1.1 Introduction
Regional integration refers to the removal of barriers to international commerce by states that are in same geographical area and interest, through regional integration agreements (RIAs). Regional organizations are a major feature of the global economic system. It expresses the interstates efforts towards integration or cooperation. Thus, the formation of ECOWAS was seen as the beginning of a new era in the history of economic cooperation in West Africa. The most attractive factor of integration is chronicled on the general principle of the creation of a common market where goods, services and capital are guaranteed freedom of movement unhindered within the integrated area.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
In 1850-1890, regional integration was conceived in Europe. Africa is a precursor in the process as far back as 1910 and after the World War II more economic communities surged. Although, Africa’s share of global population is 14%, annual share of global GDP is less than 3%. Experts have blamed Africa marginalization on the absence of effective regional integration mechanism to boost the continent’s external trade. 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 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. 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).
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.
Therefore, in West Africa where the research was carried out, the activities that was conducted is to know the Prospects and Challenges of Regional Integration.
1.3 Statement of Problems
Investigation revealed that 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. The early 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 intends to investigate the challenges of regional integration in West Africa.
1.4 Aim and Objectives of Study
The aim of the study is to evaluate the Prospects and Challenges of Regional Integration in West Africa. In achieving this aim, the following specific objectives were laid out as follows:
- To ascertain the effect of regional integration in the unity of Africa; and
- To ascertain the challenges and impediment to regional integration in West Africa.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What is the effect of regional integration in the unity of Africa?
- What is the challenges and impediment to regional integration in West Africa?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There are no significant factors influencing the Regional Integration in West Africa
- H1: There are significant factors influencing the Regional Integration in West Africa
1.7 Significance of Study
The study will help ECOWAS to be able to record any appreciable impact on the international arena to exert meaningful pressure to their benefits. ECOWAS no doubt has strong and brighter prospects of becoming the ASEAN of Africa. The documents of the Executive Secretariat of ECOWAS (2009) in its analysis of the performance of ECOWAS stated that though the results of the integrational efforts might have been clearly below expectations, there are, however, promising signs which indicate better prospects for the future.
This study will be of immense benefit to other researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.
1.8 Scope of Study
The scope of the research is focused on the Prospects and Challenges of Regional Integration in West Africa using ECOWAS as a case study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.10 Definition of Terms
Regional Integration: It refers to the removal of barriers to international commerce by states that are in same geographical area and interest, through regional integration agreements (RIAs).
