Free Essay

Regional Economic Integration

In:

Submitted By aganur
Words 16032
Pages 65
RETHINKING THE (EUROPEAN) FOUNDATIONS OF SUB-SAHARAN AFRICAN REGIONAL ECONOMIC INTEGRATION: A POLITICAL ECONOMY ESSAY by
Peter Draper
Research area: African Economic Outlook
September 2010
Working Paper No. 293
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
2 © OECD 2010
DEVELOPMENT CENTRE WORKING PAPERS
This series of working papers is intended to disseminate the Development Centre’s research findings rapidly among specialists in the field concerned. These papers are generally available in the original English or French, with a summary in the other language. Comments on this paper would be welcome and should be sent to the OECD Development Centre, 2 rue André Pascal, 75775 PARIS CEDEX 16, France; or to dev.contact@oecd.org. Documents may be downloaded from: http://www.oecd.org/dev/wp or obtained via e-mail (dev.contact@oecd.org). THE OPINIONS EXPRESSED AND ARGUMENTS EMPLOYED IN THIS DOCUMENT ARE THE SOLE RESPONSIBILITY OF THE AUTHOR AND DO NOT NECESSARILY REFLECT THOSE OF THE OECD OR OF THE GOVERNMENTS OF ITS MEMBER COUNTRIES
©OECD (2010) Applications for permission to reproduce or translate all or part of this document should be sent to rights@oecd.org
CENTRE DE DÉVELOPPEMENT DOCUMENTS DE TRAVAIL
Cette série de documents de travail a pour but de diffuser rapidement auprès des spécialistes dans les domaines concernés les résultats des travaux de recherche du Centre de développement. Ces documents ne sont disponibles que dans leur langue originale, anglais ou français ; un résumé du document est rédigé dans l’autre langue. Tout commentaire relatif à ce document peut être adressé au Centre de développement de l’OCDE, 2 rue André Pascal, 75775 PARIS CEDEX 16, France; ou à dev.contact@oecd.org. Les documents peuvent être téléchargés à partir de: http://www.oecd.org/dev/wp ou obtenus via le mél (dev.contact@oecd.org). LES IDÉES EXPRIMÉES ET LES ARGUMENTS AVANCÉS DANS CE DOCUMENT SONT CEUX DE L’AUTEUR ET NE REFLÈTENT PAS NÉCESSAIREMENT CEUX DE L’OCDE OU DES GOUVERNEMENTS DE SES PAYS MEMBRES
©OCDE (2010) Les demandes d'autorisation de reproduction ou de traduction de tout ou partie de ce document devront être envoyées à rights@oecd.org OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 3
TABLE OF CONTENTS
ACKNOWLEDGEMENTS .......................................................................................................................... 4
PREFACE ....................................................................................................................................................... 5
RÉSUMÉ ........................................................................................................................................................ 6
ABSTRACT .................................................................................................................................................... 6 I. INTRODUCTION........................................................................................................................................ 7
II. AFRICAN DEVELOPMENT CHALLENGES...................................................................................... 9
III. POLITICS OF (SOUTHERN) AFRICAN ECONOMIC INTEGRATION...................................... 11 IV. ECONOMICS OF (SOUTHERN) AFRICAN INTEGRATION ............................................................ 16 V. LESSONS FROM “AFRICAN” POLITICAL ECONOMY FOR AFRICAN ECONOMIC INTEGRATION ............................................................................................................................................ 21
REFERENCES ............................................................................................................................................. 24
OTHER TITLES IN THE SERIES/ AUTRES TITRES DANS LA SÉRIE .............................................. 26
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
4 © OECD 2010
ACKNOWLEDGEMENTS
We would like to thank several people who gave generously of their time to review the paper and provide useful comments: colleagues at the OECD Development Centre, Olu Ajakaiye, San Bilal, Oli Brown, Alex Chandra, Gerhard Erasmus, Tobias Lenz, Mzukisi Qobo, and Mills Soko. OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 5
PREFACE
Before the global economic crisis, Africa experienced a decade long surge in cross-border investment and growth. On the occasion of a lecture at Renmin University, Beijing in China on 25 August 2010, South Africa’s President Jacob Zuma pointed out, referring to the OECD Perspectives on Global Development 2010, that a decade ago OECD countries were his country’s largest trading partners. ‚Last year,‛ Zuma contrasted, ‚China became South Africa’s largest trading partner.‛ Of course, the downturn brought this surge to a halt but Africa has managed to better weather the world’s most serious recession since the 1930s than OECD countries. Africa’s resilience is to be credited to improved macro-economic management as pointed out by the 2010 edition of the African Economic Outlook. But the Outlook also ascribes this increased resilience to the increased diversity of the trading partners of African countries over the last decade in particular. Today, both domestic firms such as Nigerian and Moroccan banks and South African breweries, and emerging countries such as China, are playing a prominent part in the recovery. However, formal, ‚top- down‛ regional integration processes, it seems, can claim little credit. To wit, intra-regional trade, their traditional focus, hovers at an estimated 10% of total African trade. In this Working Paper, Peter Draper takes stock of the last decade of African development from an African perspective. The author pleads for a recalibration of Africa’s regional integration models, a process whereby ‚champion countries‛ spearhead a less ambitious, but more effective agenda that addresses the region’s immediate development needs. He goes on to argue that for Africa, the European model of regional economic integration—at least in the short term — is not useful. He makes the case for limited regional economic integration which steers clear of formal, institution-intensive arrangements as seems to be the norm in sub-Saharan Africa. Our hope is that this piece triggers a constructive debate between African decision makers and their ‘traditional’ and ‘emerging’ partners alike.
Mario Pezzini Director OECD Development Centre September 2010 Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
6 © OECD 2010
RÉSUMÉ
Le soutien à l’intégration économique régionale en Afrique est fort au sein des partenaires au développement du continent et des élites africaines. Cependant, une intégration régionale à l’Européenne ne correspond pas aux capacités régionales, et dans certains cas, pourrait faire plus de mal que de bien. Cette lacune est exacerbée par les analyses techniques et théoriques basées sur les littératures de l’économie et des relations internationales. Cet article vise à reconceptualiser les fondations de l’intégration économique africaine en passant en revue les principaux débats au sein de chaque littérature, et en comparant les résultats de manière pluridisciplinaire. Globalement, nous concluons qu’une approche bien plus limitée est requise : mettre l’accent sur la facilitation du commerce et la coopération en matière de régulation dans des domaines relevant en premier lieu des affaires, dans le cadre d’un régime de sécurité qui renforce la bonne gouvernance au niveau national. Une attention particulière devrait être portée à la conception des programmes, de telle sorte qu’ils n’aggravent pas les problèmes de capacité et de mise en oeuvre qu’on rencontre dans l’édification d’Etats viables et légitimes. Ce faisant, la présence de leaders régionaux au poids économique important – l’Afrique du Sud dans le cas de l’Afrique australe – indique l’impératif d’une construction de ces accords économiques régionaux autour d’Etats stratégiques. Classification JEL: F150 Mots clés: intégration; organisations du commerce international; intégration économique.
ABSTRACT
Support for regional economic integration in Africa runs high amongst the continent’s international development partners and African elites. However, its expression in European forms of economic integration is not appropriate to regional capacities and in some cases may do more harm than good. This lacuna is exacerbated by technical and theoretical analyses rooted either in economics or international relations literatures. This paper sets out to reconceptualise the foundations of African economic integration through reviewing key debates within each literature and comparing the results across disciplinary boundaries. Overall, I conclude that a much more limited approach is required, one that prioritises trade facilitation and regulatory cooperation in areas related primarily to the conduct of business; underpinned by a security regime emphasising the good governance agenda at the domestic level. Care should be taken to design the ensuing schemes in such a way as to avoid contributing to major implementation and capacity challenges in establishing viable and legitimate states. In doing so, the presence of regional leaders with relatively deep pockets– South Africa in the Southern African case – points to the imperative of building such limited regional economic arrangements around key states. JEL Classification: F150 Keywords: integration ; international trade associations ; economic integration OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 7
I. INTRODUCTION
The desire to integrate African economies on a regional, and ultimately continental, basis is strong. It is shared amongst African elites and their international development partners. Consequently many formal initiatives have been established to further this goal, under the over- arching umbrella of the African Union’s plan to achieve a continental common market by 2028. However, often the rhetoric does not match the reality. African economic integration suffers from a litany of problems, ranging from overlapping memberships (Dinka and Kennes, 2007; Draper et al, 2007; UNECA 2006 and 2008), through unfulfilled commitments, to unrealistic goals. Therefore, it is appropriate to reconsider the conceptual foundations on which such integration is based, and in particular their strong European roots. This is not to suggest that Europeans are somehow ‘imposing’ their model of regional economic integration on Africa, for example by pre-selecting African groupings with which to negotiate Economic Partnership Agreements. That is a charge which is often heard in civil society quarters, but to establish it empirically would require a different essay. Rather, my focus on Europe draws its inspiration from the dominance of Europe in sub-Saharan African thinking concerning regional economic integration. Again, this is not to suggest that Africans cannot learn from other models such as Asian; rather my focus is ‘narrowly’ on European influence on (Southern) African norms concerning regional economic integration. The influence of the European model on (Southern) African thinking is discernible in at least two areas: political and institutional. At the political level, the underlying rationale is rooted in the ‘liberal peace hypothesis’, which asserts that closer economic integration constitutes ‘ties that bind’ which act to restrain member states from engaging in hostile military actions against each other. We explore this more deeply in Section III and show that it has limited applicability to (Southern) Africa. At the institutional level African regional economic communities (RECs) tend to mimic European Union forms, particularly in their predilection for Customs Unions. My purpose in putting forward this analysis is not to engage in ‚Euro-bashing‛; rather it is to as dispassionately as possible promote the need for alternative thinking on optimal design of RECs in (Southern) Africa. My approach to doing so is to explore the extensive literatures on regional economic integration emanating from two broad paradigms: security and economic. Too much writing on the subject is rooted in one or the other approach, which necessarily limits the applicability of conclusions reached. Therefore, it is necessary to explore motivations from both spheres in order to gain a holistic understanding of the possibilities and constraints. My paper sets out to redress this deficit by explicitly considering the political economy of African economic integration and proffering broad proposals for the normative foundations on which attendant
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
8 © OECD 2010 schemes should be built. My reference point is the region I know best and which I inhabit: Southern Africa. The paper is divided into four parts. In Section II, I briefly outline key contours of ‚the‛ African development challenge, charting familiar territory for all those versed in the issue. The framework for this assessment is Paul Collier’s (2007) influential ‚Bottom Billion‛ concept. The essential point is that the challenges are vast, whereas the means to address them confront enormous constraints. This sets the scene for a discussion of the politics of regional economic integration in Section III, which is cast in terms of the ‚liberal peace‛ paradigm derived from the European Union (EU) example. The rationale for this paradigm is explained and its applicability to African political conditions discussed. The basic conclusion reached is that the paradigm has limited ideological applicability to African conditions, whereas its institutional requirements are too onerous. This points to the need for more limited ambitions in the African context. This message is reinforced in Section IV where insights from economic theory concerning regional economic integration amongst poor countries are offered. Section V concludes with a set of propositions gleaned from the preceding analysis, whereby the case for less ambition in constructing African regional economic integration arrangements is framed and my appeal to consider an alternative approach is grounded. OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 9
II. AFRICAN DEVELOPMENT CHALLENGES
Sub-Saharan Africa contains a high concentration of least developed countries (LDCs); in the Southern African case 71 out of the global total of 49. Partly this is a function of political processes, discussed in Section III. Substantially it is a function of small domestic economies that are largely rural, subsistence-based, significantly informal, with weak productive capacities concentrated in extractive industries, and huge infrastructure or ‚supply-side‛ deficits that inhibit integration into the global economy. This picture is the basis for gloomier assessments of African development prospects, characterised as ‚development traps‛. Collier (2007, 7) sees these problems as being particularly concentrated in Africa, with 70% of the ‚bottom billion‛ being African, and living in countries that have been or are in one or another of these ‚traps‛. In Collier’s formulation there are four such ‚traps‛ in which the countries he classifies as ‚the bottom billion‛2 are wedged: 1. The conflict trap. Essentially, wars and coups keep countries from growing and hence dependent on primary commodities. But because they are poor, stagnant, and dependent on primary commodities they remain prone to wars and coups (Collier, 2007, 37). In Southern Africa two countries have relatively recently emerged from prolonged conflict (Angola; Mozambique) whilst a third has managed to avoid overt conflict at the expense of chronic political and economic instability (Zimbabwe). 2. The natural resources trap. Resource rents make democracy malfunction by unleashing patronage politics in societies lacking sufficient restraints on such behaviour owing to pervasive institutional weaknesses. In his view this closes off economic development possibilities (Collier, 2007, ch3). Incidentally, he views this trap as not being confined to the ‚bottom billion‛, but also affecting middle- income countries which stagnate at that level. In Southern Africa three countries seem to have evaded this trap (Botswana; South Africa); others seem mired in it (Malawi; Zambia; Zimbabwe). 3. The trap of being landlocked with bad neighbours. Poor landlocked countries depend on their neighbours not just for their economic infrastructure and access to the sea, but also as export markets (in Southern Africa this includes a number of states: Lesotho; Swaziland; Botswana; Zimbabwe; Malawi; Zambia). Ironically, the problem is worse for resource-scarce countries (e.g. Lesotho) as they face 1 These are Angola, Lesotho, Malawi, Mozambique, Madagascar, Tanzania and Zambia. 2 The term refers to the combined population of countries on the lowest rung of the economic development ladder; in Collier’s formulation these are concentrated in Africa and Central Asia (Collier, 2007, 3).
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
