The AU and ECOWAS:
   Challenges and
     Prospects
By
   Vladimir Antwi-Danso (PhD)
      Snr. Research Fellow
Legon Centre for International Affairs
        University of Ghana,
           Legon – Accra
               Ghana
         Tel: 233-21-50102
       Cell:233-244-613282
      vladanso@yahoo.com
    Vantwi-Danso@ug.edu.gh
The Economic Community of West
    African States (ECOWAS)




                          Mauritania has
                           rejoined the
                         Community -2006




                                      3
The African Union
Introduction
ECOWAS was conceived as a means
toward economic integration and
development intended to lead to the
eventual establishment of an
economic union in west Africa,
ensuring economic stability and
enhancing relations among member
states
Introduction Cont’d
 The OAU (the precursor to the AU), on the
 other hand, had the following objectives:

To rid the Continent of the remaining
 vestiges of colonialism and apartheid;
To promote unity and solidarity among
 African states
To coordinate and intensify cooperation
 for development;
OAU Objectives cont’d
To safeguard the sovereignty and
territorial integrity of Member States;
and
To promote international cooperation
within the framework of the United
Nations.
Introduction (cont’d)
The OAU, having fulfilled the basic aims of
its formation, was transformed into the AU,
with a view, inter-alia, to accelerating the
process of integration in the continent to
enable it play a meaningful role in the
global economy, while addressing
multifaceted social, economic, and political
problems, compounded as they are by
certain negative aspects of globalization.
The basic platform for the realization of
this noble goal was the 1991 Abuja Treaty
–The AEC project.
Aim
Our basic aim this morning, would,
therefore, be to highlight the basic
challenges confronting the two
integration projects of the AU and
ECOWAS as well as conjecture what
prospects there are, if any, for
surmounting those challenges.
Scope
In realizing this aim, we shall go through
the following scope:
Historical Evolution of the AU and
ECOWAS
Main Hurdles of Integration in Africa
Prospects
The Way Forward
Historical Evolution (ECOWAS)
Founded in May 1975
Spearheaded and inspired into action by
the then Heads of State of Nigeria
(Yakubu Gowon) and Togo (Gnassingbe
Eyadema)
Pre-colonial agitation and Nkrumah’s
OAS, as well as President Tubman’s
eagerness contributed immensely towards
the formation of ECOWAS
ECOWAS - Evolution
  Treaty Revised in July 1993 with a new
  aim
“to reaffirm the establishment of the
  ECOWAS and decide that it shall
  ultimately be the sole economic
  community in the region for the
  purpose of economic integration and
  the realization of the objectives of the
  African Economic Community”
ECOWAS Headquarters in Abuja




                               13
The AU - Evolution
  Pan Africanist Congress of 1945
  The OAS
  Prelude to the OAU
 The Polarization of Integration
 The Role of the Cold War
The Sitr Declaration
The AU is born
The NEPAD
The AU
  African countries resolved to move
  towards a more resolute union by
  establishing the African Union in 2001 to
  replace the OAU. Basically the AU was
  meant to:
 Accelerate the implementation of the
  Abuja Treaty
 Strengthen the RECS and
 Speed up the establishment of the
  continent’s institutions of the AEC.
The Nature of Integration
The various approaches
The political/security type
Loose Trade Confederation
The Market Approach
The Production Approach**
The Institutional Approach**
Infrastructural Approach**
What is Regionalism and/or regional
                  Integration?
                  Definition/Approaches
   Reciprocal Reduction of trade barriers
   Regional trading arrangements

    Regionalism or Regional integration may thus be
    defined as the “Commercial policy of
    discriminatively reducing or eliminating trade
    barriers only among the nations joining
    together” The degree, though, of economic
    integration varies.
Basically therefore, integration is trade-induced
Degree (Types) of Integration

For the attainment of a full-fledged
integration, a regional bloc may have to
go through four main stages of economic
cooperation.
A Free Trade Area (FTA), in which
members remove trade barriers among
themselves, but keep their separate
national barriers against trade with the
outside world.

e.g. European Free Trade Area formed
in 1960.
North American Free Trade Area
(NAFTA), which was formally incepted in
1994.
A Customs Union, in which again
members remove all barriers to
trade among themselves and adopt
a common set of external barriers.
By so doing, the need for customs
inspection at internal borders is
eliminated. The European Economic
Community (EEC) from 1957 to
1992 had included a customs union
along with some other agreements.
A Common Market, where members
allow full freedom of factor flows
(migration of labour or capital) among
themselves in addition to having a
customs union. It should be noted that,
despite its name, the European
Common Market (or EEC, then EC or
EU) was not a common market up
through the 1980s, because it still had
substantial barriers to the international
movement of labour and capital. The EU
became a common market, and more, in
reality at the end of 1992.
Full Economic Union (Community), in
which member countries unify all their
economic policies, including monetary,
fiscal, and welfare. Policies toward trade
and factor migration are also
harmonized. The EU has approached
full unity, though governments keep
much of their tax autonomy. Monetary
union has been achieved, even though
some members (Great Britain for
instance) are still outside of the total
monetary integration.
FEATURES OF BLOC
Type of      Free Trade   Common        Free     Harmonization
Bloc         among the    External   Movement of of all Economic
              members      Tariffs    Factors of Policies (fiscal,
                                     Production     Monetary,
                                                        etc,.)



