- Title
- The impact of regional integration in Africa: the case of South Africa and Botswana
- Creator
- Letsatsi, Paseka C
- Subject
- Regional economics
- Subject
- Economic development
- Subject
- Trade blocs
- Date Issued
- 2012
- Date
- 2012
- Type
- Thesis
- Type
- Masters
- Type
- MPhil
- Identifier
- vital:8235
- Identifier
- http://hdl.handle.net/10948/d1010176
- Identifier
- Regional economics
- Identifier
- Economic development
- Identifier
- Trade blocs
- Description
- Regional integration can refer to the trade unification between different states by partial or full abolition of customs tariffs on trade taking place within the borders of each state. This is meant in turn to lead to lower prices for distributors and consumers (as no customs duties are paid within the integrated area) and the goal is to increase trade. (Economic integration,1950, p66) According to Mattli (1999, p.42), the analysis of the first problem takes the decision to adopt an integration treaty as a given, and is primarily concerned with identifying the condition under which the process of integration is likely to succeed or to fail. Implementation of an agreement by heads of states to tie the economies of their countries closer together entails a lengthy process of establishing common roles, regulations, and policies that are either based on specific treaty provisions or derived from general principles and objectives written into the integration agreement. Regional integration can be applied for varying forms of economic co-ordination or co-operation amongst different neighbouring states, there will however always be different political agendas in the process. If there is a treaty amongst member states, this treaty has to be enforced or it may result in the development of differences. “In order to address national priorities through regional action most member states had been allocated the responsibility of co-ordinating one or more sectors. This involved proposing sector policies, strategies and priorities, and processing projects for inclusion in the sectoral programme, monitoring progress and reporting to the council of Ministers”. (Department of International Relations & Co-operation, Republic of South Africa). Richard Baldwin, Daniel Cohen, Andre Sapir and Anthony Venables argue that, using the same basic model as Bond and Sypropoulos (1996a), they consider trigger strategies such that initially there is inter-bloc free trade supported by the threat of perpetual trade war if any party breaks the agreement. Regional integration can be understood as the process of providing common rules, regulation, and policies for a region. Regional integration is defined as a process that allows member states to have access to each other’s markets on a voluntary basis and at various degrees. Economic, political, social and cultural benefits are realised from this interaction. (Lee MC, 1999, p30) Regional integration can be seen as co-operation in a broader context but can also be an important framework, through programmes within each regional bloc. According to (Keet ,2005,p22) since the birth of democratic South Africa, regional co-operation is also seen – in addition to the broader African aims-to be an important framework, through programmes within the Southern African Development Community (SADC), within which to address the gross imbalances created both within and between the economies of the region. Regional integration has become a way of assisting the emerging economies to be able to use their proximity to align their economies with the core for economic development. According to (Hamdok, 1998, p34) the effective implementation of regional integration is founded on an enabling environment that promotes accountability, transparency and respect for the rule of law. Also a strong institutional framework at the regional and national levels is fundamental to streamline regional agreements into national policies. In addition, the establishment of effective transnational implementation tools provide opportunities to push reforms conducive to good governance at the regional level. A clear demonstration of this can be observed in effective? legal systems and the need for a regional framework and related judicial institutions to provide an improved regional environment for private development. Integration always provides space for member states to assist in the development of other member states and which have a common economic approach to development. This is done in order to ensure that there are incentives for all member states as compared to those who are outside the bloc. As evidenced in the case of Europe, economic integration helps create a homogenous space and, to some extent, equalises living conditions and if all other regional blocs follow this process the benefit becomes greater. These appear to be prerequisites for a dialogue on the harmonisation of political stands. Indeed, an economic space that is physically integrated; where goods and services move speedily and smoothly; where, besides, the mobility of factors (manpower, capital, energy and inputs) are not subjected to hindrances; where, finally, microeconomic policies are harmonised, is likely to offer equal opportunities to all. Such a high degree of economic integration is not sustainable without a policy dialogue on issues that, at first, may not fall squarely under the rubrics of economic field; peace and security, defense, diplomacy etc. (Blayo N, 1998, P.5) The process of regional co-operation within the Southern African Development Community (SADC) started in in 1980 through the formation of the Co-ordinating Conference which was later changed to SADC IN 1992. Even though it is clear that the South African government played a dominant role because of its apartheid policies, the basic condition was to start the process of integration and open the process of economic co-operation within the region. The Governments of the Republic of South Africa, the Republic of Botswana, the Kingdom of Lesotho and the Kingdom of Swaziland- being desirous of maintaining the free interchange of goods between their countries and of applying the same tariffs and trade regulations to goods imported from outside the common customs area as hereinafter defined; “Recognising that the Customs Agreement on 29 June 1910 as amended from time to time , requires modification to provide for the continuance of the customs union arrangements in the changed circumstances on a basis designed to ensure the continued economic development of the customs union area as a whole, and to ensure in particular that these arrangements encourage the development of the less advanced members of the customs union and the diversification of their economies, and afford to all parties equitable benefits arising from trade among themselves and other countries”.(Government Notice, R 3914,p1). Even though there’s an acknowledgement that under the difficult conditions during apartheid, there was a need for the region to develop a common approach towards development and sustainable growth in the Southern African region. All countries in the region had to co-operate for long term sustainable economic growth, peace and security. “In 1980, the Southern African Development Co-ordination Conference (SADCC) was established with the major objectives of decreasing economic dependence on the apartheid regime and fostering regional development. The strategy adopted for meeting these objectives was regional development and co-operation. In 1992 SADCC was reborn, as the Southern African Development Community (SADC). The member states decided the time had come to move the region towards the creation of one regional market”. (Lee MC, 1999, p1) “Through the establishment of the Southern African Customs Union (SACU) the Southern African region has managed under difficult conditions of economic inequalities to standardise the trade links amongst member states, although there is still more to be done in the region to achieve shared goals of development. The Southern African Customs Union (SACU) links the trade, regimes of Botswana, Lesotho, Namibia, South Africa and Swaziland.
- Format
- 100 leaves
- Format
- Publisher
- Nelson Mandela Metropolitan University
- Publisher
- Faculty of Arts
- Language
- English
- Rights
- Nelson Mandela Metropolitan University
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