Project – ASSESSMENT OF ECONOMIC INTEGRATION IN WEST AFRICA – A case study of ECOWAS.

CHAPTER ONE

INTRODUCTION

• Background to the Study

Economic integration in West Africa, particularly through the Economic Community of West African States (ECOWAS), has been a subject of extensive research and analysis. ECOWAS, established in 1975, is a regional group of fifteen West African countries designed to promote economic integration across the region (ECOWAS, 2020). The primary objective of ECOWAS is to promote cooperation and integration, leading to the establishment of an economic and monetary union to raise the living standards of its peoples (Asante, 1997).

The assessment of economic integration in West Africa using ECOWAS has been approached from various perspectives. One of the key indicators of economic integration is trade. According to a study by Ogunkola (2005), intra-regional trade in West Africa has increased significantly since the establishment of ECOWAS. However, the study also notes that the level of trade integration in West Africa is still relatively low compared to other regional economic communities.

Another important aspect of economic integration is the free movement of people, goods, and services. ECOWAS has made significant strides in this area, with the implementation of the ECOWAS Protocol on Free Movement of Persons, Residence and Establishment (Akokpari, 2000). However, challenges such as border controls and immigration restrictions still hinder the full realization of this objective (Akokpari, 2000).

The creation of a single currency, the Eco, is another significant step towards economic integration in West Africa. The Eco is expected to facilitate trade, reduce transaction costs, and ultimately promote economic integration (ECOWAS, 2020). However, the implementation of the Eco has faced numerous challenges, including differing economic conditions and policy divergences among member states (Donnenfeld, 2020).

In terms of policy harmonization, ECOWAS has made efforts to align economic and political policies among member states. However, according to a study by Folarin (2018), policy harmonization in West Africa is still a work in progress, with significant disparities in economic policies and political governance among member states.

Furthermore, while ECOWAS has made significant strides towards economic integration in West Africa, several challenges remain. These include low levels of trade integration, restrictions on the free movement of people, goods, and services, delays in the implementation of the Eco, and disparities in economic and political policies among member states. Further research is needed to identify effective strategies for overcoming these challenges and promoting economic integration in West Africa.

• Statement of the Problem

The problem of economic integration in West Africa, as assessed through the lens of the Economic Community of West African States (ECOWAS), is multifaceted and complex. According to Akinbobola (2018), the region has struggled with numerous challenges, including political instability, poor infrastructure, and trade barriers, which have hindered the full realization of economic integration. These issues have resulted in a lack of harmonization in economic policies and a low level of intra-regional trade.

The second issue is the lack of effective implementation of ECOWAS protocols and policies. As noted by Oloruntoba (2015), despite the existence of numerous protocols aimed at promoting economic integration, their implementation has been weak and inconsistent. This has resulted in a gap between policy formulation and actual practice, thereby undermining the effectiveness of ECOWAS as a vehicle for economic integration.

Thirdly, the problem of economic disparity among member states is another significant challenge. According to Ukeje and Iwilade (2012), the economic disparity among ECOWAS member states, particularly between Nigeria and the smaller economies, has created an imbalance that has hindered the process of economic integration. This disparity has resulted in a lack of mutual benefits and has fostered a sense of economic domination by the larger economies.

The fourth issue is the lack of a common currency. Despite the plans for the introduction of the Eco, the proposed single currency for ECOWAS, progress has been slow and fraught with challenges. As noted by Donnenfeld (2017), the lack of a common currency has hindered trade and economic integration in the region.

Fifthly, the problem of inadequate infrastructure is another significant challenge. According to Ademola, Bankole, and Adewuyi (2009), poor infrastructure, particularly in the areas of transportation and communication, has hindered trade and economic integration in the region. This has resulted in high costs of doing business and has discouraged investment.

Lastly, the issue of political instability and insecurity in the region cannot be overlooked. As noted by Adebajo and Rashid (2004), political instability and insecurity have created an unfavorable environment for economic integration. This has resulted in a lack of investor confidence and has undermined the economic potential of the region.

