The importance of regional grouping in africa
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THE IMPORTANCE OF REGIONAL GROUPING IN AFRICAS ECONOMIC DEVELOPMENT
Regional Economic Grouping in AfricasRegional Economic Grouping in Africas 3
THE IMPORTANCE OF REGIONAL GROUPING IN AFRICAS ECONOMIC DEVELOPMENT
Table of Contents
4Chapter 14Introduction5Statement Of The Problem6Scope Of The Study6Justification Of Study7Aims And Objectives7Aim7Objectives8Research Questions8Organization Of The Study10Chapter Two10Literature Review12Community Of Sahel-Saharan States (Cen-Sad)12Objectives Of Cen-Sad15Free Trade Area15Trade Promotion16Comesa Institutions17East Africa Community (Eac)17Introduction19Objectives20Steps Of Achieving Objectives21Peace And Security Related Activities22Economic Community Of Central African States (Eccas)22Introduction22Objectives28Chapter Three28Methodology28Introduction28Research Questions That Guided The Study29Research Design30Data Collection Methods30Primary Source30Secondary Source31Ethical Consideration33Chapter Four33Results And Discussions33Regional Economic Communities In Africa33Importance Of Rec37Challenges Facing Recs In Africa39Chapter Five39Conclusion And Recommendations39Conclusions39Recommendations41ReferencesThe Importance of Regional Grouping in Africas Economic DevelopmentChapter 1
IntroductionHistorically, individuals, communities, nations, groups of nations, continents as well as the entire world are struggling to better their economy through various mechanisms. One of the mechanisms is forming blocs all aimed at fostering economic development. The trade blocs refers to intergovernmental agreement or a section of regional intergovernmental organization in which regional obstructions to doing business in most cases tariffs as well as non-tariff barriers are tremendously cut down to enhance the member states to engage in business with ease (Vanek, 1962). Having in mind that Africa as a continent is made up of predominately an agricultural community, experience has taught it that having regional trade integration can go an extra mile in catalyzing growth in economy as well as sustainable economic development. Historically, the path toward the current economic integration is thanks to the signing of a treaty in Abuja Nigeria back in 1991 which committed Africa towards economic development (OConnell, 1997). Additionally, the significance of regional economic corporation or groupings as well as integration being the wheel to drive and consolidate economic together with the social development are among the attributes in the back of African leaders. Although integration or grouping was initially aimed at gaining political power, the whole scenario changed as a result of challenges brought forth by globalization as well as interdependence. The mixture of the effects of REI on competence and accretion led to the acknowledgment that the integration can positively impact on the continent economic development. Having in mind that high efficiency as well as faster amassing is significant components of a competitive system, economic grouping was then seen as a starting point for the continent to find its way in the global economy (Asiedu, 2002).
Arguably, there are two sides of the story, those that support economic regional integration and those that do not. It is on this basis that the research paper finds its foundation, to establish how important such integrations are in Africa economic development. To do this successfully, a number of questions such as; Are the regional groups the best way in fostering African Trade, Can African counties do trade on their self without grouping?, Does it give you hope to Continuing grouping? Among other are used to find the necessary information. Statement of the problemAs noted previously, there is the desire to have a sound economic development as well as a sustainable one in the whole of Africa as a continent. As a result of this quest a number of strategies were brought forth to drive that among them regional integration. It is established that regionalization in the continent were pursued not only for fostering economic development but also enhancing political stability. Regionalism especially market integration has proven through experience that to be one of the best way in solving the structural problems that face African economies. There have been very strong and bitter arguments for and against regional grouping or blocs in Africas economic development. On one side, those who support regional economic cooperation hold that it expands trade and opportunities for investment, promotes economic growth and sustainable development, and contributes to growth of world economy, foster political stability, remove barriers to the free movement of production factors, promote monetary cooperation among others (Metzger, 2008). On the other hands, the arguments brought forth by those who challenge the integrity of grouping in fostering African economic development is that it has not delivered the much anticipated objectives of uplifting economic conditions of member countries nor ensured a sustainable growth in terms of economy. They see the grouping as a monster in it self as it will bloc such groupings from doing business with other blocs (Kibret, 2000). It is on this basis that the research seeks to unravel the existing arguments by drawing a conclusion on whether economic grouping is important or not in economic development of African countries.
Scope of the study
With clear understanding that no single study can adequately address all aspects of any given topic, there is need to clearly establish what the research addresses. The scope of this study thus is to critically analyze the importance of regional grouping in Africas economic development. In addition, issues such as the regions grouping being the best way to enhance African trade, the capabilities of African countries doing business on their own without being in economic groupings, advantages and disadvantages of economic are addressed.
It is worth mentioning that the results that will be generated from the study will not only have implications in a narrow scope but be applicable in economic decision making as well providing a clear understanding of the importance of economic grouping in fostering economic growth of Africa continent.
Justification of studyThe research is of a lot of importance as it will be an in depth evaluation of the importance of regional grouping in Africas economic development. Additionally, other issues such as the regions being the best way to enhance African trade, the capabilities of African countries doing business on their own without being in economic groupings, advantages and disadvantages of economic grouping are brought forth. The findings will be of importance to various stakeholders such as the African governments, Non-governmental Organizations, the general public, decision makers, policymakers, and scholars as well as varied academic institutions.
It is worth noting that the findings herein will make African countries make rational and sound decisions regarding either joining any economic groupings or withdrawing from them. This will be guided by the discussed pros and cons of the groupings. If the decision is arrived at in a sober man then the desire to have a continent that is a powerhouse economically in the globe could be realized in future. Not carrying out this research will clearly depict that the various advantages and draw backs associated with economic grouping in African will not be brought to light. This will mean that the relevant stakeholders that seek to use such information to improve how to arrive in making rational decisions, carrying out further research will not have such an opportunity. Aims and objectivesAim
The aim of the research is to critically analyze the importance of regional grouping in Africas economic development.
To find out whether the regional groups the best way of fostering African Trade To evaluate if African countries can do trade on their self without grouping
To examine the relevance of regional grouping in African economic development
To find out the advantages and disadvantages of grouping for African countries in doing trade.
Research questions What is regional grouping in Africas economic development?Are regional groups the best way to foster African trade?
Can African counties do trade on their self without grouping?
What is the relevance of regional grouping in African economic development? What are the advantages of regional grouping as far as African economic development is concerned?
What are the disadvantages of regional grouping as far as African economic development is concerned?
What are the challenges facing the regional groupings in the quest to attained economic growth and sustainable development?
What can be done to avert the challenges facing African economic groupings/blocs?Organization of the study
Five distinct sections constitute the whole paper and this design makes it easy for those who will review it get to the relevant section with ease.
Section one, the first chapter, is made up of the introduction, problem statement, scope of the study, rationale/ justification of the study, aims and objective of the study, research questions. Each of these subsections is adequately addressed to give insight to readers of what they expect in the paper.
Section two, normally referred to as chapter two, and is made up entirely of all the literature that relates to the study topic. Data that help explain the importance of regional grouping in Africas economic development, the advantages and disadvantages, challenges facing such are brought forth.
Section three is the methodology chapter. It entails