The AU and ECOWAS: The AU and ECOWAS: Challenges and Challenges and

ProspectsProspects

ByBy

Vladimir Antwi-Danso (PhD)Vladimir Antwi-Danso (PhD)

Snr. Research FellowSnr. Research Fellow

Legon Centre for International AffairsLegon Centre for International Affairs

University of Ghana,University of Ghana,

Legon – AccraLegon – Accra

GhanaGhana

Tel: 233-21-50102Tel: 233-21-50102

Cell:233-244-613282Cell:233-244-613282

vladanso@yahoo.com

Vantwi-Danso@ug.edu.ghVantwi-Danso@ug.edu.gh

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The Economic Community of West African States (ECOWAS)

Mauritania has rejoined the

Community -2006

The African UnionThe African Union

IntroductionIntroductionECOWAS was conceived as a means ECOWAS was conceived as a means toward economic integration and toward economic integration and development intended to lead to the development intended to lead to the eventual establishment of an eventual establishment of an economic union in west Africa, economic union in west Africa, ensuring economic stability and ensuring economic stability and enhancing relations among member enhancing relations among member statesstates

Introduction Cont’dIntroduction Cont’dThe OAU (the precursor to the AU), on the The OAU (the precursor to the AU), on the other hand, had the following objectives:other hand, had the following objectives:

To rid the Continent of the remaining To rid the Continent of the remaining vestiges of colonialism and apartheid;vestiges of colonialism and apartheid;

To promote unity and solidarity among To promote unity and solidarity among African statesAfrican states

To coordinate and intensify cooperation To coordinate and intensify cooperation for development;for development;

OAU Objectives cont’dOAU Objectives cont’d

To safeguard the sovereignty and To safeguard the sovereignty and territorial integrity of Member States; territorial integrity of Member States; andand

To promote international cooperation To promote international cooperation within the framework of the United within the framework of the United NationsNations..

Introduction (cont’d)Introduction (cont’d)

The OAU, having fulfilled the basic aims of The OAU, having fulfilled the basic aims of its formation, was transformed into the AU, its formation, was transformed into the AU, with a view, with a view, inter-aliainter-alia, to accelerating the , to accelerating the process of integration in the continent to process of integration in the continent to enable it play a meaningful role in the enable it play a meaningful role in the global economy, while addressing global economy, while addressing multifaceted social, economic, and political multifaceted social, economic, and political problems, compounded as they are by problems, compounded as they are by certain negative aspects of globalization. certain negative aspects of globalization. The basic platform for the realization of The basic platform for the realization of this noble goal was the 1991 Abuja Treaty this noble goal was the 1991 Abuja Treaty –The AEC project.–The AEC project.

AimAim

Our basic aim this morning, would, Our basic aim this morning, would, therefore, be to highlight the basic therefore, be to highlight the basic challenges confronting the two challenges confronting the two integration projects of the AU and integration projects of the AU and ECOWAS as well as conjecture what ECOWAS as well as conjecture what prospects there are, if any, for prospects there are, if any, for surmounting those challenges.surmounting those challenges.

ScopeScope

In realizing this aim, we shall go through In realizing this aim, we shall go through the following scope:the following scope:

Historical Evolution of the AU and Historical Evolution of the AU and ECOWASECOWAS

Main Hurdles of Integration in AfricaMain Hurdles of Integration in Africa

ProspectsProspects

The Way ForwardThe Way Forward

Historical Evolution (ECOWAS)Historical Evolution (ECOWAS)

Founded in May 1975Founded in May 1975Spearheaded and inspired into action by Spearheaded and inspired into action by the then Heads of State of Nigeria the then Heads of State of Nigeria (Yakubu Gowon) and Togo (Gnassingbe (Yakubu Gowon) and Togo (Gnassingbe Eyadema)Eyadema)Pre-colonial agitation and Nkrumah’s Pre-colonial agitation and Nkrumah’s OAS, as well as President Tubman’s OAS, as well as President Tubman’s eagerness contributed immensely towards eagerness contributed immensely towards the formation of ECOWASthe formation of ECOWAS

ECOWAS - EvolutionECOWAS - Evolution

Treaty Revised in July 1993 with a new Treaty Revised in July 1993 with a new aim aim

