CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

Regional integration in Africa has its roots in the political forces determined by the colonial legacy that resulted in a configuration of geographically artificial states where arbitrary borders coupled with great ethno-linguistic diversity contributed to the continent’s high number of conflicts and to its high trade and communication costs.

It is widely acknowledged that Africa’s integration efforts have thus far failed to bear satisfactory fruit. While other regions have successfully used their integration mechanisms to improve their economic welfare, Africa lags behind with respect to GDP growth, per capita income, capital inflows, and general living standards. This is a problem across most of the continent, in spite of the existence of a plethora of policy plans and grand visions. The first major blueprint for Africa’s development – the Lagos Plan of Action and the Final Act of Lagos – was adopted almost three decades ago, and set out a vision of an integrated African market by the year 2000. It was given further impetus by the Abuja Treaty which was approved in 1991 and came into force in 1994. According to this Treaty, the African Economic Community (AEC) would be in place by 2028. Some of its milestones would include strengthening of existing regional economic communities and the formation of the new ones (between 1994 and 1999); stabilization of existing tariffs, and integration and harmonization of economic sectors (1999 to 2007); establishment of a free trade area and customs union (2007 to 2017); harmonization of tariff systems across various regional economic communities (RECs) (2017 to 2019); the creation of a common African market and harmonization of monetary, financial, and fiscal policies; and the establishment of a pan-African economic and monetary union (2023 to 2028). This plan envisaged that, through RECs, deep-seated challenges of poverty and underdevelopment would be eradicated. Among the latest initiatives has been the New Economic Partnership for Africa’s Development (NEPAD), as well as the vision for the ‘United States of Africa’. The establishment of the Pan-African Parliament (PAP) in March 2004 can be regarded as an important achievement towards this strategic objective. While the previous plans placed a premium on intra-regional trade, agriculture, technology and the environment, it would seem as if the new initiatives are emphasizing ownership, economic reform and political modernization. It is unclear if and when the fruits of the latest initiatives will begin to manifest. The question is: In view of the fact that the plans that were articulated by the first generation of postcolonial leaders failed to materialize, what gives force to the new-found optimism that characterizes today’s proponents of Africa’s integration? Could there have been something fundamentally wrong with the initial casting of this vision that today’s elite can successfully rectify, so that Africa can be set on a promising developmental trajectory? The contention in this paper is that too little has changed since the 1980s to advance regional integration and to ensure developmental progress on the continent. It would seem that Africa’s elites are focusing on the wrong set of priorities with too little genuine commitment towards the goal of Africa’s development. For regional integration in Africa to be a success, Africa’s leaders will have to move beyond grand gestures and abstract visions. Africa’s challenges call for pragmatism and a sense of urgency in action. More focused and gradual steps that are carefully executed at the domestic level may be the best place to start. The focus of such steps at the domestic level should be on bold and sustainable political and economic reforms. At the regional level the focus should be on developmental coordination and gradual harmonization of policies and regulations, which could form the foundation for greater integration. As Percy Ministry contends: ‘African governments need to be less ambitious and more realistic and pragmatic aboutthe objectives and intermediate targets for integration, taking into account the constraints and capacities of integrating national governments.

The formation of regional blocs and groupings has progressively become a prominent feature of world politics since the end of the World War II (Olubomehin and Kawonishe, 2004). Regional integration generally involves a complex web of cooperation between countries within a given geographical area, to harmonize policies in such sectors as trade, investment, infrastructural, as well as monetary and fiscal policies of member states. There has been much support for the economic integration of African states since independence. This received a great deal of impetus following severe economic instability of the 1970s (Asante, 1999). According to Hartzenberg (2011), the ambition of African leaders to integrate Africa provided the rationale for the Lagos Plan of Action (LPA). Both the LPA (1980) and the Abuja Treaty of 1991 became the agenda for an integration based on solidarity and self-reliance. The treaties also called for the creation of regional integration arrangements as starting points for the continent’s integration. According to Asante (2000), ECOWAS is the most concrete African initiative in this direction. ECOWAS is a regional group of 15 West African countries established on 28th May, 1975 under the Treaty of Lagos. It represents a regional institutional framework for the coordination and promotion of economic cooperation in West Africa. Since its inception, ECOWAS has done remarkably well, especially in the areas of peace and security, trade and the free movement of people and goods in the region. However, the community is faced with a number of challenges which are likely to impede the effective exercise of its functions and the fulfillment of its purpose. Considering the growing importance of regional integration in the world, it is important therefore, to identify the challenges and prospects for regional integration in West Africa

1. STATEMENT OF THE PROBLEM

Over the last thirty years, Regional Integration Agreements (also referred to as Regional Trade Agreements (RTAs) or Preferential Trade Agreements (PTAs) to underline that these agreements almost always involve preferential access) have been spreading everywhere including across Africa where they have also been called Regional Economic Communities (RECs). During the period, the landscape of PTAs has changed drastically. Theearly phase of integration started during the first decades of independence, and was enshrined in the Lagos Plan of Action, an initiative of the Organization for African Unity now known as African union AU, adopted by the heads of states in 1980. It is in view of this that the researcher intend to investigate the challenges of regional integration in West Africa.

