are three outstanding benefits that regional integration can bring. The Impact of Regional Integration on Economic Growth and Development: A Case Study of the East African Community(EAC), 2001-2010 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. Both countries benefit from the level of integration the European Union, of which both are members, has brought about. For instance, the European Union only considers a few languages as official means of communication, leaving out languages used by remote communities in Europe, such as Breton, Welsh and Frisian. The development and the economic competitiveness of the border territory is implemented through improvement of local infrastructure and the environmental situation, as well as by fostering of economic links, bringing together the scientific community, and supporting SMEs in cross-border marketing actions. Cooperation in maintaining regional peace and stability has also saved lives in countries such as the Democratic Republic of Congo and Madagascar. the context of the regional integration process in West Africa driven simultaneously by ECOWAS and WAEMU. The Organization of African Unity and its successor, the African Union, have championed continental cooperation since the 1960s, culminating in the signing of the Abuja Treaty in 1991. Common interests and common institutions reduce the potential for conflict, conflict that formerly could lead to war. Currently, weak enforcement of existing treaties and non-tariff barriers continue to hinder free movement of goods, services and persons across borders. Another key concern is that integration must be people-centred, with stronger citizens’ partnerships, especially among Africa’s burgeoning youth population, private sector players and civil society institutions, in order to ensure sustainable development. We would like to conclude by asserting that the essence of the German-Polish experience holds true for East Africa as well: within regional organisations there are often different interests – including different national interests. THE HISTORY OF INTEGRATION IN SOUTHERN AFRICA However, they can have disadvantages, too. The Benefits of Regional Economic Integration for Developing Countries in Africa : A Case of East African Community ( EAC ) @inproceedings{Mwasha2008TheBO, title={The Benefits of Regional Economic Integration for Developing Countries in Africa : A Case of East African Community ( EAC )}, author={Ombeni N. Mwasha}, year={2008} } The phenomenon of regional integration. Most Tanzanians however lack awareness of the regional integration process and cannot as such articulate the benefits that can be drawn from the EAC integration process. I also wish to thank To accelerate the integration, the priority of economic integration must be balanced by those of social, cultural and political integration. African regional integration was a dream of many of the continent's leaders, ... South Africa and Malawi do not experience the costs and benefits of regional … Trade between members has arguably been the single most important factor contributing to the creation of jobs and increasing the standards of living both in the EU and the EAC. This paper represents the opinions of the author, and is the product of professional research. Keywords: regional integration, Africa, trade creation, trade diversion, Franc zone, trade liberalization JEL classification: F6, F12, F15, F16 * Acknowledgements: An earlier version of the paper was presented at a workshop in Beijing 8-10 December 2013. In East Africa we see the potential that exists in regional organisations. This resulted in millions of people being killed, the destruction of Warsaw and other major cities. Some countries have made these Africa’s challenges call for pragmatism and a sense of urgency in action. The close partnership that characterises the relations between our countries is not self-evident. Conflict is replaced by constructive dialogue. Regional integration is often seen as less relevant for resource-rich countries, since demand for commodities typically comes from the global market rather than from regional demand. Natural resources management, particularly in the extractives industry, can make a meaningful contribution to a country’s economic growth when it leads to linkages to the broader economy © 2020 TradeMark East Africa. Cultural differences between and within states will continue to exist both in Europe and in East Africa. To date, the RECs have made slow but steady progress on Africa’s integration, particularly in infrastructure (SADC, EAC), trade liberalisation and facilitation (West Africa economic and monetary Union, COMESA), free movement of people (ECOWAS), and peace and security (ECOWAS and SADC). Today Germany and Poland are friends and partners in the European Union which Poland joined in 2004. Regional integration is inevitable for economic transformation and sustainable socio-economic development in Africa. Regional integration allows countries to: Improve market efficiency; Share the costs of