The Challenges and Prospects of The Future of Integration in

The Challenges and Prospects of the future of Integration in the African Union
(Comparisons with the EU)
THE
ROBERT GORDON
UNIVERSITY
ABERDEEN
ABERDEEN BUSINESS SCHOOL
DEPARTMENT OF LAW, ECONOMICS

AND PUBLIC POLICY
2007
By
Anthony Erihre Oneya

0514087
Dissertation Supervisor: Mr. Thorsten Lauterbach
Submitted in partial completion of the degree of

Postgraduate Masters Degree (MSc)
Word Count 22,297

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ABSTRACT.

MSc International Trade 2006
One of the inspirations to write on the regional integration in Africa and the comparisons
of the EU and AU came right after my visit in June 2007 to the European Commission in
Brussels. I had seen the EU capital blossom with developmental structures; from
affordable transport networks to fair trade in goods and services and the pride of its
currency - The Euro.
I wanted to do a research on the EU and review what led to its great development and
look at what made the African regions pursuit for the same, falter for so long.
A more descriptive and literature based analysis is used to scrutinize the relationship
between the AU & EU.
Researching articles for this paper have been quite challenging as papers, articles, books
and journals have been easier and more efficient to find for the EU and major regional
trade topics for the same than for the AU.
As for the African Union, as the paper is read on, we find that although journals, articles,
and books were researched and used, more of the information has been web based and
so were its articles.
The study shows that although, it is argued on what structure the AU is built upon, it has
not shown a basis of significance of its structure and the region may well be intoned with
other institutional structures of supra-nationality.
The study will therefore recommend that on the whole, that the result for integration
efforts in Africa has improved tremendously and records positive results for the future.
But that future may be far and vague as argued.
Acknowledgement
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I would first of all want to thank God for making my stay at the Robert Gordon’s
University a Success.
To my Parents, Siblings, Twin Sister, and my two Angels (Sandra and Lil’ Antonia) Thank
you all for your prayers.
To my Course mates and Friends
My Supervisor, Mr Thorsten Lauterbach. You always made sure I put my best into this
work and made sure I did not fall victim of a bad academic work.
Thank you Sir for your support
To all my Tutors:
Liliana Hiris, (your classes and road trip inspired this work.)
Mr. Paul Arnell, (you gave me a focus in life with your course),
Angel, Collin Watson, Prof. Rebecca Wallace, and every other person that has taught me
a line or two; Education, they say is the best gift anyone can offer a person.
And to my cousin, Mr. Solomon Edojah, and Uncle Lucky (Bulwark Services), thank for all
your support. You made all this possible.
Thank you.
And to everyone who supported me through my course here, thank you all.
Table of Contents
Page
Abstract II
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Acknowledgements III
Contents IV

Acronyms and Abbreviations VI
CHAPTER 1 – INTRODUCTION
1.1 Introduction
1.2 Statement of Problem
1.3 Objective of Study
1.4 Significance of Study
1.5 Plan and Scope of Study
CHAPTER 2 – BACKGROUND OF STUDY
2.0 Regional Integration: Antecedence
2.1 Introduction
2.1.0 African (Regional) Integration
2.1.1 European (Regional) Integration
2.1.2 Conceptual Issues
2.1.3 Review of Relevant Literature
2.2 African Integration? Is it Imperative?
2.2.1. The Drive behind its integration and its evolution so far.
2.3 The Limits to Free movements of Integration and Enforcement Rules in the AU (its
challenges)
2.3.1 The African Union and Its Challenges.
CHAPTER 3 – COMPARATIVE ANALYSIS
3.0 Introduction
3.1 Comparison of the AU and EU
3.2 Africa’s phases of integration; towards the EU blue print.
CHAPTER 4 - REGIONAL INTEGRATION ARRANGEMENTS IT’S IMPACT ON THE
AFRICAN REGION.
4.0 Introduction
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4.1 Regional Integration Arrangements; the Viner Literature

4.2 Early Studies of (EU) Regional Integration Arrangements
4.3 Regional Integration Arrangements and the African Union
CHAPTER 5 – DISCUSSIONS
5.0 Introduction
5.1 Discussions
CHAPTER 6 – SUMMARY, CONCLUSION AND RECOMMENDATIONS
6.1 Summary
6.2 Recommendations
6.3 Conclusion
APPENDICES
Appendix A
Pictorial Representations of the AU and EU Regions.
BIBLIOGRAPHY
List of Acronyms
ACP - Africa-Caribbean-Pacific
ACJ - African Court of Justice

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AGOA – African Growth and Opportunity Act
AMU - Arab Maghreb Union (UMA)

AU – African Union
APEC - Asia Pacific Economic Co-operation
ASEAN - Association of South East Asian Nations
BOAD - West African Development Bank/Banque Ouest Africaine de Développement
CAF - Central African Federation
CAMU - Central African Monetary Union (UMAC)
CEAC - Communauté Économique d’Afrique Centrale (Central African Economic
Community)
CEAO - Communauté Économique d’Afrique de l’Ouest (Economic Community of West
Africa)
CEFTA - Central European Free Trade Association
CEMAC - Communauté Économique et Monétaire de l'Afrique Centrale
CFSP - Common Foreign and Security Policy
COMESA - Common Market for Eastern and Southern Africa
COREPER - Committee of Permanent Representatives
CPA – Cotonou Partnership Agreement
EAC - East African community
EBA – Everything But Arms
ECOMOG - ECOWAS Monitoring Group (Military and Security Cooperation for West
African
States)
ECOSOC - Economic and Social Committee
ECOWAS -Economic Community of West African States (in French: CEDFAO)
EEA- European Economic Area
EU - European Union
EC - Economic Community
EEC - European Economic Community
EFTA - European Free Trade Association
EURATOM - European Atomic Energy Community

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EP - European Parliament

EPA – Economic Partnership Agreements
EMU – European Monetary Union
FTAA - Free Trade Area of the Americas
GSP - Generalized System of Preferences
IGAD – The Intergovernmental Authority for Development
JHA - Justice and Home Affairs
MERCOSUR - Mercado Común del Sur, Argentina, Brazil, Paraguay, Uruguay
NAFTA - North American Free Trade Area (Agreement)
OAU – Organization of African Unity
REC – Regional Economic Community
SADC - Southern African Development Community
SADCC - Southern African Development Coordination Conference
SACU - Southern African Customs Union
SAFTA - South American Free Trade Area
TEU - Treaty of the European Union
UEMOA - Union Economique et Monétaire Ouest Africaine
UNCTAD – United Nations Council on Trade and Development
WAEMU - West African Economic and Monetary Union
WTO - World Trade Organization
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CHAPTER ONE
INTRODUCTION
1.1. Introduction
The efforts of attaining integration in Africa are not new and dates back to the pan-
Africanism movement; its growth towards the formations of different structure for
economic progress.
There are promising signs which indicate better prospects for the future; the
harmonisation of investment laws and promotion of cross border investment, will serve
as a plus to the economic integration process and the issues of free trade and
investment promotion which becomes necessary for this process.
African economies in general suffer from far too many structural realities to allow for free
and fair regional markets and smooth integration.
Many structures have been initiated to improve its trade and economic growth, but have
faced stumbling challenges as it goes.
Following the emergence and the success of the Euro, there has been a renewed and
growing interest globally in fostering economic & monetary integration as a means of
facilitating economic growth and development of an integrating entity1.
Africa is faced with a multitude of problems that makes economic integration difficult;
leaving the problem of how priority accorded to the implementation of integration
programs. However, economic integration in Africa is of full developmental variant; which
will allow the need for economic growth and participation in a global world economy.
1.2. Statement of Problem.

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1 Jonanovic M. (1992), International Economic Integration. London, Kontledge.

Regional integration over time has become a valuable tool for the facilitation of global
trade and the formation of regional markets has become a way of handling
developmental goals.
The AU has embraced this initiative but faces many challenges in achieving the envied
success of the EU.
The institution was established for the unification of the African region on a basis of true
pan-Africanism and the elimination between member states, barriers and effects on
exports and imports.
Its goals go beyond the creation of a common market but to make integration an
effective tool for the development of its nations. Africa finds herself confronted with
developmental challenges and problems: wars2, poverty, corruption, mismanagement,
etc. Clearly, its sub-regional blocs have done well for the process of integration at its
level3. However, the question becomes “is the AU really structured for integration as the
EU? And has it become more politically inclined than economically? Or is it prepared for
the implementation of economic and monetary policies of integration as the EU? Or
maybe nations of the region would rather be structured as regional blocs or better still,
improve its trade development by signing deals with other regions of the world.4
Unless governments draw up a strategy, the drive towards growth of the union’s
integration falters.
1.3. Objective of Study
This paper has two objectives: first, compare regional integration in the AU and EU and
their steps and focus towards a unified institution. Secondly, it highlights the most
important issues that have affected the progress of regional integration in Africa in the
past, and assess the implications and prospects for the future. The research also seeks to
contribute to contemporary literatures from the academia and press on the prospects for
a unified African region.

2 As opposed to the EU which in 50years has not recorded a single war as yet.
3 These blocs were set up at different regional sections for the development of the region. From the ECOWAS to the SADC, sub-regional blocs has help
improved trade, goods and services and the free movement of persons around the region. It has structure a peace and security policy for the region and
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fashioned monetary and single market policies to follow.
4 Many regions have shown interest in recent times to help improve trade in Africa. Regions like the EU and China. As seen in recent talks with China and
African leaders. available from; http://news.bbc.co.uk.

1.4. Significance of Study
There is an African proverb that says ‘when a Spider web unites, they
can tie down a Lion’ and another; ‘it is more difficult to break a bundle
of broomsticks than a single one’.
Both proverbs go a long way to define the essence of Africa’s drive for integration and
the values of “UNITY” and it is by this, nations have formed institutions to look at the
welfare and progress of their people and economy.
Like the EU, Africa too has built this same focus of looking after its own and improving its
resources through integration of its nations and has become essential for the world
economy.
There have been so many talks and arguments about a United States of Africa and the
regions drive for integration.
Like every other study on Integration as it affects trade and economic growth of nations,
this study will also analyse the same issue of integration in Africa and the AU in relation
to the EU.
The study will also review the argument that the AU is an adumbration of the EU and
outlines why it hasn’t been able to reach the level of its mentor as yet.
Following literatures and studies of regional economic integration, we highlight the main
concepts of integration using the Viner’s model and outline challenges and failures of
integration in Africa; but give insights on the probable causes and suggest solutions for
the future.
1.5. Plan and Scope of Study
The work that would be covered here will be based on the integration of the African
region under the auspices of the African Union.
The AU will be compared to the EU as the study will review the arguments of its actual
structure and the components of Trade, customs union, free trade area, economic union
and a common market will be briefly discussed. With a study of six chapters, the plan of
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study shall be;

Chapter One will introduce the basic outlines of the study.
Chapter Two will give a Background study of the paper;
Chapter Three to give a Comparative analysis of both regions
Chapter Four and Five looks into impacts of REC’s on the regions, and relevant media
and current discussions on Africa’s integration and views towards its achievements;
Chapter Six will be the summary, recommendations and conclusions5 of study.
CHAPTER TWO
BACKGROUND OF STUDY
“It is no longer a debate about whether integration in Africa is desirable or not, but how
far and fast we will achieve it”6
Mr. Tajudeen Abdul-Raheem
Deputy Director of the United Nations Millennium Campaign
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5 Although the study recommends and concludes, it still leaves room for further research
6 Culled from: the Inter Press Service News Agency. Available from; IPS webpage http://ipsnews.net

