AFRICAN INTEGRATION

Question 1

ECONOMIC INTEGRATION RATIONALE

Answer 1

Increase trade
Reduce costs (for cons and prod)
Increase opportunities and growth
Larger economies of scale (greater legitimacy makes look more attractive)
Legitimacy of ec reforms 
Attractiveness of region

Question 2

STAGES OF ECONOMIC INTEGRATION- FREE TRADE

Answer 2

Tariffs betw member countries are significantly reduced, some abolished altogether
Each member country keeps its own tariffs regarding third countries
General goal of FT agreements is to dev ec of scale and comparative advantages, promoting economic efficiency

Question 3

STAGES OF ECONOMIC INTEGRATION-CUSTOMS UNION

Answer 3

Sets common external tariffs among member countries, implying that the same tariffs are applied to the third countries, a common regime is achieved
Useful to level the competitive playing fields and address problem of re-exports (using preferential tariffs in one country to enter another)

Question 4

STAGES ECONOMIC INTEGRATION-COMMON MARKET

Answer 4

Services and capital are free to move w/i member countries, expanding scale ec and comparative advantages
However, each national market has its own regulations, such as product standards

Question 5

STAGES OF ECONOMIC INTEGRATION-ECONOMIC UNION

Answer 5

Single market
All tariffs are removed for trade betw member states, creating uniform (single) market.
Also free movements of labour->enables workers in member state to move + work in another country.
Monetary and fiscal policies betw member states are harmonized->implying level of pol integration
Further step concerns a monetary union where a common currency is used (Euro for eg)

Question 6

STAGES OF ECONOMIC INTEGRATION- POLITICAL UNION

Answer 6

Represents the potentially most advanced form of integration with a common gov and where there are a central government and regions (provinces, states, etc) having a level to autonomy

Question 7

ASSUMPTIONS OF ECONOMIC INTEGRATION

Answer 7

Similar core values->economic policy->political processes
Similar outlooks->role of region->role w/i globe
If these assumptions met then higher chance of integration

Question 8

CONCERNS OF INTEGRATION

Answer 8

Lack of complementarity->v little specialisation.:struggle trade
Lengthy negotiations->looking for perfection in agreement instead working perfection throughout
Divergent loyalties->makes neg steps back
Uneven signing and ratification
Uneven interest in protocols

Question 9

ECONOMIC CONCERNS

Answer 9

Land-locked states->forced trade w/ neighbors->limited choice of import and export goods
Lack diversified economies
Dependence single commodities->specialisation would help
Similar products->makes trade pointless
Domestic economic size-> what can your market bear->how can you grow your market->what are the ec resources of the peop in state

Question 10

WAY FORWARD

Answer 10

Intregration used as defense against other trade->instead use as a vehicle to promote extra reg trade
Internally->pol house in power
Minimize gov intervention 
Achievable focused goals
Limited membership 

Achieve integration through following processes.