The construction of regional economic integration in Africa through industrialization of countries
Abstract
To move forward, Africa must unite. But unity through political means hitherto privileged, which considers
this economic integration as a goal to achieve, and operationalized by creating a large number of
structures, produces poor results because of the challenges too great and difficult it imposes on Africa.
The goal of an economically integrated Africa is still far from being achieved despite significant efforts.
Faced with this failure, it seems to us more appropriate to adopt a different approach.
Thus, we should adopt an economic approach to integration, which regards integration as a consequence
of prior industrialization of economies. In this way, economic integration no longer appears as a goal, but
rather as a consequence of increased trade due to the industrialization of economies and the consecration
of a de facto integration which takes place from first in the field by different actors. It is this approach of
regional economic integration that is defended in this reflection: "The construction of regional economic
integration in Africa through industrialization of countries".
Keywords: Africa, regional economic integration, industrialization, challenges.
Introduction
To move forward, Africa must unite. The concern for African unity appeared from the access of African
countries to independence, when Nkrumah argued that it was better to incorporate the former colonies in
a large federal system than to freeze final countries. Today the interest of regional groupings in Africa
refers to the economic and strategic economies of scale in production and the phenomena of profitability.
The approach currently used in regional economic integration is a policy option. It considers economic
integration as a goal to achieve and operationalized by the establishment of a large number of institutions
in regional economic communities. The methods are particularly meetings and decisions of the Heads of
State as well as the ratification of conventions and protocols. This approach is therefore simply define the
rules and apply them and focuses on policy instruments.
However, unity through political means has so far resulted in only poor results and the objective of an
economically integrated Africa is still far from being achieved despite significant efforts. Where is the
problem?
To answer this question, one must wonder about the viability of the approach based on the policy option.
Africa could she finally achieve true economic integration through this option? The answer is no. The
reason why it is difficult for Africa to integrate economically through political channels is that they require it
too large and difficult challenges to meet in technical, policy and strategic plan. What does it take to
achieve real economic integration?
Africa must no longer focus on the policy option, but rather adopt an economic approach. It is to build
economic integration by first creating an internal dynamic within economies through industrialization. In
this way, economic integration appears not as a goal but as a result of the industrialization of economies
and the consecration of a de facto integration that takes place first in the field by various actors through
industrialization.
This idea is defended in this reflection: "The construction of regional economic integration in Africa
through industrialization of economies," which presents integration as a goal not to achieve, but rather as
a consequence of prior industrialization of African economies.
This reflection is twofold. It shows first that the policy option of economic integration, provides an
inadequate and difficult scheme to support for Africa. It then proposes an economic approach to regional
integration and shows that it offers to share a diagram of proper integration of Africa. It is divided into two
parts. The first analyzes the current policy option of regional economic integration and its limits. The
second for its review of the proposed economic option and its benefits.
1. The policy option of regional integration and its limits
Since independence, Africa is trying to unite by political means. This policy option considers economic
integration as a goal to achieve. Operationally, this vision led to the creation in the regional economic
communities of a large number of institutions and streamlining their mandates. In addition, significant
efforts are being made. In some regions, countries even try to achieve closer political union of platforms
for eventual monetary union are implemented in East Africa and West. Above all, the organization of
African Unity became the African Union.
Despite these efforts, the goal of an economically integrated Africa is still far from being achieved: Africa
does not yet have a single currency, the countries of North Africa have each its own currency, the Franc of
the African Financial Community (CFA West Africa) and the Franc of the African Financial Cooperation
(Central African CFA) are not always convertible them, much less the currencies of Eastern and Southern
Africa Eastern. African countries trade more with Western and Asian countries with their own neighbors
and intra-regional trade only soar. These examples show that a long way to go to achieve integration. The
main reason for this is that the policy option of economic integration so far applied, imposes too great
challenges that Africa can hardly meet.
The history of African integration course is marked by ambitious programs, but also missed appointments,
non-maintained and further delays often associated with deleterious political atmosphere and ideological
differences between countries. If the expected integration of African countries benefits are numerous and
European success and the context of globalization induce immediately to such initiatives, obstacles and
other challenges along the way, like the challenges and benefits expected, are also size on technical,
policy and strategic plans.
• Technical challenges: In observation, the first challenge of this option is technical and related to
macroeconomic convergence in regional or sub-regional economic communities, and especially the
interest they have to be monetary unions. This analysis is based on the theory of Optimal Monetary Areas
(OCA), which establishes the conditions under which States may waive the autonomy of monetary policy
to take advantage induced mutation and further integration.