2.0 Regional Integration: Antecedence.
2.1 Introduction
The none evolution of economic and regional integration has been described as the
result of some functional logic and not that it has developed as a result of a natural
economic laws propounded by the likes of Adam Smith and his concept of the ‘invisible
hand’.
Functional and economic determinism fail to explain both the setbacks to integration and
its re-launches; clearly, economic integration still falters in its process supposedly
following some scientific logic and possibly has been dependent upon some political and
institutional dynamics.
Even the EU as one of the most celebrated and successful regions on integration, has
faced many bridges on its way to attain integration of every form. And the same may be
said about one of the worlds developing regions – Africa.
Here we briefly review the different historical stages the regions of Africa and Europe
have been through on the way to attaining integration.
2.1.0 African (Regional) Integration
The issue of regional integration in Africa has been a subject of
debate for some time. Political leaders and progressive
academics had over time provided various suggestions of how Africa should be unified.
Unlike Europe, the struggle against slavery, colonialism and apartheid in Africa gave
further impetus to the subject of regional integration. Africa’s obsession with regional
integration can be traced to the pre-independence period, and as far back as the turn of
the 20th century. The Southern African Customs Union (SACU), which was established in
1910, remains the oldest functioning manifestation of regional integration in the world.
In Africa, one of the primary aims of regional integration was to promote development
among African countries as well as help reduce indebtedness and dependence on
western countries.
Pan-Africans like Presidents Nkwameh Nkrumah of Ghana and Julius Nyerere of Tanzania
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argued that the political and economic unity of African countries was the very essence of

independence. The two leaders, who led their respective countries into independence
and became their countries’ first post-colonial presidents, called for the formation of a
supranational pan-African government as an expression of continental solidarity and
policy coherence.
These leaders identified the colonialists' strategy of divide and rule as a stumbling block
to the unity and integration of the continent. The existence of 'unity blocks' such as the
Casablanca Group and Monrovia Group in the 1950s demonstrated the tricky nature of
attempting to develop a common political and development agenda in a deeply divided
continent7.
The concept of regional integration in Africa was at the early days championed by the
Economic Commission for Africa (ECA) as its structure had proposed the division of Africa
into regions for the purposes of economic development in the mid-1960s. The Economic
Commission for Africa (ECA) initiative promoted the Lagos Plan launched in by the OAU
as a special project towards African integration. The creation of three regional
arrangements which were separate but convergent and over-arching, were setup aimed
at developing integration in three sub-Saharan and sub-regions.
Pre-dating the Lagos Plan, the West African region would be served by the Economic
Community of West African States (ECOWAS). Following that in 1981, a Preferential
Trade Area (PTA) was established to cover the countries of East and Southern Africa,
which was eventually replaced in 1993 by the Common Market for Eastern and Southern
Africa (COMESA).
In Central Africa, the treaty of the Economic Community of Central African States
(ECCAS) was approved in 1983 and if am right, still remains to be fully ratified. It’s been
stated by the architects of this initiatives, that these arrangements were expected to
lead to an all-African common market by the year 20258.
The Abuja Treaty replaced the Lagos Plan in 1991, re-affirming the commitment of the
O.A.U’s Heads of State to an integrated African economy.
7 Adedeji, A. (2002) ‘History and Prospects for Regional Integration in Africa’, paper presented on 5th March at the African Development Forum III, held
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in Addis Ababa, Ethiopia.
8 Ibid.,

The OAU operated under two legal instruments, which was its Charter and the Treaty of
Abuja. This was therefore known as the OAU/AEC until the AU supplanted it in July 2002
at the 38th summit of the Organisation of African Unity. In April 2001, African Heads of
State launched the African Union at Sirte (Libya) to replace the Organisation of African
Unity (OAU).
The formation of the Organisation of African Unity (OAU) in 1963 was regarded as a key
achievement and a stepping stone towards realising unity in Africa. From the very first
post-colonial meetings, African leaders emphasised regional integration as one of the key
elements of a post-independence strategy. The idea of regional integration was regarded
as a means through which African countries would 'pool their economic sovereignty' in
order to improve the living standards of their peoples and to extend the struggle for
political decolonisation into one for economic decolonisation.
The Lagos Plan of Action (LPA)9 in the 1980s also advocated regional integration as
central to the socio-economic development of the continent. For instance, member
states' views were that setting-up infrastructure such as transport and communication
facilities would facilitate the promotion of intra-and extra-African trade. African countries
recognised that regional cooperation in areas such as developing regional institutions,
capital markets and research institutes, tackling common environmental issues,
controlling infectious diseases as well as preventing, managing, and resolving conflict
which is important for Africa's growth and development path. In an increasingly
integrated world, there was also a gradual realisation among African states that sub-
regional and regional groupings provide higher visibility to global investors, promote
cross-border trade and investment, and reduce production and marketing costs.
since the days of the Lagos Plan of Action (LPA) many groups of integration arrangement
has taken its form and has give way to the formations of RTAs which has eventually
become associated with the former CFA of the francophone regions. These groups
consist of the West African Economic and Monetary Union (WAEMU) which was form
under the auspices of the ECOWAS and another that follows is the Economic and
Monetary Union of Central Africa (CEMAC) which was to come under the proposed ECCAS
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9 Lagos Plan of Action for the Economic Development of Africa

(1980-2000). The OAU Document.

region. Then adding to that is the area of the COMESA forming the Southern African
Customs Union (SACU) and its association to the monetary union (also known as the
Common Monetary Area, CMA), a region of the Southern African Development
Community (SADC) and the East African Community (EAC).
The African Union (AU) and the European Union (EU) arrangements share some apparent
similarities of the institutional set-up. Almost similar to the EU, the African Union adopted
a Constitutive Act in Togo10, which entered to force in May 2001. This Act comprises of 33
articles11; Article 5 of the Act outlines the organs of the AU which comprise of; an
assembly of heads of states of the member-countries, executive councils where ministers
meet, a commission, a parliament, or an advisory council which unites various social
groups. Of the two Unions, the African region is roughly doubly as big as Europe’s with 53
countries on the African side (all except Morocco) and 27 in the EU (2007). 850 million
people live in the African Union, in the EU only 483 million. And when it comes to the
area, the African Union is a pygmy of the EU (30 as opposed to 4 million square
kilometres).
The Constitutive Act envisages three financial institutions, an African Investment Bank,
an African Monetary Fund, and an African Central Bank. Founding an investment bank or
a monetary fund could be done on an intergovernmental basis; after all, an almost world-
wide scale the International Monetary Fund and the World Bank are institutions of this
kind. But a Central Bank would imply an African Monetary Union, the achievement of
which is an explicit aim of the AU, to be realised by 2028. As a matter of speaking, it was
then envisaged that the African Economic Community (AEC) shall according to its
proposed plans, comprise not only of a common currency, but also a customs union and
a common African market. These features would indeed produce a break-through to a
heavy dose of supranationalism, given the point that a common central bank or common
customs policy would imply that the African countries, probably like the EU, transfer
substantial parts of their sovereignty to common African institutions. But apart from
stating these aims, no progress has so far been recorded or achieved. Although, on a
10 Constitutive Act of the African Union, OAU Doc. CAB/LEG/23.15, entered into force May 26, 2001.
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11 Articles forming the African Union (Considering the principles and objectives stated in the Charter of the Organization of African Unity and the Treaty establishing the
African Economic Community)

smaller scale of Sub-Regional integration in Africa, such as the ECOWAS and COMESA,
the institution of a common currency has taken its form, also initiated and put into
effective use, the four freedoms of Regional Integration that so elaborates the very
nature of the EU.
One main question can be asked as to what the basis of integration without the free
movements of goods, services and persons is? Given that this freedoms form the
essential structure of integration whether regional or global.
For the EU, these freedoms as they are referred to, is said to form a major part of the
substantive law of the European Institution for it is sometimes summarized in a compact
term as the free flow of economic factors which are in pursuit of greater prosperity of the
states and its citizens.
These freedoms earlier referred to, are categorised in four different basic economic
factors. They given as the;
The free movement of goods;
The free movement of services
The freedom of establishment and;
The free movement of persons, and includes also the free movements of workers and of
capital. It is expected that the virtuous dynamics of the vast market will be attained by
these outlined freedoms.
The law of the Single Market in the EU is said to play a key role there by removing the
barriers that Members of the Union might otherwise impose on trade originating with and
in other Member States.
As one of the key mechanisms to solving Africa’s problems, The New Partnership for
Africa’s Development (NEPAD) was formed. This is one of Africa’s most recent initiatives
looking towards the development of regional integration in the region and it is seen as
probably, the most anticipated and fundamental way of bringing to an end Africa's from
the malaise of underdevelopment and entry into a world of globalization.
According to the NEPAD framework document; "its objective is to bridge existing gaps
between Africa and the developed countries so as to improve the continent’s

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international competitiveness and to enable her to participate in the globalization
process."12
At various points as it concerns Africa’s growth and development, the NEPAD document
touches on many of the aims and motivations for cooperation and integration in the
African region. It’s been otherwise observed that those basic African developmental
reforms are affected by the size in population and per capita income of many member
states of the region. It’s advised for the African region to pool together its resources of
essential regional developments for the regions integration.
Decisions taken by African countries to form the African Union (AU) and its social and
economic recovery plan, NEPAD, recognises that after many decades of economic and
political planning, Africa has not made much progress in the implementation of earlier
development plans after years of the inception of the AU and the years of the OAU.
With the overthrow of apartheid in South Africa, there was increasing realisation that
something needed to be done to inject new spirit into African development programmes.
The use of phrases such as the "African Renaissance", the "African Century" and the
"Africa's time has arrived" are just some of the innovative ways used in an attempt to
change the black and no-good perceptions about Africa.
Past and previous documents, research and studies have shown the AU as an institution,
is more structured to the relations and workings of the United Nations as in cases where
Heads of governments or delegations meet and discuss and have all declared their firm
intention to respect Human Rights and wherefore, a Security Council which can
legitimately impose sanctions, armed intervention included, against member states in
case of grave violations of basic principles.
In any case, principles are formulated in rather general terms, and probably like the EU,
there is no political sphere where the member states explicitly have given up national
sovereignty.
In both cases, general assemblies and Security Council may pass resolutions, but they
cannot pass legislation which binds the member states, and which the citizens could use
in court. At these, Both the UN and the AU are seen to be useful intergovernmental fora.
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12The Abuja Document 2005. available online from; http//www.nepad.org.

But their efficiency and their ability to impose their principles may very well be
restricted13.
2.1.1 European (Regional) Integration
The most emulated economic integration in the world was
started when six governments moved by a hope for enduring
peace in a prosperous Europe, in 1957 signed the Treaty of Rome establishing the
European Community. The EC thus began its life as an agreement among independent
nation-states.
Forty years later, the European Community14 has developed into something more than a
pact among governments.
Moravcsik 1993 and Keohane 198415; relates the EC level of governance to one which
operates as an international regime in the functional, transaction-costs mode as it can be
seen as a passive structure that enhances the interstate bargaining.
The structure of the European community/European Union can be seen from the level of
a straight pole of politics. On one end, it’s seen as a "supranational"16 politics, and the
other an intergovernmental politics.
Following the end of the Second World War, the reconstruction of Europe was
encouraged by the European recovery programme 17. The Schuman plan18 became the
basis for the ECSC, which was established in April 1951 through the ratification of the
treaty of Paris by France, Germany, Italy and the Benelux countries (Belgium, the
Netherlands and Luxembourg).
The ECSC aimed to integrate the markets of these states for the industrial resources
necessary for reconstruction of Europe, and the production of weapons of war. The ECSC
during the economic boom of reconstruction led to the creation of the European
Economic Community (EEC) through the ratification of the treaties of Rome in March
13 Dr. Wolfgang Zank; a Comparative European View on African Integration – Why it has been much more difficult in Africa than in Europe?
14 Recognising the distinctions between the European community and the European Union becomes necessary as the EC was one of the early stage of the European
Integration
.
15 Sweet, Alec Stone & Sandholtz Wayne. "European integration and supranational governance" Journal of European Public Policy 4.3 (1997). 25 Sep. 2007
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16 The term supranational politics is used to emphasize that the EC is an International organisation and that the EC politics is a form of international politics.
17 known as the Marshall plan funded by the US.
18 created by Jean Monnet, presented by French foreign minister Robert Schuman

1957 and this establishment, was a most significant development in supranational
integration as the EEC treaty followed the supranational model already established,
albeit in a moderated form.19
One of the important articles of this treaty as it concerns the future policies of integration
in the region was Article 235.20 The importance of this Article was that it facilitated EC
action beyond the immediate and primary provisions of the treaty.
One of the primary motivations of the expansion of the ECSC into the EEC came from
France. Under the treaty of Rome, two new organisations were created to complement
the ECSC; the EEC and EURATOM (the European Atomic Energy Community). In contrast
to the restricted scope of the Treaty of Paris, the EEC Treaty envisioned a common
market within Europe based on the free movement of goods, services, capital and labour.
These goals were to be achieved through the elimination of trade barriers between the
member states. Importantly, the creation of the EEC demonstrates a significant
deepening of the Community and at the same time, the rapid deepening of the EEC also
instigated responses from non- member states.
The ECSC comprised five institutions:
• The executive, known as the high authority (equivalent to the European
Commission of today);
• The Council of Ministers, comprising representatives of the member governments;
• The Consultative Committee, consisting of representatives of employers/industry,
trade unions, and consumers concerned with the ECSC’s activities;
• The Assembly, composed of a total of sixty-eight delegates from the six national
parliaments;
• The European Court of Justice (ECJ).
All of the above institutions were located in Luxembourg explaining till this day, the
reasons why that region is dominated with more EU services.
19 Dinan, D. (1994), Ever Closer Union: An Introduction to the European Community (Basingstoke: Macmillan)
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20 This Article states: ‘if action by the community should prove necessary to attain, in the course of the operation of the common market, one of the objectives of the
Community and this treaty has not provided the necessary powers, the Council shall, acting unanimously on a proposal from the Commission and after consulting the
Assembly, take the appropriate measures’.