10 © OECD 2010 additional hurdles to development of infrastructure even if for resource extraction (Collier, 2007, ch4). These problems are compounded by agglomeration of economic activity in coastal locations (South Africa) with their easier access to global markets (World Bank, 2000, 51-61), a point I return to in Section IV. 4. The bad governance trap. Countries in the bottom billion that also have bad governance and bad policies are most likely to end up as ‚failed states‛, in which reform initiatives are quickly overwhelmed by those who benefit from disorder (Collier, 2007, ch5). However, he qualifies this by arguing that even good governance and good policies cannot propel a country into rapid growth if it does not have opportunities to grow. In Collier’s view it is possible for countries to break free of these traps, but he sees the current global economic environment characterised by China and East Asia’s manufacturing dominance as being much more hostile to new entrants now than in the past; hence breaking free and sustaining the path is, in his view, much more difficult. Clearly this constraint has been rendered even more challenging as the global financial crisis continues to unfold. Collier’s thesis concerning development traps essentially asserts that the onus for underdevelopment lies outside of the country concerned in circumstances beyond the inhabitants’ control (after all they are ‚trapped‛) and therefore seals the case for external subsidies or ‚development assistance‛ and trade preferences. The trade preference argument fits with the role of hegemons in underwriting liberal international regimes, which I discuss in Section III. The development assistance prescription is the subject of heated debate. Given the importance of this issue in the African context, and since I have outlined Collier’s broad case in favour of it, it is worth quoting a counterview expressed by Bauer (2000, 44) in detail: Throughout the world and throughout history, countless individuals, families, groups, communities, and countries have emerged from poverty to prosperity without donations and often did so within a few years or decades<.The hypothesis is also disproved by the existence of developed countries, all of which started poor and developed without subsidies. If external subsidies were indispensable for economic advance, mankind would still be living in the Old Stone Age. By this logic development is fundamentally a domestic affair. This highlights the role the state should play in development processes - which is a matter of longstanding academic and policy debate. For now it is important to note that the development challenges which Southern Africa in particular faces are serious, so it is scarcely surprising that regional economic integration should be widely seen to offer part of the solution to addressing them. Next I address the politics of (Southern) African economic integration; Section IV focuses on the economics. OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 11
III. POLITICS OF (SOUTHERN) AFRICAN ECONOMIC INTEGRATION
The political case for building regional economic integration is centred primarily on security considerations. The reference point is principally European, specifically the origins of the European Community centred on managing Franco-German relations in order to avoid a rerun of the first and second World Wars. Their subsequent construction of an elaborate European institutional edifice aimed to enmesh its constituent states into a web of economic relations or ‚regimes‛.3 Within this progressively deeper economic integration was an essential element, with the central objectives being to manage resource competition amongst the constituent states and promote mutual wealth creation, which in turn required curtailment (not necessarily abandonment) of mercantilist thinking regarding management of international economic relations (Draper et al, 2006, 213). The establishment of democratic governance in Germany was also an essential prerequisite. Thus the European regional integration regime was constructed on the basis of three ideological foundations (Kelly, 2005, 75-77) designed to promote pacification: democracy or ‚Republican Liberalism‛; commerce and trade or ‚Commercial Liberalism‛; and institutions or ‚Regulatory liberalism‛. At the global level the General Agreement on Tariffs and Trade (GATT) was constructed on similar ideological foundations, with a core of Western democracies driving the agenda. The role of strong states (the US in the GATT; France and Germany in the EU) was essential to the success of both regimes. This gave rise to the theory of hegemonic stability (Gilpin, 2000, 93-97) which posits that a hegemon is central to maintaining adherence to liberal international economic regimes, and by extension liberal peace, through underwriting the costs of maintaining the regime (e.g. by providing access to its own market) rather than coercion. But in both regimes member states retained domestic ‚policy space‛4 so that the overall enterprise constituted what John Ruggie (1982) termed an ‚embedded liberalism‛ compromise. In other words, both regimes remained fundamentally intergovernmental rather than supranational, the variable institutional forms being determined by sovereign nation states taking the lead in complex interactions with domestic interests (Gilpin, 2000, 357). In the EU’s case this has meant a greater degree of supranationality, particularly with respect to regulation of the common market. 3 In terms of which member states are prepared to construct collective norms and regulations in order to facilitate compatibility amongst themselves and prevent individual states from engaging in actions destructive of economic activity, in the interests of maintaining (regional) peace. These norms and regulations constitute what Keohane (1984) termed an international ‚regime‛, which he regarded as essential to preserve and stabilise the international economy. 4 The Europeans in order to construct domestic welfare states; the US Congress in order to retain autonomy over US trade policy.
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
12 © OECD 2010
The constituent states, primarily the developed world, retained a strongly state-centred perspective to varying extents premised on ‚Economic realism‛ notions, in terms of which the survival of the state is the central concern. Kelly (2005, 74-75) notes that concerning trade this encompasses two views: that trade can enhance or undermine the security of the state. The latter perspective leads to a desire to promote economic autarky in order to minimise dependence on foreign powers. This reinforces the point that whilst it is necessary to yield some sovereignty in order to maintain the international regime as a public good, there would always be tensions regarding how much sovereignty to yield (Kelly, 2005, 76) and therefore a presumption in favour of inter-governmentalism. Furthermore, the view that trade can enhance state security is built on mercantilist notions, in terms of which the economy is the foundation for national power and states deploy trade (and other) instruments to accumulate economic gains at their rivals expense in order to keep them in check. This resonates with ‚strategic trade theory‛, the essence of which is that industries which experience oligopolistic market structures, increasing returns to scale and cumulative knowledge processes can benefit from state support to enhance their share of global markets at the expense of their rivals. In this view trade is a zero-sum game, a view at odds with the beneficial expansion of international trade in the post World War Two period – associated as it was with far-reaching trade liberalisation in the developed world particularly. The European Union’s success in managing inter-state conflict, understandably, is proffered to developing countries. This is particularly influential in the African context owing to that region’s historical and existing links to Europe via trade, investment, and development assistance. Yet as discussed in Section IV the economics of integration amongst developing countries is not obviously conducive to maintaining good relations amongst the states concerned, particularly if it leads to polarised development. Furthermore, there are some examples of members of developing country regional economic groupings resorting to armed conflict to settle their differences (Brown et al, 2009, 9) thus proving that regional economic integration does not automatically eliminate conflict. Nonetheless, Hammerstad (2005) notes that in recent years there has been a global revival of interest in the role RECs can play in building security. This has been marked by a shift from traditional realist conceptions in which security of the state, and amongst states, are the key issues, to one centred on people where domestic governance is the pivotal concern. This shift was driven by the end of the Cold War with its myriad of proxy conflicts, to a world where internal fragmentation and state failures have moved to the forefront.5 The logical regional corollary is that states are increasingly concerned with security risks generated by their neighbours arising from poor governance leading to cross-border instability. Therefore, in her view regional security communities in Africa are increasingly willing to replace ‚hard sovereignty‛. In terms of which interference in other member states’ affairs is expressly forbidden, with regimes that allow for foreign intervention under defined circumstances (Hammerstad, 2005, 10). 6 5 In Africa in the 1990s and in this decade inter and intra-state conflicts broke out in West Africa (Liberia, Sierra Leone, Cote d’Ivoire), Central Africa (the DRC, Rwanda, Burundi, and Uganda, involving also Angola, Zimbabwe and Namibia), and the horn of Africa (Somalia, Ethiopia and Eritrea). 6 The Kenyan then Zimbabwean political deals reached in 2008 and 2009 respectively, imperfect as they are, attest to this new paradigm. OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 13
Clapham (2001) agrees that establishing such structures at the regional level is essential to constructing a broader ‚good governance‛ agenda, which in turn provides the basic precondition for enabling economic growth. However, he argues (Clapham 2001, 64) that establishing such structures require that the constituent states share a ‚common idea of the state‛7, in other words ideological congruity, by which he refers to the liberal foundations of the European experience. He argues that failure to do so will seed conflict. Since these conditions are difficult to meet in the African context he asserts that the ‚liberal peace‛ paradigm represented by the European Union is a very challenging proposition for African states (Clapham 2001, 66), a view largely supported by the economic literature analysis in Section IV. Clapham’s pessimism is rooted in the host of governance challenges African states confront. Furthermore, the current character of many post-colonial African states does not obviously lend itself to constructing a ‚liberal peace‛; many are managed by former liberation movements or authoritarian, effectively single party governments.8 Of course if a small core of relatively democratic ‘liberal’ states with a regional hegemon at the centre was able to construct a viable REC then potentially this could be expanded to include others; the recent expansions of the EU to include former communist states may offer some hope in this regard. However, this scenario seems unlikely in the short to medium term. In this light it is important to contextualise the debate over the role of African states in the development of their countries and the associated ‚good governance‛ agenda. The danger of embarking on discussions of this kind is that we run the twin risks of engaging in ‚Afro- pessimism‛, which at worst is akin to racism connected with alleged continued imperial domination (Adebajo, 2009); or indulging in what Mkandawire (2001) terms the ‚impossibility thesis‛ by which he identifies an implicit view in the ‚good governance‛ agenda that African states are serially incapable of managing their own affairs owing to the nature of African politics, and therefore should not attempt to construct ‚developmental states‛ in the mode of East Asian models. Therefore it is important to take account of Mkandawire’s (2001) argument that the trouble with the ‚good governance‛ paradigm is that it comes embedded in ‚neoliberal‛ policy prescriptions in terms of which African state capacities have been denuded in line with purportedly 9 liberal conceptions of the ‚minimalist‛ or ‚night-watchman‛ state. In this light it is interesting and perhaps ironic that the same multilateral institutions which pursued the ‚structural adjustment‛ agenda in the 1980s and 1990s, with its attendant ‚good governance agenda‛, also promoted forms of regional economic integration which require relatively strong states to implement them. 7 Encompassing: the basis for its foundation and identity; its territorial extent; and the nature of its domestic government. 8 In Southern Africa the only exceptions to this generalisation seem to be Lesotho, Malawi, and Zambia. 9 Sally (1998, 28) argues that this conception of the state’s role is alien to those steeped in the classical liberal political economy tradition, as opposed to its modern descendant in formalised, mathematical, neoclassical economics. He argues that the classical liberal tradition accords a central role to the state in establishing and enforcing the basic rules of the game for market participants, but draws the line at state intervention designed to propel specific market outcomes. Naturally the latter conception is at odds with Mkandawire and other adherents to the ‚developmental state‛ paradigm.
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
14 © OECD 2010
What then are the essential features of the ‚good governance critique? Chabal and Daloz (1999) provide the archetype for pessimistic analyses of the nature of the African state. They begin by arguing that the nature of politics in ‚black Africa‛ needs to be understood in its own terms rather than through the prism of Western models. In their view the failure to do so has led to ‚historically unrealistic expectations < in terms of the development potential of a modern independent Africa‛ (Chabal and Daloz, 1999, 142). Central to their perspective is the notion that whereas Western modernisation theories see development as a chiefly linear process of advance along largely Western lines towards technological and bureaucratic sophistication or ‚order‛, and liberal societies, in their view (black) African societies have acquired the instruments of technological advance whilst remaining ‚obdurately traditional‛ in their organisational and political arrangements (Chabal and Daloz, 1999, 145).10 They argue further that ‚success‛ in the African context is equated with personal material advance linked to neo-patrimonial relations rather than economic growth and ‚development‛ linked to an ascetic ethic in the Western (Protestant) sense (Gerth and Wright Mills, 1948, Ch XII). In this framework short-term micro perspectives dominate political action, rather than long-term macro perspectives (Chabal and Daloz, 1999, 145-162), impelling political elites or ‚big men‛ to prioritise their networks of influence over national development priorities. So, in their view whilst the trappings of modern bureaucracy are often in place, conduct within them remains traditional and personalised rather than bureaucratic and ordered. Thus, as the title of their intriguing book suggests politics tends towards disorder and undermining of state institutions, largely owing to the prevalence of neo- patrimonial politics across the sub-continent (Chabal and Daloz, 1999, 147). They conclude that this political dynamic is inimical to development. This pessimistic perspective resonates with Herbst’s (2000) analysis, in which African states barely control the territory within national borders, never mind a concerted development process. This arises from a context where African states are geographically large whilst populations are predominantly small, rural, dispersed, physically disconnected, ethnically heterogeneous, and institutions are characterised by pervasive weakness. In his view this confluence renders internal political authority tenuous; hence rulers are primarily concerned with maintaining their authority (generally by controlling the capital city) rather than with ‚development‛. In this formulation the extent to which they are prepared to cede control to others, internal or external, is sharply limited; whilst in some cases authoritarian instincts compound this dynamic. This pessimistic literature probably overstates its case. In Southern Africa there are arguably at least three states that function reasonably effectively, albeit not without problems: Botswana, Namibia and South Africa. In all three cases strong institutions exist side-by-side with weak and ineffective ones, showing that neo-patrimonial relations, even if the dominant form of politics, need not necessarily be determinative. Nonetheless, as this brief exploration of the social and political constraints on (Southern) African development illustrates, building viable national states, never mind intra or inter- regional organisations, is a challenging proposition. So, whilst UNCTAD (2009, 1) argues that 10 They note that Asian societies, by contrast, have generally acquired the technological and bureaucratic forms often without acquiring political openness. OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 15 regional integration can promote better institutions and intra-regional cooperation, the challenges in the (Southern) African context are formidable. Furthermore, in light of the relative ‚youth‛ of states in the region (de-colonisation being a very recent historical process) it is not surprising to find that leaders in many countries are reluctant to really yield their prerogatives to regional institutions. Instead, regional forums, particularly those comprising Heads of State, can provide both a refuge from domestic concerns and a source of external legitimacy. So it is not surprising to find gaps emerging between pronouncements made at Heads of State level and translation of those pronouncements into practical implementation requiring actual surrender of sovereignty. Therefore regional economic integration efforts have been hampered by a litany of problems, albeit with some successes sprinkled in-between. These problems highlight the obvious fact that regional economic integration in (Southern) Africa ought to be primarily inter-governmental, with a minimum of supra-national aspirations. Furthermore, as the theory of hegemonic stability suggests strong leadership is required in order to drive the construction of even a minimalist agenda. But what should be the content of that agenda? This brings the argument to the economics of (Southern) African economic integration.
