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Articles

Regional economic integration in Africa: impediments to progress?

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Pages 217-233 | Published online: 01 Aug 2011
 

Abstract

An all inclusive African Economic Union has been a longstanding objective of many in Africa and the United Nations. While some modest achievements have been realised, the long-held goal of effectively integrating Africa economically remains elusive. Against the backdrop of Africa's place in the world economy and the formation through recent history of African regional economic communities, this article assesses the major impediments to a continent-wide economic integration. It is the contention of this paper that effective economic integration has been hindered by regional overlapping, varying degrees of integration progress, and fragmentation due to competing interests. Before the article concludes, possible scenarios for the future are discussed.

Notes

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4. See Article II-1-c of the OAU charter.

5. See United Nations Economic Commission for Africa (UNECA) overview, accessed 10 June 2011, <http://www.uneca.org/about_eca/overview_of_eca.htm>.

6. In addition, at its 27th Ordinary Session in 1976, the OAU Council of Ministers by paragraph 2(a) of its Resolution CM/Res.464 (XXVI) also decided that, ‘there shall be five regions of the OAU, namely, Northern, Western, Central, Eastern and Southern’.

7. United Nations Economic Commission for Africa (UNECA), African Union (AU) and African Development Bank (AfDB), Assessing Regional Integration in Africa IV — Enhancing Intra-African Trade. Addis Ababa: UNECA, 2010, p. 7.

8. United Nations Economic Commission for Africa (UNECA) and African Union (AU), Assessing Regional Integration in Africa II — Rationalizing Regional Economic Communities. Addis Ababa: UNECA, 2006, p. 110.

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13. UNCTAD, Economic Development in Africa: Strengthening Regional Economic Integration for Africa's Development. Geneva: UNCTAD, 2009.

14. UNCTAD, Addressing the Commodity Problematique through Trade-Related Policies. Geneva: UNCTAD, January 2010, p. 11.

15. Sachs JD et al. ‘Ending Africa's poverty traps’, Brooking Papers in Economics, 2004, 1, pp. 17–216.

16. The Herfindahl-Hirschman index (H2) is a measure of the degree of market concentration and can be expressed as where Si represents the share of the market of the ith firm, N denotes the number of commodities exported. A H2-index value closer to 1 indicates a concentrated market (less diversified). On the contrary, a H2-index value closer to 0 shows a lesser concentrated market (more diversified).

17. UNCTAD, Economic Development in Africa: Trade Performance and Commodity Dependence. Geneva: UNCTAD, 2003, p. 8.

18. Krueger AO ‘Problems with overlapping free trade areas’, in Ito T & AO Krueger (eds), Regionalism Versus Multilateral Trade Arrangements. Chicago: University of Chicago Press, 1997.

19. See the ‘Atlas on regional integration’ trends and recommendations on communicable diseases, 2007 <http://www.oecd.org/dataoecd/56/39/40997324.pdf> (accessed 18 April 2011).

20. See Oldstone MBA Viruses, Plagues & History. New York: Oxford University Press, for further discussion of the effects of illness, including HIV/AIDS, on global migration, economic development, and social cohesion.

21. After the LPA and FAL several other resolution have also instructed African leaders to strengthen the REC, namely: (i) Resolution CM/Res.1043 (XLIV) of the 44th Ordinary Session of the Council of Ministers (1986), requested in paragraph 7 ‘the OAU Secretary General, to examine the practical and operational modalities for coordinating and harmonizing the activities and programs of existing sub-regional economic groupings’; and (ii) The Heads of State and Government, in paragraph 7 of Resolution AHG/Res.161 (XXIII) adopted at the 23rd Ordinary Session in 1987, requested the ‘Secretary General of the OAU, the Executive Secretary of the ECA, and the authorities of sub-regional and regional economic groupings, particularly ECOWAS, PTA, SADCC and ECCAS to take the necessary steps to ensure coordination, harmonization and rationalization of activities, projects and programs of all the African inter-governmental cooperation and integration organizations in their respective regions in order to avert overlaps, power conflicts and wastage of efforts and resources’.

22. Organization of African Unity (OAU), Lagos Plan of Action for the Economic Development of Africa. Addis Ababa: OAU, 1980, p. 99.

