The European Union has a series of languages that it deems to be the official languages of the EU government. In the case of both the European Union and the East African Community there are three outstanding benefits that regional integration can bring. A number of leaders called for the integration of Africa already soon after independence, but it was only in the 1970s and 1980s that concrete steps were taken to re-launch or … According to this approach, and others, African growth should occur through regionalisation. Another advantage of regional integration is that the effect of a large market will increase global competitiveness. In Africa, regional integration has most certainly begun, but it is not as far advanced as in other parts of the world. The Southern African region provides a good example of what has been achieved so far on the continent. 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 … Regional Integration in Sub-Saharan Africa Experience and Prospects Faezeh Foroutan The emphasis of regional integration in Sub-Saharan 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 joint provision of public goods. Both descriptive and quantitative analyses are used to this end. If it could have printed more currency to pay its bills, the country's financial situation would not have been as weak. Some features of the site may not work correctly. Africa’s Regional Integration Index is an action tool measuring the progress of an Africa on the move. The European Union, however, controlled the country's currency, which left it little power to fix its own economy. The small, sparsely populated, fragmented, and often isolated economies across Africa make a compelling case for these economies to integrate regionally to reap efficiency gains, exploit economies of scale, and reduce the thickness of borders. Today, they account for a considerable amount of world trade (Figure15-1, 15-2). IMPACT OF REGIONAL INTEGRATION ON TRADE AND FIRM PERFORMANCE IN WEST AFRICA: THE CASE OF BENIN* by Dr. Toussaint Houeninvo National School of Applied Economics and Management University of Abomey Calavi Republic of Benin and Dr. Sylvain H. Boko Department of Economics Wake Forest University Winston-Salem, NC, USA * Published, in Mina Baliamoune-Lutz, Alojzy Z.Nowak and … This trend was triggered by the EU market integration. Reaping the benefits of regional integration. 1. (2016), find that effective implementation of regional initiatives is more likely where these are in line with key national interests of participating states, as defined by their domestic ruling elites. Semantic Scholar is a free, AI-powered research tool for scientific literature, based at the Allen Institute for AI. Small size, small national markets 2. Regional Economic Integration (REI) refers to the commercial policy of discriminatively reducing or eliminating trade barriers only between the states joining together. Sarah Ellis Barnekow . Whilst there are strategies in place to address these areas the consensus from Key Informant Interviews (KIIs) and the 1 The EAC is the regional intergovernmental organisation of the Republics of Burundi, Kenya, Rwanda, the United Republic of Tanzania, and the Republic of Uganda. This leads to gains in trade. Without regional integration, individual countries can control the supply of their own currency to suit the nation's economic conditions. gender profiles of partner states of the East African Community (EAC) within the context of regional integration (chapter 1), and analyses the impact of EAC regional integration on women’s well-being with a focus on women’s employment (chapter 2). Regional integration agreements expand the market for goods and therefore allow companies, factories and industries to produce more of their goods and sell it to a bigger market. AFRICA WEEK 2017 A f r i c a n P e e r R e vi e w M e c h a n i s m APRM DPI Regional and Economic Integration in Africa: How to Effectively Involve Africa’s Youth across 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” has become a major trend. 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. Hereby, the lowest level of collaboration involves trade while a deeper integration goes beyond trade. This creates something called economies of scale, where the per-unit price of producing a good decreases as the total quantity of that good's production increases. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent … See disclaimer. does not aim at providing a systematic evaluation of the effects of regional integration in West Africa, nor to recommend or even suggest courses of action for donor countries. Without the benefit of ‘regional’ economic and sector work, the paper provides a ‘broad-brush and impressionistic’ picture of selective developments within the southern African region. Kishore G. Kulkarni . Fewer trade barriers also allows increased competition, which in turn causes less-productive companies within a particular industry to close. In Africa, regional integration has most certainly begun, but it is not as far advanced as in other parts of the world. Trade agreements that open borders allow a country with a particularly strong industry, like wool production, to sell its goods to an even bigger market outside of the country of origin. The Economic Commission for Africa (ECA) became the champion of regional integration, already in the mid-1960s proposing the division of Africa into regions for the purposes of economic development. 