Regional communities are they OCA? Not at all because, first, the economies of these communities are
mostly very poorly diversified, specialized in cash crops at the expense of manufacturing and based
wholly or substantially on the extraction of raw materials (in the case of countries the Economic and
Monetary Community of Central Africa (EMCCA)). Second, the intra-regional trade just to take off because
it is hampered by the lack of road infrastructure, high transportation costs and the fact that the country
because of their specialization, are not opportunities for each other. Labor mobility is limited by the law
and even if they change, language barriers and differences in training systems are major obstacles.
Capital mobility is a very bad level because of the shallowness of the few existing financial markets,
coupled with protectionist regulatory, and non-convertibility of currencies. As for the asymmetry of
countries to shocks in the terms of trade, empirical studies show that some countries have terms of
uncorrelated to other exchange, as oil-rich countries coexist with non-oil countries ( This is the case for
example of Nigeria in The Economic Community Of West African States (ECOWAS). It is the only net
exporter of oil, unlike the others).
However, even if states fail to meet the criteria for an OCA, the scope of this technical analysis is to
identify because it is clear that no monetary zone, not even the European Union, does not meet all criteria
for an OCA. Moreover, it is the respect of the convergence criteria, the promotion of a healthy and viable
and deep institutional and structural reforms, including the harmonization of banking regulation and
business law economic management, as communities economic become OCA.
Who says reforms or convergence criteria says political will, and this is where lies the real challenge,
because it is the cornerstone of the integration process. Filigree, also emerged issues strategies for
engaging all concerned states and involve all local and external actors.
• Political and strategic challenges: The decision to join or not join a union is quintessentially political.
The development of regional trade, the coordination of economic policies and joint programs require legal
provisions and decisions at the highest state level. It is therefore understandable that political integration is
not only the emanation of political objectives, but also that they are political actions that give it life and
determine its implementation. However, experience shows that political will has not always been the
appointment, which indicates either the lack of a common objective function for all states, an inadequate
strategy.
Furthermore, the implementation of reforms is a long pre-process that requires political stability,
confidence between states and the permanence of a vision that require sacrifices sometimes painful. Such
consistency is hardly guaranteed due to recurring political and social instability in some areas which has
so often diverted resources from the path of integration to some laudable purposes.
The ability of states to go beyond the divide between French and English is also a big challenge. On the
one hand, Francophones (already met in unions such as the West African Economic and Monetary Union
(WAEMU) and the Economic and Monetary Community of Central Africa (EMCCA)) and strongly linked to
France by the triptych investment, trade and security, the other English-speaking, with unions goods
specific and sometimes suspicious of France, which appears crucial role in the integration process in the
French part. And even some strategic options, such as the first form of a monetary zone for non- WAEMU
will then merge with the other party remains questionable and remember this balkanization and this
suspicion. But this debate is the role of the Western partners in the integration process.
The other important point is the role of natural leaders in the process of integration with the example of
South Africa in Southern Africa and especially Nigeria in West Africa. The latter appears as both the
problem and the solution of regional integration in West Africa.
Problem because although a natural leader because of its demographics and its economy, its recent
current socio-political past is not likely to reassure his future partners, because many ethnic religious
tensions, which it is subject, and his tumultuous political and economic situation. Its size and power are a
priori reasons to fear the small states of the WAEMU zone, and even its neighbors in Central Africa
(Cameroon and Chad). This feeling is reinforced by the rest of its political and economic instability since
the adverse effects that may have a dominant economy, highly leveraged and used to unsustainable fiscal
and monetary policies on the entire area not to be overlooked.
Solution because its size is a factor of credibility and gathering and asymmetry of the business cycle
compared to other countries is the guarantee of a better reaction zone to major economic shocks.
If an integration process without Nigeria is largely inconceivable in West Africa, the idea is for the latter to
provide solid proof of its consciousness, its role and for others to have mechanisms coercive on him. In
this regard, the effective integration of Western countries (such as France), or at least take them into
account, is both necessary and beneficial to the viability of the process because their influence in Africa is
great.
Similarly, it is difficult to believe that the Francophone countries change overnight habits of cooperation for
their African neighbors at the expense of Western countries like France and even believe that it will accept
speaking states in a way of expanded. CFA. The major challenge for African countries is not only finding
the right formula for integration, but also the proper way to involve or reflect Western partners in this
process, because the crowd is killing in the bud any attempt. So, will barely veiled Nigeria to oust France
from the West African integration process appears against productive and suicidal because his ability to
influence or nuisance is not to demonstrate.
In the end, successful regional economic integration through political channels involves trade-offs between
too important not necessarily compatible elements. Moreover, such an approach is a source of conflict of
interest and raises little interest locally. Therefore, it is difficult to reconcile the interests of different
stakeholders in the integration and lead to satisfactory results as well as good achievements.
