Economic Integration
THE IMPEDIMENTS OF ECONOMIC INTEGRATION IN AFRICAN ECONOMIES
NARKMANEE THITIKARN
20TH MARCH, 2013
THE IMPEDIMENTS OF ECONOMIC INTEGRATION IN AFRICAN ECONOMIES
Introduction
Economic integration is an economic agreement between regions characterized by removal or reduct ion or barriers to trade and harmonization of fiscal and monetary policies. The main aim of economic integration is not only to reduce costs for producers and consumers but also to increase the volume of trade among the countries in question.
Forms of Economic Integration
The following are the common forms of economic integration;
Preferential Tariffs
In this form of integration, the parties involved levy lower rates of duty on goods
imported from member countries and maintain relatively h igh tariffs to imports from other countries.
Free trade associations
Here, the member states levy no duty on imports from other member countries. Member
states may charge different duty on its imports from other countries.
Custom Union
In custom unio n, free trade among the member states is protected by a unified schedule of
custom duties levied on imports from other countries. In addition, if there is free mobility o f both labor and capital between member states, the integration is referred to as common market.
Economic Union
This is integration where members states agree to harmonize their economic policies.
Total economic integration
In this form of integration, there is a pursuit of a common economic policy by all polit ical
units from member states.
Examples of Economic Integration in Africa
The following are examples of eco nomic integration in Africa;
Southern African Customs Union (SACU), which comprise o f the following member states; Botswana, South Africa, Lesotho, Swaziland and Namibia.
(SADC) whose members include; Lesotho, Malawi, Botswana, Namibia, Angola,
Mozambique, Zimbabwe, Swaziland, Zambia and Tanzania.
NARKMANEE THITIKARN
20TH MARCH, 2013
THE IMPEDIMENTS OF ECONOMIC INTEGRATION IN AFRICAN ECONOMIES
Introduction
Economic integration is an economic agreement between regions characterized by removal or reduct ion or barriers to trade and harmonization of fiscal and monetary policies. The main aim of economic integration is not only to reduce costs for producers and consumers but also to increase the volume of trade among the countries in question.
Forms of Economic Integration
The following are the common forms of economic integration;
Preferential Tariffs
In this form of integration, the parties involved levy lower rates of duty on goods
imported from member countries and maintain relatively h igh tariffs to imports from other countries.
Free trade associations
Here, the member states levy no duty on imports from other member countries. Member
states may charge different duty on its imports from other countries.
Custom Union
In custom unio n, free trade among the member states is protected by a unified schedule of
custom duties levied on imports from other countries. In addition, if there is free mobility o f both labor and capital between member states, the integration is referred to as common market.
Economic Union
This is integration where members states agree to harmonize their economic policies.
Total economic integration
In this form of integration, there is a pursuit of a common economic policy by all polit ical
units from member states.
Examples of Economic Integration in Africa
The following are examples of eco nomic integration in Africa;
Southern African Customs Union (SACU), which comprise o f the following member states; Botswana, South Africa, Lesotho, Swaziland and Namibia.
(SADC) whose members include; Lesotho, Malawi, Botswana, Namibia, Angola,
Mozambique, Zimbabwe, Swaziland, Zambia and Tanzania.