Global integration of Africa versus regional integration in Africa

Abstract

Proposals and schemes for regional integration have abounded in postindependence Africa, often with disappointing results. Recently there has been a revival of interest in African economic integration. Unlike in the past, regional integration is now motivated as a way to open up African economies. This paper assesses whether regional integration amongst African states is the best way to achieve open economies. The conclusion is that regional integration between African states may be of limited value, apart from possibly contributing to better co-ordination of sound macro-economic policies. Instead, integration between African countries and higher-income regions, such as Euroland, may be a preferred strategy.