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Erschienen in:
The State of the Unions Kapitel lesen Erstes Kapitel lesen

2021 | OriginalPaper | Buchkapitel

2. The Logical Sequence of Regional Economic Integration

verfasst von : Prof. Helmut Asche

Erschienen in: Regional Integration, Trade and Industry in Africa

Verlag: Springer International Publishing

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Abstract

Globally, regional economic communities are classified in what is customarily called the linear model of integration. The question arises as to where African RECs stand on a stylized linear path of economic integration and to what extent this model can provide guidance for further integration steps. The factual nonlinearity of the ‘model’ is discussed and the ensuing challenges for economic integration are identified in terms of monetary unions, non-tariff measures/barriers (with a new typology) and harmonization of standards. In a final step, the ‘model’ itself is amended and critically discussed in the light of the question of whether a scheme largely inspired by the European experience can be followed in Africa.

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Vorheriges Kapitel The State of the Unions
Nächstes Kapitel The Reality of African Trade Integration—Challenges of Implementation
Fußnoten
1
Note that the WTO secretariat defines Preferential Trade Arrangements (same acronym PTA) differently, as a designation for unilateral notifications of preferences granted.
 
2
Angola, Comoros and the DRC have not yet ratified the SADC FTA protocol.
 
3
On the cluster of policies from the last four levels of integration, required to produce the necessary economic convergence in African monetary unions see at the example of CEMAC and UEMOA/WAEMU: Elhiraika, Mukungu and Nyoike (2015).
 
4
Not to be confused with F.D. Roosevelt’s Four Freedoms of 1941, which are in fact fundamental political and social goals in themselves—something the freedoms of economic integration are not.
 
5
Franc de la Communauté Financière Africaine in the West, Franc de la Coopération Financière en Afrique Centrale.
 
6
Banque Centrale des Etats de l’Afrique de l’Ouest (BCEAO) and Banque des États de l'Afrique Centrale (BEAC).
 
7
A third near-identical system for the Franc Comorien is the Banque Centrale des Comoros and a fixed parity of 1 Euro = 491.96 FC.
 
8
Yet they have interesting features in common. For example, supporting asymmetric shocks, the core of OCA theory, will in some constellation only be possible with financial compensation—converging to a key issue in regional integration which will be treated in other parts of this volume.
 
9
The authors updated their findings in 2010 with a view to three projects of new monetary unions—in SADC, EAC, ECOWAS/WAMZ—indicating modest potential gains. Unfortunately, the projects never came to life, about which the authors would be the last to be surprised (Debrun, Masson and Pattillo 2010). Another analysis concluded that the CFA zones were optimal only for Cabo Verde, the smallest of all 14 countries (Loureiro, Martins and Ribeiro 2011).
 
10
See the comprehensive discussion in Nubukpo, Ze Belinga, Tinel et al. (2016).
 
11
See Kalenga’s analysis of the 2011 SADC Secretariat Customs Audit (Kalenga 2012).
 
12
A leading German handbook co-authored by members of well-known law firms regularly engaged in ISDS begins by introducing non-tariff measures as non-tariff barriers, ‘generally opaque’, and ‘often introduced under the guise of consumer or environmental protection’. It reads GATT-related jurisdiction on NTM accordingly: ‘Reasons that led to applying a measure are irrelevant. It should be sufficient for the effect of the measure to be trade restricting. Therefore, import bans for products detrimental to health or produced with damage to the environment are prohibited by Art. XI:1’. (Prieß and Berrisch 2003: 114, 117; my translation). Fortunately, reality does not quite correspond to that rule, and more recent WTO rulings based on GATT Article XX have themselves become more lenient.
 
13
For a critical discussion of how conventional CGE modelling of the later aborted TTIP negotiations treated such NTM effects; see Asche (2015: 28 ff.).
 
14
Contingent trade-protective measures; licensing, quotas, prohibitions and quantity-control measures; price-control measures, including additional taxes and charges; finance measures; measures affecting competition; trade-related investment measures; distribution restriction; restriction on post-sales services; subsidies; government procurement restrictions; intellectual property rights; rules of origin.
 
15
With support from TradeMark Southern Africa. See: www.​tradebarriers.​org in preparation for the tripartite free trade area. Statistical data about the complaints list issues related to rules of origin as the second most important category, after lengthy customs procedures.
 
16
672 complaints resolved out of 732 reported, over an undisclosed period (last accessed in December 2020).
 
17
In fact, application of the Stolper–Samuelson theorem, a still dominant critique of the earlier Heckscher–Ohlin theorem, leads to a determined plea for free labour movement within an economic union—even more so when, with a common currency, exchange rate fluctuation is no longer an internal stabilizer.
 
18
A British Conservative whom Margaret Thatcher sent to Brussels in 1985 as Commissioner and who worked out, in a couple of months, a programme for the completion of the single market.
 
19
The European Union and the USA operate with two fundamentally different philosophies, the former based on the so-called precautionary principle, the latter on a corporate liability principle in the event of proven damage. The abandoned negotiations of the Transatlantic Trade and Investment Partnership (TTIP) demonstrated that the two principles are not commensurate and can therefore not be mutually recognized, let alone harmonized. This is one main content-related reason for the failure of TTIP. African regional communities—if not the African region as a whole—will arrive at the same crossroads at some stage.
 
20
Despite the solemn declaration of 1957, the four economic freedoms have historically not been inseparable in Europe. It would be interesting to explore whether they have indeed become politically and/or economically inseparable at the present stage of the European Common Market and, in consequence, cannot be unbundled for the departing UK. The much-contested freedom of persons to move and settle in any member country, for example, represents the equivalent of lifting capital controls. It is often inseparable from cross-border service delivery and works as an economic stabilizer. The smaller Eurozone needs it even more as the exchange rate no longer works as a stabilizer, as is also the case in the African monetary areas.
 
Metadaten
Titel
The Logical Sequence of Regional Economic Integration
verfasst von
Prof. Helmut Asche
Copyright-Jahr
2021
Buch
Regional Integration, Trade and Industry in Africa

Print ISBN: 978-3-030-75365-8

Electronic ISBN: 978-3-030-75366-5

Copyright-Jahr: 2021

DOI
https://doi.org/10.1007/978-3-030-75366-5_2

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