The ECSC retained its separate existence until implementation of the Merger Treaty in
196721.
Including the UK, seven countries that were not members of the EEC joined together to
create the European Free Trade Association (EFTA) in January 1960. Unlike the EEC, EFTA
allowed members to conduct external trade policies independently, and excluded
agricultural goods from its customs union.
The UK’s membership in the community ensured the dominance of the EEC and had
triggered applications from other UK trade partners and thus forced for a policy reform in
order to facilitate successful future enlargements.
The enlargements of more Communities into the EEC took place in 1973 with the
inclusion of Denmark, Ireland and the United Kingdom and in the early 1980s, Greece,
Spain and Portugal joined up with the first direct elections to the European Parliament
taken place in 1979.
Successive enlargements had profound effects on the character of the EC and on the
direction of further integration.
With the signing of the Schengen Agreement In 1985, a common policy on border
controls was agreed allowing for abolition of systematic border controls between the
participating countries of the European states. This was referred to as the Schengen Visa.
The common policy agreement ensured the harmonisation of external border controls,
and cross-border police co-operation.22
With more confidence in the integration of the EU, the Treaty of the European Union, TEU
(also known as the Maastricht Treaty) was ratified in the 1990s serving for a slow paced
integration process.
The ratification of the TEU; this treaty was ambitious and created a revised
foundation as
• It reconfigured the treaty around three pillars: the Economic Community (EC),
Common Foreign and Security Policy (CFSP), and Justice and Home Affairs (JHA).
• It established EU citizenship.
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21 Pinder, John. 2001. The European Union: A Very Short Introduction. Oxford, U.K.: Oxford University
Press
22 Church, C., and Phinnemore, D. (1994), European Union and European Community (Hemel Hempstead: Harvester Wheatsheaf).

• It provided the framework for the completion of the single market through a single
currency.
• It expanded the role of the EU into areas that had traditionally been the preserve
of national governments, such as social and monetary policy.
• It increased the use of QMV, and introduced a new legislative procedure (co-
decision) that granted more power to the European Parliament – EP.
This was however many of the provisions of the TEU was opposed by the member states
of Demark and the UK as they had traditionally been reluctant to delegate any additional
sovereignty to the EC.
Having withdrawn from the Spaak Committee23, the UK reappraised its policy relations to
the EC, leaving for a committee to be setup in the framework of the OEEC to examine the
creation of a European free trade area and under its report, the EC6 had suspicion of the
undermining of their ambitious plans for a common market and a supranational political
system been supervised.
An additional round of enlargements had taken place in the 1980’s and pushed the
borders of the EEC further south and west.
The doubling of memberships had several political and economic consequences: it
increased the influence of the EEC, it was said to have complicated the Institutions
decision making process and altered the internal economic balance of the EEC.
Subsequent enlargements were recorded with the facilitation of the European Economic
Area (EEA) in May 1992, resulting to the addition of more member states including
Austria, Sweden and Finland.
More modest reforms were initiated to the Union by the emergence of the Amsterdam
and Nice treaties as they reconfigured the EU institutions and policies while it prepared
for future widening of the Union.24
The principle of the (EMU), economic and monetary union was discussed at a 1969
summit of the EEC leaders in The Hague and an agreement was reached towards the
controlling of fluctuations in the value of their currencies and to make efforts to the
coordinating national economic policies.

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23 The Spaak Committee was a committee of intergovernmental representatives setup and chaired by the Belgian Paul-Henri Spaak.
24 Nugent, N. (1992), ‘The Deeping and Widening of the European Community’, Journal of Common Market Studies, 30/3: 311-28

This was abandoned after the international monetary turbulence25, which was
exacerbated in 1973 by the Arab-Israeli war and the global energy crisis.
In 1979, a new initiative was launched, known as the EMS - the European Monetary
System. Towards the end of the 1980’s, there was a widespread belief that the EMS had
been successful beyond all expectations. For it had not only been successful in its
proximate objective,26 but also viewed as having provided a framework for counter-
inflationary policies in Europe, through which other countries had, in effect, been able to
import into their own systems the counter-inflationary success and reputation.
Using an Exchange Rate mechanism (ERM) based around an accounting tool known as
the European currency unit, this tool was designed to create a zone of monetary stability
within which governments took action to keep their currencies as stable as possible and
the EMS helped stabilize exchange rates.
In the move from the ERM to EMU, countries necessarily lost its ability to use the
deutschmark as their counter-inflationary anchor and with Germany involvement, the
dominant currency of the system recorded stability27. This led to the setting up of the
European System of Central Banks (ESCB) and with the creation of the European Central
Bank (ECB) and its policies28. The ESCB is given one principal goal of monetary policy
which of price stability.
Even after the signing of the Single European Act (SEA), progress on opening up borders
became variable, and there was no common European policy on immigration, visas and
asylum. And with the signing of the Schengen Agreement in 1985, by the Benelux states,
all border restrictions were removed.
Except the UK and Ireland, along with Iceland and Norway, who did not join the
‘Schengenland’, all EU member states agreed to the terms, allowing the signatories to
implement controls at any time and not all have actually introduced a truly free passport
free travel, but its signature marked a substantial step towards the final removal of
border controls.
25 This was as the United States President Nixon’s decision to take off the US off the Gold standards and which signalled the end of Bretton Woods system.
26 -that of stabilizing nominal exchange rates between participating economies.
27 The context of the EMS was aimed to achieving price and economic stability in the European region and restrained its pegging of its individual currencies to the Bretton
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Woods system.
28 The ECB is independent of national government and of the Commission. It is at the center of the ESCB, a system comprised of central banks which themselves are
required to be independent.

Without doubt, the number of the EU has grown considerably since its foundation, and
despite its own recorded and unrecorded problems, a number of countries are queuing
up to join29. However, these countries already have most of the benefits of access to the
EU’s market through their membership of the European Economic Area (EEA) as this aims
to reduce frontier barriers and allow the free movement of services, capital, and workers.
The size of the EFTA countries, has restricted the EU to bringing them into the single
market of the EEA as there is notably little to gain.
In present times, the issue of an eastward enlargement of the EU presents fundamental
challenges for the institution. Considering that not only are there major disparities in
economic performances but some existing policies, notably the CAP-Common Agricultural
Policy30, will require a major surgery in order to be viable in a pan-European EU.
It is however believed by many, both economist and researchers that the EU agenda is
still a workload and that European integration has certainly reached the end of its
history.
Economic integration is heavily dependent on legislation and the EU law remains one of
the major structure of the European integration as it has over its inception been
responsible or rather have played responsive roles towards it progress of regional
integration.
Its been recorded that EU law remains the first probably the only example of a
supranational legal framework and that the European Court of Justice is constituted
somewhat by a new legal order of international law.
The European Court of Justice has used its mandate as interpreter of the treaty to shape
the basic principles of the treaty, and therefore the political structure of the EU. In so
doing, the court has substantially furthered European integration.
Although the ECJ is assisted by the Court of first Instance, the ECJ does not formulate
policy, but in line with provisions in the treaties31 for referrals, the ECJ's judgement on
29 Switzerland and Norway have decided against joining the EU; Iceland, because of fear for its fishing interest, and Liechtenstein are unlikely to apply.
30 The CAP of the European Union is a remarkably complex assembly of instruments and regulations covering trade controls, price support measures, income transfers,
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production subsidies, health regulations etc.
31 The two main treaties which form the basis of EU law, are the Treaty of the European Community (also know as the Treaty of Rome) 1957, and the Treaty of the
European Union (or the Maastricht treaty) 1992.

matters relating to the interpretation and application of EC law are cumulatively of great
importance to the operations of the EU.
The ECJ differs from the International Court of Justice (ICJ) and the European Court of
Human Rights (ECHR). EU members must accept the final decisions and judgement of the
ECJ.
They are given examples of cases that have changed the EU and judgements that have
affected almost all areas of EU policy. These cases can be seen as follows;
Cases facilitating the common market: a most prominent example of the ECJ case law
furthering EU integration is the Cassis de Dijon case.32
Cases on Environmental Policy: most recently, ECJ case law has expanded environmental
legislation beyond what was originally envisaged by EU legislators.33
Since its establishment in 1974, the European commission has become a very powerful
body. Comprised of the fifteen heads of government, the fifteen foreign ministers, the
Commission president and vice-president, it has had a hand in all the major EU decisions.
These Decisions range from the creation of the EMS, agreements on the single market,
supervisions of the SEA and TEU negotiations and most importantly decisions on
enlargements. These enlargements have spanned from treaties to historic events
recording from the 1973 since the treaty of Rome was signed in 1957. The EU
enlargement process is facilitated by a given criteria referred to as the Copenhagen
criteria.34 This accession would be agreed by the EU as a pre-accession strategy and
conditions which requires a country to have a stable democracy, respect for human
rights and the rule of law; a functioning market economy and most importantly during a
given transitional time frame arrangements, attain a good policy.
The population of the EU, at over 375 million, is greater than that of either the other
major economies; the USA (265 million) and Japan (125 million) and has recorded a
tremendous economic market in the World market economy.
32 Case 120/78, Rewe Zental AG vs Bundesmonopolverwaltung fur Branntwein (a.k.a Germany) (1979)).
33 In case 302/86, Commission vs Denmark (1989)
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34 Copenhagen criteria, defined at the 1993 Copenhagen European Council.

It has shown a major benefit of economic growth through regional integration
arrangements and has lead to income convergence.
The European Union common currency, the Euro (referred to as the Euro zone) has
become one of the major contending monetary instruments of foreign exchange in the
global market.
The EU in its diverse structure has 23 official and working languages: Bulgarian, Czech,
Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian,
Irish, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian,
Spanish and Swedish. German and French remains the most widely spoken language as
a mother tongue of about 81 million people.
English remains by far the most spoken foreign language, while German and French
follow.
We can see from the brief Historical overviews of both Regional Institutions that a little or
no differences can be drawn from them both. But it is however necessary to note that
even though they seem to be little different, one has risen to great heights than the
other.
Dr. K. Wolfgang in his paper presentation 35, on the view of African integration, refers to
the European Union and the African Union, as both substantially indifferent in
institutional structures as he terms one as intergovernmental and the other,
supranational arrangements.
2.1.2 Conceptual issues:
Regional integration has generally been regarded as having plenty of opportunities such
as expansion of trade, pooling resources for investment, enlarging local markets and
contributing to economic concept of industrialisation. Integration is believed to be
encumbered by the existence of weak states and political opposition to the idea of
sharing sovereignty.
Integration arrangements are essentially not marked by strong supranational bodies and
virtually all integration institutions are intergovernmental.

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35 A Comparative European View on African Integration: by Dr. Wolfgang Zank

Center for Comparative Integration Studies (CCIS). Working Paper No. 4

The past and present supporters of regional integration do regard this arrangement as a
potent strategy for accelerated economic growth, poverty reduction and lessening of
conflicts.
It must be stressed however, that regional integration in Africa is fundamental, but not
exclusively, economic. While there was always hope that regional integration would
increase the economic bargaining power of African countries, it was also regarded as a
political project of growth in the region, aimed at increasing states political influence
ensuring peace and stability in the region.
Since World War II, many efforts towards regional integration around the world have
been attained and pursued with the European Union (EU) as one of the successful
examples.
In recent years the push for integration has gained tremendous momentum and in the
past decade many regional integration arrangements have taken to form or expanded.
Most countries now belong to at least one regional integration arrangement and Africa’s
regional integration has followed a similar pattern.
Regional economic integration is already attracting a lot of attention in the developing
world, and recorded attempts are currently under-way to either revamp dormant regional
groupings, to re-create weak groupings or to build new ones altogether.
Many countries that are members of the WTO, at present are concluding Regional Trade
Agreement (RTAs) around the world. “In the period 1948-1994, General Agreement on
Tariffs and Trade (GATT) contacting parties notified 108 RTAs relating to trade in goods,
of which 38 were enforced in the five years ending in 1994”36. Major integration
movements have been instituted in almost every region in the continent.
Some of the examples of global and regional integration include the European Union
(EU), Association of South East Asian Nations (ASEAN), the European Free Trade
Association (EFTA), European Economic Area (EEA), Central European Free Trade
Association (CEFTA), North American Free Trade Agreement (NAFTA), South American
Free Trade Area (SAFTA), Andean Common Market (ANCOM), Asia Pacific Economic Co-
operation (APEC) and MERCOSUR.

