East Africa Shows the Benefits of Successful Regional Integration. The build-up to the conference began in March 2018, when 44 African countries committed to the launch of a common market for Africa - the African Continental Free Trade Area (AfCFTA). 2nd Floor, Fidelity Insurance Centre Waiyaki Way, Westlands, TMEA Poverty and Gender Impact Study Final, TMEA evaluation Strategic Objectives 2 & 3, Institutional and Organisational Assessment, DFID Independent Evaluation – Executive Summary, Management Response & Recommendations Action Plan, Elimination of Non-Tariff Barriers to Trade, Standards Harmonisation and Conformity Testing Programme, The East Africa Customs and Freight Forwarding Practising Certificate Programme (EACFFPC), Single Window Information for Trade (SWIFT). African regional integration was a dream of many of the continent's leaders, ... South Africa and Malawi do not experience the costs and benefits of regional … Regional integration is inevitable for economic transformation and sustainable socio-economic development in Africa. Almost immediately following the political transformations of the early 1990s, German-Polish cross-border cooperation started, aiming at an equitable and balanced development of the cross-border areas by strengthening the links between citizens, businesses and institutions. Regional integration allows countries to: Improve market efficiency; Share the costs of public goods or large infrastructure projects; Decide policy cooperatively and have an anchor to reform; Have a building block for global integration; On one hand, it is a development strategy aimed at aggregating Africa’s small countries into one large 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. Secondly, regional integration implies the lowering of barriers to trade, thus benefiting the economy and increasing the well-being of the member states’ citizens. However, they can have disadvantages, too. INTRODUCTION Regional economic integration has a fairly long history in virtually all parts of Sub-Saharan Africa (SSA). Source: Standard Digital. These agreements are usually made between nations with smaller economies in order to promote trade within the region. Africa is infested with the deepest levels of poverty, lowest share of world trade, and weakest development […] Regional integration efforts, however, need to go hand in hand with competitiveness-enhancing policies as explored in other parts of the Africa Competitiveness Report. By boosting intra-continental trade, consumption, and investment, regional integration can be a strong vector for improving productivity, building manufacturing powerhouses, and developing credible African brands. 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 To build on these accomplishments, this year’s African Economic Conference (AEC) in Kigali must define what the African Continental Free Trade Agreement means for Africa, and how it will foster integration. REGIONAL INIEGRATION IN SUB-SAHARAN AFRICA FAEZEH FOROUTAN (CECTP) I wish to thank Jaime de Melo, Ali Mansoor, and Arvin Panagariya for their helpful comments on an earlier draft of this paper. To accelerate the integration, the priority of economic integration must be balanced by those of social, cultural and political integration. Sci. 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 Thirdly, education and cultural exchanges have the potential to enhance regional integration for the benefit of all members. 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. 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. Both countries benefit from the level of integration the European Union, of which both are members, has brought about. The connectivity between countries is much higher now than it ever was in the past. Relat. In East Africa we see the potential that exists in regional organisations. 1 Regional Integration: Concepts, Advantages, Disadvantages and Lessons of Experience1 1. The same is true for Kenya whose most important trading partner is Uganda and the intra-EAC trade volume is growing dramatically. Regional integration allows countries to overcome these costly divisions integrating goods, services and factors’ markets, thus facilitating the flow of trade, capital, energy, people and ideas. Accepted 12 September, 2008 Regional integration is increasingly being accepted as essential in … Since the 1960s, independent African states Since the 1960s, independent African states have attempted to create economic groupings ‘in order to improve their bargaining position This was the genesis of Africa’s regional economic communities (RECs), regarded as the building blocks of the African Economic Community. This paper represents the opinions of the author, and is the product of professional research. In September 2018, the Geneva-based International Trade Centre (ITC) published a private sector guide to the AfCFTA. Nonetheless, economic growth prospects realizing the benefits of regional integration seem to be still a work in progress. However, they can have disadvantages, too. This followed the launch of an African Common Passport in July 2016. Regional economic integration in Africa 1. REGIONAL ECONOMIC INTEGRATION Regional Economic Integration (REI) refers to the commercial policy of discriminatively reducing or eliminating trade barriers only between the states joining together. The phenomenon of regional integration. Conflict is replaced by constructive dialogue. THE IMPORTANCE OF REGIONAL ECONOMIC INTEGRATION IN AFRICA CHAPTER ONE INTRODUCTION 1.1 Background The importance of regional economic integration is a very pertinent issue in Africa, particularly in light of existing political and economic weaknesses. Deepening Regional Integration in Africa: A Computable General Equilibrium Assessment of the Establishment of a Continental Free Trade Area followed by a Continental Customs Union Selected paper for Presentation at the 7th African Economic Conference of regional economic integration in Southern Africa (SADC) reveals that it has not yet achieved the economic benefits that are attributable to developing regions, namely: higher levels of welfare exemplified by low poverty levels, economic development and Cooperation in maintaining regional peace and stability has also saved lives in countries such as the Democratic