public goods or large infrastructure projects; Decide policy cooperatively and have an anchor to reform; Have a building block for global integration; Corpus ID: 27049396. Conflicting priorities often short-circuit Africa’s efforts. Policy instruments, especially for overlapping REC member nations, need to be harmonised. Finally, we should mention the cross-border cooperation. Regional Integration in Africa Trudi Hartzenberg Trade Law Centre for Southern Africa (tralac) Manuscript date: October 2011 Disclaimer: This is a working paper, and hence it represents research in progress. Nonetheless, economic growth prospects realizing the benefits of regional integration seem to be still a work in progress. Arguably there is no regional integration without this economic component. 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. Cooperation based on trust will always be more beneficial for all concerned than any other alternative we can imagine. ), Regional Integration and Trade Liberalization in Sub-Saharan Africa (vol: . In the case of both the European Union and the East African Community there are three outstanding benefits that regional integration can bring. It is also argued that African governments are unlikely to pursue integration with much seriousness if they do not benefit from integration, giving rise to political indifference. Regionalism in Africa has always had a strong political motive. Regional integration is so important for resource-driven diversification in Africa. Africa’s integration is no longer a matter of choice. Regional integration is a process in which neighboring states enter into an agreement in order to upgrade cooperation through common institutions and rules. The preponderance of bilateral and multilateral agreements between African states and the international community should also be reviewed to ensure that existing and future trade and investment arrangements align with regional and continental integration. 44 countries signed the pact in March. These agreements are usually made between nations with smaller economies in order to promote trade within the region. AN INDEPENDENT STUDY ON THE POTENTIAL BENEFITS OF THE AFRICAN CONTINENTAL FREE TRADE AREA (AFCFTA) ON NIGERIA 4 Regional integration is inevitable for economic transformation and sustainable socio-economic development in Africa. J. Pol. need for regional economic integration in Africa. The importance of regional integration is being felt across the continent, as evidenced by African leaders now calling for a free trade area by 2017. Thirdly, education and cultural exchanges have the potential to enhance regional integration for the benefit of all members. Ensuring that regional economic integration succeeds in Africa is very important, not only because of the prospective benefits mentioned above, but also because the policies that are required to ensure its success are the same as those needed if Africa is to benefit from the Regional integration efforts, however, need to go hand in hand with competitiveness-enhancing policies as explored in other parts of the Africa Competitiveness Report. Another advantage of regional integration is that the effect of a large market will increase global competitiveness. In September 2018, the Geneva-based International Trade Centre (ITC) published a private sector guide to the AfCFTA. 1 Regional Integration: Concepts, Advantages, Disadvantages and Lessons of Experience1 1. Almost immediately following the political transformations of the early 1990s, German-Polish cross-border cooperation started, aiming at an equitable and balanced development of the cross-border areas by strengthening the links between citizens, businesses and institutions. The connectivity between countries is much higher now than it ever was in the past. Africa Regional Integration Index Report 2016. the key priorities of African leaders towards achieving the African dream of continental unity and economic growth. Peacebuilding and economic integration are both long-term gradual processes that must evolve together, with an important regional dimension. Relat. With regard to water resources and management, of notable benefit has been the establishment of river basin commissions for shared watercourses, which have made it easier for the joint management and utilization of transboundary … The AU is therefore expected to act as the primary vehicle for the advancement of regional integration, and for the promotion of Africa’s integration into the global economy. Ensuring that regional economic integration succeeds in Africa is very important, not only because of the prospective benefits mentioned above, but also because the policies that are required to ensure its success are the same as those needed if Africa is to benefit from the In Europe the focus has been on creating a single market based on economic freedom and on creating effective common political institutions to deal with issues that concern all members and require attention. Regional integration is key to addressing this