Implementation of Trade Liberalization in the African Economic Community (AEC): Challenges and Prospects
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Date
2010-01
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Addis Ababa University
Abstract
In the 21 st Century establishing regional economic integration has been
taken as crucial strategy to fo ster economic development and growth
among n ations. Economic integration lead to improved trade, economies
of scale, enhanced competition and increased technology development.
Africa aspires to get integrated since post independence to tackle socioeconomic
problems of the continent. Founding fath ers of the OAU / AEC
come up with the AEC Treaty which provides a marve lou s economic
objectives and mechanisms to be realized through a gradual process
within six stages in 34 years to declare economically united Africa.
Since the adoption of the AEC Treaty, the conti nent began to implement
( it in accordance to the modalities. The political and legal visions of
establishing integrated Africa Contained essential precursors to the
movement of economic integration. It is, th erefore, the main theme of this
thesis is to examine implementation of the AEC Treaty in the light of the
moda lit ies of the Trea ty and gives emphasis to Ch a llenges and prospects
of trade liberalization. In the main, this thesis has tried to identify the
major challenges of economic integration in Africa which appear to be
impediments in implementing the Abuja Treaty.
The review of the issues indicates that RECs have completed phase one
and two, and beginning to implement phase three. Noneth eless,
sectoral integration, coordination, ha rmonization of projects and
programme, intra-Africa trade remains too low. To this end , there are
contributing factors, interalia, lack of political will, conflict andinstability, lack of effective supranational institutions, overlapping of
membership, financial constraints, non-implementation of treaties and
protocols and lack of adequate infrastructure are the key challenges.
This study concludes that the challenges in relation to establishing
effective economic integration encountered Africa are not inherent
weakness of the continent. On the other hand, prospects of the
implementation of the AEC Treaty seems to be achievable since it has
been theoretically and factually proved that economic integration is a
survival strategy to the continent. In addition, the thesis a rgues regional
integration in Africa has to be a viable option to overcome constraints
arising from small domestic markets, Increase bargaining power, a
conducive environment to utilize common resources and combat
problems, and can help to make national reforms deeper and irreversible.
Moreover, basic lessons can be drawn from this thesis as far as it
examines the theoretical and practical aspects of economic integration of
the continent.
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African Economic, Community (AEC): Challenges and Prospects