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. There hasn’t been a war between members of the European Union since it was created. Fewer trade barriers also allows increased competition, which in turn causes less-productive companies within a particular industry to close. For Africa, a vast continent of over 1.2 billion people, integration has considerable potential not only for promoting INTRODUCTION Regional economic integration has a fairly long history in virtually all parts of Sub-Saharan Africa (SSA). However, the regional integration process is not necessarily smooth and linear. This occurred when Greece's national finances were very weak, and its economy suffered. Africa’s Regional Integration Index is an action tool measuring the progress of an Africa on the move. In their work on the political economy of regional integration in Africa, Vanheukelom et al. the key priorities of African leaders towards achieving the African dream of continental unity and economic growth. However, there are risks to regional integration that need to be identified and managed. 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. Both descriptive and quantitative analyses are used to this end. Hereby, the lowest level of collaboration involves trade while a deeper integration goes beyond trade. The Southern African region provides a good example of what has been achieved so far on the continent. Africa’s Regional Integration Index is an action tool measuring the progress of an Africa on the move. The following article takes a look at the benefits of regional economic integration. There is no doubt that regional integration will offer more economic opportunities in terms of investment, economic growth, production capacity, … 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. 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. deep integration, African countries are seeking to maximize the benefits of regional integration, but the y are also imposing on t hemselves a substantial demand for … Another advantage of regional integration is that the effect of a large market will increase global competitiveness. Korbel School of International Studies, University of Denver, Denver, CO, USA. You are currently offline. 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. 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. 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. 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 … 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. 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 … 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. 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. 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 In the late 1970s, North-South preferential Trade agreement represented 60%, while the South-South constituted 20%, but, by 2010, two thirds Some features of the site may not work correctly. Cultural differences between and within states will continue to exist both in Europe and in East Africa. First, regional integration is an important building block in deterring violent conflicts between nations. 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). Southern African News Features Reaping the benefits of regional integration. International Education Journal: Losing Cultural Diversity in Europe. Regional Economic Integration (REI) refers to the commercial policy of discriminatively reducing or eliminating trade barriers only between the states joining together. Countries may have different preferences on priorities for regional integration, depending on their connectivity gaps, economic geography, or preferences for sovereignty in specific areas. Keywords: East African Community, regional integration, monetary union, capital market, equity, stock, debt, bond, beta convergence, sigma convergence, cointegration Author’s E-Mail Address: myabara@imf.org This Working Paper should not be reported as representing the views of the IMF. Regional Integration: Concepts, Advantages, Disadvantages and Lessons of Experience1 1. A Look at the Costs and Benefits of Regional Trade Agreements in Africa Show all authors. Africa’s integration is no longer a matter of choice. From better crisis prevention and This trend was triggered by the EU market integration. History and legal organisation UEMOA countries Unlike the other African regions, the countries of Francophone West Africa and of Central Africa have been members of regional groups since independence. INTRODUCTION Regional economic integration has a fairly long history in virtually all parts of Sub-Saharan Africa (SSA). 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. Sarah Ellis Barnekow 1. 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. 3.3 Benefits of regional economic integration 49 3.3.1 Policy Co‐ordination 50 ... and China, have presented African regional economic integration as an imperative. that has been shaping the evolution of regional integration in Western Africa. These do not include minority languages spoken by remote communities in Europe: Welsh, Breton, Frisian, Retoromanic, Occitan and others. Lack of diversification 3. According to this approach, and others, African growth should occur through regionalisation. Conflict is replaced by constructive dialogue. Kishore G. Kulkarni . 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. Regional integration leads to cultural centralization, which can result in the loss of unique cultures within a region. Reaping the benefits of regional integration. 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. According to this approach, and others, African growth should occur through regionalisation. Regional economic integration can be further enhanced in fields like energy and infrastructure. In various ways, these agreements make moving goods across borders in Africa … AFRICA Regional Integration Index. 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. This leads to gains in trade. 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. Semantic Scholar is a free, AI-powered research tool for scientific literature, based at the Allen Institute for AI. This paper represents the opinions of the author, and is the product of professional research. 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. 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. However, there are risks to regional integration that need to be identified and managed. 