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
16 © OECD 2010
IV. ECONOMICS OF (SOUTHERN) AFRICAN INTEGRATION
Sub-Saharan African countries generally trade mainly with developed countries (see Tables 1 and 2) from which inward investment is also primarily sourced (UNCTAD, 2009, 56) albeit there has been some diversification towards emerging markets, especially China, in recent years. Within this the bulk of extra-regional exports are undifferentiated commodities that are generally not needed in regional supply-chains owing to the serious underdevelopment of manufacturing industry. Therefore it is not surprising to find that aggregate levels of intra- regional trade in Africa remain the lowest in the world, at around 10% (UNCTAD, 2009, 23). This is the familiar story of African trade.
Table 1. Sub-Saharan Africa’s exports by region and growth rates, 2006
Region USD* (2006) % Share (2006) %CAGR11 (2000-2006)
Southern Asia 2 735 507.8 1 -10
Eastern Asia 31 108 719.4 15 25
Western Asia 3 892 807.9 2 19
South-Eastern Asia 4 416 036.4 2 13
NAFTA 55 580 004.3 26 16
MERCOSUR 5 441 987.1 3 24
EU 58 015 406.4 27 11
Rest of the World 51 286 158.1 24 11
Total 212 476 627.4 100 13
Source: SAIIA’s calculations from UNCTAD’s data.
Note: *At current prices in millions. 11 Compounded annual growth rate (CAGR) measures the average annual growth rate of exports from 2000 to 2006. OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 17
Table 2. Structure of Sub-Saharan Africa’s exports, 2006
Product Group USD* % Share
Fuels 109 418 241.41 51.5
Ores, metals, precious stones and non-monetary gold 37 967 769.44 17.9
Food Items 18 808 988.36 8.9
Other manufactured goods 17 387 011.93 8.2
Machinery and transport equipment 14 823 967.36 7.0
Agricultural raw materials 7 043 301.86 3.3
Chemical products 6 039 335.19 2.8
Other 988 011.84 0.5
Total all products 212 476 627.4 100.0
Source: SAIIA’s calculations from UNCTAD’s data.
Note: *At current prices in millions.
However, in its most recent report on the subject of African regional economic integration UNCTAD (2009, 24) notes that if resource exports are stripped out of the intra-African trade data then the picture changes dramatically: 7 out of 52 countries count Africa as their main export market and 25 count Africa as their second most important export market. This is closely associated with the emergence of regional growth poles and consequent acceleration of intra- African trade centred on them, particularly South Africa, but to a lesser extent Kenya and Nigeria in the sub-Saharan context. UNCTAD’s (2009) data show that there is strong evidence of economic concentration, or agglomeration, a theme we develop below. Nonetheless, UNCTAD (2009, 32) argue that for 80% of African countries manufactured products represent a larger share of exports to Africa than they do in total exports, which indicates some potential for building value-added in manufacturing in regional economic arrangements. Whilst the UNCTAD report offers some reason for optimism, albeit relatively small, the overall picture still stands in stark contrast to the European Union, where levels of intra-block trade are much higher, typically around 70% of the total. This contrast is important since African RECs typically emulate the European model, a process encouraged and supported by various European donor agencies. In the EU’s case regional economic integration is rooted in intra, rather than inter-industry trade, and is based on complex specialisation amongst large and widely diversified economies. And since EU tariff levels (barring agriculture) are low – a testament to the success of the GATT and construction of the common market - the danger of trade diversion resulting from reductions in the common external tariff (CET) of the customs union is low. In the African case economies are small and, allowing for a few exceptions in the form of regional growth poles, trade is oriented towards northern markets rather than neighbours and specialisation is rooted in basic comparative advantage. Thus the economic basis for meaningful exchange and complex specialisation, so crucial to ensuring distribution of the gains from constructing RECs, remains small in sub-Saharan Africa. Furthermore, whilst major unilateral tariff reductions have been made across the sub-continent in the last two decades, they still
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
18 © OECD 2010 remain relatively high compared to developed country levels. Consequently, without the opportunities for complex specialisation in intra-bloc trade the danger of trade diversion resulting from intra-REC tariff decreases is substantially higher than in the European case. Furthermore, proponents of the ‚New Economic Geography‛ advance strong arguments against promoting south-south economic integration schemes amongst poor developing countries (World Bank, 2000). The theory predicts that whilst all countries in such schemes have a comparative disadvantage in manufacturing relative to the global economy, there will be one with less of a disadvantage than the others (i.e. the regional growth pole). Hence industrial activity will tend to relocate to the relatively advantaged country at the expense of the others. This effect will be aggravated by agglomeration economics, whereby industrial concentration in the relatively advantaged country (consider South Africa and Kenya in Southern and Eastern Africa respectively) will be promoted at the expense of its neighbours. Furthermore, as tariff levels decline overall within the regional economic community (REC) so those countries suffering from industrial relocation will also experience trade diversion effects - importing relatively expensive goods from the growing industrial centre (i.e. their neighbour) rather than more efficient global producers, thereby lowering their overall welfare. Meanwhile, the favoured country will gain as regional industry relocates to its soil and real wages rise as a result. Clearly these effects would generate substantial political tensions over time12 which in turn would undermine integration processes.13 They also raise substantial question marks concerning the limits to strong regional leadership in driving economic integration in (Southern) Africa. Offsetting this negative view, there are economic problems associated with the current political fragmentation of states in Africa. Collier and Venables (2008) highlight three: increasing inequality in the distribution of natural advantage; costs due to the loss of scale economies in production; and loss of public goods as the scale of political cooperation is reduced. Concerning their first point Collier and Venables (2008) note that political fragmentation inhibits migration of people to where resources and markets are concentrated14, which in turn lowers aggregate efficiency and curtails development of urban production centres of sufficient scale to drive productivity increases.15 Moreover, nobody knows how much informal and unrecorded trade takes place across national borders in Africa. Partly this is because borders are not firmly under control, whilst there is also an element of corruption at play. This perspective is important because, as Bauer (2000, Ch1) notes, substantial economic activity in poor countries happens below the radar of official statistics which, as it is not formally captured and amenable to modern policy analysis, often suffers from poorly designed policies predicated on the notion 12 This process was a substantial factor behind the unravelling of the original East African Community, as Kenya attracted manufacturing investment and relocation at the expense of Uganda and Tanzania. It also partly explains why South Africa continues to ‚compensate‛ its customs union partners for their membership of SACU. 13 North-north integration schemes will not suffer from agglomeration since intra-industry trade is a strongly established feature of such arrangements; similarly in north-south schemes inter-industry trade is the basis. 14 To use the terminology contained in the latest World Development Report issued by the World Bank (2009), developing ‚density‛ in urban conurbations is retarded. 15 However, they also note that whilst reducing border barriers amongst contiguous states with small markets would favour development of a few urban centres, at the national level it would reinforce the agglomeration impacts highlighted in the previous paragraph. OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 19 that the informal economy is unproductive. Furthermore, he argues that contrary to popular belief what we think of as ‚subsistence production‛ actually embodies substantial capital investment, albeit off a low base. In this regard regional trade facilitation measures can help to increase the level of formality in such trade and increase the volume of trade at the same time (Lesser and Moisé-Leeman, 2009). Regarding their second point Collier and Venables (2008) note that African markets are very small considered individually, whereas pooling markets through regional economic integration in principle affords greater economies of scale and the potential for regional production sharing, albeit it runs the twin risks of diverting trade and agglomeration.16 And since small markets are vulnerable to monopoly/monopsony capture, which may discourage investment in them, widening the market may minimise this problem by offering the prospect for greater competition; although this will again be limited by the nature of existing production structures. Nonetheless, if supported by appropriate trade facilitation measures the productivity gains through widening regional markets could be potentially substantial. This increases the potential for capturing dynamic gains from trade liberalisation associated with increasing the division of labour (Sally, 1998, 46-48). Collier and Venables’ third point is particularly relevant in the African context where states are weak (discussed further below) and their fiscal bases small. In this context regional provision of public goods (ODI, 2008) notably in the spheres of policy and/or regulatory coordination but particularly provision of network services infrastructure (energy, finance, telecommunications, transport) grounded in a trade facilitation agenda has an important role to play in addressing the development challenges briefly discussed in Section II. Overall, whilst regional economic integration in Africa could yield net benefits, it is not likely to drive economic development in the manner of East Asian economic growth. Rather, it must be buttressed with north-south economic integration which plays to the region’s comparative advantages, should promote income convergence, and over time should also promote knowledge transfers from developed to developing countries.17 Whilst this approach at first sight would seem to ‚condemn‛ African countries to the status of perennial suppliers of primary products to northern markets, this conclusion assumes that comparative advantage is static – which is clearly not the case (Sally, 1998, 40-50). Rather, it is arguably through trade and commercial contact with dynamic regions of the world that developing countries grow and diversify their economies (Bauer, 2000, ch1). In the final analysis the major obstacle to economic diversification in the African case is the very low level of economic development to begin with. Integrating with neighbours that also suffer from this problem may mitigate it to some extent by promoting specialisation in commodities trade, and encouraging subsistence farmers and nascent manufacturers to produce for wider markets, but does not hold nearly as much potential to overcome it as integration with dynamic and large external markets. 16 Adherents to strategic trade theory would add that it also offers the potential to build regionally, and potentially globally, competitive industries. However, since this theory concerns industries that are global in nature, in my view it has very limited (if any) applicability to the African context. 17 The accession of relatively poor countries into the European Union in various waves provides strong evidence of such convergence effects.
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
20 © OECD 2010
How does the global economic crisis affect these dynamics? The answer is – not much. It is not intra-regional trade that is driving recessionary impacts on the continent; rather it is Africa’s connection to the outside, principally developed, world that is to blame. The flip side is that regional economic integration does not offer much of an alternative in the medium term since neighbouring markets are generally small and trade levels are low. Furthermore, capital inflows are sourced primarily from outside the region. And seeking to build deeper regional economic integration doesn’t mean it is necessarily going to happen, given the economic and political obstacles. Consequently, African countries will remain locked into current trading relationships with external partners for the foreseeable future. These dynamics point to a limited regional economic integration agenda, tailored to regional capacities. To sum up this agenda should comprise three essential elements: promoting productivity gains through widening regional markets by establishing free trade areas (FTAs); trade facilitation; and provision of regional public goods, especially network services infrastructure. Furthermore, it is likely that over a period of time a small set of regional leaders will emerge around which regional economies will increasingly concentrate. The key question then is how those regional leaders can be supported and boosted, with a long-term view to pulling their regions up with them. OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 21
V. LESSONS FROM “AFRICAN” POLITICAL ECONOMY FOR AFRICAN ECONOMIC INTEGRATION
What conclusions can be drawn from the preceding analysis? From the discussion concerning the politics of regional economic integration in Africa I draw four principle conclusions: 1. There is a major disjuncture between the (admittedly generalised) ideological character of states in sub-Saharan Africa and those in Europe which sharply curtails the possibilities for constructing a ‚liberal peace‛ agenda using the instruments of economic integration. 2. Many states in sub-Saharan Africa do not have the capacities to manage development processes, never mind engage in complex institutional forms of economic integration along the lines of the EU model. 3. The role of regional leading states is critical; however, with the probable exception of South Africa none would seem to have the capacity (in its broadest sense) to underwrite relevant RECs and secure the ‚liberal peace‛ agenda. 4. Nonetheless, there is some willingness to replace ‚hard‛ sovereignty with ‚soft‛ sovereignty, which lends itself to a ‚good governance agenda‛ even if that is controversial to some. However, if this is the foundation stone upon which sustainable RECs could be built, that in turn should be on the basis of inter- governmentalism, not supranational structures that demand major sovereignty concessions. This highlights the need to explore alternative models to the EU. From the discussion concerning the economics of regional economic integration in sub- Saharan Africa I draw five principle conclusions: 1. Widening regional markets could, on balance, promote dynamic economic development through increasing the possibilities for expanding the division of labour and associated specialisation. 2. Similarly, pooling capacities to provide regional public goods which would otherwise be under-provided in domestic markets offers substantial promise, particularly where this is linked to the core development constraints on the supply-side. This revolves around constructing network services (energy; finance; telecommunications; transport) and integrating them in regional markets. 3. This reinforces the centrality of a trade facilitation agenda in its broadest sense, and a focus on regulations linked to network infrastructure, rather than integrating
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
