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Facilitating and Enhancing the Process of Regional Economic Integration

 

Focus of 1998/1999

Three directions:

  • Resource Mobilization
  • Reconciling the Abuja Treaty and the WTO
  • Strengthening the existing institutional framework

1998 Work Programme

The implementation of the work programme will revolve around the same major objectives that guided the activities in 1997. However these activities will be re-oriented towards:

(i) increased financial viability of economic groupings

(ii) consolidation of results achieved in harmonizing the WTO-led trade liberalization programme and Africa's integration agenda and

(iii) providing assistance to member states in rationalizing and strengthening existing institutional frameworks

  • Analytical framework for assessment of the costs and benefits of the regional economic integration;
  • African economic integration: Lessons from the EU, NAFTA, MERCOSUR, ASEAN and APEC;
  • Comparative analysis of the commitments under the AEC and agreement of the Uruguay round;
  • Policy briefs on issues of concern to Africa in the negotiation under the WTO.

Expected Impact

  • Institutional framework strengthened;
  • RECs put on more viable financial footing;
  • Greater harmonization of policies and programmes;
  • Africa's improved preparedness to participate in World trade.

1997 Work Programme

Overriding objectives

A. Facilitating the Implementation of existing cooperative arrangements

B. Assist in building critical capacities to support the integration process

C. Up-grading Africa's role in World Economy

A. Facilitating the Implementation of Existing Cooperative Arrangements

The Issues:

  • Tariff barriers and Persistence of Non-tariff barriers, including physical impediments;
  • Lack of policy and programme coordination and harmonization among RECs;

  • Inadequacy of implementation time-frame of some programmes;
  • Inability of RECs and member states to monitor and support financially and technically community policies;
  • Multiple and overlapping membership and multiplicity of integration organizations;
  • Divergent macro economic policies that hamper the smooth implementation of programmes.

Related Outputs

  • Magnitude of physical impediments, tariff and non tariff barriers, their impact on intra-African trade and production factor mobility and their effect on regional development patterns;

  • Tax harmonization and integration in West Africa;

  • Degree of convergence of micro and macro economic policies among African countries: poposal of institutional framework for greater harmonization.

B. Building Critical Capacities to Support the Integration Process

The issues:

  • Inability of the RECs to launch and sustain far-reaching programmes: lack of expertise coupled with financial resources constraints;

  • Lack of appropriate mechanism at national level to coordinate and monitor the implementation of common policies and programmes.

Related Outputs

(i) Studies

  • Strengthening the RECs;

  • Study on the establishment of a self-financing mechanism within COMESA.

  • Building critical capacities for regional economic integration

(ii) Operational activities

  • Implementation of UNDP-funded project on: promotion of Africa's economic integration through the establishement of the African Economic Community

C. Upgrading Africa's Role in World Economy

The issues

  • Africa's marginalization resulting from its ill preparedness to take advantage of new trade opportunities emerging from the new World trade system

Related Outputs (Publications)

  • Policy briefs on issues of concern to African countries in negotiations under WTO.

First issue on: Regional integration in Africa and the multilateral trading system;

Second issue on: Globilization and trade liberilization: Prospects for African exports:

Liberalization of World trade, globilization and African economic integration: A re-assessment of the time frame of the Abuja Treaty for the establishment of the AEC.

  Focus of 1996/1997

  • Research and analytical studies on reassessing the regional integration process of operational modalities

 

Upcoming Events

  • Meeting of the Committee on Regional Cooperation and Integration. (Addis Ababa, Ethiopia, 2-7 November.)
  • Ad hoc expert group meeting on liberilization of trade and factor mobility within Africa promotion of the emergence of complementaries as a basis for the expansion of intra-Africa trade. (1998)
  • Organising Ad hoc expert group meeting on means of tapping the private sector resources, market forces and international capital to accelerate African economic integration. (1999)
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