Republic of Congo and Madagascar. Trade gains are one of the major advantages of regional integration for individual member states. “Pan-Africanism, as an expression of continental identity and Some countries have made these According to this approach, and others, African growth should occur through regionalisation. As a consequence, a dramatic shifting of borders occurred with more millions of people forced to emigrate and abandon their homelands. Regional integration is fundamentally based on solidarity, and we know that solidarity is … J. Pol. Metzger, M. (2008) Regional Cooperation and Integration in Sub-Saharan Africa, Geneva: United Nations Conference on Trade and Development. We would like to conclude by asserting that the essence of the German-Polish experience holds true for East Africa as well: within regional organisations there are often different interests – including different national interests. Arguably there is no regional integration without this economic component. Common interests and common institutions reduce the potential for conflict, conflict that formerly could lead to war. 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. East Africa Shows the Benefits of Successful Regional Integration Published 05 Jun 2015 2015 Share Oliver Cann, Director, Public Engagement, Tel. The Impact of Regional Integration on Economic Growth and Development: A Case Study of the East African Community(EAC), 2001-2010 For Africa, a vast continent of over 1.2 billion people, integration has considerable potential not only for promoting robust and equitable economic growth through markets, but also for reducing conflict and enhancing trade liberalisation. Disclaimer: The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TradeMark East 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. The example of German-Polish relations is relevant for the East African region because it demonstrates that enmity and rivalry can be overcome and replaced by a mutually beneficial relationship grounded in a set of shared values, characterised by equality and mutual respect for each other and strengthened by economic cooperation and cultural exchange. Regional integration is key to addressing this weakness through the delivery of wider social and economic benefits and should be prioritized by Africa’s leaders as they look to ensure that Africa delivers on its promise,” said Jennifer Blanke, Chief Economist, World Economic Forum. 44 countries signed the pact in March. Africa Regional Integration Index Report 2016. All rights reserved. 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. Currently, weak enforcement of existing treaties and non-tariff barriers continue to hinder free movement of goods, services and persons across borders. This chapter considers the experience of regional integration schemes in sub-Saharan Africa (SSA). First, regional integration is an important building block in deterring violent conflicts between nations. Africa’s challenges call for pragmatism and a sense of urgency in action. Finally, we should mention the cross-border cooperation. During more than 1,000 years of neighbourship, relations between Poland and Germany were often difficult and marred by conflict. This resulted in millions of people being killed, the destruction of Warsaw and other major cities. Regional economic groups eliminate or reduce trade tariffs (and other trade barriers) among … The Benefits of Regional Economic Integration for Developing Countries in Africa : A Case of East African Community ( EAC ) @inproceedings{Mwasha2008TheBO, title={The Benefits of Regional Economic Integration for Developing Countries in Africa : A Case of East African Community ( EAC )}, author={Ombeni N. Mwasha}, year={2008} } Another key concern is that integration must be people-centred, with stronger citizens’ partnerships, especially among Africa’s burgeoning youth population, private sector players and civil society institutions, in order to ensure sustainable development. In the case of both the European Union and the East African Community there are three outstanding benefits that regional integration can bring. The worst episode in the history of the two countries started with the invasion of Poland by Nazi Germany in 1939. If Africa is to prosper it will have to place much greater emphasis on substantive regional integration than in the past and it has to decide that economic progress trumps political solidarity. The number has since risen to 49. This study reviews recent initiatives and the experience with regional integration in industrial and developing countries and discusses the implications of the recent expansion of the trend for the multilateral trading system. Common social and cultural activities have already greatly contributed to breaking down the language barrier. The healthy effects of such a regional economic integration are presumed to be as follows: 1. THE HISTORY OF INTEGRATION IN SOUTHERN AFRICA Importance of regional and continental integration for Africa’s development, Macro-economics Policy, Forecasting and Research, Independent Development Evaluation (IDEV). of Africa’s development. “Africa’s long-standing recognition of the needs and benefits of regional integration has spawned the proliferation of regional economies and protocols across the continent,” says the preface to the 278-page report, adding: “But these have yet to be strategically consolidated.” More connectivity tends to generate trust and a need for trust. Regional integration is often seen as less relevant for resource-rich countries, since demand for commodities typically comes from the global market rather than from regional demand. Africa on the other hand has no lead goose to benefit from. These differences, however, should not be regarded as sources of conflict, but as sources of diversity, beauty and inspiration. Regional integration is often seen as less relevant for resource-rich countries, since demand for commodities typically comes from the global market rather than from regional demand. Conflict is replaced by constructive dialogue. (Ed. Economic integration is helping boost trade and investment in Africa While Europe is on the verge of breaking up, Africa is reaping the benefits of integrating, growing and … Crucial for its success was the German willingness to acknowledge the crimes committed against the Polish people and the unequivocal acceptance of responsibility for the suffering caused during the Second World War. Recent research by the African Development Bank shows that intra-African trade is the lowest of all global regions at approximately 15%, compared to 54% in the North American Free Trade Area, 70% within the European Union and 60% in Asia. Secondly, regional integration implies the lowering of barriers to trade, thus benefiting the economy and increasing the well-being of the member states’ citizens. 