ABSTRACT

Economic integration has been an important phenomenon and a major facet of growth in the world. Amongst many regional groups on the continent of Africa, the Economic Community Of West African States (ECOWAS) has over the years proven to be in good standing in an effort to integrate its member states for economic, social and political benefits. This study examined the economic integration of ECOWAS, specifically looking at the prospects and challenges in the area of trade as an effort to deepen its integration processes. The qualitative research design was adopted for the study. The secondary data obtained were subjected to critical review. The study found that ECOWAS is one of the most successful and important sub regional groups in Africa. It successes could be realised in the area of maintaining peace and stability, promoting trade and economic growth for the mutual benefit of its member states and the larger world. Inspite of these successes, it was revealed in the study that, trade libralization is one of the main challenges facing the success of ECOWAS as this hinders its core principles of economic integration. It is also revealed that, trade integration has not been fully utilised among member states as most trade activites are undertaken with the outside world, precisely Europe. In order to promote economic unification and integration amongst ECOWAS countires, the study recommends the harmonization of laws and tarrif reforms as well as building stronger institutions and commitment from members states. The  study further recommends the deliberate, aggressive and systematic development of transport and communication infrastructure and the involvement of stakeholders beyond political leadership.

CHAPTER ONE INTRODUCTION

         Background to the statement of the Research Problem

The concept of integration denotes the joining together of two or more economies, polities or abstract entities for a common purpose. Economic integration is therefore the fusion together of two or more economies in order to achieve a common economic purpose. Approaching the concept of economic regional integration as a general term, Ernest Haas writing in 1971, sees it as a process of combining separate economies into larger political communities. To the extent that political and economic forces are inextricably intertwined, any discussion of integration must encompass both economic and political variables.¹ Ernest Haas went further to define the term integration as:

The process whereby political actors in several distinct national settings are persuaded to shift their loyalties, expectations and political activities toward a new center, whose institutions possess or demand jurisdiction over preexisting national states. The end result of a process of political integration is a new political community, superimposed over the pre-existing ones².

Haas’ position on the concept of regional integration has been supported by Karl Deutsch and other early theorists who noted unequivocally that authentic regional integration encompasses the whole “system”.³ That means that the generic reference to regional integration should be used. Deutsch, has therefore seen the concept of regional integration, as “a process of peacefully creating a larger coherent political system out of previously separate units, each of which voluntarily cedes some part of its sovereignty to a central authority and renounces the use of force for resolving conflict between members”.⁴

According to Salvatore, as cited by Mwasha, who wrote in 2009 on the “The Benefits of Regional Economic Integration for Developing Countries in Africa: A Case of East African

Community (EAC)”, the concept of economic integration can be regarded as the commercial policy of discriminatively reducing or eliminating trade barriers (technical and non-technical barriers) only between the states joining together.⁵ Also, Alemayehu Geda and Haile Kibret, observed that the impulse or the drift for regional integration derives its rationale from the standard trade theory, which states that “free trade is superior to all other trade policies”.⁶ As an extension of this basic principle, therefore, free trade among two or more countries will improve the welfare of the member countries as long as the arrangement leads to a net trade creation. Their argument reflects the fact that historically or originally, regional integration aims solely at trade and other economic benefits. More clearly put, the standard trade theory provides the impetus for the development of the concept of regional integration.

It is imperative to mention that, the coming together of separate economies to exchange ideas, best practices, products and skills would go a long way to greatly benefit in one way or the other all the parties involved in the merger. It is, therefore, in line with this reasoning that there is the need for regional economic integration in Africa. Since the 1960s, independent African states have attempted to create economic groupings ‘in order to improve their bargaining position and achieve “sustained” economic growth and development in a world structured by unequal and dependent relations by the international division of labour.⁷ According to Yansane, “the purpose for which many African states formed economic integration groupings was to breakdown debilitating dependencies on the old metro poles without shattering the nation- state structures based on the old colonial boundaries”.⁸ Integration of the sub-region became inevitable in view of the “need to prepare the sub-region, as well as continental Africa, to curb neo-colonial challenges at the first instance, and on the long run square-up efforts to take a strong stand in the global capital-driven economy.”⁹

Many scholars over the years have been advocating for a strong integration of the African continent in various relevant areas such as economic, political, security and social and justice. Mwasha, for instance opined that the benefits of regional economic integration depend on the level of economic integration and the deeper the integration, the greater the benefits to the participating Partner States.¹⁰ Mwasha, added that the degree of integration depends upon the willingness and commitment of independent sovereign states to share their sovereignty.¹¹ Fernandez, also observed that regional economic integration can serve a useful economic purpose beyond the direct gains from trade liberalization, by reducing uncertainties and improving credibility and thus making it easier for the private sector to plan and invest.¹² Indeed, reducing uncertainty may be vital for realizing gains from liberalization.¹³ Whether economies benefit  from a particular regional trade agreement depends on the scope and coverage of its provisions, the nature of the enforcement mechanism and the circumstances in which the agreement can be modified.¹⁴ Economic integration can also serve as incentives for investment and attraction of foreign direct investment (FDI). Park and Park, alluded to the fact that general reforms such as stabilization, market liberalization, and privatization adopted under regional economic arrangements can raise returns to all factors and are likely to be more than enough to increase private investment.¹⁵