1. OBJECTIVE OF THE STUDY

The main objective of this study is to the prospect and challenges of regional integration in West Africa. To aid the completion of the study, the researcher intends to achieve the following sub-objective;

1. To ascertain the effect of regional integration in the unity of Africa
2. To ascertain the challenges and impediment to regional integration in west Africa
3. To ascertain the prospect and benefit of regional integration in the development of West Africa.
4. To proffer possible solution to the identified problem
5. RESEARCH QUESTION

To aid the completion of the study, the following research questions were formulated by the researcher;

1. What are the effects of regional integration on the development of West African state?
2. What are the challenges to regional integration in West Africa?
3. What are the prospect and benefit of regional integration among West African state?
4. SIGNIFICANCE OF THE STUDY

It is believed that at the completion of the study, the findings will be of great importance to the ambassadors and diplomat of West African state. As the study seek to enumerate the benefit of regional integration among West African state. The study will also be of importance to the department of international relation as the study seek to add to the existing literature on regional integration.The study will also be of great benefit to the researchers who intends to embark on research on similar topics as it will serve as a guide. Finally, the study will be of great importance to academia’s, lecturers, teachers, students and the general public.

1. SCOPE AND LIMITATION OF THE STUDY

The scope of the study covers the prospect and challenges of regional integration in West African state. However during the cause of the study there were some factors which limited the scope of the study;

a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study

b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.

1.7 RESEARCH METHODOLOGY

The type of research methodology used in this research to gather data and relevant information is the historical research and the study will adopt descriptive method of data collection. This will involve the collection of materials from secondary sources, such as books, journal articles, magazines, published and unpublished articles.

1.8 DEFINITION OF TERMS

• Regional integration

An arrangement for enhancing cooperation through regional rules and institutions entered into by states of the same region. Regional integration could have as its objective political or economic goals or in some cases, a business initiative aimed at broader security and commercial purposes.

• West Africa

West Africa, also called Western Africa and the West of Africa, is the westernmost subregion of Africa. West Africa has been defined as including 18 countries: Benin, Burkina Faso, the island nation of Cape Verde, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast, Liberia, Mali, Mauritania, Niger, Nigeria, the island of Saint Helena, Senegal, Sierra Leone, São Tomé and Príncipe and Togo.

• African Economic Community

The African Economic Community (AEC) is an organization of African Union states establishing grounds for mutual economic development among the majority of African states.

TABLE OF CONTENT

PAGE

TITLE PAGE i

CERTIFICATION ii

DEDICATION iii

ACKNOWLEDGEMENTS iv

ABSTRACT v

RESUME vi

TABLE OF CONTENTS vii - ix

CHAPTER ONE: INTRODUCTION 1

1.1 Background of the study 1

1.2 Statement of the problem 6

1.3 Objectives of the study 6

1.4 Research questions 7

1.5 Significance of the study 7

1.6 Scope and limitation of the study 8

1.7 Research methodology 9

1.8 Definition of terms 12

CHAPTER TWO: LITERATURE REVIEW 14

2.1 Introduction 14

2.2 Theoretical review 20

2.3 Theories of integration 22

2.4 ECOWAS institutions: roles, strengths

and challenges 24

2.5 African regionalism in perspective 26

2.6 Efficiency, geography and politics in African

Regional Agreements 28

2.7 The challenges of West African regional economic

Integration 31

2.8 The state of trade relations: issues and problems 33

CHAPTER THREE: BENEFITS OF REGIONAL

INTEGRATION 46

3.1 Introduction 46

3.2 Challenges of integration in West Africa 47

3.3 Prospects for regional integration in West Africa 50

CHAPTER FOUR: EFFICIENCY AND DISTRIBUTIONAL

EFFECTS OF REGIONAL TRADE AGREEMENT 52

4.2 African regional integration and its effects on trade 55

4.3 Reduction in trade barriers, trade creation and trade

Diversion effects 56

CHAPTER FIVE: SUMMARY, CONCLUSION AND

RECOMMENDATION 58

5.1 Summary 58

5.2 Conclusion 58

5.3 Recommendation 59

Bibliography 60 - 66