ECONOMIC INTEGRATION OF THE ECONOMIC COMMUNITY OF WEST AFRICAN STATES: PROSPECTS AND CHALLENGES

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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