Roadblocks to Economic Integration in the Igad Sub-Regional

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Date

2002-05

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Addis Ababa University

Abstract

This study attempts to identify the principal challenges to economic integration in the sub-region of IGAD. The study argues that theories of economic integration that are relevant to understanding the roadblocks to the attempts aimed at economic integration in developing countries in general and in the IGAD sub-region in particular require a merger of the theories of functionalism, neo-functionalism and dynamic Customs Union and exogenous factors. The study tries to set out the main conditions that are necessary for successful economic integration among developing countries which are explored from the past experience of regional and sub-regional economic groupings within and outside the continent of Africa. These are: the need for the existence of at least one ‘big brother’ in the economic bloc and/or larger number of participating member states; de-link from North and encourage South-South cooperation; the promotion and development of infrastructure and communications; the need for sustained and irreversible commitment on the parts of the participating governments to honor financial contribution, empower the sub-regional organization and incorporate regional polices into national programmes; and the need for the existence of stability, compromise, tolerance and political harmony, and confidence among member states. The assessment of this study reveals the prevalence of major challenges that work against the attempt to effective economic integration in the IGAD subregion. The principal challenges identified are: excessive dependence of member states on external agents ( the Western countries and their institutions), the impact of the triad trading blocs ( Europe, America, East Asia), the incompatibility of the Lome Convention and Structural Adjustment Programmes (SAPs) on the promotion of regionalism, poor communication. performance, lack of sustained and irreversible commitment by the participating governments, and mistrust, suspicion and lack of confidence between and among the partners. The conclusion that emerges from such analysis is that the economic integration attempt in the IGAD sub-region is far from success. Thus, this study stresses that if genuine and sustainable economic integration is to be pursued in the sub-region, IGAD needs to minimize its ties with the North and enhance South-South cooperation, ensure the harmonization of national and sub-regional policies, promote an active involvement of people in the economic integration process, make sustained and irreversible commitment on the progress made, develop a climate of trust and confidence among the nations and populations, and make short-term compromises in the interest of long-term goals and benefits.

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