weakness through the delivery of wider social and economic benefits and should be prioritized by Africa’s leaders as they look to ensure that Africa delivers on its promise,” said Jennifer Blanke, Chief Economist, World Economic Forum. Countries all over the world are engaging in regional integration arrangements due to their immense benefits in Moreover, like many African countries, the country has inadequate and poor infrastructures that prevent it to tap the opportunities at hand. Published 05 Jun 2015. As a consequence, a dramatic shifting of borders occurred with more millions of people forced to emigrate and abandon their homelands. Ensuring that regional economic integration succeeds in Africa is very important, not only because of the prospective benefits mentioned above, but also because the policies that are required to ensure its success are the same as those needed if Africa is to benefit from the process of globalisation and integration into the world economy. This chapter considers the experience of regional integration schemes in sub-Saharan Africa (SSA). Africa’s integration is no longer a matter of choice. This study reviews recent initiatives and the experience with regional integration in industrial and developing countries and discusses the implications of the recent expansion of the trend for the multilateral trading system. The worst episode in the history of the two countries started with the invasion of Poland by Nazi Germany in 1939. It has been argued that Africa’s Regional integration is often seen as less relevant for resource-rich countries, since demand for commodities typically comes from the global market rather than from regional demand. A8.1 A roadmap for regional financial integration 140 References 142 Tables Table 2.1 Africa’s integration process 15 Table 2.2 Destination of Africa REC exports, average 2000–2009, per cent of world total 19 Table 2.3 Crucial for its success was the German willingness to acknowledge the crimes committed against the Polish people and the unequivocal acceptance of responsibility for the suffering caused during the Second World War. A review of regional integration experience in Sub-Saharan Africa: A case study of the Economic Community of West African States. Regional integration can lead to substantial economic gains. REGIONAL INIEGRATION IN SUB-SAHARAN AFRICA FAEZEH FOROUTAN (CECTP) I wish to thank Jaime de Melo, Ali Mansoor, and Arvin Panagariya for their helpful comments on an earlier draft of this paper. Economic integration is helping boost trade and investment in Africa While Europe is on the verge of breaking up, Africa is reaping the benefits of integrating, growing and … There hasn’t been a war between members of the European Union since it was created. To build on these accomplishments, this year’s African Economic Conference (AEC) in Kigali must define what the African Continental Free Trade Agreement means for Africa, and how it will foster integration. REGIONAL ECONOMIC INTEGRATION AFRICA 2. Regional integration presents unique opportunities to drive Africa’s transformation and development. of Africa’s development. Regional integration in Africa, however, can Development economists, policymakers, African and non-African researchers are meeting in Kigali, Rwanda this week to discuss the shape and future of continental integration at the 13th African Economic Conference (AEC). “Potential advantages to the private sector include increasing economies of scale and access to cheaper raw materials and intermediate inputs; better conditions for regional value chains and integration into global value chains,” the ITC says. @inproceedings{Mwasha2008TheBO, title={The Benefits of Regional Economic Integration for Developing Countries in Africa : A Case of East African Community ( EAC )}, author={Ombeni N. Mwasha}, year={2008} } Ombeni N. Mwasha Regional Economic Integration …, ECA-WA 2015 An assessment of progress towards regional integration … On June 17, Germany and Poland celebrate the 25th anniversary of the German-Polish Treaty on good neighbourly and friendly relations. Despite the division of the European continent after 1945 and the Cold War, the process of reconciliation between Germany and Poland began as early as 1965 with a Letter of Reconciliation by Polish Catholic bishops to their German counterparts. These differences are legitimate and must be respected. NTMs are policy measures other than tariffs that can potentially have an economic effect on international trade. Regional economic integration agreements are treaties between member states in a particular region of the world such as Sub-Saharan Africa or the Middle East. Since the 1960s, independent African states Since the 1960s, independent African states have attempted to create economic groupings ‘in order to improve their bargaining position Box MP167 Mount Pleasant Harare, Zimbabwe. It also promises to promote trade liberalisation and improve interactions within the existing regional economic communities. The aim of regional integration