23. See Chapter IV, article 28 on ‘Strengthening of Regional Economic Communities’.

24. The six stages envisages: (i) full continental coverage of the existing active pillars; (ii) strengthening of intra-REC integration and inter-REC harmonisation; (iii) establishing free trade areas and customs unions in each existing REC; (iv) establishing a continent-wide customs union; (v) establishing a continent-wide common market and (vi) establishing a full economic and monetary union and parliament.

25. See Chapter II, article 6 on ‘Modalities for the Establishment of the Community’.

26. In 2006, the AU Assembly in Banjul, The Gambia, recommended recognising the eight RECs, putting a moratorium on the new RECs and focusing on rationalising and harmonising REC policies and programmes. Also, it should be noted that the AU fails to recognise SACU as an official REC.

27. See Article 8-II-c of the OAU Sirte declaration, 1999.

28. See NEPAD“s aims and initiatives to promote regional and continental integration, accessed 10 June 2011, <http://www.nepad.org/regionalintegrationandinfrastructure>.

29. It should be noted that although recognised as RECs, EAC, IGAD and CEN-SAD do not satisfy the criteria of ‘region’ as per the OAU Resolution 464.

30. See Article 2 Accra declaration, 2007.

31. African Union (AU), Arab Maghreb Union (AMU), Central African Economic and Monetary Community (CEMAC), Common Market for Eastern and Southern Africa (COMESA), Community of Sahel-Saharan States (CEN-SAD), Cross Border Initiative (CBI), East African Community (EAC), Economic Community of Central African States (ECCAS), Economic Community of the Great Lakes Countries (ECGLC), Economic Community of West African States (ECOWAS), Intergovernmental Authority for Development (IGAD), Mano River Union (MRU), Southern African Customs Union (SACU), Southern African Development Community (SADC), and the West African Economic and Monetary Union (WAEMU).

32. African Union, Audit of the African Union. Addis Ababa: African Union, 2007, p. 122.

33. African Union, Rationalization of the Regional Economic Communities (RECS): Review of the Abuja Treaty and Adoption of Minimum Integration Programme. Addis Ababa: African Union, 2007, p. 11.

34. On average, a third of REC members fail to meet their contribution obligations; rising to more than half in some communities (United Nations Economic Commission for Africa (UNECA) and African Union (AU), Assessing Regional Integration in Africa II — Rationalizing Regional Economic Communities. Addis Ababa: UNECA, 2006).

35. In accordance with Article XXIV of GATT, as a customs union, SACU member countries should adopt a common external tariff.

36. Oxfam International, Unequal Partners: How EU–ACP Economic Partnership Agreements (EPAs) could harm the development prospects of many of the world's poorest countries, September 2006, accessed 7 February 2011, <http://www.oxfam.org.nz/imgs/whatwedo/mtf/unequal%20partners.pdf>.

37. The EPA replaces the longstanding preferential Lomé arrangements starting with the 1975 Lomé Convention to Lomé IV Convention and the eventual adoption of the 2000 Cotonou Partnership Agreement.

38. An additional jeopardising issue for SACU is that the ‘Zuma administration has ambitions of playing a development partner role in Southern Africa and the revenue pool has been mooted as a potential source of funding’. See Hichert T, P Draper & T Bertelsmann-Scott What Does the Future Hold for SACU? From Own Goal to Laduma! Scenarios for the Future of the Southern African Customs Union, Occasional paper Nr. 63. Johannesburg: South African Institute of International Affairs (SAIIA), 2010, p. 5.

39. Guinea O & R Galvez ‘Understanding African regionalism: The case of overlapping membership’, paper presented at Whatever Happened to North–South?, the IPSA-ECPR joint conference, Sao Paulo, February 2011, p. 14.

40. Krueger AO ‘Problems with Overlapping Free Trade Areas’, in Ito T & AO Krueger (eds), Regionalism Versus Multilateral Trade Arrangements. Chicago: University of Chicago Press, 1997.

41. Bundu A ‘ECOWAS and the future of regional integration in West Africa’, in Lavergne R (ed.), Regional Integration and Cooperation in West Africa: A Multi-dimensional Perspective. Trenton and Ottawa: Africa World Press and International Development Research Centre, 1997.

42. The Democratic Republic of Congo is member of COMESA, ECCAS, SADC and the Central African Customs and Economic Union (UDEAC).

43. United Nations Economic Commission for Africa (UNECA) and African Union (AU), Assessing Regional Integration in Africa II — Rationalizing Regional Economic Communities. Addis Ababa: UNECA, 2006, p. xvii.