22 © OECD 2010 policy approaches per se. The current approach of integrating through formal arrangements, particularly customs unions and their common external tariffs, poses substantial policy coordination challenges to states with often diametrically opposed industrial interests and very limited capacities to harmonise industrial policies in particular. 4. These dynamics sharply limit the extent to which regional leaders or hegemons can drive economic integration in (Southern) Africa. Furthermore, given the agglomeration problem and prevalence of ‚economic realism‛ thinking in Africa and elsewhere, the question is whether such states will be seen as acting in the regional, rather than narrow national, interest. Therefore regional leaders need to show good faith by underwriting the REC, notably through providing preferential access to their markets. Outside of Southern Africa the challenge this imperative confronts is that the regional leaders (e.g. Kenya; Nigeria) are also mired in poverty meaning their domestic lobbies are unlikely to buy into such an agenda. 5. These challenges again suggest that a different approach may be more appropriate (Gilpin, 2000, 355) rather than formal, EU-style, institutional integration. Furthermore, regional economic integration is not a panacea for African states; therefore continued economic integration with northern partners in order to capture the dynamic gains from increased openness remains essential. Bringing together the political and economic insights, it seems to me that there is a case for a limited regional economic integration agenda which steers clear of formal, institution- intensive arrangements that parrot European forms, as seems to be the norm in most sub- regional groupings in sub-Saharan Africa. The European ‚model‛ may be useful as an aspiration, but given its unique geopolitical foundations18, complex governing institutions, elaborate coordination mechanisms, and levels of internal economic integration that developing countries can only dream about, it is very difficult to see how African political economy circumstances could replicate it. Rather, a much more limited approach is required, one that prioritises trade facilitation and regulatory cooperation in areas related primarily to the conduct of business19; underpinned by a security regime emphasising the good governance agenda at the domestic level. Care should be taken to design the ensuing schemes in such a way as to avoid contributing to major implementation and capacity challenges in establishing viable and legitimate states at the national level. 18 Gilpin (2000, 355) notes that North American economic integration, whilst more intense in the degree of economic interactions than Europe’s, has not acquired the latter’s institutional forms. He ascribes this difference to geopolitical factors, specifically the need to bind France and Germany after the Second World War and the relative absence of such an imperative in the North American case. It is difficult to imagine intra-African security conditions approximating those of post-War Europe. 19 A limited parallel here is the long-standing, if stalled, Asia-Pacific goal of ‚open regionalism‛. According to Garnaut (1996, 27-28), this approach is based on three premises: (1) non-discriminatory reduction of protection in economies which have the capacity to expand trade as a result of high complementarities or low bilateral transactions costs; (2) expanded provision by governments of regional public goods to lower transactions costs; and (3) market integration. OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 23
Since the funding to construct such regimes is most likely to be externally sourced this suggests a lower level of buy-in to the scheme in question than would be the case if local resources were used. Hence the presence of regional leaders with relatively deep pockets– South Africa in the Southern African case – points to the imperative of building such limited regional economic arrangements around key states. Furthermore, constructing RECs in sub-Saharan Africa must be premised on the strong likelihood that levels of buy-in are likely to be relatively low to begin with since sovereignties are newly acquired. Besides, the politics of patronage probably limit the extent to which regional institutions can promote political careers that are driven primarily by local, not supra-national, conditions. To overcome this constraint strong leadership at the Presidential level is probably necessary, as seems to have been the case in the recently re-established East African Community (Braude, 2008, ch14). However, this runs the risk of creating a democratic deficit which, in turn, may undermine good governance and potentially the integration scheme itself (Jonyo, 2005) for relatively little economic return. Since democratic or liberal governance has relatively shallow roots across the sub-continent there are substantial limits to promoting a ‚liberal peace agenda‛ premised on security concerns. Furthermore, Presidential prerogatives must be backed up by strong technocratic capacity at the regional and national levels. Yet such institutional preconditions are difficult to meet in ‚bottom billion‛ states. Nonetheless, the institutional and policy motives for constructing RECs are important particularly where they reinforce sound economic governance at home. On balance therefore the effort is worth making.
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
24 © OECD 2010
REFERENCES
ADEBAJO, A. (2009) ‚Natives are getting restless‛, Mail and Guardian, 15 August. BAUER, P. (2000) From Subsistence to Exchange – and other essays, Princeton University Press, Princeton. BRAUDE, W. (2008) Regional Integration in Africa: Lessons from the East African Community, South African Institute of International Affairs, Johannesburg. BROWN, O., S.R. KAHN and F.H. SHAHEEN, (2009) ‚Introduction‛, in Kahn, SR. (ed.) Regional Trade Integration and Conflict Resolution, Routledge, London. CHABAL, P. and J. DALOZ, (1999) Africa Works: Disorder as Political Instrument, James Currey, Oxford. CLAPHAM, C. (2001) ‚The Changing World of Regional Integration in Africa‛ in Clapham, C; Mills, G; Morner, A; and Sidiropoulos, E. Regional Integration in Southern Africa: Comparative International Perspectives, South African Institute of International Affairs, Johannesburg. COLLIER, P. (2007) The Bottom Billion: Why the Poorest Countries Are Failing and What Can Be Done About It, Oxford University Press, Oxford. COLLIER, P. and T. VENABLES, (2008) ‚Trade and Economic Performance: does Africa’s fragmentation matter? ‛ Annual World Bank Conference on Development Economics, Cape Town, South Africa, June. DINKA, T. and W. KENNES, (2007) ‚Africa’s Regional Integration Arrangements: History and Challenges‚, ECDPM Discussion Paper No. 74, September. DRAPER, P., S. SIDIROPOULOS, C. JAKOBEIT, and M. MAIER, (2006) ‚Trade, Economic Cooperation, and CPMR in Africa‛, in O. Greene, J. Buxton and C. Salonius-Pasternak, (eds) Conflict Prevention, Management and Reduction in Africa, Ministry of Foreign Affairs, Helsinki. DRAPER, P., D. HALLESON and P. ALVES, (2007), ‚SACU, Regional Integration, and the Overlap Issue in Southern Africa: From Spaghetti to Cannelloni?‛, South African Institute of International Affairs, SAIIA Trade Policy Report no 15. GARNAUT, R. (1996) Open Regionalism and Trade Liberalization: An Asia-Pacific Contribution to the World Trade System, Singapore: Institute of Southeast Asian Studies, Singapore. GERTH, HH. and C. WRIGHT MILLS, (1948) From Max Weber: Essays in Sociology, Routledge, London. GILPIN, R. (2000) Global Political Economy: Understanding the International Economic Order, Princeton University Press, Princeton. HAMMERSTAD, A. (ed.) (2005) People, States, and Regions: Building a Collaborative Security Regime in Southern Africa, Johannesburg: South African Institute of International Affairs, Johannesburg. HERBST, J. (2000) States and Power in Africa: Comparative Lessons in Authority and Control, Princeton University Press, Princeton. JONYO, F. (2005) ‚The role of civil society in regional integration‛, in Ajulu, R (2005) The Making of a Region: The Revival of the East African Community, Institute for Global Dialogue, Midrand. OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 25
KELLY, D. (2005) ‚Trade, Security and Globalization‛, in Kelly, D. and Grant, W. The Politics of International Trade in the Twenty-First Century, Palgrave macmillan, Basingstoke. KEOHANE, R. (1984) After Hegemony: Co-operation and Discord in the World Political Economy, Princeton University Press, Princeton. LESSER, C. and E. MOISÉ-LEEMAN, (2009) ‚Informal Cross-Border Trade and Trade Facilitation Reform in Sub-Saharan Africa‛, OECD Trade Policy Working Papers, No. 86, OECD, Paris. MKANDAWIRE, T. (2001) ‚Thinking about developmental states in Africa‛, Cambridge Journal of Economics, 25, 289-313. OVERSEAS DEVELOPMENT INSTITUTE (2008) ‚Regional Integration in African, Caribbean and Pacific Countries: A Review of the Literature‛, September. RUGGIE, J. (1982) ‚International regimes, transactions, and change: Embedded liberalism in the postwar economic order‛, International Organization, 36(2). SALLY, R. (1998) Classical Liberalism and International Economic Order: Studies in Theory and Intellectual History, Routledge, London. UNECA (2006), Assessing Regional Integration in Africa II: Rationalizing Regional Economic Communities, United Nations Economic Commission for Africa and African Union, Addis Ababa. http://www.uneca.org/aria UNECA (2008), Assessing Regional Integration in Africa 2008: Towards Monetary and Financial Integration in Africa, United Nations Economic Commission for Africa, Addis Ababa. http://www.uneca.org/aria UNCTAD (2009) Economic Development in Africa Report: Strengthening Regional Economic Integration for Africa’s Development, United Nations, Geneva. WORLD BANK (2000), Trade Blocs, Policy Research Report, Oxford University Press, Oxford. WORLD BANK (2009) World Development Report.
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
26 © OECD 2010
OTHER TITLES IN THE SERIES/ AUTRES TITRES DANS LA SÉRIE
The former series known as ‚Technical Papers‛ and ‚Webdocs‛ merged in November 2003 into ‚Development Centre Working Papers‛. In the new series, former Webdocs 1-17 follow former Technical Papers 1-212 as Working Papers 213-229.
All these documents may be downloaded from: http://www.oecd.org/dev/wp or obtained via e-mail (dev.contact@oecd.org).
Working Paper No.1, Macroeconomic Adjustment and Income Distribution: A Macro-Micro Simulation Model, by François Bourguignon, William H. Branson and Jaime de Melo, March 1989. Working Paper No. 2, International Interactions in Food and Agricultural Policies: The Effect of Alternative Policies, by Joachim Zietz and Alberto Valdés, April, 1989. Working Paper No. 3, The Impact of Budget Retrenchment on Income Distribution in Indonesia: A Social Accounting Matrix Application, by Steven Keuning and Erik Thorbecke, June 1989. Working Paper No. 3a, Statistical Annex: The Impact of Budget Retrenchment, June 1989. Document de travail No. 4, Le Rééquilibrage entre le secteur public et le secteur privé : le cas du Mexique, par C.-A. Michalet, juin 1989. Working Paper No. 5, Rebalancing the Public and Private Sectors: The Case of Malaysia, by R. Leeds, July 1989. Working Paper No. 6, Efficiency, Welfare Effects and Political Feasibility of Alternative Antipoverty and Adjustment Programs, by Alain de Janvry and Elisabeth Sadoulet, December 1989. Document de travail No. 7, Ajustement et distribution des revenus : application d’un modèle macro-micro au Maroc, par Christian Morrisson, avec la collabouration de Sylvie Lambert et Akiko Suwa, décembre 1989. Working Paper No. 8, Emerging Maize Biotechnologies and their Potential Impact, by W. Burt Sundquist, December 1989. Document de travail No. 9, Analyse des variables socio-culturelles et de l’ajustement en Côte d’Ivoire, par W. Weekes-Vagliani, janvier 1990. Working Paper No. 10, A Financial CompuTable General Equilibrium Model for the Analysis of Ecuador’s Stabilization Programs, by André Fargeix and Elisabeth Sadoulet, February 1990. Working Paper No. 11, Macroeconomic Aspects, Foreign Flows and Domestic Savings Performance in Developing Countries: A ”State of The Art” Report, by Anand Chandavarkar, February 1990. Working Paper No. 12, Tax Revenue Implications of the Real Exchange Rate: Econometric Evidence from Korea and Mexico, by Viriginia Fierro and Helmut Reisen, February 1990. Working Paper No. 13, Agricultural Growth and Economic Development: The Case of Pakistan, by Naved Hamid and Wouter Tims, April 1990. Working Paper No. 14, Rebalancing the Public and Private Sectors in Developing Countries: The Case of Ghana, by H. Akuoko-Frimpong, June 1990. Working Paper No. 15, Agriculture and the Economic Cycle: An Economic and Econometric Analysis with Special Reference to Brazil, by Florence Contré and Ian Goldin, June 1990. Working Paper No. 16, Comparative Advantage: Theory and Application to Developing Country Agriculture, by Ian Goldin, June 1990. Working Paper No. 17, Biotechnology and Developing Country Agriculture: Maize in Brazil, by Bernardo Sorj and John Wilkinson, June 1990. Working Paper No. 18, Economic Policies and Sectoral Growth: Argentina 1913-1984, by Yair Mundlak, Domingo Cavallo, Roberto Domenech, June 1990. Working Paper No. 19, Biotechnology and Developing Country Agriculture: Maize In Mexico, by Jaime A. Matus Gardea, Arturo Puente Gonzalez and Cristina Lopez Peralta, June 1990. Working Paper No. 20, Biotechnology and Developing Country Agriculture: Maize in Thailand, by Suthad Setboonsarng, July 1990. OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 27
Working Paper No. 21, International Comparisons of Efficiency in Agricultural Production, by Guillermo Flichmann, July 1990. Working Paper No. 22, Unemployment in Developing Countries: New Light on an Old Problem, by David Turnham and Denizhan Eröcal, July 1990. Working Paper No. 23, Optimal Currency Composition of Foreign Debt: the Case of Five Developing Countries, by Pier Giorgio Gawronski, August 1990. Working Paper No. 24, From Globalization to Regionalization: the Mexican Case, by Wilson Peres Núñez, August 1990. Working Paper No. 25, Electronics and Development in Venezuela: A User-Oriented Strategy and its Policy Implications, by Carlota Perez, October 1990. Working Paper No. 26, The Legal Protection of Software: Implications for Latecomer Strategies in Newly Industrialising Economies (NIEs) and Middle-Income Economies (MIEs), by Carlos Maria Correa, October 1990. Working Paper No. 27, Specialization, Technical Change and Competitiveness in the Brazilian Electronics Industry, by Claudio R. Frischtak, October 1990. Working Paper No. 28, Internationalization Strategies of Japanese Electronics Companies: Implications for Asian Newly Industrializing Economies (NIEs), by Bundo Yamada, October 1990. Working Paper No. 29, The Status and an Evaluation of the Electronics Industry in Taiwan, by Gee San, October 1990. Working Paper No. 30, The Indian Electronics Industry: Current Status, Perspectives and Policy Options, by Ghayur Alam, October 1990. Working Paper No. 31, Comparative Advantage in Agriculture in Ghana, by James Pickett and E. Shaeeldin, October 1990. Working Paper No. 32, Debt Overhang, Liquidity Constraints and Adjustment Incentives, by Bert Hofman and Helmut Reisen, October 1990. Working Paper No. 34, Biotechnology and Developing Country Agriculture: Maize in Indonesia, by Hidjat Nataatmadja et al., January 1991. Working Paper No. 35, Changing Comparative Advantage in Thai Agriculture, by Ammar Siamwalla, Suthad Setboonsarng and Prasong Werakarnjanapongs, March 1991. Working Paper No. 36, Capital Flows and the External Financing of Turkey’s Imports, by Ziya Önis and Süleyman Özmucur, July 1991. Working Paper No. 37, The External Financing of Indonesia’s Imports, by Glenn P. Jenkins and Henry B.F. Lim, July 1991. Working Paper No. 38, Long-term Capital Reflow under Macroeconomic Stabilization in Latin America, by Beatriz Armendariz de Aghion, July 1991. Working Paper No. 39, Buybacks of LDC Debt and the Scope for Forgiveness, by Beatriz Armendariz de Aghion, July 1991. Working Paper No. 40, Measuring and Modelling Non-Tariff Distortions with Special Reference to Trade in Agricultural Commodities, by Peter J. Lloyd, July 1991. Working Paper No. 41, The Changing Nature of IMF Conditionality, by Jacques J. Polak, August 1991. Working Paper No. 42, Time-Varying Estimates on the Openness of the Capital Account in Korea and Taiwan, by Helmut Reisen and Hélène Yèches, August 1991. Working Paper No. 43, Toward a Concept of Development Agreements, by F. Gerard Adams, August 1991. Document de travail No. 44, Le Partage du fardeau entre les créanciers de pays débiteurs défaillants, par Jean-Claude Berthélemy et Ann Vourc’h, septembre 1991. Working Paper No. 45, The External Financing of Thailand’s Imports, by Supote Chunanunthathum, October 1991. Working Paper No. 46, The External Financing of Brazilian Imports, by Enrico Colombatto, with Elisa Luciano, Luca Gargiulo, Pietro Garibaldi and Giuseppe Russo, October 1991. Working Paper No. 47, Scenarios for the World Trading System and their Implications for Developing Countries, by Robert Z. Lawrence, November 1991. Working Paper No. 48, Trade Policies in a Global Context: Technical Specifications of the Rural/Urban-North/South (RUNS) Applied General Equilibrium Model, by Jean-Marc Burniaux and Dominique van der Mensbrugghe, November 1991. Working Paper No. 49, Macro-Micro Linkages: Structural Adjustment and Fertilizer Policy in Sub-Saharan Africa, by Jean-Marc Fontaine with the collabouration of Alice Sindzingre, December 1991. Working Paper No. 50, Aggregation by Industry in General Equilibrium Models with International Trade, by Peter J. Lloyd, December 1991. Working Paper No. 51, Policy and Entrepreneurial Responses to the Montreal Protocol: Some Evidence from the Dynamic Asian Economies, by David C. O’Connor, December 1991. Working Paper No. 52, On the Pricing of LDC Debt: an Analysis Based on Historical Evidence from Latin America, by Beatriz Armendariz de Aghion, February 1992. Working Paper No. 53, Economic Regionalisation and Intra-Industry Trade: Pacific-Asian Perspectives, by Kiichiro Fukasaku, February 1992. Working Paper No. 54, Debt Conversions in Yugoslavia, by Mojmir Mrak, February 1992. Working Paper No. 55, Evaluation of Nigeria’s Debt-Relief Experience (1985-1990), by N.E. Ogbe, March 1992. Document de travail No. 56, L’Expérience de l’allégement de la dette du Mali, par Jean-Claude Berthélemy, février 1992. Working Paper No. 57, Conflict or Indifference: US Multinationals in a World of Regional Trading Blocs, by Louis T. Wells, Jr., March 1992. Working Paper No. 58, Japan’s Rapidly Emerging Strategy Toward Asia, by Edward J. Lincoln, April 1992. Working Paper No. 59, The Political Economy of Stabilization Programmes in Developing Countries, by Bruno S. Frey and Reiner Eichenberger, April 1992.
