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Periodical article | Leiden University catalogue | WorldCat |
Title: | Economic Integration in Africa: Enhancing Prospects for Success |
Author: | Johnson, Omotunde E.G. |
Year: | 1991 |
Periodical: | Journal of Modern African Studies |
Volume: | 29 |
Issue: | 1 |
Period: | March |
Pages: | 1-26 |
Language: | English |
Geographic term: | Africa |
Subjects: | international economic relations common markets Inter-African Relations Economics and Trade |
External link: | https://www.jstor.org/stable/160991 |
Abstract: | This article discusses the major factors behind the slow progress of attempts at economic integration in Africa and proposes ways in which the chances of success can be enhanced, and progress towards regional integration thereby accelerated. The ECA has been concerned with the promotion of a common market. Such integration involves a common external tariff, free movement of peoples and goods, and coordination of macroeconomic policies. However, the investment costs involved in such integration have remained an obstacle to speedy progress towards this form of economic collaboration. These costs include: loss of sovereignty over macroeconomic policy to some union body; consumption costs from protection, and hence trade diversion; the expectation of unequal distribution of gains and losses; and the potential breakup of other valued economic relationships. After having stressed the importance for African States of correcting severe macroeconomic disequilibria before pressing ahead with the major measures for integration, and having emphasized the importance of political will, the author discusses the relevance of economic integration for the terms of trade. In the light of the deteriorating terms of trade of the African countries he suggests an alternative strategy including the striving for increased factor productivity, optimal savings policies and diversification of African economies, exports in particular, and shows that this strategy would benefit from economic integration. Notes, ref. |