Economic Integration
INTRODUCTION
There is no gainsaying the fact that states of the world are moving towards and are in favour of economic integration. Since this is the case economic integration is not a novelty to West African states as the sub-region has witnessed numerous attempts at integrating economies. In fact much more than any other sub-region of Africa, West Africa has attempted to apply the instrument of economic cooperation and integration to enhance its economic and political landscape1.
CONCEPTUAL AND THEORETICAL ANALYSIS OF ECONOMIC INTEGRATION
Economic integration is a very wide concept applied to economic activities arranged to foster economic development among a group of countries. Literally, integration implies unification or putting parts together into a whole. Mistry defines it as ‘the assignment of responsibility for formulating regional policies, developing rules and regulations; and for applying these policies to all markets at a regional level superseding national control2. A direct implication of this is that in any integration arrangement member-states must inevitably cede part of their national sovereignty over defined economic functions as well as policies and instruments to an authority or institution empowered to operate at the regional level. Thus in principle a supranational authority formulates and applies at a regional level, trade exchange, labour market, fiscal and monetary policies. In fact the arrangement may ultimately involve the promotion of a single currency and a common central bank which conducts a common monetary policy for the region. Coupled with this is the regulation of fiscal policies, free movement of factors of production across border and the institution of central legislative and judicial arrangements3. A clear case in point is the European Union. Hence on a whole economic integration implies the willingness to cooperate in promoting regional economic interest, coordinate economic activities in specific sectors and
There is no gainsaying the fact that states of the world are moving towards and are in favour of economic integration. Since this is the case economic integration is not a novelty to West African states as the sub-region has witnessed numerous attempts at integrating economies. In fact much more than any other sub-region of Africa, West Africa has attempted to apply the instrument of economic cooperation and integration to enhance its economic and political landscape1.
CONCEPTUAL AND THEORETICAL ANALYSIS OF ECONOMIC INTEGRATION
Economic integration is a very wide concept applied to economic activities arranged to foster economic development among a group of countries. Literally, integration implies unification or putting parts together into a whole. Mistry defines it as ‘the assignment of responsibility for formulating regional policies, developing rules and regulations; and for applying these policies to all markets at a regional level superseding national control2. A direct implication of this is that in any integration arrangement member-states must inevitably cede part of their national sovereignty over defined economic functions as well as policies and instruments to an authority or institution empowered to operate at the regional level. Thus in principle a supranational authority formulates and applies at a regional level, trade exchange, labour market, fiscal and monetary policies. In fact the arrangement may ultimately involve the promotion of a single currency and a common central bank which conducts a common monetary policy for the region. Coupled with this is the regulation of fiscal policies, free movement of factors of production across border and the institution of central legislative and judicial arrangements3. A clear case in point is the European Union. Hence on a whole economic integration implies the willingness to cooperate in promoting regional economic interest, coordinate economic activities in specific sectors and
References: 1. I.A.O. Bakare, Economic Integration and Development Process in West Africa, in Dapo F. Asaju(ed), General Studies Book of Readings, Vol. 2, Lagos, Lagos State University Press, 2006, p.246. 2