ECONOMIC CO-OPERATION AND INTEGRATION IN WEST AFRICA (1999 – 2010)
CHAPTER ONE
INTRODUCTION
1.1 The Study’s Background
The goal of economic integration is to facilitate access to a larger market by combining the economies of different countries. It is a mutual agreement between two or more countries to unify their economic policies by removing or reducing tariff and non-tariff trade barriers and coordinating monetary and fiscal policies.
“The goal of economic integration is to reduce costs for both consumers and producers while increasing trade between the countries participating in the agreement…there are various levels of economic integration, including preferential trade agreements (PTA), free trade zones (FTA), customs unions, common markets, and economic and monetary unions.”
The more economically integrated the economies become, the fewer trade barriers exist, and the member countries’ economic and political coordination improves” (Alemayehu & Haile, 2014). Tinbergen’s classification of economic integration as a series of stages, including a free trade zone, a customs union, a common market, and economic union, provides useful insight into the process of economic integration (Tinbergen, 1954).
Economic integration between or among states is a long-standing concept and practice. According to the available literature, it dates back long before the Berlin Conference in 1884, when African nations relied on cooperation and community life to solve problems and develop their communities (Asante, 1997).
African countries have always supported the concept of African economic integration since their independence. This concept was initially motivated by shared colonial experiences and the perception that colonial powers purposefully drew artificial borders between African states.
Many people believe that Regional Economic Communities and cooperation are critical to continental and global economic stability and growth (Padoa-Schioppa, 1987). This is especially true now that the focus of RECs has shifted from trade agreements and concessions to monetary, economic, and financial stability considerations. In today’s world, no state can achieve economic growth and stability on its own.
Regional Economic Communities and inter-national cooperation will continue to shape economic growth in the coming years. Unfortunately, African countries have not taken advantage of the synergy that RECs can provide, as well as the African Economic Community’s potential (AEC). Despite differences in the scope and progress of REC economic integration, regional and continental economic integration has been limited across the African continent due to political and economic challenges.
For example, the African Union (AU) currently recognizes eight regional economic communities (RECs) in Africa as major pillars of the African Economic Community. Arab Maghreb Union (UMA), East African Community (EAC), Economic Community of West African States (ECOWAS), Southern Africa Development Community (SADC),
Community of Sahel-Saharan States (CENSAD), Inter-Governmental Authority on Development (IGAD), Common Market for Eastern and Southern Africa (COMESA), Economic Community of Central African States (ECCAS),
Economic Community of Central African States (ECCAS), Economic Community of Central African States (ECCAS), Economic Community of Central African States (EC (ECCAS).
The Economic Community of Great Lakes Countries (CEPGL), Southern African Customs Union (SACU), Mano River Union (MRU), West African Economic and Monetary Union (UEMOA), Central African Economic and Monetary Community (CEMAC), and an Indian Ocean Commission are the other existing integration groups (IOC).
Economic integration benefits include (Alves et al., 2007): collective bargaining as a bloc, trade and financial flows, direct foreign investments, diversification, availability of resources, and improvements in competitiveness, among other things (Carnoy, 1972).
Economic integration expands the available market for firms operating within the region, increasing their opportunities to gain economies of scale in production (Sakakibara & Yamakaw, 2005). It also enables businesses to achieve industrial specialization and competitiveness.
Companies concentrate and specialize on products that give them a competitive advantage over other companies, and factories that are not performing optimally may be closed. Consumers can also get a wide variety of products at low and competitive prices.
This is due to the fact that regional trade and tariff reductions will reduce goods from outside the region. Imported goods into the regions will also have to be priced very low in order to compete with regional prices.
Furthermore, economic integration has the potential to attract direct foreign investments as multinational corporations seek to invest in countries that are members of economic blocs in order to benefit from the advantages associated with being a member of the economic bloc (United Nations, 1985),
such as tax breaks and preferential treatment for exports among members of the same bloc. Samsung, for example, has made significant investments in the EU in order to capitalize on the EU’s economic integration.
Another advantage of economic integration is the potential benefits that many landlocked countries will gain from the same bloc’s coastal countries. Given the foregoing, the purpose of this research is to evaluate the role of economic cooperation and integration as a panacea for development and unity in the Economic Community of West African States (ECOWAS).
Do You Have New or Fresh Topic? Send Us Your Topic
ECONOMIC CO-OPERATION AND INTEGRATION IN WEST AFRICA (1999 – 2010)
INSTRUCTIONS AFTER PAYMENT
- 1.Your Full name
- 2. Your Active Email Address
- 3. Your Phone Number
- 4. Amount Paid
- 5. Project Topic
- 6. Location you made payment from