africa 13 regional economic integration among african countries
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AFRICAN REGIONAL
ECONOMICINTEGRATION
ECON 3510 June
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J
How does REGIONAL ECONOMICINTEGRATION Wo!"
I# $%!es &oss'()eproductivityimprovements, '*e* '# &e$'#s $oe ou#&u# #o (e s+ueeed
ou# o- .'/en +u%n#'#'es o- u$%n, n%#u%)%nd %&'#%) esoues*
I# #us %n on#'(u#e #o
increasing real incomes'n % oun#,#ee( &e$'##'n. improved human development by
individuals and families-o #e$se)/es, %nd ( .o/en$en#s #ou. increased taxation
and social expenditurese%)#, edu%#'on,so'%) seu'#, 'n-%s#u#ue e#*4
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I# %n %)sopromote economicdevelopment#ou. s#en.#en'n. #e #% (%se o-
.o/en$en#s so #%# $oe %n (e 'n/es#ed 'npublic goodso
o#e &u&oses d'e#ed $oe s&e'%))%# eono$' de/e)o&$en#*
Te eono$' e&%ns'on -%')'#%#ed (
eono$' 'n#e.%#'on $% $%!e&oss'()e &u()' 'n/es#$en# 'ns%-e.u%d'n. the environment.
Does Economic Integration promotestability and peaceamong countries?
Evidence and argumentation pro:Evidence contra:
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How does Re.'on%) Eono$' In#e.%#'on&o$o#e &odu#'/'# '$&o/e$en#s"
1* 8e$'#s I$&)e$en#%#'on o- Economies ofScale and Consequent esource Saving!human" natural and capital resources#:
L%.e &)%n# s'e
L%.e en#e&'se s'e
Ine%sed )en.# o- production runs$
Ine%sed intra%industry speciali&ation
Ine%sed /e#'%) s&e'%)'%#'on
Ine%sed agglomerative economies.
'hese are some of the (dynamic bene)ts$ ofimproved rationali&ation of economicstructure.
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5* :#en.#ened A(')'# -o #e Re.'on#o de/e)o& suess-u) clusters$ of
economic activities%nd #us #o'n#e.%#e %nd o$&e#e 'n #e'n#en%#'on%) eono$
6* :#en.#ened A(')'# -o #e Re.'on #oF%e E#en%) Co$&e#'#'on -o '#s owndo$es#' $%!e#s*
@* Re/es'n. #e 's#o' -%.$en#%#'on
o- #e on#'nen# 'n#o 53 oun#'es,w'# #e eono$' d's%d/%n#%.es #%##'s .ene%#es
*
Thesegains can be greatest for small country partners
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8OTENTIAL I:ABANTAGE: OFREGIONAL
INTEGRATION*. Costs of 'ransition#o L%.e M%!e#s
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2* 8oss'()e ,onger 'erm -egative Impacts* 's#'(u#'on%) Issues< -e% #%# so$eoun#'es .%'n d's&o&o#'on%#e) w')eo#es )ose
5* We%!nesses 'n #e su&%n%#'on%)'ns#'#u#'ons
6* In-%s#u#u%) we%!nesses &e/en#$e%n'n.-u) eono$' 'n#e%#'on
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A-'%s E&e'ene w'# Eono$'In#e.%#'on
1* E%) %$('#'ous 8%nDA-'%n's#s%nd $odes# .%du%)'s#s=
2* Mode%#es unw'))'n. #o s%'e
n%#'on%) 'nde&endene so soon%-#e %'e/'n. '#*
3* A .%du%)'s# %&&o% -o so$e
#'$e, (u# w'# '. %s&'%#'ons>* M%Ko d'?u)#'es %/e 'ndeed
&o.ess
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A-'%n Eono$'In#e.%#'on :e$es
1* :ou#en A-'%n e/e)o&$en# Co$$un'#
:AC4
2* E%s# A-'%n Co$$un'# EAC4
3* Eono$' Co$$un'# o- Wes# A-'%n :#%#esECOWA:4
>* Eono$' Co$$un'# o- Cen#%) A-'%n :#%#esECCA:4
5* Co$$on M%!e# -o E%s#en %nd :ou#enA-'% COME:A4
6* A%( M%.e( n'on MA4
@* :ou#en A-'%s Co$$on Mone#% Ae%CMA4
* A-'%n Eono$' Co$$un'#, AEC4
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:u(D:%%%n E&o#s (es#'n%#'on
1993 %nd 200>es#'n%#'on 1993 2003
:u(D:%%%n A-'% 10*1P 12* P
C%n%d% 0*5 0*5
n'#ed :#%#es *9 6,
Eu'&e%n n'on >6*0 >1*0
Res# o- #e Wo)d 3>*5 3*9
To#%) E&o#s, Q;'))'on
Q 51*6;'))'on
Q 110*2;'))'on
Source: World Bank, African Development Indicators, !!"
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A-'%n In#%D;)o E&o#s%s % 8e Cen# o- To#%) E&o#s
In#e.%#'on
:e$e
19@0 190 1990 2000
COME:A 9*1 6*1 6*6 6*0
EAC 16*9 *9 13*3 1@*6
ECCA: 2*2 1*> 1*> 1*0ECOWA: 2*9 10*1 @* 10*
:AC 1*> 0*3 2* 12*2Source: Te#t, p$ %&!
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:o$e A-'%n In#e.%#'on:e$es
o O'.'n%)) :ACC= Founded 190=
o e-ens'/e eono$' o.%n'%#'on /s*%&%#'ed :* A-'%
o ReD-ounded 'n 1992 w'# :* A-'%n&esene
o O(Ke#'/e< % -u)) o$$on $%!e#
o 200 $'))'on &eo&)e= G8 D 200 $'))'on
o o$'n%#ed ( :* A-'%
o :uess-u) e&%ns'on o- 'n#%De.'on%)#%de
'$ Southern African Development (ommunity )SAD(*
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Southern African
Development (ommunity
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2* E%s# A-'%n Co$$un'#
o Lon. &ed'.ee s#%#'n. 'n #e 196@'sso)/ed 'n 19@@
ReD-ounded 'n 199>
o E%) 8o.ess w%s )'$'#ed due #o8o()e$s %$on. 8'$e M'n's#es %nd
&o)'#'%) d'eenes
Id' A$'n
8ee'ons #%# en% w%s .%'n'n. $os#
o:'.n'%n# suess een#)* Eono$' Co$$un'# o- Cen#%)A-'%n :#%#es
Founded 193
O(Ke#'/e< -u)) o$$on$%!e#
's&%%#e )e/e)s o- oun#'es
L'##)e '$&o/e$en# 'n #%de
/o)u$es ue 'n &%# #o 'ses 'n
$e$(e oun#'es
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+conomic (ommunity of
(entral African States
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"$ (ommon arket for
+astern and Southern Africa
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* A-'%n Eono$'Co$$un'#Te Co$$un'# o- Co$$on M%!e#s4
Founded 'n 1991=
Te :u(D:%%%n In#e.%#'on :e$e, 'n)ud'n. %))o#es ee M%.e(
A$('#'ous o(Ke#'/es
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African +conomic
(ommunity,
including
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Con)us'on