Free Trade       +           -            -               -
Area (FTA)

 Customs         +           +            -               -
  Union

 Common          +           +            +               -
  Market

Economic         +           +            +              +
 Union
Challenges to Integration in
Africa (AU and ECOWAS)
HURDLES OF INTEGRATION IN
          AFRICA

 Economic weakness and relative
  stagnancy of African economies
  and its negative impact on
  government policies
 The lack of full commitment in the
  sense of the failure to incorporate
  agreements reached by different
  integration schemes in national
  plans
Challenges
The private sector which is the engine
of economic growth, has not been
actively involved in the effort to
advance integration by the various
African States
Inability of the members of economic
blocs to create the facilities and
mechanisms necessary to expedite the
movement of goods and services
Challenges
Procedures governing free
movement of goods and services
are lengthy and cumbersome and
often lead to delays and
unnecessary bureaucratic work
The dis-equalizing effect of
integration
Challenges
Lack of intra-African trade. African
countries produce the same things and
therefore compete with one another.
Further, there is no adequate transport
infrastructure for intra-African trade.
Even when tariffs have been reduced
and intra-country transport links are
open, the costs of transport between
countries forming a cooperation bloc
tend to be high.
The African Development Report 2003
laments Africa’s abysmal performance in
the area of trade thus: “African regional
arrangements have not succeeded in
appreciably expanding intra-African trade,
increasing Africa’s trade or enhancing the
region’s overall economic growth…..Inter-
regional trade has stagnated at around 10
percent of Africa’s total trade”.
There are problems of operational and
institutional nature, which make intra-African
cooperation difficult. These relate to
information, banking, language, costs of
promotion, prices of research, etc.
To the above may be added the issue of
trade creation. Some countries put accent on
calculation of costs and benefits on short-term
basis. Yet, the effects of changes in relative
prices, brought about by eliminating trade
barriers among the participating countries, is
realized in the long-term as cooperation
arrangements do not accrue benefits
immediately to developing economies.
Another problem relates to the running and
   management of the secretariats of the
   economic blocs. Some of the problems are of
   administrative nature but are linked to policies
   pursued by governments. Such roadblocks,
   inter alia, include: -
     The limitations put by member states on chief
      executives’ independence to recruit staff and
      manage secretariats, and the tendency of some
      countries to force candidates on the secretariats
      and to listen to complaints from staff members who
      are their nationals about the management of the
      secretariats
     Short-termism
Other Challenges Relate to:
 The Difficulties in macro-economic
  policy harmonization
 Duplication/ The Spaghetti Bowl
 Elite non-complementarity
 Bad governance and the spectre of
  intra-state wars.
 The Challenge of globalization
The Banjul (2006) Accepted
       Groupings




              33             Vlad 2011
Spaghetti Bowl of African Integration




                    34
Instability
Bad Governance has created conditions of
instability in most parts of Africa. In fact,
Africa is known to have produced most of
the incompetent, rapacious, and
grotesquely predatory governments in the
world.
Lack of prudence in economic governance,
corruption, clientilism, exclusivism, and
profligacy have often led to impoverishment
of large sections of society in Africa, leading
often to insurgency and civil unrests,
including war. Instability is the worst enemy
Rwanda Genocide
The Result of bad Governance
Prospects
Increasing Realization that Integration is a
sine-qua-non to development
Global support to integration
The EU Success story
The Emergence of New African Leaders
The NEPAD
The Activism of CSOs
The Way Forward
Diversification of Production
Increased Intra-African Trade
Intensive overhaul of infrastructure
Intensive cooperation in Community
Projects (WAPP, WAGPP, etc.)
Elite socialization
Rationalization of the RECs
Intensive involvement of the socio-
economic partners in development
The Way Forward (cont’d)
Realization of the NEPAD ideals
Establishing the Institutional props to
integration and staffing them with
technocrats, instead of politicians
Re-orienting Frontline Institutions (CEPS,
Immigration etc)
Increased Democracy and Good
Governance and eliminating the specter of
wars.
Complement the good works of the AfDB
through prudence in economic
governance
Conclusion

There is obviously only one
        conclusion!
“Africa is beyond bemoaning the past for its
 problems.
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”.