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
28 © OECD 2010
Working Paper No. 60, Some Implications of Europe 1992 for Developing Countries, by Sheila Page, April 1992. Working Paper No. 61, Taiwanese Corporations in Globalisation and Regionalisation, by Gee San, April 1992. Working Paper No. 62, Lessons from the Family Planning Experience for Community-Based Environmental Education, by Winifred Weekes-Vagliani, April 1992. Working Paper No. 63, Mexican Agriculture in the Free Trade Agreement: Transition Problems in Economic Reform, by Santiago Levy and Sweder van Wijnbergen, May 1992. Working Paper No. 64, Offensive and Defensive Responses by European Multinationals to a World of Trade Blocs, by John M. Stopford, May 1992. Working Paper No. 65, Economic Integration in the Pacific Region, by Richard Drobnick, May 1992. Working Paper No. 66, Latin America in a Changing Global Environment, by Winston Fritsch, May 1992. Working Paper No. 67, An Assessment of the Brady Plan Agreements, by Jean-Claude Berthélemy and Robert Lensink, May 1992. Working Paper No. 68, The Impact of Economic Reform on the Performance of the Seed Sector in Eastern and Southern Africa, by Elizabeth Cromwell, June 1992. Working Paper No. 69, Impact of Structural Adjustment and Adoption of Technology on Competitiveness of Major Cocoa Producing Countries, by Emily M. Bloomfield and R. Antony Lass, June 1992. Working Paper No. 70, Structural Adjustment and Moroccan Agriculture: an Assessment of the Reforms in the Sugar and Cereal Sectors, by Jonathan Kydd and Sophie Thoyer, June 1992. Document de travail No. 71, L’Allégement de la dette au Club de Paris : les évolutions récentes en perspective, par Ann Vourc’h, juin 1992. Working Paper No. 72, Biotechnology and the Changing Public/Private Sector Balance: Developments in Rice and Cocoa, by Carliene Brenner, July 1992. Working Paper No. 73, Namibian Agriculture: Policies and Prospects, by Walter Elkan, Peter Amutenya, Jochbeth Andima, Robin Sherbourne and Eline van der Linden, July 1992. Working Paper No. 74, Agriculture and the Policy Environment: Zambia and Zimbabwe, by Doris J. Jansen and Andrew Rukovo, July 1992. Working Paper No. 75, Agricultural Productivity and Economic Policies: Concepts and Measurements, by Yair Mundlak, August 1992. Working Paper No. 76, Structural Adjustment and the Institutional Dimensions of Agricultural Research and Development in Brazil: Soybeans, Wheat and Sugar Cane, by John Wilkinson and Bernardo Sorj, August 1992. Working Paper No. 77, The Impact of Laws and Regulations on Micro and Small Enterprises in Niger and Swaziland, by Isabelle Joumard, Carl Liedholm and Donald Mead, September 1992. Working Paper No. 78, Co-Financing Transactions between Multilateral Institutions and International Banks, by Michel Bouchet and Amit Ghose, October 1992. Document de travail No. 79, Allégement de la dette et croissance : le cas mexicain, par Jean-Claude Berthélemy et Ann Vourc’h, octobre 1992. Document de travail No. 80, Le Secteur informel en Tunisie : cadre réglementaire et pratique courante, par Abderrahman Ben Zakour et Farouk Kria, novembre 1992. Working Paper No. 81, Small-Scale Industries and Institutional Framework in Thailand, by Naruemol Bunjongjit and Xavier Oudin, November 1992. Working Paper No. 81a, Statistical Annex: Small-Scale Industries and Institutional Framework in Thailand, by Naruemol Bunjongjit and Xavier Oudin, November 1992. Document de travail No. 82, L’Expérience de l’allégement de la dette du Niger, par Ann Vourc’h et Maina Boukar Moussa, novembre 1992. Working Paper No. 83, Stabilization and Structural Adjustment in Indonesia: an Intertemporal General Equilibrium Analysis, by David Roland-Holst, November 1992. Working Paper No. 84, Striving for International Competitiveness: Lessons from Electronics for Developing Countries, by Jan Maarten de Vet, March 1993. Document de travail No. 85, Micro-entreprises et cadre institutionnel en Algérie, par Hocine Benissad, mars 1993. Working Paper No. 86, Informal Sector and Regulations in Ecuador and Jamaica, by Emilio Klein and Victor E. Tokman, August 1993. Working Paper No. 87, Alternative Explanations of the Trade-Output Correlation in the East Asian Economies, by Colin I. Bradford Jr. and Naomi Chakwin, August 1993. Document de travail No. 88, La Faisabilité politique de l’ajustement dans les pays africains, par Christian Morrisson, Jean-Dominique Lafay et Sébastien Dessus, novembre 1993. Working Paper No. 89, China as a Leading Pacific Economy, by Kiichiro Fukasaku and Mingyuan Wu, November 1993. Working Paper No. 90, A Detailed Input-Output Table for Morocco, 1990, by Maurizio Bussolo and David Roland-Holst November 1993. Working Paper No. 91, International Trade and the Transfer of Environmental Costs and Benefits, by Hiro Lee and David Roland-Holst, December 1993. Working Paper No. 92, Economic Instruments in Environmental Policy: Lessons from the OECD Experience and their Relevance to Developing Economies, by Jean-Philippe Barde, January 1994. Working Paper No. 93, What Can Developing Countries Learn from OECD Labour Market Programmes and Policies?, by Åsa Sohlman with David Turnham, January 1994. OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 29
Working Paper No. 94, Trade Liberalization and Employment Linkages in the Pacific Basin, by Hiro Lee and David Roland-Holst, February 1994. Working Paper No. 95, Participatory Development and Gender: Articulating Concepts and Cases, by Winifred Weekes-Vagliani, February 1994. Document de travail No. 96, Promouvoir la maîtrise locale et régionale du développement : une démarche participative à Madagascar, par Philippe de Rham et Bernard Lecomte, juin 1994. Working Paper No. 97, The OECD Green Model: an Updated Overview, by Hiro Lee, Joaquim Oliveira-Martins and Dominique van der Mensbrugghe, August 1994. Working Paper No. 98, Pension Funds, Capital Controls and Macroeconomic Stability, by Helmut Reisen and John Williamson, August 1994. Working Paper No. 99, Trade and Pollution Linkages: Piecemeal Reform and Optimal Intervention, by John Beghin, David Roland-Holst and Dominique van der Mensbrugghe, October 1994. Working Paper No. 100, International Initiatives in Biotechnology for Developing Country Agriculture: Promises and Problems, by Carliene Brenner and John Komen, October 1994. Working Paper No. 101, Input-based Pollution Estimates for Environmental Assessment in Developing Countries, by Sébastien Dessus, David Roland-Holst and Dominique van der Mensbrugghe, October 1994. Working Paper No. 102, Transitional Problems from Reform to Growth: Safety Nets and Financial Efficiency in the Adjusting Egyptian Economy, by Mahmoud Abdel-Fadil, December 1994. Working Paper No. 103, Biotechnology and Sustainable Agriculture: Lessons from India, by Ghayur Alam, December 1994. Working Paper No. 104, Crop Biotechnology and Sustainability: a Case Study of Colombia, by Luis R. Sanint, January 1995. Working Paper No. 105, Biotechnology and Sustainable Agriculture: the Case of Mexico, by José Luis Solleiro Rebolledo, January 1995. Working Paper No. 106, Empirical Specifications for a General Equilibrium Analysis of Labour Market Policies and Adjustments, by Andréa Maechler and David Roland-Holst, May 1995. Document de travail No. 107, Les Migrants, partenaires de la coopération internationale : le cas des Maliens de France, par Christophe Daum, juillet 1995. Document de travail No. 108, Ouverture et croissance industrielle en Chine : étude empirique sur un échantillon de villes, par Sylvie Démurger, septembre 1995. Working Paper No. 109, Biotechnology and Sustainable Crop Production in Zimbabwe, by John J. Woodend, December 1995. Document de travail No. 110, Politiques de l’environnement et libéralisation des échanges au Costa Rica : une vue d’ensemble, par Sébastien Dessus et Maurizio Bussolo, février 1996. Working Paper No. 111, Grow Now/Clean Later, or the Pursuit of Sustainable Development?, by David O’Connor, March 1996. Working Paper No. 112, Economic Transition and Trade-Policy Reform: Lessons from China, by Kiichiro Fukasaku and Henri-Bernard Solignac Lecomte, July 1996. Working Paper No. 113, Chinese Outward Investment in Hong Kong: Trends, Prospects and Policy Implications, by Yun-Wing Sung, July 1996. Working Paper No. 114, Vertical Intra-industry Trade between China and OECD Countries, by Lisbeth Hellvin, July 1996. Document de travail No. 115, Le Rôle du capital public dans la croissance des pays en développement au cours des années 80, par Sébastien Dessus et Rémy Herrera, juillet 1996. Working Paper No. 116, General Equilibrium Modelling of Trade and the Environment, by John Beghin, Sébastien Dessus, David Roland- Holst and Dominique van der Mensbrugghe, September 1996. Working Paper No. 117, Labour Market Aspects of State Enterprise Reform in Viet Nam, by David O’Connor, September 1996. Document de travail No. 118, Croissance et compétitivité de l’industrie manufacturière au Sénégal, par Thierry Latreille et Aristomène Varoudakis, octobre 1996. Working Paper No. 119, Evidence on Trade and Wages in the Developing World, by Donald J. Robbins, December 1996. Working Paper No. 120, Liberalising Foreign Investments by Pension Funds: Positive and Normative Aspects, by Helmut Reisen, January 1997. Document de travail No. 121, Capital Humain, ouverture extérieure et croissance : estimation sur données de panel d’un modèle à coefficients variables, par Jean-Claude Berthélemy, Sébastien Dessus et Aristomène Varoudakis, janvier 1997. Working Paper No. 122, Corruption: The Issues, by Andrew W. Goudie and David Stasavage, January 1997. Working Paper No. 123, Outflows of Capital from China, by David Wall, March 1997. Working Paper No. 124, Emerging Market Risk and Sovereign Credit Ratings, by Guillermo Larraín, Helmut Reisen and Julia von Maltzan, April 1997. Working Paper No. 125, Urban Credit Co-operatives in China, by Eric Girardin and Xie Ping, August 1997. Working Paper No. 126, Fiscal Alternatives of Moving from Unfunded to Funded Pensions, by Robert Holzmann, August 1997. Working Paper No. 127, Trade Strategies for the Southern Mediterranean, by Peter A. Petri, December 1997. Working Paper No. 128, The Case of Missing Foreign Investment in the Southern Mediterranean, by Peter A. Petri, December 1997. Working Paper No. 129, Economic Reform in Egypt in a Changing Global Economy, by Joseph Licari, December 1997.
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
30 © OECD 2010
Working Paper No. 130, Do Funded Pensions Contribute to Higher Aggregate Savings? A Cross-Country Analysis, by Jeanine Bailliu and Helmut Reisen, December 1997. Working Paper No. 131, Long-run Growth Trends and Convergence Across Indian States, by Rayaprolu Nagaraj, Aristomène Varoudakis and Marie-Ange Véganzonès, January 1998. Working Paper No. 132, Sustainable and Excessive Current Account Deficits, by Helmut Reisen, February 1998. Working Paper No. 133, Intellectual Property Rights and Technology Transfer in Developing Country Agriculture: Rhetoric and Reality, by Carliene Brenner, March 1998. Working Paper No. 134, Exchange-rate Management and Manufactured Exports in Sub-Saharan Africa, by Khalid Sekkat and Aristomène Varoudakis, March 1998. Working Paper No. 135, Trade Integration with Europe, Export Diversification and Economic Growth in Egypt, by Sébastien Dessus and Akiko Suwa-Eisenmann, June 1998. Working Paper No. 136, Domestic Causes of Currency Crises: Policy Lessons for Crisis Avoidance, by Helmut Reisen, June 1998. Working Paper No. 137, A Simulation Model of Global Pension Investment, by Landis MacKellar and Helmut Reisen, August 1998. Working Paper No. 138, Determinants of Customs Fraud and Corruption: Evidence from Two African Countries, by David Stasavage and Cécile Daubrée, August 1998. Working Paper No. 139, State Infrastructure and Productive Performance in Indian Manufacturing, by Arup Mitra, Aristomène Varoudakis and Marie-Ange Véganzonès, August 1998. Working Paper No. 140, Rural Industrial Development in Viet Nam and China: A Study in Contrasts, by David O’Connor, September 1998. Working Paper No. 141,Labour Market Aspects of State Enterprise Reform in China, by Fan Gang,Maria Rosa Lunati and David O’Connor, October 1998. Working Paper No. 142, Fighting Extreme Poverty in Brazil: The Influence of Citizens’ Action on Government Policies, by Fernanda Lopes de Carvalho, November 1998. Working Paper No. 143, How Bad Governance Impedes Poverty Alleviation in Bangladesh, by Rehman Sobhan, November 1998. Document de travail No. 144, La libéralisation de l’agriculture tunisienne et l’Union européenne: une vue prospective, par Mohamed Abdelbasset Chemingui et Sébastien Dessus, février 1999. Working Paper No. 145, Economic Policy Reform and Growth Prospects in Emerging African Economies, by Patrick Guillaumont, Sylviane Guillaumont Jeanneney and Aristomène Varoudakis, March 1999. Working Paper No. 146, Structural Policies for International Competitiveness in Manufacturing: The Case of Cameroon, by Ludvig Söderling, March 1999. Working Paper No. 147, China’s Unfinished Open-Economy Reforms: Liberalisation of Services, by Kiichiro Fukasaku, Yu Ma and Qiumei Yang, April 1999. Working Paper No. 148, Boom and Bust and Sovereign Ratings, by Helmut Reisen and Julia von Maltzan, June 1999. Working Paper No. 149, Economic Opening and the Demand for Skills in Developing Countries: A Review of Theory and Evidence, by David O’Connor and Maria Rosa Lunati, June 1999. Working Paper No. 150, The Role of Capital Accumulation, Adjustment and Structural Change for Economic Take-off: Empirical Evidence from African Growth Episodes, by Jean-Claude Berthélemy and Ludvig Söderling, July 1999. Working Paper No. 151, Gender, Human Capital and Growth: Evidence from Six Latin American Countries, by Donald J. Robbins, September 1999. Working Paper No. 152, The Politics and Economics of Transition to an Open Market Economy in Viet Nam, by James Riedel and William S. Turley, September 1999. Working Paper No. 153, The Economics and Politics of Transition to an Open Market Economy: China, by Wing Thye Woo, October 1999. Working Paper No. 154, Infrastructure Development and Regulatory Reform in Sub-Saharan Africa: The Case of Air Transport, by Andrea E. Goldstein, October 1999. Working Paper No. 155, The Economics and Politics of Transition to an Open Market Economy: India, by Ashok V. Desai, October 1999. Working Paper No. 156, Climate Policy Without Tears: CGE-Based Ancillary Benefits Estimates for Chile, by Sébastien Dessus and David O’Connor, November 1999. Document de travail No. 157, Dépenses d’éducation, qualité de l’éducation et pauvreté : l’exemple de cinq pays d’Afrique francophone, par Katharina Michaelowa, avril 2000. Document de travail No. 158, Une estimation de la pauvreté en Afrique subsaharienne d’après les données anthropométriques, par Christian Morrisson, Hélène Guilmeau et Charles Linskens, mai 2000. Working Paper No. 159, Converging European Transitions, by Jorge Braga de Macedo, July 2000. Working Paper No. 160, Capital Flows and Growth in Developing Countries: Recent Empirical Evidence, by Marcelo Soto, July 2000. Working Paper No. 161, Global Capital Flows and the Environment in the 21st Century, by David O’Connor, July 2000. Working Paper No. 162, Financial Crises and International Architecture: A “Eurocentric” Perspective, by Jorge Braga de Macedo, August 2000. Document de travail No. 163, Résoudre le problème de la dette : de l’initiative PPTE à Cologne, par Anne Joseph, août 2000. Working Paper No. 164, E-Commerce for Development: Prospects and Policy Issues, by Andrea Goldstein and David O’Connor, September 2000. OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 31