Post-colonial African states have attempted to restructure this system directed toward self- sufficiency, integrated economies, economic decolonization and reduced dependence on state institutions handed over to them by the colonial powers. The desire to adopt economic integration was also as a result of the positive gains the European Union experienced from economic integration. These benefits influenced political leaders of African countries who also decided to “integrate their economies in order to overcome the challenges such as declining economies, mounting debts and the shortfalls in export receipts, the small size, low

per capita incomes, small populations, narrow resources bases they faced at the second decade of their independence.”¹⁶

It is, therefore, the above laid foundation in regional integration that gave birth to the idea of ECOWAS, which was conceived and initiated in 1975. That notwithstanding, several years after its existence, the West African regional body still cannot boast of many significant successes. Despite the few positive gains that have been cloaked by ECOWAS, such as the establishing of the ECOWAS parliament, the establishing of a financial Committee with the task of planning to develop a single currency for the West African body, her efforts at attaining peace and security, democratization of the sub-region and many others, the West African sub-regional body has had very difficult challenges in economically integrating its member states.

The ECOWAS is bedeviled with a lot of challenges just like that of the African Union. Scholars have given several reasons for the struggling nature of the various integrative structures of developing countries. For instance, according to Okolo, the absence of favourable background conditions before the commencement of the integration process coupled with weak institutional structures and competing ideologies are to be blamed for the challenges of integration in developing countries.¹⁷ Ezi, on the other hand, disagrees and contends that “the problems of regional economic integration in Africa go beyond those of political instability, ideological diversity, and lack of infrastructure, low industrial development and divided loyalty of members. These tendencies that pose serious problems for economic integration of the sub-region still rear their ugly heads. Of crucial importance is the problem of foreign capital which is in alliance with the local dominant classes and the continued marginalization of these economies in the international division of labour.”¹⁸ All

these are indicative of the fact that there are debilitating challenges with regional integration in Africa, especially in economic integration of ECOWAS, which is examined in this study. It is therefore against this background that this research seeks to critically analyze the economic integration of ECOWAS with specific focus on the prospects and the way forward.

         Statement of the Research Problem

To this day, Africa as a continent lacks a common market for her products, no common currency and no common trade platforms. This is as a result of the difficulties confronting regional economic integration in the region. These challenges have further worsened the divisive nature, the poor economic fortunes and the fragmented nature of the continent. It was a common phenomenon for African leaders to quickly blame the reasons for the inability of the African continent to have a strong regional integration on colonial domination especially in the early years of independence. However, after more than fifty years of freedom from colonial domination, the region of West Africa is yet to have a solid continental economic body. For instance, since its formation in 1975, the ECOWAS trade liberalization scheme (ETLS) which was supposed to facilitate trade among member states of ECOWAS has not achieved its intended goal despite taking cognizance of the glaring reality that the long term goal of economic integration and industrialization of the entirety of the African continent is hampered by the challenges that bedevil the integration of ECOWAS member states.¹⁹

Various scholars have suggested diverse reasons for such a phenomenon. Gabriel Akwen blames the difficulty in the economic integration of West African states on the diversity of economies between African countries as well as the fact that leaders of member states refuse to cede sovereignty to a supranational institution, in addition to ideological differences,are the problems of the economic conditions of African states and the abundance of nonfunctional

regional bodies.²⁰ Again, according to Patrick Kimunguyi, one of the notable challenges of regional economic integration in the West African region is the difficulty in promoting inter- and-intra regional trade.²¹ Kimunguyi further alluded to factors which have contributed to the poor inter and intra African trade performance by blaming it on the fact that many African countries in the region basically produce raw materials, which are less competitive in the international markets and sometimes there is virtually no demand for them elsewhere in Africa. Also, Geda and Kibret, writing in 2002, mentioned compensation issues and variation in initial condition as some of the challenges of Regional Economic Integration in Africa.²² It is clear therefore, that there is a fundamental problem with economic integration as well as the West African states are concerned. There is a profound body of literature on the challenges of regional economic integration for the ECOWAS. Thus, this research work, in the light of the challenges of regional economic integration, critically analyzed the mechanism, policies as well as prospects, challenges and the way forward for the integration process of ECOWAS.

         Research Questions

• Why is there the need for economic integration for the ECOWAS member states?

• What are the mechanisms and policies of economic integration of ECOWAS?

• What are the prospect and challenges of economic integration of ECOWAS?

         Objectives of the Study

The study was guided by the following objectives:

• Examine the need for economic integration of ECOWAS member states

• Identify the mechanisms and policies for the economic integration of ECOWAS.

• Examine the prospects and challenges for economic integration of ECOWAS member states.

         Scope of the Study

Contextually, the study made an overview of economic integration of ECOWAS. It covered existing trade arrangements within ECOWAS with special interest on the prospects and the way forward. It also examined the need for economic integration in ECOWAS for its member states. Specifically, the study examined ECOWAS economic integration process since its inception in 1975 as well as looking at the challenges, prospects and the way forward to making it better.

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