1.3. Aim and Objectives of the Study

The aim of the study is to examine an assessment of economic integration in West Africa. The specific objectives are:

1. To evaluate the current level of economic integration among West African countries.
2. To identify the key barriers and challenges to economic integration in West Africa.
3. To analyze the impact of economic integration on the socio-economic development of West African countries.
4. To assess the role of Economic Community of West African States (ECOWAS) in promoting economic integration.

1.4. Research Questions

The research questions are buttressed below:

1. What is the current level of economic integration among West African countries?
2. What are the key barriers and challenges to economic integration in West Africa?
3. How does economic integration impact the socio-economic development of West African countries?
4. What role does the Economic Community of West African States (ECOWAS) play in promoting economic integration in the region? 

1.5.  Research Hypothesis

The hypothetical statement of the study is buttressed below:

Ho: Economic integration has no significant impact on the socio-economic development of West African countries.

H1: Economic integration has significant impact on the socio-economic development of West African countries.

1.6.  Significance of the Study

The study of economic integration in West Africa, with a particular focus on the Economic Community of West African States (ECOWAS), holds significant importance for several reasons. Firstly, it provides a comprehensive understanding of the current state of economic integration among the countries in this region. This understanding is crucial as it can help policymakers, researchers, and stakeholders to gauge the effectiveness of existing integration policies and strategies. It can also provide insights into the areas where improvements are needed to enhance the level of integration.

Secondly, by identifying the key barriers and challenges to economic integration in West Africa, this study can contribute to the formulation of more effective policies and strategies. These barriers could be in the form of political instability, infrastructural deficiencies, trade barriers, or lack of harmonized economic policies among the member countries. By addressing these challenges, West African countries can potentially enhance their economic cooperation and integration, leading to a more prosperous and stable region.

Thirdly, the study’s analysis of the impact of economic integration on the socio-economic development of West African countries is of great significance. It can shed light on how increased economic integration can lead to improved trade relations, economic growth, and social development in the region. This can provide valuable insights for policymakers and stakeholders on how to leverage economic integration for socio-economic development.

Fourthly, the assessment of the role of ECOWAS in promoting economic integration is crucial. ECOWAS, as a regional economic community, plays a significant role in promoting economic integration among its member states. Understanding its role and effectiveness can help in identifying the areas where ECOWAS can enhance its efforts to promote economic integration.

Fifthly, this study can contribute to the existing body of knowledge on economic integration in Africa. It can provide new insights and perspectives that can enrich the academic discourse on this subject. This can be particularly useful for researchers and academics who are interested in the study of economic integration in Africa.

Lastly, the findings of this study can have practical implications for the West African countries and ECOWAS. They can use these findings to inform their policy decisions and strategies related to economic integration. This can potentially lead to more effective and efficient policies and strategies that can enhance economic integration in the region.

1.7. Scope of the Study

The study examines Assessment of economic integration in West Africa. A case study of ECOWAS.

1.8. Operational Definition of Terms

Assessment: This term generally refers to the process of evaluating or measuring a particular attribute or performance. In the context of your study, it refers to the evaluation or measurement of the level of economic integration in West Africa.

Economic Integration: This is a process whereby countries reduce or eliminate barriers to trade and movement of capital among each other. It involves the coordination of economic policies, leading to greater economic interdependence. The ultimate goal is to boost each member country’s economy by making it easier to do business across borders.

West Africa: This is a region of the African continent that comprises 16 countries. These include Nigeria, Ghana, Ivory Coast, Senegal, and Mali, among others. It is known for its cultural diversity, natural resources, and economic potential.

ECOWAS: The Economic Community of West African States (ECOWAS) is a regional group of fifteen West African countries. Founded on May 28, 1975, with the signing of the Treaty of Lagos, its mission is to promote economic integration across the region. It represents a major attempt at regional economic integration in West Africa, aiming to create a single large trading bloc through an economic and trading union to increase economic self-sufficiency and promote growth.

Project – ASSESSMENT OF ECONOMIC INTEGRATION IN WEST AFRICA – A case study of ECOWAS.