      Nelson Mandela
The au and ecowas

The au and ecowas

  • 1.
    The AU andECOWAS: Challenges and Prospects
  • 2.
    By Vladimir Antwi-Danso (PhD) Snr. Research Fellow Legon Centre for International Affairs University of Ghana, Legon – Accra Ghana Tel: 233-21-50102 Cell:233-244-613282 vladanso@yahoo.com Vantwi-Danso@ug.edu.gh
  • 3.
    The Economic Communityof West African States (ECOWAS) Mauritania has rejoined the Community -2006 3
  • 4.
  • 5.
    Introduction ECOWAS was conceivedas a means toward economic integration and development intended to lead to the eventual establishment of an economic union in west Africa, ensuring economic stability and enhancing relations among member states
  • 6.
    Introduction Cont’d TheOAU (the precursor to the AU), on the other hand, had the following objectives: To rid the Continent of the remaining vestiges of colonialism and apartheid; To promote unity and solidarity among African states To coordinate and intensify cooperation for development;
  • 7.
    OAU Objectives cont’d Tosafeguard the sovereignty and territorial integrity of Member States; and To promote international cooperation within the framework of the United Nations.
  • 8.
    Introduction (cont’d) The OAU,having fulfilled the basic aims of its formation, was transformed into the AU, with a view, inter-alia, to accelerating the process of integration in the continent to enable it play a meaningful role in the global economy, while addressing multifaceted social, economic, and political problems, compounded as they are by certain negative aspects of globalization. The basic platform for the realization of this noble goal was the 1991 Abuja Treaty –The AEC project.
  • 9.
    Aim Our basic aimthis morning, would, therefore, be to highlight the basic challenges confronting the two integration projects of the AU and ECOWAS as well as conjecture what prospects there are, if any, for surmounting those challenges.
  • 10.
    Scope In realizing thisaim, we shall go through the following scope: Historical Evolution of the AU and ECOWAS Main Hurdles of Integration in Africa Prospects The Way Forward
  • 11.
    Historical Evolution (ECOWAS) Foundedin May 1975 Spearheaded and inspired into action by the then Heads of State of Nigeria (Yakubu Gowon) and Togo (Gnassingbe Eyadema) Pre-colonial agitation and Nkrumah’s OAS, as well as President Tubman’s eagerness contributed immensely towards the formation of ECOWAS
  • 12.
    ECOWAS - Evolution Treaty Revised in July 1993 with a new aim “to reaffirm the establishment of the ECOWAS and decide that it shall ultimately be the sole economic community in the region for the purpose of economic integration and the realization of the objectives of the African Economic Community”
  • 13.
  • 14.
    The AU -Evolution Pan Africanist Congress of 1945 The OAS Prelude to the OAU  The Polarization of Integration  The Role of the Cold War The Sitr Declaration The AU is born The NEPAD
  • 15.
    The AU African countries resolved to move towards a more resolute union by establishing the African Union in 2001 to replace the OAU. Basically the AU was meant to:  Accelerate the implementation of the Abuja Treaty  Strengthen the RECS and  Speed up the establishment of the continent’s institutions of the AEC.
  • 16.
    The Nature ofIntegration The various approaches The political/security type Loose Trade Confederation The Market Approach The Production Approach** The Institutional Approach** Infrastructural Approach**
  • 17.
    What is Regionalismand/or regional Integration? Definition/Approaches  Reciprocal Reduction of trade barriers  Regional trading arrangements Regionalism or Regional integration may thus be defined as the “Commercial policy of discriminatively reducing or eliminating trade barriers only among the nations joining together” The degree, though, of economic integration varies. Basically therefore, integration is trade-induced
  • 18.
    Degree (Types) ofIntegration For the attainment of a full-fledged integration, a regional bloc may have to go through four main stages of economic cooperation.
  • 19.
    A Free TradeArea (FTA), in which members remove trade barriers among themselves, but keep their separate national barriers against trade with the outside world. e.g. European Free Trade Area formed in 1960. North American Free Trade Area (NAFTA), which was formally incepted in 1994.
  • 20.
    A Customs Union,in which again members remove all barriers to trade among themselves and adopt a common set of external barriers. By so doing, the need for customs inspection at internal borders is eliminated. The European Economic Community (EEC) from 1957 to 1992 had included a customs union along with some other agreements.
  • 21.
    A Common Market,where members allow full freedom of factor flows (migration of labour or capital) among themselves in addition to having a customs union. It should be noted that, despite its name, the European Common Market (or EEC, then EC or EU) was not a common market up through the 1980s, because it still had substantial barriers to the international movement of labour and capital. The EU became a common market, and more, in reality at the end of 1992.
  • 22.
