PROSPECT;
Possibility or likelihood of some future event occurring, especially something good. The broad bigger picture of anything or something.
INTEGRATION;
It’s the combination of two or more things to become more effective.
Bring (people or groups with particular interests, characteristics or needs) into equal participation or in membership of a social institution.
REGIONAL INTEGRATION
It is a process in which neighboring states enter into an agreement in order to upgrade cooperation through common institutions and rules. Or simply it could mean the process by which two or more nation-state agree to cooperate and work closely together to achieve peace. Stability and wealth.
Usually integration involves one or more agreement that describes the area of cooperation in details, as well as some coordinating bodies representing the countries involved.
The objective of the agreement could range from economic to political to environmental, although it has typically taken the form of a political economy initiative where commercial interests are the focus for achieving broader social-political and security objective, as defined by national government. Regional integrations has been organized either via supranational institutional structures or through intergovernmental decision-making or combination of both.
This cooperation usually begins with economic integration and as it continues, comes to include political integration;
Economic integration – process by which different countries agree to remove trade barriers between them. Trade barriers can be tariffs (taxes imposed on imports to a country), quotas (a limit to the amount of a product that can be imported) and border restrictions. Example of this integration is NAFTA (the Northern American Free Trade Agreement) which is with the USA, Mexico and Canada.
The single market – is the midpoint of the integration, scale between political and economic integration. It is the point in which the economies of the co-operating states become so integrated that all barriers to the movement of labor, goods and capital are removed. At this stage the integrated states set a common external tariff on goods from other countries – this is called a custom union. A further step in the process of economic integration might be adoption of a common currency with monetary policy regulated by a single central bank.
Political integration – as the economies of the co-operating countries become completely integrated into a single market, there appears a need for common policies in social policy (education, healthcare, unemployment benefits and pension) and common political institutions. This is political integration and its culmination occurs when the co-operating countries are so integrated that they share the same foreign policies and merge their armies. In effect, they form a new country.
EXAMPLE OF THIS INTEGRATED INITIATIVES INCLUDE;
COMESA – common market for eastern and southern Africa
CU – custom union
ECOWAS – economic community of West African States
SADC – southern Africa development community
RTAs – regional trade agreements
EU – European Union
FTA – free trade area
DB – doing business (World Bank)
EBA – everything but arms
RoO – rules of origin
WTO – world trade organization
DIFFERENT TYPES OF REGIONAL INTERGRATION
Types of regional integration
Scope of cooperation
State actors involved
Regionalism
State level
Central government driven
Sub-regionalism
Sub-national level
Central government driven
Micro-regionalism
Sub-national level
Sub-national authority driven
FUNCTION OF REGIONAL INTEGRATION INITIATIVES
Strengthening of trade integration in the region
The creation of an appropriate enabling environment for private sector development
The development of infrastructure programs in support of economic growth and regional integration
The development of strong public sector institutions and good governance
The reduction of social exclusion and the development of an inclusive civil society
Contribution to peace and security in the region
The building of environment programs at the regional level
The strengthening of the region’s interaction with other regions of the world
PROSPECTS OF EXTRA REGIONAL INTEGRATION
Extra regional integration comes with it plenty of more economic and political advantages. Extra regional is to be of great benefit to business owners and elites. Regional integration was designed to lead to institutional building and strengthening of the member state. Some have been achieved others yet, those achieved are still lagging behind but when we talk of extra regional integration bigger benefits and great opportunities and more positive competition is due to happen.
The advantages / benefits of extra regional integration include;
SOCIALLY
Conflict resolution
Regional integration is an important building block deterring violent conflict between nations. Conflict is replaced by constructive dialogue. The example of German Polish Relations is relevant for the East African Region because it demonstrates that enmity and rivalry can be overcome and replaced by a mutually beneficial relationship. However an extra regional integration of this will take the mutual beneficial relationship between those in agreement into another higher level whereby it is grounded in a set of more shared values. Characterized by equality and mostly notably respect for each other and strengthened by extra economic cooperation and cultural exchange. Hence the connectivity between countries in agreement becomes much higher than it ever was in the first place.
More connectivity tends to generate trust and a need for trust. Common interests and common institutions reduce the potential for conflict, conflict that formerly could lead to war.
Education and cultural exchange
Education and cultural exchange across extra or morer regions have the potential to enhance extra regional integration for the benefit of all the members. But in terms of extra regional integration, we are talking of exchange of cultures among contents and not just amongst Africans and some few European countries. Although cultural differences between and within states will continue to exist both in Europe and in East Africa, this difference should not be regarded as source of conflict, but as a source of diversity and beauty and inspiration that could be exchanged or learnt from each other.