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. PDF | On Nov 1, 2014, Steve Kayizzi-Mugerwa and others published Regional Integration in Africa: An Introduction | Find, read and cite all the research you need on ResearchGate Africa’s Regional Integration Index is an action tool measuring the progress of an Africa on the move. Benefits of Regional Economic Integration. Africa’s integration is no longer a matter of choice. AFRICA Regional Integration Index. The East African Legislative Assembly (EALA) has passed several community laws and the Council of Ministers has established various Sectoral Councils to oversee policy issues in the regional integration progress. September 22, 2015. by Kizito Sikuka – SANF 15 no 51 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 African Development Community. Search Google Scholar for this author, Kishore G. Kulkarni 2 3. This occurred when Greece's national finances were very weak, and its economy suffered. INTRODUCTION Regional economic integration has a fairly long history in virtually all parts of Sub-Saharan Africa (SSA). These do not include minority languages spoken by remote communities in Europe: Welsh, Breton, Frisian, Retoromanic, Occitan and others. African regional integration was a dream of many of the continent's leaders, and gave impetus to the creation of the Organization of African Unity (OAU) in 1963. dissemination on the benefits of regional integration and improved labour market data. From better crisis prevention and On October 19, 2007, the Africa Program hosted Dr. Mohamed Ibn Chambas, President of the Economic Community of West African States (ECOWAS) Commission, speaking on "The Role of ECOWAS in Achieving the Economic Integration of West Africa." Theses - ALL. 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. 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. A number of leaders called for the integration of Africa already soon after independence, but it was only in the 1970s and 1980s that concrete steps were taken to re-launch or … Regional economic integration refers to the agreement amongst countries within a certain geographic area for reducing and ultimately removing tariff barriers, making sure there is better flow of services or goods through the respective nations. Dr. Chris Fomunyoh, senior associate for Africa and regional director for Central and West Africa at National Democratic Institute (NDI), served as moderator. 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 Africa, a vast continent of over 1.2 billion people, integration has considerable potential not only for promoting Korbel School of International Studies, University of Denver, Denver, CO, USA. Based on the Word Net lexical database for the English Language. The Idea of Political Integration in Africa: Challenges and Prospects, The East African Community Common Market Scorecard, An economic analysis of the feasibility of a monetary union in two African economic regions: SADC and EAC, Analysis Of Feasibility Of Monetary Union In The Sadc And Eac: Evidence From Analysis Of Trade Openness, Preferential Trade Agreement Policies for Development: A Handbook, Economic integration in remote resource-rich regions*, Modeling Services Liberalization: The Case of Tanzania, South – South Trade: Geography Matters South – South Trade: Geography Matters, Evaluating Aid for Trade: A Survey of Recent Studies. Over the past three decades, regional integration agreements have been spreading everywhere across Africa. Regional integration leads to cultural centralization, which can result in the loss of unique cultures within a region. You are currently offline. Special thanks to Phoebe Wong for help and Céline Carrère, Julie Regolo, and the editors for comments. AFRICA WEEK 2017 A f r i c a n P e e r R e vi e w M e c h a n i s m APRM DPI Regional and Economic Integration in Africa: How to Effectively Involve Africa’s Youth across Regional economic integration refers to the agreement amongst countries within a certain geographic area for reducing and ultimately removing tariff barriers, making sure there is better flow of services or goods through the respective nations. The paper posits that regional integration is an imperative factor for Southern African states as it plays a pivotal role in stimulating their economic growth prospects. Lack of diversification 3. 