Ageno Otii

October 19, 2005

Regional Integration In Africa: Prospects and Implications

Overall, regional building in Africa has been a difficult task. There has been some progress in setting up regional economic communities (REC’s), the African Union, and regional integration treaties, summits, conferences on the continent of Africa.

So what tangible work has been done???

1. UEMOA, CEMAC already exist as monetary unions (ECOWAS, COMESA, EAC are actively pursuing monetary cooperation).

2. UEMOA, SACU, CEMAC already are custom unions.

3. COMESA launched its FTA.

4. But, formal intra-REC trade still low at about 10.5% (Would be higher if informal trade was recorded) (SADC, ECOWAS, CEN-SAD, COMESA, are top four in intra- REC trade).

What can the reading tell us about the future of integration in Africa?

1. The Values to Regional Integration: Two Theories

Open Integration vs. Closed Integration

units represent building blocks units represent building blocks

into the global economy “against deeper global integration”

Openness works because it shows the state is open to trade, ideas, people, skills, investment, and is willing to compete on the global state with global standards. There is a correlation between export growth and overall GDP growth. For example, in the 1970’s and 1980’s, open economies grew 4.5% annually while closed economies grew less than 1% per year. However, liberalization can leave countries with weak economic markets and institutions vulnerable to external shocks such as environmental standards or degradation.

2. Challenges to Region- building in Africa

.

What is really going on …

- Small size of African Markets

- Disconnection from infrastructure networks and/ or lack of infrastructure. Limited infrastructure and networks, particularly in energy, transport and communications, results in a high cost of doing business.

- Large membership in REC’s, overlapping REC membership, and duplication of objectives

- State hold onto national sovereignty

- Weak regional leadership

3. The Road to Progress . . .

Europe’s success in integration was aided by precursors such as, countries with similar political and economic values and similar national systems. The problem with Africans model is not so much that they lack these precursors, but they are using integration as a means to achieve these precursors; putting the cart before the horse (in their case they would be results).

What is needed in Africa is then to:

1. Identify and focus on issues that impede trade and investment.

2. Find was to interest business, governments, IGO’s, etc. to develop joint and collaborated approaches and practices.

3. Find and apply strategies to deal with differences between regional partners.

4. Actively encourage the appreciation of democratic values, even if intervention is needed.

Discussion Questions:

1. We started last class with a branch off the “traveling question” for Africa by discussing ‘why regionalism’. Since regionalism is the answer that Africa has currently chosen, how can regionalism be a solution to the problems that Africa faces, such as democratic values, national identity, etc? Can regionalism come before the solution of such issues?
2. Africa is a diverse national with over 2,000 distinct cultures, is regionalization a threat to the preservation of tradition? What is the role of tribalism in regionalism?
3. In your opinion, what is the biggest barrier to regional integration in Africa?
4. How can REC’s be made more effective in building the African Union? What relationship can they have? Should Africa choose between REC’s and a continental organization?
5. When the OAU started, and even in the establishment of the AU, the purpose and goal for cooperation were African unity and a larger sense of Pan- Africanism. How does this affect the mission of the AU today? Is this sentiment still present?