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. Cooperation based on trust will always be more beneficial for all concerned than any other alternative we can imagine. 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. “Potential advantages to the private sector include increasing economies of scale and access to cheaper raw materials and intermediate inputs; better conditions for regional value chains and integration into global value chains,” the ITC says. Countries all over the world are engaging in regional integration arrangements due to their immense benefits in Regional integration is so important for resource-driven diversification in Africa. REGIONAL ECONOMIC INTEGRATION AFRICA 2. The African Continental Free Trade Agreement seeks to bring Africa into the global trade environment as one continent rather than as individual countries. Conflicting priorities often short-circuit Africa’s efforts. Regional economic integration can be further enhanced in fields like energy and infrastructure. 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. 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. Natural resources management, particularly in the extractives industry, can make a meaningful contribution to a country’s economic growth when it leads to linkages to the broader economy Academia.edu is a platform for academics to share research papers. Regional integration presents unique opportunities to drive Africa’s transformation and development. Moreover, like many African countries, the country has inadequate and poor infrastructures that prevent it to tap the opportunities at hand. challenges to regional integration in africa: the case of the revived east africa community 2000-2012 gichohi marvin muhammad r50/69883/2011 a thesis submitted in partial fulfillment for the degree of master of arts in international studies.institute of diplomacy and international studies, university of … Regional integration is a tool that can be used for the economic, political and social development of countries. To date, the RECs have made slow but steady progress on Africa’s integration, particularly in infrastructure (SADC, EAC), trade liberalisation and facilitation (West Africa economic and monetary Union, COMESA), free movement of people (ECOWAS), and peace and security (ECOWAS and SADC). First, regional integration is an important building block in deterring violent conflicts between nations. The close partnership that characterises the relations between our countries is not self-evident. Development economists, policymakers, African and non-African researchers are meeting in Kigali, Rwanda this week to discuss the shape and future of continental integration at the 13th African Economic Conference (AEC). 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 Africa… Africa’s integration is no longer a matter of choice. this continental effort at integration, there are other regional bodies, that have arisen across Africa, in the bid to harness the advantages of complementarity rather than competition. The AU is therefore expected to act as the primary vehicle for the advancement of regional integration, and for the promotion of Africa’s integration into the global economy. For regional integration in Africa to be a success, Africa’s leaders will have to move beyond grand gestures and abstract visions. Regional integration in Africa is a subject of great interest, but its impact on income has not been studied sufficiently. Most Tanzanians however lack awareness of the regional integration process and cannot as such articulate the benefits that can be drawn from the EAC integration process. A number of I also wish to thank Regional integration leads to cultural centralization, which can result in the loss of unique cultures within a region. Trade between members has arguably been the single most important factor contributing to the creation of jobs and increasing the standards of living both in the EU and the EAC. Regional trade arrangements have recently attracted growing interest, as existing schemes are either being extended or revived and new groupings are being formed. With regard to water resources and management, of notable benefit has been the establishment of river basin commissions for shared watercourses, which have made it easier for the joint management and utilization of transboundary … However, success in this venture has been slow and These differences are legitimate and must be respected. 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. Regional integration is so important for resource-driven diversification in Africa. The preponderance of bilateral and multilateral agreements between African states and the international community should also be reviewed to ensure that existing and future trade and investment arrangements align with regional and continental integration. Beyond lifting people out of poverty and invigorating Africa’s growth trajectory, the ITC observes that the African private sector will be the key beneficiary. Convened on the theme, “Regional and Continental Integration for Africa’s Development”, the three-day event will explore proposals for enhancing the broad and inclusive integration of African economies. Despite the division of the European continent after 1945 and the Cold War, the process of reconciliation between Germany and Poland began as early as 1965 with a Letter of Reconciliation by Polish Catholic bishops to their German counterparts. It also promises to promote trade liberalisation and improve interactions within the existing regional economic communities. The money we get from the African Union is rarely used for projects in Egypt, South Africa or Nigeria. 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