Cross border cooperation
An extra of regional integration will allow for more cross border-cooperation amongst each neighboring member which in turn leads to breaking down the language barrier due to common social and cultural activities. The development and economic competitiveness of the border territory is implemented through improvement of local infrastructure and the environmental situation, as well as by fostering of economic links, bringing SMEs in cross- border marketing action.
In addition, cooperation that has been created can pave way for cooperation in other areas, including shared natural resources (water, fishing, hydro-electric power, trans-boundary pollution problem and infrastructure like railways example SGR, roads like Trans-African Highway.
Eradication of social vices
With the increment of job opportunities brought about by extra regional integration, the exchange of culture and common social and cultural activities eradication of social vices such as racism, tribalism, xenophobia takes place.
ECONOMICALLY
Economically, integration, is an agreement among countries in a geographical region to reduce and ultimately remove tariffs and non-tariffs barriers to the free flow of goods or services and factors of production among each other. Any type of arrangement in which countries agree to coordinate their trade, fiscal and /or monetary policies are referred to as economic integration.
Extra regional integration will lead to the following;
A more reduction in cost of trade that is, member countries require goods and services at a lower cost after trade barrier due to lowered tariffs or total removal of tariffs.
Extra regional integration will economically bring forth a morer improved availability of and a wider selection of goods and services not previously available.
Extra regional integration economically leads to trade integration, which in turn lead to market expansion, more investment into the country and greater diffusion of technology, it creates more employment opportunity for people to move from one country to another to find jobs or find higher pay for example, industry requiring most unskilled labor tend to shift product to low wage countries within a regional cooperation.
Economically, extra regional integration may facilitate the realization of the optimum allocation of resources and thus lead to an increase to an increase in efficiency in production.
Besides that, extra regional integration may lead to a more beneficial wide scale competition in the market this ensure that all benefits accruing to the producers from the existence of a large market would be passed on to the customer. Also the goods produced would be of higher standard that is, high quality of goods.
In addition, extra regional integration may lead to a higher degree of sophistication and specialization of products conducive for furtherance of modern industrial development due to the availability of market created. Moreover, the possibility of specialization for extra regional trade would encourage the flow of investment into industries which have a comparative cost advantage, so that the gains from international trade would rise.
Lastly, extra regional integration will also lead to an increase in general welfare due to better production and enhanced consumption and a rise in real income generated by the overall growth and development and availability of improved employment opportunities.
POLITICALLY
Political cooperation
A group of nations can have significantly political influence than each nation would have individually. This integration is an essential strategy to address the effects of conflicts and political instability that may affect the region. Useful tool to handle the social and economic challenges associated with globalization.
Better policies
Politically, extra regional integration brings forth better and common policies including democracy that govern the members who are in agreement.
Increased security
States are increasing their cooperation and collaboration with neighbors in order to better respond to pressures and opportunity presented by globalization. For example, COMESA and Africa in general have witnessed armed conflicts and majority being civil and ethnic. Moreover, peace and security is the most important policy objective of original, economic integration in a number of integration initiatives like EU and ASEAN. This is because the many integration initiatives believe that peace and security is the foundation in building a socially and economically strong regional grouping and that peace is a pre-requisite to sustained economic development. For example the case of Kenyan defense forces in Somalia fighting against the al-shaabab.
Leadership
An example is Rwanda; Rwanda continued prosperity is due to or because of regional integration. It has progressed from a failed state to an efficiently governed country with a strong regional presence. This after becoming a full member of the East African Community (EAC) in July 2007, the common market protocol expeditiously negotiated and signed in November 2009. Besides that, the Rwandan president is decisive, consistent and effective when dealing with regional opportunities. Therefore, with extra regional integration, we might upgrade or bring up some of the states lagging behind or failed in terms of economy or poor leadership.
CHALLENGES THAT MIGHT BE INCURED IN THE ACHIEVEMENT OF EXTRA REGIONAL INTEGRATION
National strategic priorities that are not aligned to attainment of extra regional integration.
Divergent national attitudes and commitment towards fulfilling extra regional integration.
High incidence of conflict.
Inadequacy of funding of extra regional integration may result to failure of full effectiveness.
Inadequate political will toward the process of extra regional integration
Changing global economic and political environment
jerop5614 answered the question on January 15, 2019 at 06:14