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36 (Cf. The African Development Report 2000)

There have been several regional experiments in the African region since its break from
the colonial ages; these experiments, now termed as blocs are given as follows such as
the East African community (EAC), the Central African Federation (CAF), and the
Southern African Customs Union (SACU). More regional groupings emerged after
independence, the most prominent being the Economic Community of West African
States (ECOWAS) created in 1975, and the West African Economic Community (WAEC)
first inception in 1966 and later became the West African Economic and Monetary Union
(WAEMU) in 1994.
Following in the South of Africa, is the Southern African Development Coordination
Conference (SADCC) created in 1980 and replaced by the Southern African Development
Community (SADC) in 1992, and in the East is the Common Market for Eastern and
Southern African States (COMESA).
Globally, economic integration has taken various levels and assumed many forms and
can be summarised into:
• Free Trade Area: members remove tariff and other barriers to international trade
among themselves and may establish its own trade policies with non-member countries.
• Customs Union: Members adopt free trade area policy and may adopt common
trade policies towards non-members.
• Common Market: Members establish a customs union policy and eliminate
barriers that restrict movement of factors of production among themselves.
• Economic Union: Members develop a common market policy and fully integrate
their economies by co-ordinating their economic policies.
• Political Union: Members incorporate both political and economic integration; the
union effectively transforms itself into one country.
In this present day, there is no country in Africa that isn’t a member of at least one
regional economic group. As reflected in the number of regional agreements both in the
continent and world- wide, therefore, the issue continues to occupy a center-stage in the
economic agenda of countries.
There have been many recorded reasons and suggestion as to the causes for the lack of
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progress in regional integration efforts in Africa. Super eminent of these reasons, is the

obvious never changing unwillingness of governments to: surrender sovereignty of
macroeconomic policy making to a regional authority; to face potential consumption
costs that may arise by importing from a high cost member country; to accept unequal
distribution of gains and losses that may follow an integration agreement, and possibly
discontinue existing economic ties with non-members. Adding their views to the list,
Johnson and Lyakurwa states that the “lack of a strong and sustained political
commitment and macroeconomic instability”37, and among others, has hindered the
progress of economic integration in Africa.
Although African integration remains fast paced and with little or no success, a major
concern and question remains; with aids from international organisations even the EU,
will the region be able to reach its goals of integration and the dream of pan-Africanism?
2.1.3 Review of Relevant Literature:
‘A cornerstone of development is a state with a sound constitution that balances the
interest of all its citizens, and that which separates powers of the judiciary and
legislature from the executive’38.
Many of the world’s greatest economy and governments have been built on this
principle. The European Union as a single entity has remained factored upon principle
such as this.
In present days, the African Union is beginning to take steps towards its building of the
dream of a unified continent, also upon these same principles. But there is no doubt to
the question of unification in the region as the prominent issue is how to attain it.
Like the EU and other nations that has embraced the idea of regionalism through
multilateralism, the African region has tried many initiatives towards economic growth
and like many, has come to embrace the same idea of Integration in the region as a way
forward.
According to Bhagwati (1970)39, stating Viner and Meade’s theories, reviewing the
concept of Regional Integration arrangements have been the subject of a fair economic
37 (Johnson, 1995, p. 213). Lyakurwa et al (1997, p. 176)

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38 Quote by Prime Minister Tony Blair on the build of development structures of a nation. Culled from the Report of the Commission for Africa
39 Bhagwati, J. N. (1970). Trade-diverting customs unions and welfare improvement: a clarification. [Cambridge: M.I.T.].

analysis, beginning with seminal contributions to the issue of a customs union and today,
both theoretical and quantitative work on regional integration arrangements have been
newly inspired by the ever current resurgence of regionalism and the issues it poses for
both advanced countries and the less developed and developing countries, and
especially for the international community which has become concerned for a continued
progress in international development and the global trading system.
According to Keet (2002)40 some of the strategic aims and objectives of African unity are
well detailed in various policy documents and debates. These include:
• The significant need to remove the artificial lines drawn across the continent by
the colonial powers that randomly cut across societies, ethnic groups and even families,
and indifferent not only to common linguistic and cultural spheres, but also natural
ecological zones and ecosystems, and pre-existing economic and political systems and
relations on the ground in Africa.
• The greater economic potential and political advantages in joint external trade
strategies and more effective collective engagements in multilateral trade negotiations
(such as with the EU over the Cotonou agreement) will also reduce the possibilities for
outside agencies to play African countries off against each other. Also of importance is
the potential pro-activeness of the formation of a larger and more effective negotiating
bloc, with the verge to enter into strategic and tactical union of agreements with similar
regional blocs and countries elsewhere in global world.
It’s been recorded that possibly more than any other region in the world, Africa has a
strong case for pursuing regional integration.
Studies have been conducted by the Economic Commission for Africa (ECA) and even the
World Bank; and have found that Africa is still the most sub-divided continent in the
world with at least 165 borders divided by 51 countries41. Research has also shown that
the average African country has the same economy of a typical American town of 60,000
people.
The creation and structure of the Europe Union shows that regional integration has
substantially improved the economic performance of the smaller countries in the region;
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40 Keet, D. (2002). The New Partnership for Africa's Development: "unity and integration within Africa"? or "integration of Africa into the global economy"?
41 UN Regional Commissions Development Update 17th issue-July 2004

like Belgium. These small European economies today register much higher productivity
rates, are highly competitive, and command a more effective market share than the
whole of sub-Saharan Africa.
Concerning the pace and speed to which regional integration has evolved in the African
region, Mr. Amoako gives his views. Up to now, he states, “Africa has pursued regional
integration in an "ad hoc, evolutionary manner" that has at times been "maddeningly
slow. But now we are moving to a much faster timetable." He adds that African
governments must pay close attention to the sequence and consequences of their
actions. "The decisions on pace should be ambitious, but the pace should be doable42."
2.2 African Integration? Is it imperative?
“Africans strive for unity. They want the removal of borders and the removal of customs
and any restrictions. They want one identity and they want to move freely across the
African continent. They want to be strong in the face of Europe, Asia and America”
Colonel Muammar Gaddafi – President of Libya.
What is the essence of integration? How has it built or improved the economies of
nations, states or regions? This question undoubtedly has been answered with positivism
over the years and may still hope to bring more positive results in the coming future.
The European Union not only remains a definitive example of this great initiative, but
also regions in North America and Asia even almost the global world economies are left
with no choice but to embrace the concept of integration for a better economy and
growing development.
Africa, on the other hand has joined in and embraced this initiative. But of what benefit
will this tool of development growth bring to the region?
2.2.1. The drive behind its integration and evolution so far.
42 Culled From Africa Recovery, Vol.15 #4, December 2001, page 12 (Interview with ECA Executive Secretary K.Y. Amoako)
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Even though the African region and particularly its Nations, have been members of the
World Trade Organization (WTO) for many years, and the region still sees integration as
the new and probably only tool for economic growth.
Many protest groups have emerged to publicize the unfair advantage that the rich
countries have over the poor ones in the WTO when it comes to setting trade regulations
and rules.
There has been great and collective momentum by Africans for a successful process of
integration in the continent and their continual readiness to contribute greatly to
energize further the different regional economic communities as a pillar to the building of
a unified African – the African Union.
The African region has fought to be heard by the global world in the last trade talks of
the WTO and still strives towards its goals for a place in the trading world.
Past and recent talks of the WTO are seen not to have been in favour of developing
nations and regions (including Africa) and its fight against the concept of multilateralism
continue to grow with time43.
Regionalism has taken its form and has become a tool for the substitutive pact and
direction for a better tomorrow for the African region from the economics of
multilateralism.
Africa like many regions has found its way through time and to a better initiative for
economic growth with its acknowledgement of regional integration.
It is not news that the push for free trade at the multilateral level continues to be a
continues battle and more of a contentious issue, different regions and governments are
seen to focus on alternative paths of achieving trade and liberalization with the hope of
spurring a better level of production and export growth44.
With its creation of the African Union, Africa has not been left behind the shutters of
achieving global and liberal growth and this has led many countries in the region, to
parley with other nations and regions, entering contractual preferential arrangements
with them.
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43 DDA: “The Round for Africa” Statement to the Third African Union Conference of Ministers of Trade
Cairo, 8 June 2005-more information from the WTO(www.wto.org/English/tratop_e/dda_e/dda_e.htm) and Europa(www.europa.eu/) web pages
44 Hazelwood, A. (1967) African Integration and Disintegration, Oxford University Press, Oxford.

Researchers have followed the regions development, challenges and prospective future
over the years and stated that regional integration may be Africa’s probable step
towards economic growth and a place in a competitive global market. With many
initiatives in place, the eradication of poverty and under development in the region is
said to be sure or may even be a proven way forward.
Africa’s embankment in the 1980’s for structural economic programs with the Bretton
Woods institutions assistance has led the region to be characterized by low economic
growth as a result of very low rates of domestic savings, lack of market openness and
liberalization and endemic poverty and the region is said to have experienced declining
shares in almost all sub-sectors of world trade.
Observing analysts have stated that due to the present wave of globalization, countries
in the region will have to integrate into the global markets and probably to integrate
regionally as to facilitate a means of widening its integration into the global economy. It
is therefore believed that a step like this would help the region first deal with its
neighbours as partners to trade and development; it will also provide the countries with
the adequate building steps for any negotiations at the WTO level.45
The African region has continued to take steps forward towards its regional integration
process with the adoption of the NEPAD and developmental frameworks by the region
which has attracted international agencies like the UN and other global bodies such as
the G-8 industrial countries.
The progress of regional integration in the region has been mixed across sectors of
regional communities and it has continued to stride in areas of trade and internal trade,
macroeconomic policy and convergence, communications and transport. Notably, many
REC’s in the region have made identifiable progress in trade liberalization and
facilitation. Progresses have been recorded in free movements of goods and services,
infrastructure, and prominent to the ECOWAS, peace and security46.

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45 Alemayehu,G. and H, Kibret. (Jan 2002) Regional Economic Integration in Africa: A Review of Problems and Prospects with a Case Study of COMESA. Oxford
University.
46 Obaseki, P. (2001) ‘Economic Development of West African States in the Context of Globalization’.

2.3 The Limits to Free movements of Integration and Enforcement Rules in the
AU (its challenges)
Africa undoubtedly faces many challenges today, and it must continue to struggle not to
lose ground in the age of globalization.
Since its independence from its colonial strong hold, the African region may have
remained heavily dependent on foreign private investment and bilateral and multilateral
assistance but its ever growing strength in diversity has and will continue to push for a
better global economy.
The region has faced so many levels of so called developmental goals towards economic
self sufficiency and non reliance on western support. It has practiced many ideological
forms of independent rule; from African capitalism to socialism, populism to Afro-
Marxism. But these ideologies have tended to mask huge economic weaknesses in the
region.
For over 50 years of independence from colonialism, there has been a great deal of
change in Africa. African nations are represented in the international organizations and
are beginning to develop increasingly effective regional and sub-regional political
institutions.
Here, we put light to the regions drive, challenges and evolution so far towards
integration.
2.3.1 The African Union and Its Challenges.
Africa's initial and early stages of frameworks for regional integration, such as the 1980
Lagos Plan of Action, undoubtedly, intended to emphasize a preponderant and prominent
state role in the world economy. But evidently, but not naturally, it is clear that many
African governments do lack the resources, whether financial or supportive and political
credibility to effectively implement policies even within their own state borders.
There have been claims that Africa within the challenge of globalisation faces some
specific economic and politico challenges which includes; human security and
development, the crisis of debt and trade issues, domestic and regional conflicts, and
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democracy and human rights.