is to uplift the least developed countries, and this is the beauty of the African Union. Common social and cultural activities have already greatly contributed to breaking down the language barrier. The money we get from the African Union is rarely used for projects in Egypt, South Africa or Nigeria. Besides the European Union, other trade-related regional integration policies include numerous agreements in Africa: for example, the Southern African Customs Union Agreement, the Multilateral Monetary Agreement and the Indian Ocean Commission. Regional integration can be promoted through common physical and institutional infrastructure. Regional trade arrangements have recently attracted growing interest, as existing schemes are either being extended or revived and new groupings are being formed. In: Oyejide, T.A. East Africa Shows the Benefits of Successful Regional Integration. Regional integration is so important for resource-driven diversification in Africa. Against an international backdrop of changing political and economic priorities, Africa must plot a new course for its industrialisation and economic development, using the momentum of regional integration. Source: Standard Digital. This was the genesis of Africa’s regional economic communities (RECs), regarded as the building blocks of the African Economic Community. 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. Convened on the theme, “Regional and Continental Integration for Africa’s Development”, the three-day event will explore proposals for enhancing the broad and inclusive integration of African economies. The same is true for Kenya whose most important trading partner is Uganda and the intra-EAC trade volume is growing dramatically. The number has since risen to 49. More connectivity tends to generate trust and a need for trust. 2nd Floor, Fidelity Insurance Centre Waiyaki Way, Westlands, TMEA Poverty and Gender Impact Study Final, TMEA evaluation Strategic Objectives 2 & 3, Institutional and Organisational Assessment, DFID Independent Evaluation – Executive Summary, Management Response & Recommendations Action Plan, Elimination of Non-Tariff Barriers to Trade, Standards Harmonisation and Conformity Testing Programme, The East Africa Customs and Freight Forwarding Practising Certificate Programme (EACFFPC), Single Window Information for Trade (SWIFT). Regional integration increase a nation economic activities overall, which in turn raises GDP and can provide better living standards for all citizens within the regional block. Importance of regional and continental integration for Africa’s development, Macro-economics Policy, Forecasting and Research, Independent Development Evaluation (IDEV). These differences, however, should not be regarded as sources of conflict, but as sources of diversity, beauty and inspiration. Regional economic integration in Africa 1. Africa on the other hand has no lead goose to benefit from. challenges to regional integration in africa: the case of the revived east africa community 2000-2012 gichohi marvin muhammad r50/69883/2011 a thesis submitted in partial fulfillment for the degree of master of arts in international studies.institute of diplomacy and international studies, university of … Secondly, regional integration implies the lowering of barriers to trade, thus benefiting the economy and increasing the well-being of the member states’ citizens. More focused and gradual steps that are carefully executed at the domestic level may be the best place to start. The example of German-Polish relations is relevant for the East African region because it demonstrates that enmity and rivalry can be overcome and replaced by a mutually beneficial relationship grounded in a set of shared values, characterised by equality and mutual respect for each other and strengthened by economic cooperation and cultural exchange. Regional integration leads to cultural centralization, which can result in the loss of unique cultures within a region. These agreements are usually made between nations with smaller economies in order to promote trade within the region. 398 Afri. This followed the launch of an African Common Passport in July 2016. Regional integration is a tool that can be used for the economic, political and social development of countries. Regional integration allows countries to overcome these costly divisions integrating goods, services and factors’ markets, thus facilitating the flow of trade, capital, energy, people and ideas. The African Continental Free Trade Agreement seeks to bring Africa into the global trade environment as one continent rather than as individual countries. The AfCFTA agreement brings together the largest number of countries within a free trade area in the world. Regional integration in Africa is a subject of great interest, but its impact on income has not been studied sufficiently. This will redefine trade relations among African states. (Ed. East Africa Shows the Benefits of Successful Regional Integration Published 05 Jun 2015 2015 Share Oliver Cann, Director, Public