Working Paper No. 165, Negative Alchemy? Corruption and Composition of Capital Flows, by Shang-Jin Wei, October 2000. Working Paper No. 166, The HIPC Initiative: True and False Promises, by Daniel Cohen, October 2000. Document de travail No. 167, Les facteurs explicatifs de la malnutrition en Afrique subsaharienne, par Christian Morrisson et Charles Linskens, octobre 2000. Working Paper No. 168, Human Capital and Growth: A Synthesis Report, by Christopher A. Pissarides, November 2000. Working Paper No. 169, Obstacles to Expanding Intra-African Trade, by Roberto Longo and Khalid Sekkat, March 2001. Working Paper No. 170, Regional Integration In West Africa, by Ernest Aryeetey, March 2001. Working Paper No. 171, Regional Integration Experience in the Eastern African Region, by Andrea Goldstein and Njuguna S. Ndung’u, March 2001. Working Paper No. 172, Integration and Co-operation in Southern Africa, by Carolyn Jenkins, March 2001. Working Paper No. 173, FDI in Sub-Saharan Africa, by Ludger Odenthal, March 2001 Document de travail No. 174, La réforme des télécommunications en Afrique subsaharienne, par Patrick Plane, mars 2001. Working Paper No. 175, Fighting Corruption in Customs Administration: What Can We Learn from Recent Experiences?, by Irène Hors; April 2001. Working Paper No. 176, Globalisation and Transformation: Illusions and Reality, by Grzegorz W. Kolodko, May 2001. Working Paper No. 177, External Solvency, Dollarisation and Investment Grade: Towards a Virtuous Circle?, by Martin Grandes, June 2001. Document de travail No. 178, Congo 1965-1999: Les espoirs déçus du « Brésil africain », par Joseph Maton avec Henri-Bernard Solignac Lecomte, septembre 2001. Working Paper No. 179, Growth and Human Capital: Good Data, Good Results, by Daniel Cohen and Marcelo Soto, September 2001. Working Paper No. 180, Corporate Governance and National Development, by Charles P. Oman, October 2001. Working Paper No. 181, How Globalisation Improves Governance, by Federico Bonaglia, Jorge Braga de Macedo and Maurizio Bussolo, November 2001. Working Paper No. 182, Clearing the Air in India: The Economics of Climate Policy with Ancillary Benefits, by Maurizio Bussolo and David O’Connor, November 2001. Working Paper No. 183, Globalisation, Poverty and Inequality in sub-Saharan Africa: A Political Economy Appraisal, by Yvonne M. Tsikata, December 2001. Working Paper No. 184, Distribution and Growth in Latin America in an Era of Structural Reform: The Impact of Globalisation, by Samuel A. Morley, December 2001. Working Paper No. 185, Globalisation, Liberalisation, Poverty and Income Inequality in Southeast Asia, by K.S. Jomo, December 2001. Working Paper No. 186, Globalisation, Growth and Income Inequality: The African Experience, by Steve Kayizzi-Mugerwa, December 2001. Working Paper No. 187, The Social Impact of Globalisation in Southeast Asia, by Mari Pangestu, December 2001. Working Paper No. 188, Where Does Inequality Come From? Ideas and Implications for Latin America, by James A. Robinson, December 2001. Working Paper No. 189, Policies and Institutions for E-Commerce Readiness: What Can Developing Countries Learn from OECD Experience?, by Paulo Bastos Tigre and David O’Connor, April 2002. Document de travail No. 190, La réforme du secteur financier en Afrique, par Anne Joseph, juillet 2002. Working Paper No. 191, Virtuous Circles? Human Capital Formation, Economic Development and the Multinational Enterprise, by Ethan B. Kapstein, August 2002. Working Paper No. 192, Skill Upgrading in Developing Countries: Has Inward Foreign Direct Investment Played a Role?, by Matthew J. Slaughter, August 2002. Working Paper No. 193, Government Policies for Inward Foreign Direct Investment in Developing Countries: Implications for Human Capital Formation and Income Inequality, by Dirk Willem te Velde, August 2002. Working Paper No. 194, Foreign Direct Investment and Intellectual Capital Formation in Southeast Asia, by Bryan K. Ritchie, August 2002. Working Paper No. 195, FDI and Human Capital: A Research Agenda, by Magnus Blomström and Ari Kokko, August 2002. Working Paper No. 196, Knowledge Diffusion from Multinational Enterprises: The Role of Domestic and Foreign Knowledge-Enhancing Activities, by Yasuyuki Todo and Koji Miyamoto, August 2002. Working Paper No. 197, Why Are Some Countries So Poor? Another Look at the Evidence and a Message of Hope, by Daniel Cohen and Marcelo Soto, October 2002. Working Paper No. 198, Choice of an Exchange-Rate Arrangement, Institutional Setting and Inflation: Empirical Evidence from Latin America, by Andreas Freytag, October 2002. Working Paper No. 199, Will Basel II Affect International Capital Flows to Emerging Markets?, by Beatrice Weder and Michael Wedow, October 2002. Working Paper No. 200, Convergence and Divergence of Sovereign Bond Spreads: Lessons from Latin America, by Martin Grandes, October 2002. Working Paper No. 201, Prospects for Emerging-Market Flows amid Investor Concerns about Corporate Governance, by Helmut Reisen, November 2002. Working Paper No. 202, Rediscovering Education in Growth Regressions, by Marcelo Soto, November 2002.
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
32 © OECD 2010
Working Paper No. 203, Incentive Bidding for Mobile Investment: Economic Consequences and Potential Responses, by Andrew Charlton, January 2003. Working Paper No. 204, Health Insurance for the Poor? Determinants of participation Community-Based Health Insurance Schemes in Rural Senegal, by Johannes Jütting, January 2003. Working Paper No. 205, China’s Software Industry and its Implications for India, by Ted Tschang, February 2003. Working Paper No. 206, Agricultural and Human Health Impacts of Climate Policy in China: A General Equilibrium Analysis with Special Reference to Guangdong, by David O’Connor, Fan Zhai, Kristin Aunan, Terje Berntsen and Haakon Vennemo, March 2003. Working Paper No. 207, India’s Information Technology Sector: What Contribution to Broader Economic Development?, by Nirvikar Singh, March 2003. Working Paper No. 208, Public Procurement: Lessons from Kenya, Tanzania and Uganda, by Walter Odhiambo and Paul Kamau, March 2003. Working Paper No. 209, Export Diversification in Low-Income Countries: An International Challenge after Doha, by Federico Bonaglia and Kiichiro Fukasaku, June 2003. Working Paper No. 210, Institutions and Development: A Critical Review, by Johannes Jütting, July 2003. Working Paper No. 211, Human Capital Formation and Foreign Direct Investment in Developing Countries, by Koji Miyamoto, July 2003. Working Paper No. 212, Central Asia since 1991: The Experience of the New Independent States, by Richard Pomfret, July 2003. Working Paper No. 213, A Multi-Region Social Accounting Matrix (1995) and Regional Environmental General Equilibrium Model for India (REGEMI), by Maurizio Bussolo, Mohamed Chemingui and David O’Connor, November 2003. Working Paper No. 214, Ratings Since the Asian Crisis, by Helmut Reisen, November 2003. Working Paper No. 215, Development Redux: Reflections for a New Paradigm, by Jorge Braga de Macedo, November 2003. Working Paper No. 216, The Political Economy of Regulatory Reform: Telecoms in the Southern Mediterranean, by Andrea Goldstein, November 2003. Working Paper No. 217, The Impact of Education on Fertility and Child Mortality: Do Fathers Really Matter Less than Mothers?, by Lucia Breierova and Esther Duflo, November 2003. Working Paper No. 218, Float in Order to Fix? Lessons from Emerging Markets for EU Accession Countries, by Jorge Braga de Macedo and Helmut Reisen, November 2003. Working Paper No. 219, Globalisation in Developing Countries: The Role of Transaction Costs in Explaining Economic Performance in India, by Maurizio Bussolo and John Whalley, November 2003. Working Paper No. 220, Poverty Reduction Strategies in a Budget-Constrained Economy: The Case of Ghana, by Maurizio Bussolo and Jeffery I. Round, November 2003. Working Paper No. 221, Public-Private Partnerships in Development: Three Applications in Timor Leste, by José Braz, November 2003. Working Paper No. 222, Public Opinion Research, Global Education and Development Co-operation Reform: In Search of a Virtuous Circle, by Ida Mc Donnell, Henri-Bernard Solignac Lecomte and Liam Wegimont, November 2003. Working Paper No. 223, Building Capacity to Trade: What Are the Priorities?, by Henry-Bernard Solignac Lecomte, November 2003. Working Paper No. 224, Of Flying Geeks and O-Rings: Locating Software and IT Services in India’s Economic Development, by David O’Connor, November 2003. Document de travail No. 225, Cap Vert: Gouvernance et Développement, par Jaime Lourenço and Colm Foy, novembre 2003. Working Paper No. 226, Globalisation and Poverty Changes in Colombia, by Maurizio Bussolo and Jann Lay, November 2003. Working Paper No. 227, The Composite Indicator of Economic Activity in Mozambique (ICAE): Filling in the Knowledge Gaps to Enhance Public-Private Partnership (PPP), by Roberto J. Tibana, November 2003. Working Paper No. 228, Economic-Reconstruction in Post-Conflict Transitions: Lessons for the Democratic Republic of Congo (DRC), by Graciana del Castillo, November 2003. Working Paper No. 229, Providing Low-Cost Information Technology Access to Rural Communities In Developing Countries: What Works? What Pays? by Georg Caspary and David O’Connor, November 2003. Working Paper No. 230, The Currency Premium and Local-Currency Denominated Debt Costs in South Africa, by Martin Grandes, Marcel Peter and Nicolas Pinaud, December 2003. Working Paper No. 231, Macroeconomic Convergence in Southern Africa: The Rand Zone Experience, by Martin Grandes, December 2003. Working Paper No. 232, Financing Global and Regional Public Goods through ODA: Analysis and Evidence from the OECD Creditor Reporting System, by Helmut Reisen, Marcelo Soto and Thomas Weithöner, January 2004. Working Paper No. 233, Land, Violent Conflict and Development, by Nicolas Pons-Vignon and Henri-Bernard Solignac Lecomte, February 2004. Working Paper No. 234, The Impact of Social Institutions on the Economic Role of Women in Developing Countries, by Christian Morrisson and Johannes Jütting, May 2004. Document de travail No. 235, La condition desfemmes en Inde, Kenya, Soudan et Tunisie, par Christian Morrisson, août 2004. Working Paper No. 236, Decentralisation and Poverty in Developing Countries: Exploring the Impact, by Johannes Jütting, Céline Kauffmann, Ida Mc Donnell, Holger Osterrieder, Nicolas Pinaud and Lucia Wegner, August 2004. Working Paper No. 237, Natural Disasters and Adaptive Capacity, by Jeff Dayton-Johnson, August 2004. OECD Development Centre Working Paper No. 293 DEV/DOC(2010)10
© OECD 2010 33
Working Paper No. 238, Public Opinion Polling and the Millennium Development Goals, by Jude Fransman, Alphonse L. MacDonnald, Ida Mc Donnell and Nicolas Pons-Vignon, October 2004. Working Paper No. 239, Overcoming Barriers to Competitiveness, by Orsetta Causa and Daniel Cohen, December 2004. Working Paper No. 240, Extending Insurance? Funeral Associations in Ethiopia and Tanzania, by Stefan Dercon, Tessa Bold, Joachim De Weerdt and Alula Pankhurst, December 2004. Working Paper No. 241, Macroeconomic Policies: New Issues of Interdependence, by Helmut Reisen, Martin Grandes and Nicolas Pinaud, January 2005. Working Paper No. 242, Institutional Change and its Impact on the Poor and Excluded: The Indian Decentralisation Experience, by D. Narayana, January 2005. Working Paper No. 243, Impact of Changes in Social Institutions on Income Inequality in China, by Hiroko Uchimura, May 2005. Working Paper No. 244, Priorities in Global Assistance for Health, AIDS and Population (HAP), by Landis MacKellar, June 2005. Working Paper No. 245, Trade and Structural Adjustment Policies in Selected Developing Countries, by Jens Andersson, Federico Bonaglia, Kiichiro Fukasaku and Caroline Lesser, July 2005. Working Paper No. 246, Economic Growth and Poverty Reduction: Measurement and Policy Issues, by Stephan Klasen, (September 2005). Working Paper No. 247, Measuring Gender (In)Equality: Introducing the Gender, Institutions and Development Data Base (GID), by Johannes P. Jütting, Christian Morrisson, Jeff Dayton-Johnson and Denis Drechsler (March 2006). Working Paper No. 248, Institutional Bottlenecks for Agricultural Development: A Stock-Taking Exercise Based on Evidence from Sub-Saharan Africa by Juan R. de Laiglesia, March 2006. Working Paper No. 249, Migration Policy and its Interactions with Aid, Trade and Foreign Direct Investment Policies: A Background Paper, by Theodora Xenogiani, June 2006. Working Paper No. 250, Effects of Migration on Sending Countries: What Do We Know? by Louka T. Katseli, Robert E.B. Lucas and Theodora Xenogiani, June 2006. Document de travail No. 251, L’aide au développement et les autres flux nord-sud : complémentarité ou substitution ?, par Denis Cogneau et Sylvie Lambert, juin 2006. Working Paper No. 252, Angel or Devil? China’s Trade Impact on Latin American Emerging Markets, by Jorge Blázquez-Lidoy, Javier Rodríguez and Javier Santiso, June 2006. Working Paper No. 253, Policy Coherence for Development: A Background Paper on Foreign Direct Investment, by Thierry Mayer, July 2006. Working Paper No. 254, The Coherence of Trade Flows and Trade Policies with Aid and Investment Flows, by Akiko Suwa-Eisenmann and Thierry Verdier, August 2006. Document de travail No. 255, Structures familiales, transferts et épargne : examen, par Christian Morrisson, août 2006. Working Paper No. 256, Ulysses, the Sirens and the Art of Navigation: Political and Technical Rationality in Latin America, by Javier Santiso and Laurence Whitehead, September 2006. Working Paper No. 257, Developing Country Multinationals: South-South Investment Comes of Age, by Dilek Aykut and Andrea Goldstein, November 2006. Working Paper No. 258, The Usual Suspects: A Primer on Investment Banks’ Recommendations and Emerging Markets, by Sebastián Nieto- Parra and Javier Santiso, January 2007. Working Paper No. 259, Banking on Democracy: The Political Economy of International Private Bank Lending in Emerging Markets, by Javier Rodríguez and Javier Santiso, March 2007. Working Paper No. 260, New Strategies for Emerging Domestic Sovereign Bond Markets, by Hans Blommestein and Javier Santiso, April 2007. Working Paper No. 261, Privatisation in the MEDA region. Where do we stand?, by Céline Kauffmann and Lucia Wegner, July 2007. Working Paper No. 262, Strengthening Productive Capacities in Emerging Economies through Internationalisation: Evidence from the Appliance Industry, by Federico Bonaglia and Andrea Goldstein, July 2007. Working Paper No. 263, Banking on Development: Private Banks and Aid Donors in Developing Countries, by Javier Rodríguez and Javier Santiso, November 2007. Working Paper No. 264, Fiscal Decentralisation, Chinese Style: Good for Health Outcomes?, by Hiroko Uchimura and Johannes Jütting, November 2007. Working Paper No. 265, Private Sector Participation and Regulatory Reform in Water supply: the Southern Mediterranean Experience, by Edouard Pérard, January 2008. Working Paper No. 266, Informal Employment Re-loaded, by Johannes Jütting, Jante Parlevliet and Theodora Xenogiani, January 2008. Working Paper No. 267, Household Structures and Savings: Evidence from Household Surveys, by Juan R. de Laiglesia and Christian Morrisson, January 2008. Working Paper No. 268, Prudent versus Imprudent Lending to Africa: From Debt Relief to Emerging Lenders, by Helmut Reisen and Sokhna Ndoye, February 2008. Working Paper No. 269, Lending to the Poorest Countries: A New Counter-Cyclical Debt Instrument, by Daniel Cohen, Hélène Djoufelkit- Cottenet, Pierre Jacquet and Cécile Valadier, April 2008. Working Paper No.270, The Macro Management of Commodity Booms: Africa and Latin America’s Response to Asian Demand, by Rolando Avendaño, Helmut Reisen and Javier Santiso, August 2008.
Rethinking the (European) Foundations of Sub-Saharan African Regional Economic Integration: A Political Economy Essay DEV/DOC(2010)10
34 © OECD 2010
Working Paper No. 271, Report on Informal Employment in Romania, by Jante Parlevliet and Theodora Xenogiani, July 2008. Working Paper No. 272, Wall Street and Elections in Latin American Emerging Democracies, by Sebastián Nieto-Parra and Javier Santiso, October 2008. Working Paper No. 273, Aid Volatility and Macro Risks in LICs, by Eduardo Borensztein, Julia Cage, Daniel Cohen and Cécile Valadier, November 2008. Working Paper No. 274, Who Saw Sovereign Debt Crises Coming?, by Sebastián Nieto-Parra, November 2008. Working Paper No. 275, Development Aid and Portfolio Funds: Trends, Volatility and Fragmentation, by Emmanuel Frot and Javier Santiso, December 2008. Working Paper No. 276, Extracting the Maximum from EITI, by Dilan Ölcer, February 2009. Working Paper No. 277, Taking Stock of the Credit Crunch: Implications for Development Finance and Global Governance, by Andrew Mold, Sebastian Paulo and Annalisa Prizzon, March 2009. Working Paper No. 278, Are All Migrants Really Worse Off in Urban Labour Markets? New Empirical Evidence from China, by Jason Gagnon, Theodora Xenogiani and Chunbing Xing, June 2009. Working Paper No. 279, Herding in Aid Allocation, by Emmanuel Frot and Javier Santiso, June 2009. Working Paper No. 280, Coherence of Development Policies: Ecuador’s Economic Ties with Spain and their Development Impact, by Iliana Olivié, July 2009. Working Paper No. 281, Revisiting Political Budget Cycles in Latin America, by Sebastián Nieto-Parra and Javier Santiso, August 2009. Working Paper No. 282, Are Workers’ Remittances Relevant for Credit Rating Agencies?, by Rolando Avendaño, Norbert Gaillard and Sebastián Nieto-Parra, October 2009. Working Paper No. 283, Are SWF Investments Politically Biased? A Comparison with Mutual Funds, by Rolando Avendaño and Ja vier Santiso, December 2009. Working Paper No. 284, Crushed Aid: Fragmentation in Sectoral Aid, by Emmanuel Frot and Javier Santiso, January 2010. Working Paper No. 285, The Emerging Middle Class in Developing Countries, by Homi Kharas, January 2010. Working Paper No. 286, Does Trade Stimulate Innovation? Evidence from Firm-Product Data, by Ana Margarida Fernandes and Caroline Paunov, January 2010. Working Paper No. 287, Why Do So Many Women End Up in Bad Jobs? A Cross-Country Assessment, by Johannes Jütting, Angela Luci and Christian Morrisson, January 2010. Working Paper No. 288, Innovation, Productivity and Economic Development in Latin America and the Caribbean, by Christian Daude, February 2010. Working Paper No. 289, South America for the Chinese? A Trade-Based Analysis, by Eliana Cardoso and Márcio Holland, April 2010. Working Paper No. 290, On the Role of Productivity and Factor Accumulation in Economic Development in Latin America and the Caribbean, by Christian Daude and Eduardo Fernández-Arias, April 2010. Working Paper No. 291, Fiscal Policy in Latin America: Countercyclical and Sustainable At Last, by Christian Daude, Ángel Melguizo and Alejandro Neut, July 2010. Working Paper No. 292, The Renminbi and Poor-Country Growth, by Christopher Garroway, Burcu Hacibedel, Helmut Reisen and Edouard Turkisch, September 2010.