““to reaffirm the establishment of the to reaffirm the establishment of the ECOWAS and decide that it shall ECOWAS and decide that it shall ultimately be the sole economic ultimately be the sole economic community in the region for the community in the region for the purpose of economic integration and purpose of economic integration and the realization of the objectives of the the realization of the objectives of the African Economic Community”African Economic Community”

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ECOWAS Headquarters in AbujaECOWAS Headquarters in Abuja

The AU - EvolutionThe AU - Evolution

Pan Africanist Congress of 1945Pan Africanist Congress of 1945The OASThe OASPrelude to the OAUPrelude to the OAU

The Polarization of IntegrationThe Polarization of IntegrationThe Role of the Cold WarThe Role of the Cold WarThe Sitr DeclarationThe Sitr DeclarationThe AU is bornThe AU is bornThe NEPADThe NEPAD

The AU The AU African countries resolved to move African countries resolved to move towards a more resolute union by towards a more resolute union by establishing the African Union in 2001 to establishing the African Union in 2001 to replace the OAU. Basically the AU was replace the OAU. Basically the AU was meant to: meant to:

Accelerate the implementation of the Accelerate the implementation of the Abuja TreatyAbuja Treaty

Strengthen the RECS andStrengthen the RECS and Speed up the establishment of the Speed up the establishment of the

continent’s institutions of the AEC. continent’s institutions of the AEC.

The Nature of IntegrationThe Nature of Integration

The various approachesThe various approaches

The political/security typeThe political/security type

Loose Trade ConfederationLoose Trade Confederation

The Market ApproachThe Market Approach

The Production Approach**The Production Approach**

The Institutional Approach**The Institutional Approach**

Infrastructural Approach**Infrastructural Approach**

What is Regionalism and/or regional What is Regionalism and/or regional Integration?Integration?

Definition/ApproachesDefinition/Approaches Reciprocal Reduction of trade barriersReciprocal Reduction of trade barriers Regional trading arrangements Regional trading arrangements

Regionalism or Regional integration may thus be Regionalism or Regional integration may thus be

defined as the defined as the “Commercial policy of “Commercial policy of

discriminatively reducing or eliminating trade discriminatively reducing or eliminating trade

barriers only among the nations joining barriers only among the nations joining

together”together” The degree, though, of economic The degree, though, of economic

integration varies.integration varies.

Basically therefore, integration is trade-inducedBasically therefore, integration is trade-induced

Degree (Types) of IntegrationDegree (Types) of Integration

For the attainment of a full-fledged For the attainment of a full-fledged integration, a regional bloc may have to integration, a regional bloc may have to go through four main stages of economic go through four main stages of economic cooperation.cooperation.

A A Free Trade Area (FTA)Free Trade Area (FTA), in which , in which members remove trade barriers among members remove trade barriers among themselves, but keep their separate themselves, but keep their separate national barriers against trade with the national barriers against trade with the outside world. outside world.

e.g. European Free Trade Area formed e.g. European Free Trade Area formed in 1960. in 1960.

North American Free Trade Area North American Free Trade Area (NAFTA), which was formally incepted in (NAFTA), which was formally incepted in 1994.1994.

A A Customs UnionCustoms Union, in which again , in which again members remove all barriers to members remove all barriers to trade among themselves and adopt trade among themselves and adopt a common set of external barriers. a common set of external barriers. By so doing, the need for customs By so doing, the need for customs inspection at internal borders is inspection at internal borders is eliminated. The European Economic eliminated. The European Economic Community (EEC) from 1957 to Community (EEC) from 1957 to 1992 had included a customs union 1992 had included a customs union along with some other agreements.along with some other agreements.

A A Common MarketCommon Market, where members , where members allow full freedom of factor flows allow full freedom of factor flows (migration of labour or capital) among (migration of labour or capital) among themselves in addition to having a themselves in addition to having a customs union. It should be noted that, customs union. It should be noted that, despite its name, the European Common despite its name, the European Common Market (or EEC, then EC or EU) was not Market (or EEC, then EC or EU) was not a common market up through the 1980s, a common market up through the 1980s, because it still had substantial barriers to because it still had substantial barriers to the international movement of labour and the international movement of labour and capital. The EU became a common capital. The EU became a common market, and more, in reality at the end of market, and more, in reality at the end of 1992.1992.