However, if the portrayal so far suggesting deference, it is nevertheless clear that the integration process
in Africa advance, although some areas are ahead of others (the West Africa is for example in advance of
Central Africa). The objective of economically integrated Africa, although it is far from being achieved,
worth pursuing. So what is the suitable integration formula ? Implies she less-offs between elements not
necessarily compatible? Balances She the interests of different stakeholders in the integration? arouses
she the interest of every country and makes she consistent local and regional initiatives? Implies she less
difficult to overcome conflicts? Does she install the foundation for real economic integration of Africa?
2. Economic option of regional integration and its benefits
On this point, it should be noted that the economic integration presupposes the existence of trade
between countries and their gradual intensification. This is only possible if each country has something to
offer to others, and is achieved when each country has a local processing industry offering a varied range
of manufactured goods in the common market. The dynamism created within economies and resulting in
an increase in the volume of intra-Community trade is then reinforced by the removal of trade barriers and
the creation of an appropriate regulatory framework.
In the end, the real economic integration appears as the consecration of a de facto integration that takes
place first in the field by the different actors (traders, merchants, people, networks, etc.). It is impossible
without industrialization of economies. The challenge therefore it must first be overcome is that of
industrialization which lays the foundations for a genuine economic integration, eliminates many
arbitrations sometimes difficult to make and balances the interests of each other.
It is therefore understandable, his interest in sub-Saharan Africa and in particular those of the Economic
and Monetary Community of Central Africa (EMCCA), whose productive structures are all oriented in the
extraction of raw materials and where the possibilities of finding clear comparative advantages prove very
limited. For these countries, any prospect of closer economic integration through intra requires
differentiation of products traded to benefit from internal economies of scale, which is only possible in the
industrializing.
And even the often advanced strategic option, establish a complementarity between the Economic and
Monetary Community of Central Africa (EMCCA) member countries, ensuring that each country
specializes in the production of a limited property register (selected by mutual agreement with the other
member countries) and buys those they do not happen in other member countries, have meaning only if
each country develops a local processing industry for the products in which they will specialize.
Moreover, the fact that the West African Economic and Monetary Union (WAEMU) countries are more
integrated than commercially the Economic and Monetary Community of Central Africa (EMCCA) is here
all his explanation: the presence in the WAEMU relatively diversified and developed countries at the
industry level (Côte d'Ivoire, Senegal ) and the fact that this union is surrounded by highly developed
countries at the industry level (Nigeria and Ghana).
We also note that the significant advances of Nigeria on an industrial scale exert powerful effects of tide
that can even affect all growth objectives of its neighbors in Central Africa and West Africa when not
enough considered. Moreover, these forces induce a kind of integration of Nigerian markets and those of
its neighbors in manufactures and encourage more to take Nigeria into account in the formulation and
implementation of economic policies.
For the specific case of Cameroon, many studies emphasize that trade more with Nigeria with its EMCCA
partners, simply because Nigeria is more developed and has consequently manufactures offer and it also
provides a kind of ecological integration between the two countries, all of which indicate the need to
strengthen this integration through the definition and implementation of an appropriate regulatory
framework.
The economic approach leads to regional economic integration through two main operating mechanisms:
development or restructuring of exchange networks and incentive to implement joint economic programs.
• The restructuring and the development of networks: Because cross-border trade between African
countries are generally organized into networks and operate in the informal sector, visibility on these
exchanges remains low and their structure is very difficult. The proposed approach modifies this situation:
informal networks of exchange can not control that low trading volumes, they are either restructured or
developed to master the most important when trade flows are increasing by the channel of the
industrialization. Visibility of informal cross-border trade becomes effective and the informal sector can be
driven in the formal sector while strengthening regional economic integration.
• The incentive to achieve common economic projects: The intensification of trade due to the
industrialization of the country mobilizes the involvement of social groups in favor of integration. This
commitment then put pressure on the authorities in different countries, thereby encouraging them to
achieve common economic programs in terms of physical integration of the continent (infrastructure
projects) and looking for a better functioning of markets (setting establish common financial markets), etc.
Development (or structure) exchange networks and the ability to achieve economic programs provide a
framework of negotiation for countries and rush in all other forms of integration: social cooperation,
cultural, political and security.
Conclusion
The policy option of regional economic integration which present economic integration as a goal to
achieve and operationalized by creating a large number of structures produced poor results because of
the challenges too great and difficult challenges that it imposes on Africa, in political, strategic and
technical plans. This is the reason why this option poor results and can hardly allow to achieve the goal of
an economically integrated Africa desired.
For cons, the proposed economic option, which is to develop countries by industrialization laid foundations
for a real economic integration and allows to build it. With this option, economic integration is no longer
presented as a simple goal to achieve, but rather as a consequence of internal dynamism of economies
through industrialization. Thereby, African countries should focus on economic option of integration
presented to accelerate their economic integration.
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