Similar Documents

Free Essay

Regional Economic Integration

...PaPEr • no. 2/2010 REGIONAL ECONOMIC INTEGRATION IN ASIA: THE TRACK RECORD AND PROSPECTS By Razeen Sally Razeen Sally (razeen.sally@ecipe.org) is Director of ECIPE and on the faculty of the London School of Economics www.ecipe.org info@ecipe.org Rue Belliard 4-6, 1040 Brussels, Belgium Phone +32 (0)2 289 1350 ECIPE OCCASIONAL PAPER ExECuTIvE SuMMARy This is the season for regional-integration initiatives in Asia. There is talk of region-wide FTAs, and there are east-Asian initiatives on financial and monetary cooperation. But grand visions for Asian regional blocs are not achievable. Regional economic integration is most developed in east Asia, but only because of manufacturing supply chains linked to global markets. South Asia is the most malintegrated region in the world. And east and south Asia are much less integrated in finance than they are in trade and FDI – due to highly restrictive national policies governing financial markets. Asia’s existing FTAs are “trade light”. They are largely limited to tariff cuts, but have barely tackled non-tariff regulatory barriers in goods, services and investment, and are bedevilled by complex rules of origin requirements. An APEC FTA initiative has gone nowhere – entirely predictable given such a large, heterogeneous grouping. An east-Asian or a pan-Asian FTA, by discriminating against third countries, would compromise regional production networks linked to global supply chains. Moreover, huge economic gaps and enduring political...

Words: 12833 - Pages: 52

Premium Essay

Regional Economic Integration and the Impact of the Single European Market

...Regional Economic Integration and the Impact of the Single European Market Regional Economic Integration is an agreement between countries to reduce or remove trade barriers so that counties within the agreement will benefit by joining the integration. Without this Regional Economic Integration it was difficult for countries to trade because exporting goods from one country to another always had tariffs and nontariff barriers, making it harder for countries to ultimately benefit from trade between one another. This can be done by forming a Free Trade Area, Custom Union, Common Market, Economic Union, or Political union. A Free Trade Area is where counties in the group try and remove tariffs and quotas on the goods and services being traded between the countries. By choosing Free Trade Areas they are allowed to trade freely among member but have an independent policy for non-members. The European Free Trade Association is an example of a free trade area. A Custom Union is similar to free trade areas but members must conduct and pursue common external tariff. Custom unions help increase efficiency by bring the countries involved closer. The European Union is an example of a custom union. A common market is basically custom unions that along with increase efficiency, allow for free factor mobility across members. It makes it easy for capital and labor to be traded between members of the common market. An economic union is a union just like a common market but wants...