    Full Economic Union(Community), in which member countries unify all their economic policies, including monetary, fiscal, and welfare. Policies toward trade and factor migration are also harmonized. The EU has approached full unity, though governments keep much of their tax autonomy. Monetary union has been achieved, even though some members (Great Britain for instance) are still outside of the total monetary integration.
  • 23.
    FEATURES OF BLOC Typeof Free Trade Common Free Harmonization Bloc among the External Movement of of all Economic members Tariffs Factors of Policies (fiscal, Production Monetary, etc,.) Free Trade + - - - Area (FTA) Customs + + - - Union Common + + + - Market Economic + + + + Union
  • 24.
    Challenges to Integrationin Africa (AU and ECOWAS)
  • 25.
    HURDLES OF INTEGRATIONIN AFRICA  Economic weakness and relative stagnancy of African economies and its negative impact on government policies  The lack of full commitment in the sense of the failure to incorporate agreements reached by different integration schemes in national plans
  • 26.
    Challenges The private sectorwhich is the engine of economic growth, has not been actively involved in the effort to advance integration by the various African States Inability of the members of economic blocs to create the facilities and mechanisms necessary to expedite the movement of goods and services
  • 27.
    Challenges Procedures governing free movementof goods and services are lengthy and cumbersome and often lead to delays and unnecessary bureaucratic work The dis-equalizing effect of integration
  • 28.
    Challenges Lack of intra-Africantrade. African countries produce the same things and therefore compete with one another. Further, there is no adequate transport infrastructure for intra-African trade. Even when tariffs have been reduced and intra-country transport links are open, the costs of transport between countries forming a cooperation bloc tend to be high.
  • 29.
    The African DevelopmentReport 2003 laments Africa’s abysmal performance in the area of trade thus: “African regional arrangements have not succeeded in appreciably expanding intra-African trade, increasing Africa’s trade or enhancing the region’s overall economic growth…..Inter- regional trade has stagnated at around 10 percent of Africa’s total trade”.
  • 30.
    There are problemsof operational and institutional nature, which make intra-African cooperation difficult. These relate to information, banking, language, costs of promotion, prices of research, etc. To the above may be added the issue of trade creation. Some countries put accent on calculation of costs and benefits on short-term basis. Yet, the effects of changes in relative prices, brought about by eliminating trade barriers among the participating countries, is realized in the long-term as cooperation arrangements do not accrue benefits immediately to developing economies.
  • 31.
    Another problem relatesto the running and management of the secretariats of the economic blocs. Some of the problems are of administrative nature but are linked to policies pursued by governments. Such roadblocks, inter alia, include: -  The limitations put by member states on chief executives’ independence to recruit staff and manage secretariats, and the tendency of some countries to force candidates on the secretariats and to listen to complaints from staff members who are their nationals about the management of the secretariats  Short-termism
  • 32.
    Other Challenges Relateto:  The Difficulties in macro-economic policy harmonization  Duplication/ The Spaghetti Bowl  Elite non-complementarity  Bad governance and the spectre of intra-state wars.  The Challenge of globalization
  • 33.
    The Banjul (2006)Accepted Groupings 33 Vlad 2011
  • 34.
    Spaghetti Bowl ofAfrican Integration 34
  • 35.
    Instability Bad Governance hascreated conditions of instability in most parts of Africa. In fact, Africa is known to have produced most of the incompetent, rapacious, and grotesquely predatory governments in the world. Lack of prudence in economic governance, corruption, clientilism, exclusivism, and profligacy have often led to impoverishment of large sections of society in Africa, leading often to insurgency and civil unrests, including war. Instability is the worst enemy
  • 36.
  • 37.
    The Result ofbad Governance
  • 39.
    Prospects Increasing Realization thatIntegration is a sine-qua-non to development Global support to integration The EU Success story The Emergence of New African Leaders The NEPAD The Activism of CSOs
  • 40.
    The Way Forward Diversificationof Production Increased Intra-African Trade Intensive overhaul of infrastructure Intensive cooperation in Community Projects (WAPP, WAGPP, etc.) Elite socialization Rationalization of the RECs Intensive involvement of the socio- economic partners in development
  • 41.
    The Way Forward(cont’d) Realization of the NEPAD ideals Establishing the Institutional props to integration and staffing them with technocrats, instead of politicians Re-orienting Frontline Institutions (CEPS, Immigration etc) Increased Democracy and Good Governance and eliminating the specter of wars. Complement the good works of the AfDB through prudence in economic governance
  • 42.
    Conclusion There is obviouslyonly one conclusion!
  • 43.
    “Africa is beyondbemoaning the past for its problems. 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”. Nelson Mandela