In light of Africa’s challenges with globalization, regional integration has come to be an alternative strategy in combating the pressure that comes with small size and underdevelopment of African economies. Regional integration has been echoed as a major aim for the African continent since the end of colonization. The dedication of African leaders towards cooperation and integration has been accentuated in several African leaders’ meetings beginning from the 1980 Lagos Plan of Action, the 1991 Abuja Treaty, and the 2001 New Partnership for Africa’s Development – NEPAD. Regional integration is arguably one way in which Africa can provide a catalyst for a consistent economic and political reform throughout the continent.
Even though Africa’s history with attempted regional integration has not been without failures, there is a greater deal of enthusiasm and desire for economic integration as a new strategy for development. Trudi Hartzenberg, writing in her article for the World Trade Organization “Africa needs a Deeper Integration Agenda”, argues that regional integration could be viewed as a natural rejoinder to the challenge of the smallness of most African economies and small national markets. However, Hartzenberg questions the manner in which integration has been adopted by African nations. In her view, the obsession with tariff liberalization is not the most helpful means of challenging smallness, marginalization and underdevelopment. Instead, Hartzenberg argues for the strengthening of the states’ role in creating effective policies for trade, empowering regional institutions and implementation of policies. Moreover, she argues that the constant pegging of Africa’s trade priorities on the European nations eliminate an opportunity for an independently African solution.
The institutional operations of the organized regional blocks also hinder their functionality. The absence of real authority or autonomy of the blocks denies them the power to implement projects. Limited personnel, over ambitious projects, coupled with financial hurdles limit the realization of the objectives. Another form of institutional constraint lies in the formation of overlapping regional bodies with the same functions. The many intergovernmental institutions that African governments join are often costly for the countries. Their numbers also make it hard for them to operate swiftly without conflicts. For example, some members of Common Market for East and Southern Africa (COMESA) are also members of South Africa Development Community (SADC). Both of these institutions campaign for free trade areas and for limited customs. Scarcity of resources to run these organizations has meant that priority is given to national projects. Without specific and goal oriented regional blocks, the dream of achieving development via regional blocks will be elusive for many an African country.
The structure of African economies also restrains trade liberalization and economic integration. Because of lower tariff revenues and increased import competition that comes with economic integration, trade liberalization becomes a threat to import subsidizing industries established after independence. As a result, common markets do not lead to increase in volume of trade or investments. Landlocked countries are also disadvantaged because of excessive taxes charged on them at the borders with coastal countries. With free movement across the borders, coastal countries will lose the revenue that comes from import taxes. Again, poor diversification of economic produce and production of similar goods hinders the benefit of integrated trade blocks. Most countries within the same trading blocs export the same produce which are mainly raw material or agricultural produce such as coffee or tea. Because of the production of similar goods, the market of the exported products is found abroad as opposed to within the region. Limited diversification therefore hinders the benefits that would accrue from regional integration.
In order for the regional integration to be successful, Africa will need to be stable in all regions. The ramifications of volatility have been huge for the people of Africa and for the world. This has been observed in the forms of economic backwardness, poverty, high level of insecurity, corruption and civil wars. Because of this, regional bodies should be aware of the fact that development of strong democratic institutions and culture, observance of human rights and rule of law, as well as sustainable development policies are essential for the success of regional integration. Without peace, the hope of a successful Africa will be bleak.
Reasons for Regional Integration
Another reason why Africa needs to be integrated into the global market is advocated by the increased demand for Africa’s resources such as oil, diamonds, and gold among others. The global demand for Africa’s energy and natural resources has created an avenue for the development of a primary industrial system. With a primary industrial system, there is a possibility that a diversified economy could be created. Because of the increased demand for Africa’s resources, the continent has witnessed a surge in economic growth. According to the African Economic Outlook 2008, there has been a steady economic growth of an average GDP of 5.7% in 2007 to a 5.9% in 2008. The oil exporting countries such as Nigeria and Angola have witnessed growth compared to oil importing countries. Integration in the world market would create more demand for Africa’s energy and subsequently economic growth. With stronger government structures, rule of law, and political stability, economic development could be realized.
Rising economies like China and India have created a room for nontraditional actors to trade with Africa. Without open markets, it would be difficult for Africa to trade with these new global players. Already, China’s trade in Africa is raising eyebrows in the West. As China’s economy grows at an unprecedented 9% annual growth for the last twenty years, China needs the resources to sustain this growth. China is therefore speeding up the process of integrating Africa into the global market by increasing trade and investment in the continent that had been declared so risky for trade by USA and the European Union. China has risen to be the continents biggest trade partner after the United States of America. China sees Africa as a market for its cheap consumer goods. Again, China involves itself in the development of basic infrastructure such as roads, bridges, hospitals among others. Although the Chinese foreign policy in Africa has been criticized for its non interference policy and its companies accused of poor labor standards, the Chinese influence in Africa is important because it challenges the role of traditional western powers in Africa. Moreover, as a former third world country, China is better placed to advice Africa on how best to integrate into the world market without being scathed.
References
Moss Todd, (June 2009), "Where does Africa fit in the Globalization Puzzle?" QN: APublication of Yale School of Management accessed November 26, 2011, http://qn.som.yale.edu/content/ where-does-africa-fit-globalization-puzzle.
Joseph M. Grieco and John Ikenberry, (2002) State Power+ World Markets: The International Political Economy ,New York: W.W Norton & Company.
Charles Ukeje, (2005)"Rethinking Africa’s Security in the Age of Uncertain Globalisation: NEPAD and Human Security in the 21 st Century" (PhD diss., Obafemi Awolowo University Ile-Ife, Nigeria
