This paper discusses how regional integration processes may contribute to state building and reduce economic and social insecurity. After presenting a simple conceptual framework to discuss the effects of external and regional integration in weak states, it analyses the policy trade-offs that may arise in such contexts. The paper then reviews the specific regional experiences of sub-Saharan countries. Finally, it discusses policy implications for the European Union (EU) in the context of its regional trade and development policies with African countries. The author concludes that a two-tier approach to regional integration, which combines both top-down and bottom-up processes, is necessary; the EU approach to regional integration in Africa should promote ‘building blocks’ and not ‘stumbling blocks’; and specific considerations should be given to make the strategy for trade integration responsive to the needs of fragile states.
Health equity in economic and trade policies
The African, Caribbean and Pacific (ACP) Council and the ACP-EU (European Union) Council of Ministers met from 17-22 June to sign the revised ACP-EU Partnership Agreement. Aimed at eradicating poverty and supporting sustainable development and the gradual integration of the ACP states into the world economy, the agreement was finalised in 2000 and is reviewed every five years. The 2010 amendments seek to improve EU policy coherence for development, the promotion of domestic resource mobilisation, an d the role of non-state actors in cooperation. Cooperation and political dialogue is also enhanced to address the Millennium Development Goals, climate change, food security, state fragility, HIV and AIDs, organised crime and aid for trade. The revision further contains enhanced regional integration provisions and makes the African Union a partner to the agreement. The parties also adopted joint statements on the Millennium Development Goals and on climate change which should strengthen their position in the upcoming international negotiations on these issues. The ACP Council adopted unilateral declarations asking the EU to revisit its position on contentious issues in the Economic Partnership Agreement negotiations and on trade arrangements in bananas, sugar and cotton.
The intensity of trade among countries belonging to the same region depends not only on the existence and effectiveness of a regional integration agreement, but also on other factors, which include the overall trade policy orientation and the relative level of geo-graphic and economic barriers affecting intra- and extra-regional trade. The paper presents a set of indicators aimed at measuring the intensity of bi-lateral trade preferences. These indicators suggest that most African countries trade more intensely with coumtries in the same region than with the rest of the world.
The global financial crisis has also exposed serious weaknesses in global economic governance, according to this report. The report proposes fundamental revisions of the existing institutions for global economic governance. But for an effective more sustainable rebalancing of the global economy much closer coordination is needed across the trading system, the new regime for international financial regulation, the global reserve system and the mechanisms for mobilising and channelling development finance and climate funding. At present, the Group of 20 (G20) is taking on some areas of coordination, but as an informal platform responding to the crisis it has mostly focused on financial reforms. The report notes that sustainable rebalancing of the world economy will take years, if not decades, and can only be successful if there is greater policy coherence. To this end, it proposes that the international community consider institutionalising a global economic coordination mechanism within the more representative multilateral system.
In this interview, Alhaji Mohamed Daramy affirms his support for economic partnership agreements (EPAs) but warns that the required fiscal reforms will not come without an upfront cost, and he believes an EPA regional fund should be created to support this process, to which the European Union (EU) should contribute. He argues for a five-year transition period after the signature of an EPA, after which an efficient indirect taxation system should be put in place. Within this period, ECOWAS will aim to move some activities from the informal sector to the formal economy. The certainty and sustainability of financing ECOWAS activities will then be reviewed at this point.
The African, Caribbean and Pacific (ACP) countries face a massive challenge in tackling hunger and under-nutrition, but many critics have argued that the commitments required of ACP countries under Economic Partnership Agreements (EPAs) will make this more difficult. This article investigates the threat to food security posed by these agreements. While some observers blame trade liberalisation for these problems, the article identifies the lack of investment to improve productivity and address supply-side constraints as the major limiting factor. It argues that the debate around the issue of EPAs and food security distracts from the more important question of what domestic initiatives ACP countries need to take to ensure that agriculture can play its role as an engine of economic growth and poverty reduction. Government should invest in agriculture rather than rely on trade restrictions for food security. The potential of EPAs to improve food security can only be realised by a focus on greater agricultural investment and improved institutions. Resources can be made available from the EU budget, the EU’s European Development Fund and bilateral external funders, but the prerequisite is that these requirements are prioritised by the ACP countries themselves.
