ABSTRACT

The inspiration for the creation of ECOWAS came from the United Nations Economic Commission for Africa (UNECA), which had divided Africa earlier in the1960s into regions for purposes of economic development. The ECOWAS Treaty seeks to establish an economic and monetary union based on the removal of duties and equivalent taxes, the adoption of a common external tariff, and a harmonization of economic and sectoral policies. In 1993, ECOWAS revised its Treaty to introduce among other measures, the principle of supra-nationality concerning the application of its decisions. The ratification of the ECOWAS regional economic integration protocols and frameworks, like other various international community agreements, places both problems and benefits on the various nations in West Africa. This study identified the different Protocols and Frameworks of integration within the West-African sub-region, explored how these protocols and frameworks affect the economic environment of Ghana, and sought to analyze the negative effects of regional economic integration on Ghana. Economic Integration Theory was the

theory that guided this study. The study is purely qualitative and depended on both primary and secondary data. The findings discussed the ECOWAS protocols on free movement, the harmonization of economic and fiscal policies such as the CET and EPA, and how they have negatively impacted Ghana. Based on the findings, the work concludes and recommends that ECOWAS, the Ghanaian Government and Civil Society Organizations put greater effort into making integration work, eliminate differentiated regulatory schemes and trade standards, improve regional industrial policy, regional infrastructure and build strong regional institutions and policies.

CHAPTER ONE INTRODUCTION TO THE RESEARCH PROBLEM

       Background to the Study

For centuries, nations have sought to build relationships on various levels of endeavour, to establish collaborations and to explore avenues to create opportunities for the mutual benefit of their populations whilst finding ways to achieve greater harmony with neighbouring countries (Aning & Pokoo, 2014). According to Macaringue (2016), one of the ways nations seek to achieve these objectives is through regional integrations. The formation of regional integrations has been posited to enable nations to voluntarily defer their individual sovereignties to intergovernmental or supranational bodies in the pursuit of better conditions achieved through cooperation (Kabia, 2017). The aims of any regional integration policy, however, can be myriad varying from cultural, political, security, or economic.

Globally, regional trade membership has led to the formation of blocs such as the African Union (AU), the European Union (EU), the Association of Southeast Asian Nations (ASEAN), the South African Development Community (SADC) and many others worldwide. In West Africa, in spite of the existence of the CFA franc zone, ECOWAS stands out as the prominent organization of national unification in the region (Addo, 2016). ECOWAS’ objectives, as outlined in the constitution of the body, are to foster collaboration and development, contributing to an economic union being formed in the region. This, in effect, will increase their peoples’ living standards, sustain and strengthen economic stability, enhance bonds between Member States, and lead to the African Continent’s advancement and growth.

To order to attain the ECOWAS goals, Rosamond (2016) asserts that member states must have to fully adopt the protocols and frameworks of the organization. According to Soderbaum (2017), some of these protocols encourage cooperation and collabouration in various areas, including but not limited to industry, energy, Research and technology, food and livestock, climate and natural resources, travel, communications and tourism, commerce, taxes, taxation, estimates, income and transactions. Some researchers have touted the benefits of these protocols and frameworks on the economic environments of member states, whereas others have sought to bring attention to its negative effects. In his empirical investigation of ECOWAS ‘ effect on the intraregional trade flows of member states, Deme (2018) argues that the organisation enabled member states to achieve collective self-sufficiency for their citizens. Coulibaly (2018) claims that by building a full economic and trade union, ECOWAS establishes a single larger trading block. This gives West Africa a common voice in world trade and helps build economic resilience against external shocks.

In sharp contrast, Amponsah (2017) in his treatise illustrates the impact of free markets on individual countries’ global trade environments by reducing or abolishing tariffs and other costs, the elimination of import duties on industrials goods, the opening of borders and markets to member states and other protocols and frameworks have significant negative effects on various economic indices (like inflation) of member states. According to Briet (2018) in his exposition on European Union (EU) support to regional integration in Africa, open markets allows all sort of cheap importations in, crippling the manufacturing base of some member states.

In spite of all these studies, a targeted study on the negative effects of these protocols and frameworks of regional economic integration on Ghana in the areas of jobs and enterprise growth, social stability and diplomatic relations is lacking.

       Problem Statement

The quest of rapid development of post-independent African countries in a socio-economic and political climate of calmness fuelled the pursuit of economic integration of nation states. In West Africa, discussions towards the integrations on various levels began shortly after independence. The expectation for the pursuit of economic integration was to create preferential zones where member countries can commit each other to mutually grant preferential conditions for trade in specific goods, work towards free trade by eliminating existing barriers, and create common customs tariffs, common markets and a host of other benefits. These benefits were to be ensured through treaties, protocols and frameworks. Decades later, popular views on the union cite several negative economic consequences for member states. In Ghana, some stakeholders cite ratification of some ECOWAS protocols for the perceived increasing inundation of foreigners in Ghana, dealing in forex activities and putting pressure on the cedi. Others cite perceived negative effects of ECOWAS on other sectors of the economy, like job creation and enterprise growth, social stability and diplomatic relations. However, these opinions have not been backed with empirical investigation to determine the veracity or otherwise of public opinion. This study is therefore necessary to fill the literary void.