Engagement, Tel. Regional economic integration can be further enhanced in fields like energy and infrastructure. The challenges of regional integration in Africa • page 1 Paper 145 • June 2007 Introduction It is widely acknowledged that Africa’s integration efforts have thus far failed to bear satisfactory fruit. this continental effort at integration, there are other regional bodies, that have arisen across Africa, in the bid to harness the advantages of complementarity rather than competition. Academia.edu is a platform for academics to share research papers. Int. The small, sparsely “Pan-Africanism, as an expression of continental identity and According to this approach, and others, African growth should occur through regionalisation. Recent research by the African Development Bank shows that intra-African trade is the lowest of all global regions at approximately 15%, compared to 54% in the North American Free Trade Area, 70% within the European Union and 60% in Asia. Africa’s integration is no longer a matter of choice. A number of REGIONAL ECONOMIC INTEGRATION Regional Economic Integration (REI) refers to the commercial policy of discriminatively reducing or eliminating trade barriers only between the states joining together. Deepening Regional Integration in Africa: A Computable General Equilibrium Assessment of the Establishment of a Continental Free Trade Area followed by a Continental Customs Union Selected paper for Presentation at the 7th African Economic Conference of regional economic integration in Southern Africa (SADC) reveals that it has not yet achieved the economic benefits that are attributable to developing regions, namely: higher levels of welfare exemplified by low poverty levels, economic development and Regional integration in Africa : Challenges and prospects* A contribution to the Handbook of Africa and Economics Jaime de Melo Yvonne Tsikata Abstract Political motives, geography, and the uneven distribution of gains trumped the traditional efficiency gains across Africa’s Regional Economic Communities (RECs). Sci. Against an international backdrop of changing political and economic priorities, Africa must plot a new course for its industrialisation and economic development, using the momentum of regional integration. However, they can have disadvantages, too. For example, the Common Market of Eastern and Southern Africa (COMESA) is regionalism extending from Libya in the North to Swaziland in the South. Trade gains are one of the major advantages of regional integration for individual member states. Africa is infested with the deepest levels of poverty, lowest share of world trade, and weakest development […] Regional Economic Communities Recognized by the African Union xi Acknowledgements xiii Foreword xv Highlights 1 Chapter One: Introduction 11 Chapter Two: Overview of Regional Integration in Africa 13 2.1 Assessing regional integration 14 2.2 Status in selected RECs 14 2.2.1 Community of Sahel-Saharan States (CEN-SAD) 14 169 Economic integration in the form of regional markets for goods, services, capital and labour, including common standards and lower reciprocal customs barriers, will create larger and more interesting markets for both African and international investors and manufacturers. The challenges of regional integration in Southern Africa Mark Chingono* and Steve Nakana University of Zimbabwe, P. O. Regional integration is fundamentally based on solidarity, and we know that solidarity is … The benefits of belonging to a shared community in southern Africa are reaching the lives of many people in the region, according to a new publication released by the Southern Africa… Mistry, P. S. (2000) ‘Africa’s Record of Regional Co-operation and Integration’, During more than 1,000 years of neighbourship, relations between Poland and Germany were often difficult and marred by conflict. Regional economic groups eliminate or reduce trade tariffs (and other trade barriers) among … 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. The healthy effects of such a regional economic integration are presumed to be as follows: 1. Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark East Africa. First, regional integration is an important building block in deterring violent conflicts between nations. Regional economic integration agreements are treaties between member states in a particular region of the world such as Sub-Saharan Africa or the Middle East. For example, Germany is Poland’s most important trading partner today and Poland is one of the 10 most important trading partners for Germany. Beyond lifting people out of poverty and invigorating Africa’s growth trajectory, the ITC observes that the African private sector will be the key beneficiary. For Africa, a vast continent of over 1.2 billion people, integration has considerable potential not only for promoting robust and equitable economic growth through markets, but also for reducing conflict and enhancing trade liberalisation. 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