It was said that some were crippled by civil war or came into conflict with one or most of
their immediate neighbours, disrupting progress toward necessary cooperation. Even
though the African region strives to put a strong hold on economic unity among its
regions and the world’s global economy, the region still records lack of improved intra-
African integration on a more practical approach.
Even at this stage of a possibly improved and fast paced integration, there are still
problems relating to border free movements and a proper enforcement mechanism to
integration. Despite its dismantling of tariffs, relative trade barriers, and commerce
between African countries, integration is said not to have increased significantly.
Some African countries still have a particular concern that lowering or eliminating tariffs
on trade with their regional partners will deprive them of most of their important source
of government and state revenue. However, many Africans still encounter constant
problems in travelling or dealing with people in neighbouring African countries. Even the
small-scale manufacturers are seen to have difficulty getting the necessary import or
export licenses needed for trade.
Here raises the question of an open market economy coming into play. Without any basic
consensus to an open market economy, the integration among states in the region can
or may not be possible.
Consequently, many argue that a pan-African economy cannot work if a full open market
and trade principles are not practised because essentially, many researchers have
noticed that the African region may be inclined to the practise of different levels of
government which could be seen to affect it democratic structure and any process of
integration.
However, many outside influences have stated concerns on these areas. For instance;
the United States in particular has sought to help Africa integrate itself into the world
economy.
The African Growth and Opportunity Act47(AGOA), has been a significant step by both the
Clinton and Bush administrations. This act has encouraged exports and lowered trade
barriers for 33 African countries. To this effect, two-way trade increased 37 percent
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47 The African Growth and Opportunity Act (AGOA) was signed into law on May 18, 2000 as Title 1 of The Trade and Development Act of 2000. The Act offers tangible
incentives for African countries to continue their efforts to open their economies and build free markets.( www.agoa.gov)

between 2004 and 2005 to a total of US$60 billion, and US imports from sub-Saharan
Africa increased 44 percent, though it was largely due to oil imports.48
The levels of government authoritarianism in this region are seen to be practiced through
the lines of both the capitalist and socialist lines of government.
There is therefore no argument that African economic unification could either progress
on capitalist lines, which is understood in the very wide frame of its definition or even
along the lines of a socialist planned economy and not on both simultaneously.
Evenly put to statement, the wide disparity of economic systems in Africa, ranging from
models close to the market systems up to numerous examples of centrally-planned
socialism, is said to create a new formidable obstacle to progress at African integration.
On the issue of the movement of goods and services, Mr. Taingam Bekoutou, Director-
General of Chad's Chamber of Commerce and Industry, once noted “that the domestic
private sector has rarely been mentioned in African regional integration plans nor has it
been consulted about the taxes imposed on African businesses”. Records have shown as
related to border controls and business visas request in the region that African
businessmen frequently need to wait 6-8 weeks to get visas to visit other African
countries, while citizens of the UK or France can travel to many African countries and
obtain a visa on arrival.49
This challenge may remain as tariff barriers still burden intra-African trade, but lowering
or abolishing them is difficult because many governments as it has been observed do
depend on the income from them.
The region faces the problem of improvement of its trade internally as it must try to
improve its basic infrastructures especially of transport in order to make goods cheaper
to move.
It’s been revealed for example; that today, Africa’s transport costs – local, national, or
international – are today twice as high as those for a typical Asian country. As shipping a
car from Japan to Abidjan costs US$1,500, whereas moving it from Abidjan to Addis
Ababa costs US$5,000.50

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48 Our Common Interest-Report of the Commission for Africa (March 2005). www.commissionforafrica.org
49 Culled from; the UN-NADAF Final Review document. (Making African regional integration a reality)
50 Culled from; The Report of the Commission for Africa.

With the increased placements of tariff barriers to trade among the country’s of the
African region, the barriers are seen to hurt citizens of both the rich and poor nations.
The intervals of these high points have however, been marked by serious back-tracking
from the process of integration in the African region.
In the case of trade liberalization and facilitation, the West African Economic and
Monetary Union (WAEMU) and the Common Market for Eastern and Southern Africa
(COMESA) have made some substantial progress with regards to the free movement of
peoples, the Economic Community of West African States (ECOWAS) has made
considerable strides with the issuance of an ECOWAS passport and even the
encouragement of a monetary zone (cfa) for market exchange values in trade.
The East African Community and the Southern Africa Development Community have
progressed well in infrastructure development. In the area of peace and security,
ECOWAS leads the rest of the regions. Other African regional economic communities
have also attained the status of a customs union, as with the Southern African Customs
Union.
Like many regions in pursuance of regional growth in the global world economy, Africa
faces it own challenges with its limits to the enforcements of its integration rules. One of
the major challenges that the African Union faces however, as in other parts of the world,
which has become a major stumbling block to its successful regional integration has
been the great diversity of its countries sizes, its natural resources, levels of
development and the regions connections to the global markets.
In his presentation,51 Prof. Adedeji states that “excessively economist approach to
integration was one of the reasons for Africa’s failure to integrate”. While African
countries were attempting to achieve economic integration, he noted, some of them
were at each others’ throat, a situation that was clearly averse to a meaningful
integration. "How can you disagree politically and cooperate economically?" he further
he states.
Absence of regional shared political vision, values and stability, lack of a people-centred
integration process, over concentration on the choice and structure of institutions instead
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51 Adedeji, A. (2002) ‘History and Prospects for Regional Integration in Africa’, paper presented on 5 march at the African Development Forum III, held in Addis Ababa,
Ethiopia.

of focusing on the substantive issues, and proliferation of institutions with overlapping
mandates and tasks.52
In order to shed some light on the formidable obstacles to African unification, we may
start with a quote from a speech, which Julius Nyerere gave on 6 March, 1997 in Accra,
on the occasion of the 40th anniversary of Ghana’s independence:53
“Prior to the independence of Tanganyika, I had been advocating that the East African
countries should federate and then achieve independence as a single political unit. I had
said publicly that I was willing to delay Tanganyika’s independence in order to enable all
the three mainland countries to achieve their independence together as a single
federated state. I made the suggestion because of my fear – proved correct by later
events – that it would be very difficult to unite our countries if we let them achieve
independence separately.
Once you multiply national anthems, national flags and national passports, seats of the
United Nations, and individuals entitled to a 21-gun salute, not to speak of a host of
ministers, prime ministers and envoys, you would have a whole army of powerful people
with vested interests in keeping Africa balkanised”.
This problem highlighted by president Nyerere is not strange but a familiar one for
students and researchers of European integration.
To some extent, the challenges facing the African Union can be compared to
superimposing an EU-style overlay on top of feudal Europe rather than the modern
European nation-states.
It has been seen over time, how instructive and increasingly difficult decision-making has
become in the EU as it widens its membership. The challenge that the AU, then, faces is
how to forge consensus or even a two-thirds majority on important progressive,
developmental and substantive issues in the region.
AU members have been said to withdraw from the Union because of frustration with
inaction of decisions.
In common thinking, any withdrawal of membership from the AU will likely be viewed
negatively. Many regional institutions have become dormant and weak for many reasons
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52 Cf: African Development Forum III (ADFIII plenary session)5 March 2002 (Speeches and Presentations)
53 Nyerere, Julius, ’Without unity, there is no future for Africa’, New African, February 2006, pp. 20-23, esp. p. 22.

but in the case of Africa, due to several regional pacts which have been dominated by
hegemonic local authority, there has been reluctance by smaller states to cede their
sovereignty to any multinational grouping.
Obstacles to regional integration in Africa over time have been well recorded.
As previously stated, among them is the issue of trust among members. According to (L.
Winters ;) “One very important lesson that the AU will have to draw from the EU's
experience is that integration requires mutual trust and confidence between partners as
well as a perception that their interests in various issues are compatible”. 54 Further
adding, the lack of commitment to regionalism in Africa is seen to have manifested in
member countries developing strategies, plans and priorities quite independently. An
example of this ‘phenomenon’ is the EU/SA Free Trade Agreement (FTA).
The South African region signed an agreement knowing that it would have a devastating
impact on both the members of the Southern African Customs Union (SACU) and the
Southern African Development Community (SADC) and by acting independent of other
regional countries, South Africa was trying to maximise benefits for itself at the expense
of its regional members.
The persistence of colonial legacy however, has also prevented Africa from the creation
of a strong position on regional cooperation and particularly the combination of some
factors such as local nationalism, ethnic conflicts and language barrier, have contributed
to the difficulty of integration.
For example, in the West African region, the inability of the Anglophone and Francophone
countries to break their colonial heritages and form effective and substantive economic
groupings which will cut across their regions, have become one of the key obstacles to
successful integration in the African region.
In his presentation at the ADF III meetings 55, ECA Executive Secretary, Mr. K. Y. Amoako,
analyzes the conquest and challenges of African regionalisation stating that “Africa's
54 Winters, L. A. 1996. "Regionalism versus Multilateralism", paper prepared for a CEPR conference on Regional Integration, La Coruna, Spain, 26-27 April
55 Accelerating the Pace of Regional Integration in Africa . The Challenges Ahead (by K. Y. Amoako, Executive Secretary of ECA 4 March 2002)
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current system is too complex, too duplicative, and requires too much political energy
and money for what is being produced”. Referring to the ARIA report, he recommends,
the system should be rationalized. He further states; “We can all recognize that efforts to
rationalize the current plethora of integration institutions will not succeed, unless there is
solid political backing”.
Within Africa, a range of sub-regional organisations has developed in response to
different and specific challenges. These organisations or blocs as they are commonly
known, include the SADC, ECOWAS, EAC, IGAD, AMU etc.
In addition, international organisations, especially the United Nations, have taken on
larger and more complex mandates as it relates to the developments of these
institutions or organisations.
Essentially, one of the major challenges facing the AU will be how now in present times of
multilateralism, to relate to these other organisations and given that the future
relationship between the regions and the AU has not been completely sorted out as yet.
Human resource requirements and infrastructure factors for the AU remains a problem as
one of its challenges is the expert task of actually designing the institutions and the
management system required to maintain its structure.
The provisions envisaged for seeking technical assistance in building the necessary
institutions, remains an issue.
Recommendations have however been made that necessary structures be put in place to
build systems and staffs in local and national governments, and also in pan-African and
regional organisations particularly, the African Union and its NEPAD programme.
Concerning infrastructure, the presence of customs barriers provide disincentives for the
development of regional infrastructure and physical infrastructure.
The building of a regional organisation is largely seen as a complex task even in a region
where many see it as a potential for great reforms and possible economic growth.
The African region has had its defining moments and there may be relatively few
expertises drawn from its new reforms of integration even when it is guided by a blue
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print of the EU or even a proper outline of integration principles 56. However, there is the
experience both within Africa at sub-regional level and outside Africa that maybe utilised.
At this level, many have argued that the concept of sub-regional integration may be a
better form of growth and development as it relates to regional integration of the African
region.
Adding to its challenges, it’s been said that the AU lacks major skills required for
managing the institution and essential training programmes to ensure a proper running
and maintenance of structural reforms of its units and the challenge of basic and
essential manpower to manage its institutional goals.
As earlier stated above, one primary challenge for the region is the issue of intra-African
trade barriers and this continues to hinder regional integration processes on the African
continent and the lack of free movement of people and goods in various regions is said to
continually slow down integration. And one major problem of the region is its lack of
improvement in the level of economic integration within its continents regional economic
communities.
However recent developments have shown that the AU commission is dedicated to
taking measures that will lead to expeditious elimination of inter-REC and intra-REC trade
barriers with the improvements and effective participation of the regional economic
communities of the African region57.
A democratic requirement remains an essential structure to the building and
maintenance of regional integration for any nation, state or region. This remains a
problem for the African region for as long as the conditions of reaching a democratic
structure for any state of the region becomes a problem, and conditions of widespread
harsh deviations from democratic standards in many countries are not altered
substantially, any attempt to construct an African Union along the lines of the EU,
becomes excluded58.
56 European Union probably remains the best example of regional agreement that has achieved the same ideals that African integration aspires to.
57 Noting however, that if the AU Constitutive Act of the Abuja Treaty remains the guiding light for African integration with the regional economic communities as building
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blocs, some regions may need to be permitted to experiment with its own institutional design.
58 Keller, Edmond J. Harvard international Review. Summer 2007, Vol. 29 Issue 2, p46-51, 6p