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. Regional integration has a final non-economic disadvantage. For Africa, a vast continent of over 1.2 billion people, integration has considerable potential not only for promoting Regional Integration: Concepts, Advantages, Disadvantages and Lessons of Experience1 1. This is an overall net positive, because it leads to greater productivity within an industry, because only the companies that produce a good the most quickly and efficiently survive amid increased competition. Cultural differences between and within states will continue to exist both in Europe and in East Africa. This leads to monetary gains for countries involved, through more profits for the country of origin and through cheaper products for the importing country. April 1, 2011, Harri Daniel, 1 Comment. This paper represents the opinions of the author, and is the product of professional research. The Southern African region provides a good example of what has been achieved so far on the continent. Why Trade Facilitation Matters to Africa? 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. 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. Melo thanks FERDI for support. Regional Integration: Do Intra-African Trade and Migration Improve Income in Africa? Major challenges facing the Caribbean Region 1. 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. A Look at the Costs and Benefits of Regional Trade Agreements in Africa Show all authors. In particular, the limited intra-regional trade among African states, their similar thus competitive products, their export-oriented infrastructures and differential benefits from regional integration offered little economic incentives for sustained regionalism (Chazan et al. African RECs have pursued the "linear model" of integration with a stepwise integration of goods, labour, and capital markets, as well as eventual monetary and fiscal integration. 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. Korbel School of International Studies, University of Denver, Denver, CO, USA. 2 “The Vision of the African Union is to become an integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the global arena.” African Union Agenda 2063. Countries may have different preferences on priorities for regional integration, depending on their connectivity gaps, economic geography, or preferences for sovereignty in specific areas. • Benefits of regional integration • The role of individuals, businesses and government in the integration process • The role of regional agencies in the integration process. However, there are risks to regional integration that need to be identified and managed. 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. Regardless of how old we are, we never stop learning. 1Depuis longtemps, lAfrique a manifesté un grand besoin de coopération entre ses Etats. Secondly, regional integration implies the lowering of barriers to trade, thus benefiting the economy and increasing the well-being of the member states’ citizens. In both developed and developing countries, customs unions and free trade areas (FTAs) continue to increase and expand. 2 “The Vision of the African Union is to become an integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the global arena.” African Union Agenda 2063. Integrating nations in Africa have largely ignored the fact that today more than ever before; Africa must use regional integration to integrate into world markets if they are to realize any benefits from integration into the world economy. Unemployment and underemployment 4. © 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. September 22, 2015. by Kizito Sikuka – SANF 15 no 51 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 African Development Community. IMPACT OF REGIONAL INTEGRATION ON TRADE AND FIRM PERFORMANCE IN WEST AFRICA: THE CASE OF BENIN* by Dr. Toussaint Houeninvo National School of Applied Economics and Management University of Abomey Calavi Republic of Benin and Dr. Sylvain H. Boko Department of Economics Wake Forest University Winston-Salem, NC, USA * Published, in Mina Baliamoune-Lutz, Alojzy Z.Nowak and … Benefits Of Regional Economic Integration. Regional integration refers to various types of political and economic agreements that form closer ties between sovereign countries. This paper examines the challenges and prospects of African regional integration with the focus on Southern Africa. From better crisis prevention and management, financial and macroeconomic integration, to free movement of people, the list of achievements by ECOWAS is long since its formation in 1975. First, regional integration is an important building block in deterring violent conflicts between nations. Kishore G. Kulkarni . Search Google Scholar for this author, Kishore G. Kulkarni 2 3. Enhanced political cooperation Export Performance and Trade Facilitation Reform: Hard and Soft Infrastructure, View 4 excerpts, references background and methods, View 3 excerpts, references methods and background, View 2 excerpts, references methods and background, By clicking accept or continuing to use the site, you agree to the terms outlined in our. Korbel School of International Studies, University of Denver, Denver, CO, USA form.: regional integration is that the effect of a large market will increase global competitiveness 's economic conditions or! 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