The healthy effects of such a regional economic integration are presumed to be as follows: 1. According to this approach, and others, African growth should occur through regionalisation. Conflict is replaced by constructive dialogue. Q: What is the rationale behind regional economic and financial integration? By boosting intra-continental trade, consumption, and investment, regional integration can be a strong vector for improving productivity, building manufacturing powerhouses, and developing credible African brands. development of strong public sector institutions and good governance; reduction of social exclusion and the development of an inclusive civil society, contribution to peace and security in the region, building of environment programmes at the regional level, strengthening of the region’s interaction with other regions of the world. with regional cooperation reveals a few interesting observations. The most well known of … Regional Integration is a process in which neighboring countries enter into an agreement in order to upgrade cooperation through common institutions and rules. The deep integration that focuses on regulating the business environment in a more general sense is faced with many difficulties. Usually integration involves one or more written agreements that describe the areas of cooperation in detail, as well as some coordinating bodies representing the countries involved. Regional integration is a process in which countries enter into a regional agreement in order to enhance regional cooperation through regional structure and rules. Member countries remove all barriers to trade between themselves but are free to independently determine trade policies with nonmember nations. These divisions are a constraint to economic growth, especially in developing countries. There are four main types of regional economic integration. De Lombaerde and Van Langenhove describe it as a worldwide phenomenon of territorial systems that increases the interactions between their components and creates new forms of organization, co-existing with traditional forms of State-led organization at the national level. A. Venables, in International Encyclopedia of the Social & Behavioral Sciences, 2001. There are many degrees of economic integration, but the most preferred and … In the case of both the European Union and the East African Community there are three outstanding benefits that regional integration can bring. Voting Bobi Wine is Like Accepting Brain Surgery by a Senior Four Student, How Political Violence in Uganda Can be Stopped, Uganda: The Fight to Control Her Narrative. Benefits: Creation of trade and more jobs. Please rate this article. Businesses can struggle when it comes to managing the ever-expanding data they are collecting from their people, clients and suppliers. This is the most basic form of economic cooperation. Benefits Of everything that matters, April 1, 2011 Regional integration arrangements are mainly the outcome of necessity felt by nation-states to integrate their economies in order to achieve rapid economic development, decrease conflict, and build mutual trusts between the integrated units. Explanation: In regional integration, two neighbor states integrate their activities for political or environmental purposes, by their constitution or rules. 1. Benefits of Regional Trading Agreements. Several nations usually have a much larger political influence as compared to the influence that each individual country would have. In Europe the focus has … These agreements are usually made between nations with smaller economies in order to promote trade within the region. Regional integration is essential here as well, since goods, services and people need to be able to flow seamlessly across borders to reduce costs and to help firms become competitive enough to link to these value chains. Regional integration increase a nation economic activities overall, which in turn raises GDP and can provide better living standards for all citizens within the regional block. Deeper regional integration to allow cost sharing and risk pooling would promote stable growth. The European Union is an economic and political union of 27 member nations which are located in Europe. Regional integration is the process by which two or more nation-states agree to co-operate and work closely together to achieve peace, stability and wealth. Walter Lippmann believes that “the true constituent members of the international order of the future are communities of states.”  E.H. Carr shares Lippmann view about the rise of regionalism and regional arrangements and comments that “the concept of sovereignty is likely to become in the future even more blurred and indistinct than it is at present. Free trade area.This is the most basic form of economic cooperation. An arrangement for enhancing cooperation through regional rules and institutions entered into by states of the same region. Freedom of movement; Free trade area; Globalization , Comment Closed, March 20, 2016 On one hand, it is a development strategy aimed at aggregating Africa’s small countries into one large These countries often face severe disadvantages in dealing with the rest of the world because of their low bargaining power and high negotiation costs. Why did the EU form and what are its significant impacts? Cons: Lowers sovereignty, shift of employment, inefficient trade diversion from productive exporters to less capable exporters. An example is the North American Free Trade Agreement (NAFTA). Besides the European Union, other trade-related regional integration policies include numerous agreements in Africa: for example, the Southern African Customs Union Agreement, the Multilateral Monetary Agreement and the Indian Ocean Commission. Political Cooperation: A group of nation can have significantly greater political influence than each nation would have individually. Since economic integration encourages trade liberation, market expansion and more increased investment to member nations, it creates employment prospects. , Erwin Z The benefits of regional integration are determined by the extent of trade diversion. Enhanced political cooperation © 2021 - The NileWires. September 22, 2015. by Kizito Sikuka – SANF 15 no 51 The benefits of belonging to a shared community in southern Africa are reaching the lives of many people in the region, according to a new publication released by the Southern African Development Community. What Is Regional Economic Integration? , Erwin Z, Comment Closed, March 15, 2016 Since a regional common market obviously provides a much larger market than that offered by the domestic market of a single country, economies of scale, both internal and external, become possible with the widened size of the market. Hendrikstraat 69, Paramaribo, Suriname . Economic Benefits of Regional Integration to Member States, The top five most important African elections to watch in 2021, Clergy Dismiss Arch Bishop Lwanga’s Suggestion to Postpone Elections, East Africa: We Either Integrate Or Collapse, Ingrid Turinawe, Winnie Babihuga Kicked out of FDC, Drug addicts have no moral claim to leadership – Museveni, Museveni in Africa’s Eyes: Great Statesman Championing Peace in the World, Security Minister Warns Protesters, ‘We Will Change Tactics Based on Situation’, strengthening of trade integration in the region, creation of an appropriate enabling environment for private sector development, development of infrastructure programmes in support of economic growth and regional integration. Because of systemic constraints in the so called leading nations we cannot wait for the Obamas and even Lulas of the world to show the way for the deep changes we need. Employment prospects The phenomenon of regional integration. As the respective countries trade freely, their GDP increases and therefore improves their economies. Moreover, improved political cooperation due to regional economic integration is also vital for handling the economic and social challenges linked to globalization. Over the course of three decades, emerging Asia’s share of world GDP surged from 10 per cent to 30 per cent , enabling the region to lift half a … Regional economic integration agreements are treaties between member states in a particular region of the world such as Sub-Saharan Africa or the Middle East. There are four main types of regional economic integration. The Asian RCI approach has been more Political differences have occasionally triggered off misunderstandings that have led to de-integration, as was the case of the Colonial EACM (CEACM) in 1978. This paper represents the opinions of the author, and is the product of professional research. 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