One major challenge that will not be over looked in this paper is that of domestic and
regional conflict in the African region.
We have to face the fact that one major difficulty of achieving a proper and improved
level of integration and sustainable economic development is undoubtedly compounded
by the presence of persistent conflict in the African region.
The African region in the past and present decade has witnessed increasing incidents of
intense conflicts in the continent. With the African union and the United Nations along
with other aid agencies spending time trying to find ways of maintaining peace in the
region.
At the last AU summit in Ghana, many including Africa’s Bishop Desmond Tutu, have
expressed their opinions on the suspension of the talks for a united region and pay more
attention to the uprising conflicts in the regions of the continent.59
CHAPTER THREE
COMPARATIVE ANALYSIS
3.0 Introduction
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59 Archbishop Tutu’s Letter to the African Union Summit holding in Addis Ababa 29 to 30 January 2007

Comparing both regions has only become necessary because there have been
arguments that the African Union has been structured along the line with the European
Union. But these arguments continue to get challenged as the African region continues to
strive towards development through integration.
Many claim that some countries of the region has done well in its different capacity of its
nation’s economy through the joining of different regional blocs in the region and others
claim that a unified state might be the only way out of managing the region’s economy
accordingly and particularly the ability of African countries to gather as to what
economist would refer to as the fundamentals of economy.
3.1 Comparison of the AU and EU
It is clear that the African union is seen to have ambitions of its own. With a Pan-African
outlook and proposals for a United States of Africa, and the pursuance to be a great
regional integration bloc among the greatest of economies, has the AU really taken to
the direction of one of the world’s largest regional blocs? Or does it like the OAU, its
predecessor, still show some initiative of common interest among member states with a
better economy in the African regions?
This chapter will however compare the EU and the AU but will hope to argue that even
though both institutions may have been built on a similar background, the AU may yet
still pursue its goals resembling one of integrations greatest initiative but attain many
different forms of an International institutional body.
Further on, although both may be seen as similar on the comparative basis, this paper
will still argue that both institutions may differ a long way on.
The tables below give an economic comparison of the EU and AU and the annual growth
rate of both institutions. These reports shown in the tables were as to the relative basis
of the Commission for Africa Report and the G8 and Millennium Review Summits and the
2005 UN Millennium Development Goals (MDGs)60 towards a partnership for economic
development in the region

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60 The Eight Millennium Development Goals of the UN for Africa.

(Note: Table 2 Annual Average Growth Rates for the AU and EU areas)61
The AU is at least seen as an institutional set up and probably strikes a remarkable
resemblance to that of the European Union (EU).
Many observers have, otherwise, compared the AU to the EU as it is believed that the
architects of the AU relied on the EU template for its creation.
The architects and fathers of the African Union, no doubt sought a blueprint inspired by
the strongest and most effective model of regional unification that exist. – The European
Union.
According to Dr. Babarinde;62 in his presentation at the Plenary Session of the ECSA-
World Conference, on the future and workings of the African Union, he states that; “The
61 World Bank, World Development Indicators. Although GDP growth within the AU area has been greater than that of the EU area, a good deal of this is explained by the
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very high population growth rate in Africa and doubling every 30 years.
62 Analyzing the Proposed African Economic Community: Lessons from the Experience of the European Union.
by Olufemi A. Babarinde

AU will have to chart its own course, travel at its own pace, find its own rhythm, and
write its own history”.
The African Union (AU), although, still in a formative state, has already officially
designated for itself, am emblem, a flag, a central bank and a unified continental military
force. The AU with its African Central Bank plans towards the creation of a single African
single currency.
International Organisations, such as the United Nations has over the years, supported the
African union as a major solution for the wars, poverty, famine, and disease which have
affected the continent for decades.
The African Union is seen essentially as intergovernmental in character and the European
Union, as supranational in arrangement and probably on its way to becoming a
Federation.
The EU’s resulting and continuum measures towards the movement from
intergovernmental to supranational governance may be traced to its starting point of the
Treaty of Rome in Article 23663 as it permits the EC to establish supranational
governance to achieve the general objectives of the Community.
On the scale of intergovernmental versus supranational, when measured, against the
structure of the African Union, its numerous Regional Economic Communities at the sub-
continental level, fall into the category of intergovernmentalism as all member countries
of the AU have retained their full legal sovereignty as compared to the EU.
There is no instance where the African states have explicitly transferred national
sovereignty to an AU level. The parliament of the AU is seen as purely advisory and has
no competences to make laws for the continent. Nor can the commission make any
decisions which bind the member states. All 53 members of the AU have adhered to the
development strategy of the New Partnership for Africa’s Development (NEPAD) which
officially became recognised as an AU initiative. The African Peer Review Mechanism
63 The Government of any Member State or the Commission may submit to the Council proposals for the amendment of this Treaty.
If the Council, after consulting the Assembly [European Parliament] and, where appropriate, the Commission, delivers an opinion in favour of calling a conference of
representatives of the Governments of the Member States, the conference shall be convened by the President of the Council for the purpose of determining by common
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accord the amendments to be made to this Treaty.
The amendments shall enter into force after being ratified by all the Member States in accordance with their respective constitutional requirements. available online from;
(http://europa.eu/scadplus/treaties/eec_en.htm)

(APRM), being a part of NEPAD, will make the governance of African countries subject to
official scrutiny or perhaps the most innovative part of the African reform initiatives.
In the future, the reviews of the African Peer Review Mechanism may well produce real
political results, given the point that public criticism coming from Africans might have an
impact on public opinion. But also they have no legally-binding character.
Besides, although NEPAD and APRM were declared to be AU initiatives, participation is
voluntary and a row of member states have opted out.
There are perhaps some elements of the AU construction which might have some
supranational potential. An example is Article 4(h) of the Constitutive Act which
proclaims a right of the African Union to intervene in cases of war crimes, genocide and
crimes against humanity64; as this remains an important political declaration of the
Union.
Another element of potential supranationalism may be seen in Article 23(2) which states
that member states who fail to comply with AU decisions “may be subjected to other
sanctions, such as the denial of transport and communication links with other Member
States, and other measures of a political and economic nature to be determined by the
Assembly”65. An example is seen when Mauritania’s membership of the AU became
suspended after a military coup, which violated the principle that changes of government
have to happen in a constitutional way. But also this sanction mechanism does not
create rights for the citizens. It is more of a political declaration whereby African leaders
can declare that their actions against other African countries can be seen as legitimate.
However, the Constitutive Act66 of the Union is more ambiguous about the Assembly, of
the heads of states and its governments other than a legislative process of the Union and
its Assembly.
For the EU, the general course of European integration which sets the broad objective of
EU law is largely dictated by decisions made in the European Council as its law is in turn
64 Article 4(h) of the AU Constitutive Act. (The right of the Union to intervene in a Member State pursuant to a decision of the Assembly in respect of grave circumstances,
namely war crimes, genocide and crimes against humanity)
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65 Article 23(2) of the Constitutive Act of the African Union
66 In this instance, it is instructive to note that many of the articles of the Constitutive Act were transferred from the 1991 Abuja Treaty that launched the AEC.

a product of the Commission, the Parliament and its Council of Ministers. The first two
bodies are supranational in nature.
Indeed the European Integration has in all ways improved and affected the decision
making and workings of its parliaments; unlike the African integration where the
decisions are only relative to the guidelines of the constitutive act of the African union.
The Constitutive Act of the AU, however, may outline its laws to constitute the basis of its
integration among member states but how effective can these laws improve the
informative, authoritative and regulatory activity levels of its legislations among member
states will in time, become an issue for an improved mechanism towards proper
integration if to be compared to the EU.
The AU’s “Assembly of Heads of State and Government” is at any rate, comparable to
the EU’s European Council, while the “Executive Council” of the AU is in correspondence
in certain respect to the Council of Ministers, especially the General Affairs Council. Same
also in similarity is of the Committee of Permanent Representatives (COREPER) in the AU
which is the Permanent Representatives Committee, and that for the Economic and
Social Committee (ECOSOC) in the AU is ECOSOCC. Other institutions of the AU and EU
that share analogy are the Commission, the Court of Justice, and the Parliament. The
AU’s Specialized Technical Committees might only be somewhat similar to the EU’s
COREPER I.
Although the AU has for itself, a pan-African Parliament and the African Court of Justice
(ACJ), these structures lack power and still have not become effective structures of the
institution.
On this issue, having had the opportunity to have observed a sitting at the EU parliament
in Brussels, undoubtedly the decisions and effectiveness of the EU’s policies and
successive growth lies essentially with the effective decisions of its parliament.
Indeed, European Integration has always improved and affected by the decision makings
of the parliament unlike the African integration where decisions are only relative to the
guidelines set by the Constitutive Act of the African Union.

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Basically, most have argued that the African Union replicates many characteristics of the
United Nations; as it’s decision making systems and nature of its votes are seemingly
alike and may not actually be termed as an institution following the EU blue-print.
In both cases, like the UN, the Heads of Governments or Delegations meet up to discuss
on issues and deliberations are reached with decisions taken; at least immediately
without any legislative precedence and as any International organisation would, they all
have declared their firm intention to respect Human Rights.
The Security Council can legitimately impose sanctions and include armed interventions,
against member states in case of grave violations of basic principles.
But principles are formulated in rather general terms, and there is no political sphere
where the member states explicitly have given up national sovereignty. In both cases the
General Assemblies and Security Council’s may pass resolutions, but cannot pass
legislation which binds the member states, and effective use for its citizen in courts.
At these, it’s seen that both the UN and the AU are useful intergovernmental fora. But
their efficiency and their ability to impose their principles may very well be restricted.
Probably following the blue-print of the EU, it’s be observed that the AU and the EU may
have been inspired by almost the same goals given an example that both Unions hope to
use regional integration to promote peace, stimulate economic growth, achieve solidarity
for their peoples, and strengthen their international profile and statue.
On the issue of wars in both continents, the EU in particular was necessitated, in the
hopes that rapprochement between France and Germany would help to preserve
tranquillity in Europe, following which economic integration would be possible. And as for
the AU, Africa has had its share of violent civil and inter-state wars even though she still
faces her different wars and upraising till this day.
The EU has used the concept of regional integration to preserve peace using it as an
increasingly interdependent economic structure; the AU also needs regional integration
as a vehicle for promoting pan-African peace, in order to enhance the prospects for
positive economic results.
Somewhat like the European Union and the concept of the Euro, the Constitutive Act of
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the AU envisages three financial institutions, an African Investment Bank, an African

Monetary Fund, and an African Central Bank. And the founding an investment bank or a
monetary fund is seen to be done on an intergovernmental basis and given that the
creation of a Central Bank would imply an African Monetary Union, the achievement of
which is an explicit aim of the AU, to be realised by 2028.
The envisaged African Economic Community it’s been said shall comprise not only of a
common currency, but also a customs union and a common African market.
These features however, would indeed produce a break-through to a heavy dose of
supranationalism, given the point that a common central bank or common customs
policy would imply that the African countries transfer substantial parts of their
sovereignty to common African institutions. But these remain farfetched as yet but a
hope for the future if the African region.
In comparison, the European Union contains both intergovernmental and supranational
characteristics and since its signing of the Treaty of Maastricht in 1993, the European
Union has consisted of a supranational “pillar” one which contains the fields were
integration has gone furthest, and the intergovernmental pillars, dealing with foreign and
home affairs given way to governments of member states to retain its sovereignty.
Given, the EU's institutional arrangements, there is no doubt that the AU has learnt and
has some important lessons still to learn.
Even the initiative of the African Peer Review Mechanism in the AU is designed along the
lines of Growth and Stability Pact within the EU. Both institutions are designed to ensure
accountability, good governance and ethical administration. They are however, designed
to provide strategic direction and coordination of tactical processes.
Essentially, a high level of institutional capacity and investment of human resources in
research, negotiation and monitoring has been important to the success of the EU.
However, given the current resource and capacity challenges facing the AU, it remains to
be seen whether institutions modelled along the lines of the EU will be appropriate for
Africa's specific conditions.
The building of the EU is quite expensive and demands as such and it is clearly seen that
it will be difficult for a continent like Africa, more less, the AU to seek to emulate the EU's
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institutional model without seeking to make drastic amendments to itself.