Words: 2047 - Pages: 9

Premium Essay

Transition to Modern Age

...• Chapter 9: Regional Economic Integration o Regional Integration and Economic Blocs • Under regional economic integration, groups of countries form alliances to promote free trade, cross-national investment, and other mutual goals. • This integration results from regional economic integration blocs (or economic blocs), in which member countries agree to eliminate tariffs and other restrictions on the cross-national flow of products, services, capital, and, in more advanced stages, labor within the bloc. • At minimum, the countries in an economic bloc become parties to a free trade agreement, which eliminates tariffs, quotas, and other trade barriers. o Levels of Regional Integration • For countries that become members of an economic bloc, there are various stages of regional integration. • First is the free trade area, which eliminates tariffs and other trade barriers. • Second is the customs union, a free trade area in which common trade barriers are imposed on nonmember countries. • Third is the common market, a customs union in which factors of production move freely among the members. • Fourth is the economic union, a common market in which some important economic policies are harmonized among the member states. • A true political union does not yet exist. o The Leading Economic Blocs • There are hundreds of economic integration agreements in the world. • The European Union (EU) is the most advanced, comprising twenty-seven countries in Europe. • It...

Words: 1252 - Pages: 6

Free Essay

Mr.Xu

...The East Asia’ Regional Economic Integration Tutor: Griffith, Edward Student ID: 20647046 Student Name: Hong Xu (Eric) Word Count: 2369 Date of Submission: 18/1/2016 The East Asia’ Regional Economic Integration In the past twenty years, the East Asian economies realized the freedom of foreign trade and direct investment (FDI) because of the influence of GATT/WTO and APEC and as a result, it further promotes the economic growth of East Asia. The mutual economic dependence of each countries has increased a lot and therefore, close economic cooperation among Asian countries is necessary for healthy economic development. Many countries try to deepen their cooperation by establishing agreement and carrying out negotiation or discussion (Kawai 2004). Besides, the East Asian countries want to have their own institutions where they have vital voice in decision making after the financial crisis. As a consequence, the regional economic integration become an inevitable trend. The structure of this essay is organized as follows. The first part of this essay will discuss the driving forces of...

Words: 2796 - Pages: 12

Premium Essay

Regionalism Versus Multilateralism

...back to take two steps forward One would be hard-pressed to a find a country in the world today which is not a member of a regional agreement. In fact, most countries are members of numerous such agreements. Regionalism, multilateralism, globalization and interdependence are all phrases that are heard and used often. The problem, then, is not the recognition of these issues, but rather reaching some form of consensus on what their implications will be. In recent years, the growth of regional trade agreements has been one of the most significant developments in international relations, and the impact of these agreements on the multilateral trading system as well as on the economic and political relationships between countries, is a topic on which both economists and policymakers are divided. The available literature on this subject is overwhelming, with authors that include Paul Krugman, Alan Winters and Jagdish Bhagwati. This paper will provide a brief overview of the different stages of regional integration, examples of such regional agreements, and the basic elements of each type of regional agreement. Thereafter, I will give my own opinion on the rise of regionalism and the global implications this phenomena holds. Table 1: Stages of economic integration, their basic elements and examples of agreements Stages 
of Economic Integration Basic elements & examples of agreements Basic elements and examples of agreements Free Trade Agreement (FTA) Zero tariffs between...

Words: 803 - Pages: 4

Free Essay

Geography

...Regional integration can be described as the union of a geological area, the main theme running through the efforts is that of cooperation. Hence regional integration is the interaction and cooperation of various countries in a specific region working together in order to foster their own well being, the idea of integration suggests unity and teamwork. On the other hand, regional integration also refers to an outcome, occurring when pre set criteria are met. Regional integration involves some compromise on the part of nation states, but should enhance the general quality of life for the citizens of those states. Regional integration can be described as a dynamic process that entails a country’s willingness to share or unify into a larger whole. The degree to which it shares and what it shares determines the level of integration. Exploration of the factors promoting regional integration within the Caribbean * Common language - The language of the Caribbean people is English, and this facilitates easy communication. * Close Proximity - The Caribbean countries are relatively close to each other, hence, travel by air or sea from one country to another can be done in a relatively short space of time. * Caribbean countries share a common history - Most of the Caribbean people are descendants of people who had been subjected to slavery and indentureship. This makes it possible for the Caribbean people to embrace each other. * Common Cultural Heritage - The Caribbean...

Words: 2411 - Pages: 10

Premium Essay

Globalization

...The work is devoted to the analyzing of integration processes in the post –Soviet space and the prospects of their development. The study focuses on three main issues: first, the trends of economic integration between post-Soviet countries, second, problems of countries within the integration and third, prospects for the deeper integration and economic growth. The study applied both quantitative and qualitative methodologies, involved multiple sources of data, including financial reports, other official documents and scientific articles. The purpose of the research is to evaluate the current state of integration processes and their prospects in the post-Soviet. The following tasks are dealt with in the paper: 1) To describe the notion of regional integration as one the main tendency of the modern economy 2) To define the factors and the main stapes towards economic integration in the post-Soviet space 3) To analyze the results of regional organizations and estimate their effectiveness Accordingly, the paper falls into three chapters, each of them covers important aspects, which are considered and described in detail. The first chapter deals with the defining of the main forms of integration, the reasons and the stapes in the post-Soviet integration. The second chapter deals with analyzing of the activity of The Commonwealth of Independent States and The Eurasian Economic Union. The third chapter focuses on the estimation of the effectiveness of the Customs Union...

Words: 326 - Pages: 2

Premium Essay

Economic Integration

...Economic Integration The concept of “Economic Integration” has been growing in significance for the past 50 years and was established by economists who investigated the early attempts of European countries to combine separate economies into larger economic regions.18 More specifically, economic integration—also called “regional integration”—refers to the discriminate reduction or elimination of trade barriers among participating nations. This also implies the establishment of some form of cooperation and coordination among participants, which will depend on the degree of economic integration that ranges from free-trade areas to an economic and monetary union. Integration among countries in a geographical region to reduce, and ultimately remove, tariff and non-tariff barriers to the free flow of goods, services, and factors of production among each other. For examples: EU (European Union), NAFTA (North American Free Trade Agreement), APEC (Asia Pacific Economic Cooperation) Level of economic integration: The levels of economic integration divided into five different levels and they are shown in figure 1.0. The first one is the Free Trade Area, Custom Union, Economic Union, Monetary Union and then the political union. These five levels are inter- linked with each other; first we have to have the come up with the identification of the free trade area among the participant. Than to ensure the exchange of the goods among the participant a custom union will be required. This custom...

Words: 2909 - Pages: 12

Premium Essay

Economic Integration

...Economic Integration, according to Investopedia online, is, “an economic arrangement between different regions marked by the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. The aim of economic integration is to reduce costs for both consumers and producers, as well as to increase trade between the countries taking part in the agreement.” According to Norman Girwan, in his paper entitled, ‘Caricom’s Elusive Quest For Economic Integration,’ the Caribbean needed to integrate for similar reasons. Girwan states that the move toward such integration was driven by the need to mitigate against the constraints of small size on development, as well as there were other non-eceonomic objectives. These included “attaining national independence, sharing the costs of common services, pooling bargaining power in international environment and instituting a common West Indian identity.” Girwan continues by stating emphatically that “economic integration is still a work in progress for the Caribbean peoples; and what has been accomplished so far has not impacted significantly on regional economic development.” He attests that “this could be due to faulty implementation of agreed integration schemes, or to inappropriate design of the schemes themselves, or to inherent limits in the capacity of economic integration per se to drive development in these economies.” In a similar manner, Mehmet Ekizoglu, in his paper Mercosur, It’s History, Institutions...

Words: 1749 - Pages: 7

Premium Essay

Us-Led Tpp and China-Led Acep

...TPP/TTIP. NAFTA originated from CUSFTA (Canada-US FTA), which was implemented in 1989, and followed by NAFTA, ratified in 1994. Both EU and NAFTA existed before the WTO finally replaced GATT at the beginning of 1995. The replacement not only greatly expanded sectoral coverage but also replaced the GATT’s quite weak dispute-settlement mechanism.2 The liberalization and integration of trade had mainly proceeded under the auspice of WTO prior to the year 2000. With the evolvement characterized by the widening of the trade agenda to include the movement of people and not just that of goods, services, investments and capital,3 international society called for an update of the WTO. Although the Doha round did inspire some discussion in 2001, developing states fundamentally refused to open their market to the services and goods of the developed ones. With very little progress and protracted timetable, many states had become disappointed with the development and had turned to bilateral or regional FTAs as alternatives rather than under the auspice of the WTO4, seeing as the WTO charter allows for regional, preferential and plurilateral trade associations to coexist. A cluster of new FTAS soon attracted the attention of all states from...

Words: 7863 - Pages: 32

Free Essay

Saarc

...ESSAY ON SAARC by a2zcontentinfo @ 2013-05-04 – 06:33:44 The member countries of the South Asian Association for Regional Cooperation (SAARC) are called the Seven Sisters of South Asia, because of their geographical proximity and relations based on culture, ethnicity and economics. SAARC came into existence in December 1985, at Dhaka, Bangladesh.It has 8 countries as members, they are India, Pakistan, Sri Lanka, Bangladesh, Nepal, Bhutan, Maldives and Afghanistan. Secretariat was located at Kathmandu. Main Objectives of SAARC Charter: To improve quality of life and promote welfare of the peoples of South Asia. - To accelerate economic growth, social and cultural development in the region. - To promote self-reliance among the countries of South Asian Region. - To generate mutual trust and understanding of each others problems. - To strengthen cooperation with other developing countries. - To cooperate on matters of common interest in international fora. - To strengthen cooperation with regional and global organisations. Population and Economic Potential: 1.4 billion people, one-fifth of the World’s population. Home to one-fifth of the World’s consumers with an average yearly income of $ 450. The SAARC region with a total market size of one and quarter billion people offers enormous potential for Intra-regional trade and cross-border investment. Intra-SAARC trade is less than 5 per cent. The SAARC region is among the poorest regions of the world. The region has...

Words: 1059 - Pages: 5

Premium Essay

Mgt 448

...Regional Integration for and Against Articles NAFTA (North American Free Trade Agreement) is a free trade agreement involving Mexico, Canada, and the United States. NAFTA is the most limited of the free trade unions. NAFTA is restricted to eliminating tariffs, quotas, and other trade impediment among Canada, Mexico, and the United States. NAFTA has advantages and disadvantages of regional integration, and also showing how it persons would favor, and be against it. Integration and agreements made will reduce tariffs barriers that are associated with trades of good, services, and the factors of produced goods between countries (Hill, 2009). Advantages Between the two countries Canada and the United States NAFTA has eliminated most of the tariffs, which are incorporated in the trades of the products. One of the main advantages is that it will provide a higher quality of goods, and services to consumers in all countries at a lower rate. In January 1994 NAFTA became the biggest trade bloc in the world in relation to GDP (Gross Domestic Product) all, while becoming a key force in escalating the agricultural trade between Canada and the U.S. Trades between Mexico, Canada, and the U.S. have gotten better throughout the life of the unification (Free Trade Bloc, n.d.). The advantage of integration regionally is that there are no imposed restrictions on the trade. This will allow countries to focus on the services and...

Words: 691 - Pages: 3

Free Essay

Busi

...Peru. Venezuela is currently in the process of integrating into the bloc and it will become a full member once all members’ parliaments ratify its accession (Bosworth, 2011). Since it was established, Mercosur has made remarkable achievements. It is now South America’s leading economic integration organization and the world's fourth largest integrated market after the European Union, North American Free Trade Agreement and the Association of South East Asian Nations. Moreover, the scope of cooperation is expanding to other areas, particularly the political and diplomatic fields. Objectives Mercosur’s main objectives include: through the effective use of resources, coordination of macroeconomic policies, to strengthen the economic complementation and promote economic development, thereby improving people's living conditions, and promoting regional economic integration process. Specifically, it aims at promoting free trade and bringing about the fluid movement of capital, goods and services among its members, and achieving a common external tariff as well. Problems The consolidation of Mercosur has contributed to regional integration in Latin America. It has enhanced trade and economic development, improved the international status of the member...

Words: 863 - Pages: 4

Free Essay

Kathniel

...President Aquino: APEC Philippines 2015 to Build More “Inclusive Economies”inShare The Philippines is intent on building on the significant breakthroughs in trade and economic sustainability achieved by APEC member economies this year in China and ensuring that the benefits are widely felt, said President Benigno Aquino III on the eve of the archipelago’s commencement as APEC 2015 Chair.  Establishing a more inclusive economic environment across the Asia-Pacific will be the focus of collaboration in APEC over the coming year, revealed President Aquino in a kick-off speech in Manila on Monday evening. It set the tone for the APEC Informal Senior Officials’ Meeting on 8-9 December in Legazpi City, Albay that will mark the first assembly of member economies as part of APEC Philippines 2015 and decide their agenda priorities.  “One week from now, we’ll be demonstrating a thousand per cent effort – the first visitors for APEC 2015 will set foot in our country, and the Philippines will have the distinct privilege of hosting the next chapter in one of the largest joint efforts to improve trade and cooperation amongst major economies,” said President Aquino. “Here, within our communities, leaders from government and the private sector will map out the future of the Asia-Pacific.”  “This gathering’s significance is magnified when one considers that, in a world where many economies are reeling from uncertainty, Asia-Pacific economies have, for the large part, sustained a relatively...

Words: 2430 - Pages: 10

Free Essay

International Management

...The economic and social consequences of trade agreements have become a major area of research in recent years. Much of this has to do with regional economic integration, where countries in a geographic region, reduce and remove tariff and non-tariff barriers to the free flow of goods, services and production between each other (Hill, 2005). On the 1 January, 1994, such a trade agreement came into affect between America, Mexico and Canada. This was known as the North American Free Trade Agreement (NAFTA). This removed all barriers to the trade of goods and services within the member countries, the protection of intellectual property rights, application of national environmental standards and the establishment of two commissions with power to impose fines and remove trade privileges when such standards are ignored involving the environment, health and safety, wages and child labour (Hill, 2005). There is a belief that agreements designed to promote free trade within regions will benefit trade for all the countries involved, and also the rest of the world (Abbott and Moran, 2002). While regional economic integration, or foreign direct investment, is seen as a good thing, some observers worry that it could lead to a world in which regional trade blocs compete against each other. We are seeing the formation of many trading blocs continuing today as the need for it has become essential for countries and their firms to compete in the global market place (Seid, 2002). Although...

Words: 2280 - Pages: 10