This study provides the first detailed economy-wide analysis of the likely gender effects of economic partnership agreements (EPAs) based on the goods tariff liberalisation schedules agreed by Tanzania, Mozambique and Jamaica. The study found that the employment and production effects of trade liberalisation on women will depend on the extent to which women are employed in the sectors sensitive to import competition, but most importantly, their ability to relocate to an expanding sector of production. It predicts that, under an EPA, women’s employment is likely to be minimally affected in Jamaica, Mozambique and Tanzania. Findings suggest that the consumption effect of trade may be regressive: imports, such as washing machines in Mozambique or gas cookers in Tanzania, will most likely benefit the wealthier, as they are not consumed by poorer households. For example, increasing availability of household appliances could reduce the workload of women with access to electricity, but only 7% of Mozambican households have access and an indirect effect could be a drop in demand for domestic workers, most of whom are women. The loss of government revenue from tariff removal constitutes the most immediate and significant impact, estimated at 2% of revenue, with too little time to compensate for lost revenue. The study urges that further monitoring of the implementation of trade liberalisation is required from a gender perspective. The gender-aware framework and analytical approach developed could be used to examine other EPAs and other trade agreements.
This book is based on a macro analysis of 79 countries and micro-surveys in different sectors and countries, spanning seven years. In it, the authors argue that rich countries have built strong institutions to complement to their production systems, which has allowed them to build up strong production and the exportation of high quality goods and services, a path followed by emerging economies. However, poor countries continued to produce raw materials for the richer countries. Central to the production activities of all countries that became rich is a set of industrial and innovation policies, which are discussed in the book. ‘Latecomer countries’ are defined as countries that are late in developing, and which do not innovate at the 'global frontier,' which is occupied by the top industrialised countries. They need industrial and innovation policies that shift attention from commodities to development of productive capacities. Innovation is not research and development, it is about knowledge that countries acquire, according to the book.
This study aimed to establish whether a specific community in a gold mining area, with potentially associated small-scale gold mining activities, was exposed to mercury. Thirty respondents completed a questionnaire and mercury levels were determined in 28 urine and 20 blood samples of these respondents. Three (15%) of the blood samples exceeded the guideline for individuals who are not occupationally exposed, while 14 (50%) of the urine samples exceeded the guideline for mercury in urine for those not exposed occupationally. The cause of these elevated levels is unknown, as only 20% of respondents indicated that they used coal as an energy carrier. Furthermore, nobody from the community was reportedly formally employed in a goldmine. Nineteen (63%) respondents consumed locally caught fish, while 20 (67%) drank water from a river. The study concluded that some individuals in this study may be occupationally exposed to mercury through small-scale gold mining activities. As primary health facilities will be the first point of entry for individuals experiencing symptoms of mercury poisoning, South African primary health care workers need to take cognisance of mercury exposure as a possible cause of neurological symptoms in patients.
This article outlines how trade preference programmes can be made more effective for low income countries. It is based on five principles put forward by the Center for Global Development (CGD) to make trade preferences more effective for less-developed countries: expand coverage to all exports from all least developed countries; relax restrictive rules of origin; make trade preference programmes permanent and predictable; promote co-operation between countries giving and receiving preferences; and encourage advanced developing countries to implement trade preference programmes that adopt the other four principles. It argues that extending full duty-free, quota-free market access to all least developed countries would have far more power if it is a project of the G-20, not just the G-8, and Brazil, China, India and Turkey are already showing the way. The author urges the G-20 to show its leadership on global development issues and to realise the Millennium Development Goal of using trade as a tool for development.