Full Economic Union (Community),Full Economic Union (Community), in in which member countries unify all their which member countries unify all their economic policies, including monetary, economic policies, including monetary, fiscal, and welfare. Policies toward trade fiscal, and welfare. Policies toward trade and factor migration are also and factor migration are also harmonized. The EU has approached full harmonized. The EU has approached full unity, though governments keep much of unity, though governments keep much of their tax autonomy. Monetary union has their tax autonomy. Monetary union has been achieved, even though some been achieved, even though some members (Great Britain for instance) are members (Great Britain for instance) are still outside of the total monetary still outside of the total monetary integration.integration.

FEATURES OF BLOCFEATURES OF BLOC

Type of Type of BlocBloc

Free Trade Free Trade among the among the membersmembers

Common Common External External TariffsTariffs

Free Free Movement of Movement of

Factors of Factors of ProductionProduction

Harmonization Harmonization of all Economic of all Economic Policies (fiscal, Policies (fiscal,

Monetary, Monetary, etc,.)etc,.)

Free Trade Free Trade Area (FTA)Area (FTA)

++ -- -- --

Customs Customs UnionUnion

++ ++ -- --

Common Common MarketMarket

++ ++ ++ --

Economic Economic UnionUnion

++ ++ ++ ++

Challenges to Integration in Challenges to Integration in Africa (AU and ECOWAS)Africa (AU and ECOWAS)

HURDLES OF INTEGRATION IN HURDLES OF INTEGRATION IN AFRICAAFRICA

Economic weakness and relative Economic weakness and relative stagnancy of African economies stagnancy of African economies and and its negative impact on its negative impact on government government policiespolicies

The lack of full commitment in the The lack of full commitment in the sense of the failure to incorporate sense of the failure to incorporate agreements reached by different agreements reached by different integration schemes in national integration schemes in national plansplans

ChallengesChallenges

The private sector which is the engine The private sector which is the engine of economic growth, has not been of economic growth, has not been actively involved in the effort to actively involved in the effort to advance integration by the various advance integration by the various African StatesAfrican States

Inability of the members of economic Inability of the members of economic blocs to create the facilities and blocs to create the facilities and mechanisms necessary to expedite the mechanisms necessary to expedite the movement of goods movement of goods and servicesand services

ChallengesChallenges

Procedures governing free Procedures governing free movement of goods and services movement of goods and services are lengthy and cumbersome and are lengthy and cumbersome and often lead to delays and often lead to delays and unnecessary bureaucratic workunnecessary bureaucratic work

The dis-equalizing effect of The dis-equalizing effect of integrationintegration

ChallengesChallenges• Lack of intra-African tradeLack of intra-African trade. African . African

countries produce the same things and countries produce the same things and therefore compete with one another. therefore compete with one another.

• Further, there is Further, there is no adequate transport no adequate transport infrastructure for intra-African tradeinfrastructure for intra-African trade. . Even when tariffs have been reduced Even when tariffs have been reduced and intra-country transport links are and intra-country transport links are open, the costs of transport between open, the costs of transport between countries forming a cooperation bloc countries forming a cooperation bloc tend to be high.tend to be high.

The African Development Report 2003 The African Development Report 2003 laments Africa’s abysmal performance in the laments Africa’s abysmal performance in the area of trade thus: “African regional area of trade thus: “African regional arrangements have not succeeded in arrangements have not succeeded in appreciably expanding intra-African trade, appreciably expanding intra-African trade, increasing Africa’s trade or enhancing the increasing Africa’s trade or enhancing the region’s overall economic growth…..Inter-region’s overall economic growth…..Inter-regional trade has stagnated at around 10 regional trade has stagnated at around 10 percent of Africa’s total trade”.percent of Africa’s total trade”.

There are problems of operational and There are problems of operational and institutional natureinstitutional nature, which make intra-African , which make intra-African cooperation difficult. These relate to cooperation difficult. These relate to information, banking, language, costs of information, banking, language, costs of promotion, prices of research, etc.promotion, prices of research, etc.To the above may be added To the above may be added the issue of the issue of trade creationtrade creation. Some countries put accent on . Some countries put accent on calculation of costs and benefits on short-term calculation of costs and benefits on short-term basis. Yet, the effects of changes in relative basis. Yet, the effects of changes in relative prices, brought about by eliminating trade prices, brought about by eliminating trade barriers among the participating countries, is barriers among the participating countries, is realized in the long-term as cooperation realized in the long-term as cooperation arrangements do not accrue benefits arrangements do not accrue benefits immediately to developing economies.immediately to developing economies.