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. See all articles by this author. These languages in turn get little protection from the state, and reduced barriers to movement across countries within the EU leads people toward speaking only "major" languages, such as Spanish, French and German. Small size, small national markets 2. Regional integration leads to cultural centralization, which can result in the loss of unique cultures within a region. Why Trade Facilitation Matters to Africa? The Southern African region provides a good example of what has been achieved so far on the continent. April 1, 2011, Harri Daniel, 1 Comment. He is currently pursuing a Master of Public Administration at Cornell University. Today, they account for a considerable amount of world trade (Figure15-1, 15-2). The challenge is therefore for Africa to take it upon itself to ensure that it succeeds in regional economic integration. 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. Such policies vary from trade agreements to more extensive treaties in which individual member countries sacrifice part of their national sovereignty to a higher entity. 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. 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. Unemployment and underemployment 4. Some regional integration agreements that involve the creation of a common currency -- most notably the European Union's -- lead to fiscal crises. 1999: 317-8). In Africa, regional integration has most certainly begun, but it is not as far advanced as in other parts of the world. Secondly, regional integration implies the lowering of barriers to trade, thus benefiting the economy and increasing the well-being of the member states’ citizens. The World Bank: Regional Integration: Concepts, Advantages, Disadvantages and Lessons of Experience. Historically, formal economic and social integration in the East African Region commenced with, among other things, the construction of the Kenya-Uganda Railway from 1897 to 1901. 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 1999: 317-8). AFRICA Regional Integration Index. 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. 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. Regional integration presents unique opportunities to drive Africa’s transformation and development. Today, the establishment of a functioning common market is among ECOWAS’ top priorities. 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. Political motives, geography, and the uneven distribution of gains trumped the traditional efficiency gains across Africa’s Regional Economic Communities (RECs). There -is mutual recognition of standards marks across the region where the bureaus of standards have developed an EAC catalogue of Standards. Benefits of Regional Economic Integration. This leads to monetary gains for countries involved, through more profits for the country of origin and through cheaper products for the importing country. Special thanks to Phoebe Wong for help and Céline Carrère, Julie Regolo, and the editors for comments. Africa’s integration is no longer a matter of choice. 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. Have a building block for global integration; Reap other non-economic benefits, such as peace and security. 2. Over the past three decades, regional integration agreements have been spreading everywhere across Africa. 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. • Benefits of regional integration • The role of individuals, businesses and government in the integration process • The role of regional agencies in the integration process. 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. Without regional integration, individual countries can control the supply of their own currency to suit the nation's economic conditions. If it could have printed more currency to pay its bills, the country's financial situation would not have been as weak. Korbel School of International Studies, University of Denver, Denver, CO, USA. In various ways, these agreements make moving goods across borders in Africa easier. Benefits of Regional Integration: What Sri Lanka Can Learn From Poland Patryk Kugiel, Shari Cooray1, ... (ASEAN, African Union), others— South Asia in particular—have been less interested in the European experiences so far. A Look at the Costs and Benefits of Regional Trade Agreements in Africa Show all authors. In both developed and developing countries, customs unions and free trade areas (FTAs) continue to increase and expand. Dr. Chris Fomunyoh, senior associate for Africa and regional director for Central and West Africa at National Democratic Institute (NDI), served as moderator. 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. Benefits of Regional Integration: 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. Economic Integration in East Africa: The Case of Ethiopia and Kenya Dawit Ayalew Alemneh Syracuse University Follow this and additional works at: https://surface.syr.edu/thesis Part of the Social and Behavioral Sciences Commons Recommended Citation Alemneh, Dawit Ayalew, "Economic Integration in East Africa: The Case of Ethiopia and Kenya" (2017). Southern African News Features Reaping the benefits of regional integration. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent … 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. Another advantage of regional integration is that the effect of a large market will increase global competitiveness. Thirdly, education and cultural exchanges have the potential to enhance regional integration for the benefit of all members. 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. 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. 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. (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. Regional integration has a final non-economic disadvantage. Based on the Word Net lexical database for the English Language. 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. In Europe the focus has … Trade gains are one of the major advantages of regional integration for individual member states. Each of the issues covered requires further study, while some other important issues might not have received attention at all. 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. 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