44. United Nations Economic Commission for Africa (UNECA) and African Union (AU), Assessing Regional Integration in Africa II — Rationalizing Regional Economic Communities. Addis Ababa: UNECA, 2006, p. xvii.

45. United Nations Economic Commission for Africa (UNECA) and African Union (AU), Assessing Regional Integration in Africa II — Rationalizing Regional Economic Communities. Addis Ababa: UNECA, 2006, p. xvii.

46. United Nations Economic Commission for Africa (UNECA) and African Union (AU), Assessing Regional Integration in Africa II — Rationalizing Regional Economic Communities. Addis Ababa: UNECA, 2006, p. xvii.

47. See Article 7, IGAD agreement 1996.

48. See Article 130–2 of the East African Economic Community (EAC) Treaty.

49. United Nations Economic Commission for Africa (UNECA), African Union (AU) and African Development Bank (AfDB), Assessing Regional Integration in Africa IV – Enhancing Intra-African Trade. Addis Ababa: UNECA, 2010, p. 11.

50. African Union, Audit of the African Union, Addis Ababa: African Union, 2007, p. 127.

51. United Nations Conference on Trade and Development (UNCTAD), Addressing the Commodity Problematique through Trade-Related Policies. Geneva: UNCTAD, January 2010, p. 11.

52. Herbst J ‘Responding to state failure in Africa’, International Security, 21, 3, 1996.

53. Matthews A, Regional Integration and Food Security in Developing Countries. Ch. 6. FAO, 2003, accessed 10 June 2011, <http://www.fao.org/docrep/004/y4793e/y4793e00.htm#Contents>.

54. Franke BF ‘Competing regionalisms in Africa and the continent's emerging security architecture’, African Studies Quarterly, 9, 3, 2007, p. 11.

55. Khumalo N & F Mulleta ‘Economic partnership agreements: African–EU negotiations continue’, South African Journal of International Studies, 17, 2, 2010, pp. 209–20.

56. Draper P & N Khumalo ‘The future of the Southern African Customs Union’, Trade Negotiations Insights, 8, 6, July–August 2009, accessed 7 February 2011, <http://acp-eu-trade.org/library/files/TNI_EN__8-6.pdf>.

57. Draper P, D Halleson & P Alves SACU, Regional Integration and the Overlap Issue in Southern Africa: From Spaghetti to Cannelloni?, Trade Policy Report Nr. 15. Johannesburg: South African Institute of International Affairs (SAIIA), 2007, p. 19. Ndomo A Regional Economic Communities in Africa: A Progress Overview. Study commissioned by GTZ, 2009.

58. See communication from the European Commission, Regional Integration for Development in ACP countries, October 2008, accessed 18 April 2011, <http://europa.eu/legislation_summaries/development/general_development_framework/dv0002_en.htm>.

59. See the recent interview with the EU Trade Commissioner Karel De Gucht, Trade Negotiations Insights, 10, 9, December 2010–January 2011, p. 6, accessed 7 February 2011, <http://acp-eu-trade.org/library/files/tni_en_9-10.pdf>.

60. Khumalo N & F Mulleta ‘Economic partnership agreements: African–EU negotiations continue’, South African Journal of International Studies, 17, 2, 2010, pp. 209–20.

61. So far, with the exception of the Caribbean, none of the regions have managed to conclude a full EPA.

62. African Union, Long-Term Capacity Needs Assessment of the AU and RECs in Their Promotion and Maintenance of Peace and Security, Report produced to the AU and the EU by a team of consultants, Addis Ababa, 2007, p. 13.

63. Draper P, D Halleson & P Alves SACU, Regional Integration and the Overlap Issue in Southern Africa: From Spaghetti to Cannelloni?, Trade Policy Report Nr. 15. Johannesburg: South African Institute of International Affairs (SAIIA), 2007. Ndomo A Regional Economic Communities in Africa: A Progress Overview. Study commissioned by GTZ, 2009.

64. A more recent study, also by the AU, on the quantification of scenarios for the rationalisation of RECs in terms of advantages and costs, was presented during the Fifth COMAI held in Tripoli, Libya, in October 2010.

65. See AEC Treaty, Article 1(d).

66. See AEC Treaty, Article 6(2).

67. African Union, Rationalization of the Regional Economic Communities (RECS): Review of the Abuja Treaty and Adoption of Minimum Integration Programme. Addis Ababa: African Union, 2007, p. 30.

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