Another problem relates to Another problem relates to the running and the running and management of the secretariats of the management of the secretariats of the economic blocseconomic blocs. Some of the problems are of . Some of the problems are of administrative nature but are linked to policies administrative nature but are linked to policies pursued by governments. Such roadblocks, pursued by governments. Such roadblocks, inter alia, include: -inter alia, include: -

The limitations put by member states on chief The limitations put by member states on chief executives’ independence to recruit staff and executives’ independence to recruit staff and manage secretariatsmanage secretariats, and the tendency of some , and the tendency of some countries to force candidates on the secretariats countries to force candidates on the secretariats and to listen to complaints from staff members who and to listen to complaints from staff members who are their nationals about the management of the are their nationals about the management of the secretariatssecretariats

Short-termismShort-termism

Other Challenges Relate to:Other Challenges Relate to: The Difficulties in macro-economic The Difficulties in macro-economic

policy harmonizationpolicy harmonization

Duplication/ The Spaghetti BowlDuplication/ The Spaghetti Bowl

Elite non-complementarityElite non-complementarity

Bad governance and the spectre of Bad governance and the spectre of intra-state wars.intra-state wars.

The Challenge of globalizationThe Challenge of globalization

The Banjul (2006) Accepted The Banjul (2006) Accepted GroupingsGroupings

Vlad 2011Vlad 20113333

Spaghetti Bowl of African Integration Spaghetti Bowl of African Integration

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Instability Instability Bad Governance has created conditions of Bad Governance has created conditions of instability in most parts of Africa. In fact, instability in most parts of Africa. In fact, Africa is known to have produced most of Africa is known to have produced most of the incompetent, rapacious, and grotesquely the incompetent, rapacious, and grotesquely predatory governments in the world. predatory governments in the world.

Lack of prudence in economic governance, Lack of prudence in economic governance, corruption, clientilism, exclusivism, and corruption, clientilism, exclusivism, and profligacy have often led to impoverishment profligacy have often led to impoverishment of large sections of society in Africa, leading of large sections of society in Africa, leading often to insurgency and civil unrests, often to insurgency and civil unrests, including war. Instability is the worst enemy including war. Instability is the worst enemy of integrationof integration

Rwanda GenocideRwanda Genocide

The Result of bad GovernanceThe Result of bad Governance

ProspectsProspects

Increasing Realization that Integration is a Increasing Realization that Integration is a sine-qua-non to developmentsine-qua-non to development

Global support to integrationGlobal support to integration

The EU Success storyThe EU Success story

The Emergence of New African LeadersThe Emergence of New African Leaders

The NEPADThe NEPAD

The Activism of CSOsThe Activism of CSOs

The Way ForwardThe Way ForwardDiversification of ProductionDiversification of Production

Increased Intra-African TradeIncreased Intra-African Trade

Intensive overhaul of infrastructureIntensive overhaul of infrastructure

Intensive cooperation in Community Intensive cooperation in Community Projects (WAPP, WAGPP, etc.)Projects (WAPP, WAGPP, etc.)

Elite socializationElite socialization

Rationalization of the RECsRationalization of the RECs

Intensive involvement of the socio-Intensive involvement of the socio-economic partners in developmenteconomic partners in development

The Way Forward (cont’d)The Way Forward (cont’d)Realization of the NEPAD idealsRealization of the NEPAD idealsEstablishing the Institutional props to Establishing the Institutional props to integration and staffing them with integration and staffing them with technocrats, instead of politicianstechnocrats, instead of politiciansRe-orienting Frontline Institutions (CEPS, Re-orienting Frontline Institutions (CEPS, Immigration etc)Immigration etc)Increased Democracy and Good Increased Democracy and Good Governance and eliminating the specter of Governance and eliminating the specter of wars.wars.Complement the good works of the AfDB Complement the good works of the AfDB through prudence in economic governancethrough prudence in economic governance

ConclusionConclusion

There is obviously only one There is obviously only one conclusion!conclusion!

“Africa is beyond bemoaning the past for its problems.

Nelson Mandela

The task of undoing the past is ours, with the support of those willing to join us in a continental renewal.

We have a new generation of leaders who know that we must take responsibility for our own destiny, that we will uplift ourselves only by our own efforts with those who wish us well”.