The AU will have to consider prioritising what is workable under its current conditions of
under-development, unfair terms of trade, poverty, diseases, wars and instability67.
Comparing further, unlike the African Union which counted its 53 members from its
inception, or (the OAU of 1963) which organised all independent African states at that
time, in the EU, there were only six countries68 to start the process of European
integration in 1951, when establishing the European Coal and Steel Community. Thereby,
on a very limited field, the states transferred sovereignty to a supranational body.
Enlarging this scheme to a European Economic Community in 1957, there were still only
these six countries participating. Successive rounds of enlargement have increased the
number of members to more than 27 by now, and there are more to come.
The issue of monetary policy has become a supranational arrangement in the growing
developments of regional integration, in the form of the EMU and against many dire
warnings, the arrangements of the EMU have proven stable and brought monetary
stability, the abolition of exchange-rate volatility and, perhaps most importantly, very low
long-term interest rates.
Although, on a sub-regional level, these monetary policies such as the WAEMU and the
SADC, have become of great essence to the free movement of goods and services and
trade, as had been earlier stated, and Africa looks towards the same (single
unified)monetary initiative hopefully in the near future.
Notably, Languages and Mother tongues has always been a barrier to communication for
integration.
In the European Union, these barrier seem be overcome as many its nations, are mainly
French German and Dutch and French undoubtedly has become the essential language
in the EU.
In Africa, however, the issue is different as major communications are directed by the
Constitutive Act and languages in the AU are in English, French and Portuguese69.
67 Dr. Wolfgang Zank: A Comparative European View on African Integration – Why it has been much more difficult in Africa than in Europe, 28 pp, 2007.
68 Belgium, France, (West-) Germany, Italy, Luxemburg, and the Netherlands.

69 Article 25 of the Constitutive Act under languages states “The working languages of the Union and all its institutions shall be, if possible, African languages, Arabic,
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English, French and Portuguese”.

But still, nations in the AU still remain diverse and with many languages. Especially, in
the West African region as she somehow seems to have an advantage over other
regional zones which must manage the integration process with a great number of
languages. For example, in the Nigerian Country of West Africa, they are over 250
languages.
As for the European Union, it officially recognizes 21 languages which are used at its
high-level meetings of Ministers, Heads of Government, in all sessions of Parliament and,
which all official texts are translated.
Even though European staff members work every day mainly in English and French,
European multilingualism generates huge costs and makes procedures cumbersome.
However, this comparison may not be sufficient, still, the 21 European languages are
mother tongues for all the citizens of the union and any citizen or representative of the
people has the right to express or communicate with the European institutions in their
mother tongue.
In West Africa, English, French and Portuguese are used as mother tongues only by its
elites and the regional level fully reflects the national practices in which the colonial
language is considered, de facto or de jure, as an official language.
Nevertheless, all West African countries in the African region have adopted policies and
attitudes that are favourable to national languages.
Irrespective of whether they are adopted or not by the law, these languages are very
frequently used, at least orally, in courts, political bodies and governments. In other
words, rightly put by an anonymous, ‘national construction is not to the detriment of
local specificities’.
Taking into account African languages in the integration process is not a problem at the
institutional level; evidently keeping to the current three official languages is preferred.
On the other hand, the issue needs to be considered from a more concrete and
operational angle.
“It is high time for our continent to make African languages the working languages in all
aspects of public life. It is only by doing this that we will make our Regional Economic
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Communities real instruments of African integration, and the African Union a reality

experienced by the people, who will be rehabilitated and re-established in their identity
and in the historical and cultural continuity of their areas. Consequently, common cross-
border languages will strengthen exchange relations between the populations, beyond
political borders, which should be considered, as we have always said, not as points of
rupture but rather as suture points and lines of the African socio-cultural fabric, ripped
and torn only 116 years ago, the suture lines of these border countries and villages of
our continent in quest of unity.”70
This exhortation by President Konaré of Mali, Chairperson of the Commission of the
African Union, reminds us that trans-national ethno linguistic areas are tangible realities
which could fearlessly support the African regional integration process.
There is a strong common awareness that the EU member countries are interdependent,
and that on many fields only common solution are possible. This is not the case to the
same effect in Africa.
As regards to the EU, a heavy and constantly increasing dose of supranationalism have
also been witnessed in fields where the member states are still sovereign and be
observed with a growing coherence.
Cooperation within the EU is thereby much more compact, much denser and much more
obliging than among the members of the African Union.
In fact, the African Union is said to be more akin to the United Nations than to the EU and
some believe the institution, while on paper resembling the EU, is politically more
sympathetic to the ASEAN model which is based on governments whose immediate
priority is to preserve their national sovereignty, not to pool it.
It is no wonder that in recent times, the Chinese have found trade discussions more
relaxing in the African region.
It may be ascertained that the differences between AU and EU are no coincidence given
that efforts at integration have faced substantial obstacles in the different regions.
In the case of Africa, these obstacles have been much more difficult to surmount than in
Europe and it is optimistic to say therefore that the conditions for further progress at
African unification are currently better than ever before.

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70 Alfa Oumar Konare, Former President of the Republic of Mali.

Clearly, there is a strong common awareness that the EU member countries are
interdependent, and that on many fields only common solution are possible; and this
however, is not the case to the same effect in Africa.
The Abuja Treaty which formed the African Economic Community was the major step and
new chapter towards African Integration.
Over time, The AEC has strengthened through the tides and today forms the economic
wing of the African Union and relies on the pillars that symbolize the following regional
economic communities (RECs):
• Economic Community of West African States (ECOWAS);
• The Common Market of East and Southern Africa (COMESA)
• The Communauté economque des Etat de L’Afrique Centale (CEEAC);
• The Arab Maghreb Union (AMU);
• The Intergovernmental Authority for Development (IGAD);
• The Southern Africa Development Community (SADC);
• The Communauté des Etats Sahelo-Sahariens (CEN-SAD) ; and
• The East African Community (EAC).
3.2 Africa’s phases of integration; towards the EU blue print.
Many have stated their cautiousness about the creation of an AU government; others
believe it is the key to helping Africa to its problems of poverty and under-development.
And also, there have been arguments to if the formations of different regional blocs in
the region should remain and be the only force that drives African integration towards an
improved economy and may be the most realistic way to foster African unity.
But other still find faults to this, as even with the regional economic communities in place
for regions like Western Africa, there still remain a lot of obstacles among states in the
region.
There has been also a series of major arguments that the process and nature of regional
integration in the African Union may not have actually been inclined to the blue print of
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the European Union.

But for the essence of further arguments to the basic principles of the challenges and
prospects of the future of integration in the African region, we outline the many phase’s
of integration in the region as a probable inclination to the EU’s blue-print.
In recent AU meetings, there has been a call for the full and immediate unification of the
African region and a possible formation of a ‘United States of Africa’ by many, including
presidents and economic reformists of the region.
In his words, at the last AU summit in Ghana, AU commission chairman, Alpha Oumar
Konare states that “Africa needs to take the bull by the horns and move towards a new
country-Africa”.71
It has been said that, like Dr. Kwame Nkrumah, Colonel Muammar Gaddafi of Libya is one
that champions the idea of a unified Africa through integration and has had a long
enthusiastic proponent of the idea.
Although, the basis of the comparison above may have been necessary, understanding
that the initiative for an African Union might have been inspired by the blue print of the
EU according to integration analysts, yet Africa faces so many obstacles towards
integration and this has led to the creation and formation of many structural initiatives to
remain in line with the blue print of the EU.
Africa undoubtedly has moved from one phase to the other to ensure a successful blue
print for a proper integration in the region and its integration has changed over the years
from the AEC and the OAU to what is now the latest of the Pan-African dream of unity
which is seen as the most successful of them yet - The African Union.
A typical comparison, we have seen above given every possible avenue to believe that
the AU is definitely, in lame mans term, a photocopy of the EU. But this institution of
economic integration continues to face different drawbacks in restructuring of policies,
initiatives, institutions and possible referendums.
Adding to the new prospect of African integration in the AU and integrating organisations
in the region, under the Constitutive Act, the African Heads of State and Government of
the AU adopted the New Economic Partnership for Africa’s Development (NEPAD)
Programme.
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71 The Annual Summit of the AU in Ghana (July 2007).

For Africa, this initiative, is said to bring a renewed investment to the region and end the
continent’s marginalization and reintegrate Africa into the globalize world (Schmidt,
2003).
The NEPAD is an African Union Programme designed by Africans for Africans and
intended to provide Africa with the opportunity to extricate itself once and for all, from
the scourge of underdevelopment.
This African Union programme, is the outcome of the merger between the
OMEGA Plan (initiated by Senegal) and the Millennium Partnership for the African
Recovery Programme (MAP), initiated by South Africa and is based on three fundamental
pillars:
- The region as the application implementation space,
- The private sector (African and international), and
- Private and public good governance.
NEPAD can be interpreted as a comprehensive program addressing most of the
impediments to Africa’s development and one of the groundbreaking initiatives of the
NEPAD is the African Peer Review Mechanism (APRM)72.
The APRM aims at fostering the adoption of policies, standards, and practices that lead to
high economic growth, sustainable development, and accelerated sub-regional and
continental economic integration through sharing of experiences and reinforcement of
successful and best practices, including identifying deficiencies and assessing the needs
of capacity building.
The concept of a peer review has a long history and is practiced by other international
organizations, for example, the OECD (see Pagani, 2002)73.
One aspect of the EU model that has however, not been followed in Africa, is the
centrality of elections and democratic referenda to approve countries’ accession to the
Union and its key components.
Though similar in comparisons, there still remains little important difference between the
EU and the AU as related to above; In the AU every country on the African continent is
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72 The African Peer Review Mechanism (APRM) is an instrument voluntarily acceded to by Member States of the African Union as an African self-monitoring mechanism.
(Cf:www.nepad.org)
73 See his comments on The African Peer Review Mechanism (APRM) Occasional Paper No 64 - November 2002

welcome to join, although many its countries are in a dilemma between democracy and
autocratic rule, regardless of its constitutional characteristics and has the advantage that
an impressive number of 53 states may enter the list.
But this constitutes also a substantial weakness because there is no consensus as to its
basic constitutional principles.
In all cases in which European countries joined the EU and its precursors, or adopted the
single currency, the issue was either a major theme of a democratic multi-party election,
or a referendum, or both.
The weakness of this democratic component in the AU process is an important issue may
warrant attention.
Comparing both regions has become very interesting and educational as learning the
basic strengths of the institutions have proved necessary but it is good to look at one
essential part of these comparisons which is funding.
Funding of these institutions is necessary as to maintain its planned goals and
development policies.
In Africa, the Commission of the African Union highlighted the fact that the Organization
of African Unity (OAU) largely depended on statutory contributions of the Member States
for financing its activities which, for the most part, were administrative functions.
However, the creation of the African Union increased its operational requirements,
making it imperative to identify that other additional financial resources were needed not
only to operate the various organs of the Union, but also to implement its continental
programmes and section of projects as contained in its strategic plan for 2004-2007 of
the Union.
Several financing sources had since been proposed including those by propositions of
import levies, as well as a tax on insurance; the proposal on the Pan-African Resource
Solidarity by the African Organization of Civil Societies, and other financing sources like
the popular mobilization of financial resources and mobilization of resources through the
private sector.
The establishment of a trust fund financed by the private sector and financing by the
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African Investment Bank is soon to be created and put consideration.

Given that the idea of a value added tax was not considered by African integration
experts initially, due to non-harmonization of tax legislations in Africa.
Therefore, it is seen that Africa (the AU) may be far from been compared to the growing
nature of the EU when it comes to the basis of institutional funding.
The EU has developed over the years and has grown from funding itself to the providing
of funds for various EU programs and policies, including those that relate to African
development and Trade Integration.74
A given example of this is the ACP-EU Cooperation also known as the Cotonou
agreement.
Although the basis of this chapter is to compare the institutions of the AU and EU, it is
however necessary to briefly review the ACP-EU cooperation because it is in my opinion
that the future of the African integration may depend or be affected by this partnership 75.
This partnership has helped somewhat shape trade developments in Africa.
In figure 2 below, we see the effects of these agreements with these States and
preferential access to EU markets.
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74 Council of the European Union, the EU and Africa: Towards a Strategic Partnership, Brussels, 19 December 2005, 15961/05 (Presse 367).
75 In 2001, the EU markets were opened completely for imports for Balkan States and Forty Nine Least Developed Countries.

