These case studies encompass three different sub-regions that vary in their level of regional integration. This site uses cookies to optimize functionality and give you the best possible experience. Regional economic integration refers to agreements between countries in a geographic region to reduce, and eventually remove, tariff and non-tariff barriers to the free flow of goods, services, and factors of production between each other" (Hill, 2004). Regional integration increase a nation economic activities overall, which in turn raises GDP and can provide better living standards for all citizens within the regional block. Because stronger regional economies will have the confidence and capacity to compete effectively in volatile and competitive global markets, the development of solid links between countries in a region-and larger and more affluent markets outside the region-can help raise standards and create incentives for deeper regional integration. These divisions are a constraint to economic growth, … 6 minute read . Arguably there is no regional integration without this economic component. The discussions focused on two key aspects of regional integration: intra-regional trade and workforce mobility. This trend was triggered by the EU market integration. To build on these accomplishments, this year’s African Economic Conference (AEC) in Kigali must define what the African Continental Free Trade Agreement means for Africa, and how it will foster integration. It can also ease the constraints faced by many firms in … Benefits Of Regional Economic Integration. Database: Content of Deep Trade Agreements This dataset on the content of preferential trade agreements (PTAs) maps 52 provisions in 279 PTAs notified at WTO signed between 1958 and 2015. “regional integration” has become a major trend. The analysis is based on three case studies of efforts to create trans-boundary transport corridors anchored by extractive resources: The cases include the extraction of coal in the Nacala corridor in southern Africa; proposals for the exploitation of iron ore in Guinea and Liberia; and the LAPSSET corridor in East Africa that aims to ship oil and gas from South Sudan to ports on the Indian Ocean. Another advantage of regional integration is that the effect of a large market will increase global competitiveness. Ensuring that regional economic integration succeeds in Africa is very important, not only because of the prospective benefits mentioned above, but also because the policies that are required to ensure its success are the same as those needed if Africa is to benefit from the Another key concern is that integration must be people-centred, with stronger citizens’ partnerships, especially among Africa’s burgeoning youth population, private sector players and civil society institutions, in order to ensure sustainable development. Regional integration in Africa, however, can play a vital role in diversifying economies away from dependence on the export of just a few mineral products; in delivering food and energy security; in generating jobs for the increasing number of young people; and in alleviating poverty and delivering shared prosperity. This followed the launch of an African Common Passport in July 2016. Saving the end-user client personnel costs. Regional Integration in Africa Trudi Hartzenberg Trade Law Centre for Southern Africa (tralac) ... important. It also promises to promote trade liberalisation and improve interactions within the existing regional economic communities. In view of this, it is appropriate to briefly reexamine why regional integration is pursued, what is understood by regional integration and pre-conditions and principles for regional integration in sub-Saharan Africa. Development economists, policymakers, African and non-African researchers are meeting in Kigali, Rwanda this week to discuss the shape and future of continental integration at the 13th African Economic Conference (AEC). A dispute settlement mechanism, similar to that set up by the World Trade Organization is embedded in the agreement. Through our research and the recommendations provided in the report, we show that regional integration is still relevant for Africa’s resource-rich countries – and that it is more crucial than ever before for diversifying countries’ economies as the global commodity supercycle comes to an end. Why regional integration is so important for resource-driven diversification in Africa. Deepening regional integration among African economies, therefore, provides both opportunities and challenges to the sound management of extractive resources and translating wealth from these resources in to diversified economies and equitable growth. Find out why they are important to regional integration. Photo credit: World Bank . The deeper integration of regional markets through the elimination of non-tariff barriers can reduce trade and operating costs. Regional integration helps countries overcome divisions that impede the flow of goods, services, capital, people and ideas. For Africa, a vast continent of over 1.2 billion people, integration has considerable potential not only for promoting robust and equitable economic growth through markets, but also for reducing conflict and … To date, the RECs have made slow but steady progress on Africa’s integration, particularly in infrastructure (SADC, EAC), trade liberalisation and facilitation (West Africa economic and monetary Union, COMESA), free movement of people (ECOWAS), and peace and security (ECOWAS and SADC). Africa is infested with the deepest levels of poverty, lowest share of world trade, and weakest development of human capital and infrastructure, to say the least. Benefits of Regional Economic Integration. Share on. Secondly, regional integration implies the lowering of barriers to trade, thus benefiting the economy and increasing the well-being of the member states’ citizens. The preponderance of bilateral and multilateral agreements between African states and the international community should also be reviewed to ensure that existing and future trade and investment arrangements align with regional and continental integration. Vertical integration is a supply chain management style that many businesses decide to use. Importance of regional and continental integration for Africa’s development, Macro-economics Policy, Forecasting and Research, Independent Development Evaluation (IDEV). Yet, it is clear that a lot remains to be done. This was the genesis of Africa’s regional economic communities (RECs), regarded as the building blocks of the African Economic Community. The Organization of African Unity and its successor, the African Union, have championed continental cooperation since the 1960s, culminating in the signing of the Abuja Treaty in 1991. There is also a need for a secure environment and the harmonisation of business legislation and regulations. Role of Regional Integration Regional economic integration is fast becoming a major factor in promoting global business. " A deeper integration agenda that includes services, investment, competition policy and other behind-the-border issues can address the national-level supply-side constraints far more effectively than an agenda which focuses almost exclusively on border measures. Natural resources management, particularly in the extractives industry, can make a meaningful contribution to a country’s economic growth when it leads to linkages to the broader economy. Yet, in practice, intra-regional integration has not received great traction, especially in South… Against an international backdrop of changing political and economic priorities, Africa must plot a new course for its industrialisation and economic development, using the momentum of regional integration. Africa’s integration is no longer a matter of choice. First, regional integration is an important building block in deterring violent conflicts between nations. That is why, when one talks of regional economic cooperation and integration, it is natural to look to ASEAN as the hub around which increased integration can take place. The objectives of the agreement could range from economic to political to environmental, although it has typically taken the form of a political economy initiative where commercial interests are the focus for achieving broader socio-political and … To maximize the economic benefits of extractives, the sector needs to broaden its use of non-mining goods and services and policymakers need to ensure that the sectors infrastructure needs are closely aligned with those of the country’s development plans. By using independent system … The build-up to the conference began in March 2018, when 44 African countries committed to the launch of a common market for Africa - the African Continental Free Trade Area (AfCFTA). 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