The Cotonou Agreement76 is seen as a global and exemplary Agreement, which
introduces radical changes and ambitious objectives while preserving the 'acquis'77 of 25
years of ACP-EU cooperation.
The agreement is based on five interdependent pillars with the underlying objective of
the fight against poverty: an enhanced political dimension, increased participation, and a
more strategic approach to cooperation focusing on poverty reduction, new economic
and trade partnerships and improved financial cooperation78.
Cotonou laid the basis for new, reciprocal, and WTO-consistent trading agreements
between the European Union and six groupings of ACP states by 2008, the date of
expiration of the waiver.
The EPAs would replace the Lomé system of unilateral trade preferences with more
comprehensive, modern, free trade agreements that would be legal under Article XXIV of
the General Agreement on Tariffs and Trade (GATT).
While being beneficiaries of the Cotonou agreements, ACP countries are also eligible for
GSP (Generalized System of Preferences)79 preferences; under which industrialized
countries would grant autonomous trade preferences to all developing countries and
waiver to allow such preferences as granted in 1971 by the GATT. 80 And also is the
Everything But Arms preference (EBA).81
The comparisons can go on and on and still it would be observed that although, the
African region is still termed as underdeveloped or even, a developing nation, it has
come a long way in its drive to achieving economic growth through regional integration
of its nations and the relationship with the global economies of the world.
We should, however, not lose sight that African economic integration is still at its
beginnings. “With the exception of the most southern part of Africa, where the regional
exchange of goods and services increased quite substantially over the 1990s, economic
76 Salama, C., & Dearden, S. (2000). The Cotonou Agreement. European Development Policy Study Group discussion papers, no. 20.
77 The entire body of European laws is known as the acquis communautaire. For enlargement negotiations, the acquis have been divided into 31 chapters, each of which
must be 'closed' by candidates.
78 Price Waterhouse Coopers. 2005. "Sustainability Impact Assessment of the EU-ACP Economic Partnership Agreements."
79 The GSP became a recommendation of the UNCTAD in 1968.
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80 The GSP preference scheme provides nonreciprocal preferences with lower tariffs or completely duty-free access for imports from 178 developing countries and
territories into the EU markets.
81 For a detailed discussion on the impact of EU preferences for LDCs under Everything But Arms, see Brenton (2003)and the Europa website.

integration has remained low in Sub-Saharan Africa.”82 As in the Middle East and North
Africa, the general openness to trade is high, but they trade little among each other.
On the issue of EPAs, According to the provisions of the Cotonou Partnership Agreement
(CPA), the EPA is expected to contribute to the deepening of the regional economic
integration process in Africa and by that same process, also contribute to poverty
reduction in Africa.
Yet even with the expected elimination of customs tariffs on imports from the EU to
African countries within the RECs with which they would establish free trade areas
(FTAs), cheaper and ‘subsidized’ European imports would surge into their economies,
which may also result in increased competition with local manufacturers and their
industries.
From the early years of African integration, market access programs have been on the
table and can be traced back to the Yaoundé Conventions in the sixties83, which was
maintained under the Lomé Conventions throughout the seventies, up to the nineties.
Yet, African countries have not been able to benefit from their special and preferential
access to the European markets.84
These impacts of EPAs may have been accessed and examined by a sample number of
impact studies conducted for the African countries.
To cite an example, the ECOWAS case impact studies that have been undertaken for
Ghana and Nigeria indicate that the immediate impact of the EPA would result to
revenue losses due to the decrease of import duties on more competitive European
products85.
On this basis anticipated results therefore to the overall process of regional economic
integration process within the Regional Economic Communities (RECs) on the continent,
becomes critical.
82 European Central Bank, ‘Economic Integration in Selected Regions outside the European Union’, ECB Monthly Bulletin, October 2004, pp. 67-84, esp. p. 71.
83 In 1963 and 1969 18 African States and their six European counterparts signed the First and Second Yaoundé Conventions, supported by resources from the 2nd and
3rd EDF respectively. The agreements were geared mainly towards financial, technical and trade cooperation, primarily in the sectors of economic and social infrastructure.
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84 Brenton, P. (2003) ‘Integrating the Least Developed Countries into the world trading system: the current impact of EU preferences under Everything But Arms’, World
Bank Policy Research Working Paper 3018, World Bank, Washington D.C.
85 McQueen, M. 1999. The Impact Studies on the Effects of REPAs between the ACP and the EU. (ECDPM Discussion Paper 3). Maastricht: ECDPM.

Though still argued by so many as a means to pool the African region more deeply into
poverty and underdevelopment, experts still believe it will build the regions drive
towards global integration.
Experts also believe that the future success and prospects of the region as it concerns
EPA’s maybe found within the context of Article 6 of the Abuja Treaty of 1991
establishing the African Economic Community. It is said that these agreements seek to
create over a period 34 years since its entry into force, Africa’s own continental Free
Trade Area/Customs Union, African Common Market and the African Monetary Union and
the African Economic Community (AEC).
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CHAPTER FOUR
REGIONAL INTEGRATION ARRANGEMENTS IT’S IMPACT ON THE AFRICAN
REGION.
4.0 Introduction
Past and present studies have shown the efforts Africa has made towards its pursuance
of regional integration arrangements and have also shown the many promises such
arrangements hold for individual countries and its continent as a whole.
These arrangements will however not be pursued if they had no recorded realistic
achievements and show how their success could lay in the economic analysis of it costs
and benefits. So it at this, the chapter looks to review one of the literatures of economics
on regional integration. - The Viner Model.
This model has been used to analyse the implementations and effects of regional
integration arrangements over time and its singular phenomenon of the formation of a
customs union.
As we go on further, we see the impacts and need of this arrangement in the African
region and regional integration effects.
4.1 Regional Integration Arrangements; the Viner Literature
The literature on customs unions is a strange phenomenon which unites free-traders and
protectionists in the field of commercial policy, and its strangeness suggest that there is
something peculiar in the apparent economics of customs unions. The customs union
problem is entangled in the whole free-trade-protection issue, and it has never yet been
properly disentangled.
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Viner (1950, p.41)

Regionalism in the world today and its economy has been seen to involve not only small
blocs of regions in countries but also large blocs of countries that count potentially for an
appreciable share of the global world trade.
The Jacob Viner model is used here primarily because of its historical basis of one the
first models that challenged and argued the concept and rationale of early times on the
relationship of a customs union and a free trade area.
The structure and rationale of the customs union lies behind the WTO guidelines and that
mainly of the GATT/WTO Article XXIV86, permitting its formation and a free trade area as
the special exceptions to the rules against international discrimination.
Since the mid-1970s theoreticians have had a sceptical opinion about the economic
value of trade and customs union formation.
It was considered to be the second best policy among others. With the development of
the theory of intra-industry trade in the mid-1970s, new light was shed on the usefulness
of regional trade arrangements and liberalization.
Even more optimism about the role of economic integration has brought many
theoreticians to try and to investigate the effects of elimination of non-tariffs barriers
instead of a customs duties and its still however, an open question whether integration
arrangements are essential for economic growth.
Until Viner (1950) published its pioneering work in 1950 87, economic integration was a
separate subject in economic theory. However, the concept been suggested more than
40 years by Viner (Trade Diversion and Creation)88 have been accepted by every aspect
of International trade theory and as a matter of fact, even by political economists.
86 Conforming to provisions of Article XXIV, which remained essentially unchanged between the inception of GATT in 1947 and 1994, when the Uruguay Round Agreement
(URA) was signed. The URA merely clarified, but did not change, the provisions of Article XXIV. Paragraphs 4 to 10 of Article XXIV of GATT (as clarified in the
Understanding on the Interpretation of Article XXIV of GATT 1994) provide for the formation and operation of customs unions and free trade areas covering trade in goods.
Basically, two criteria were laid down in Article XXIV for a CU or FTA to be waived from MFN obligations: first, “substantially all trade” among members of a CU or FTA must
be free, and second, post-union (or post-FTA) barriers on trade with non-members must not on the whole be more restrictive than those that members had prior to their
forming a CU or FTA.
87 Viner, J. (1950), The Customs Union Issue (Carnegie Endowment for International Peace), 41-55.
88 Trade creation (TC) is the replacement of expensive domestic production by cheaper imports from a partner, and Trade diversion (TD) is the replacement of cheaper
initial imports from the outside world by more expensive imports from a partner. This approach to regional integration has led to identifying the basis of trade as it relates
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to economic integration with the evolving concept of trade creation and diversion as the build point towards regional economic integration of any country.

That a customs union can lead to an institution of domestic high cost has not come to
surprise anyone in present times seeing its effects in many sub-regional blocs and
regional formations; especially in the EU.
Evidently, what is already less obvious is that in many cases, the regional liberalisation of
trade can lead to a substitution of low-cost imports (originating initially from non-
member or partner country) by imports originating in the preferred country.
Viner however, stressed the discriminating aspect of regional integration showing the
same token that preferential concessions made on customs duties would impose real
cost on donors.89 His analysis were clear cut and assumptions, quite simplistic and he
shows clearly in his assumptions that in any given situation of trade among countries or
regions, there will always be either trade creation and diversion, but not both at the
same time.
Focusing on its ever positive effect, (Lipsey 1957) and others, asserted that some trade
diverting customs union would be beneficial to its members and this was in contradiction
in Viner’s conclusions in his literature on regional arrangements; as it is obvious that the
consumer surplus effect can compensate in excess the negative trade diversion effect on
any production side, provided the decrease in local prices is sufficiently large.
Also made was the point that consumer benefits occurred in both cases and might even
outweigh the losses in the case of trade diversion.
Essentially many others such as (Cooper and Massell 1965)90 had a different view point to
Viner’s approach on integration91.
They both stated that Viner’s theory is a sheer extension of free trade theories, since
trade creation effect is not more than what the integrative process contributes in terms
of dismantling of protections in future partner countries and therefore, can only be
considered as a step in the right direction for regional integration for any nation92.
89 Lipsey, R. (1957). The theory of customs union: trade diversion and welfare economica. Vol. 24 pp. 40-6
90 Cooper, C.A., and Massell, B.F. (1965), ‘A New look at Customs Union theory’, Economic Journal, 75: 742-7
91 Viner always maintained his view that trade creation was always beneficial and trade diversion could be detrimental.
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92 Note that The basis for integration in any case, will include the benefits from trade creation, economic trade diversion, greater economies of scale which is based on
profitable competition, increased investment, free movement of resources, comprehensive cooperation, peace and security, and improved bargaining power.

Understanding the effects of economic integration on trade, we see factors where FTA or
CU can result in a lower level of external tariffs or other restriction compared with
situations under regional integration arrangements, can result to external trade creation
and also result to a faster economic growth in regions due to integration of members
importing more from the rest of the world.
However, the economic welfare of non-member countries is unaffected by the formation
of a regional integration arrangement, within the stylized Vinerian framework, and the
change in world economic welfare is identical to the aggregate change in welfare of
countries in the preferential trading arrangement.
4.2 Early Studies of (EU) Regional Integration Arrangements
The EU remains the most successful example of regional integration arrangements and
also has one of the earliest empirical approaches to assessing the impacts of regional
integration arrangements with intra-regional trade patterns that led to the wake of
forming a regional trading bloc.
Article 2 of the Treaty establishing the EEC93, although since its developments in the
1957, has made some adjustments and incorporation (with the Maastricht Treaty),
pronounces the basic structure of the future of integration in the European region. This
act also led to the growth of intra-industry trade in the wake of the EC's formation and
expansion.
The study of Regional integration arrangements is said to have had focus in the early
years, on the impacts on the European community, its trade and manufactured goods
and services as recorded after the Treaty of Rome. Essentially, allowing for the concept
of a flexible and open integration of the region94.
A major justification for the establishment of the EU arises from the expansion of
opportunities to exploit competitive advantages that result from the removal of barriers
to trade and undoubtedly, its establishments have led to substantial trade creation.
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93 The Amsterdam Treaty, Article 2, Part One, Principles, p.39

94 Ali M. El-Agraa. The European Union: Economics and Policies. 5th edition. Cambridge.

However, there are other less beneficial effects associated with its policies95 which have
led to a process of trade diversion.
As it’s already known, the EC was established as a customs union and an FTA and is
recorded as the first to have recorded a movement towards free trade and also put into
form the Vinerian theory of regional integration arrangements and its costs and benefits.
Illustrating the effects on a market for importable of a country becoming a member of a
CU or FTA, we may consult the Kindleberger (1973) diagram intended to define the
effects of trade creation and diversion96.
4.3 Regional Integration Arrangements and the African Union
Efforts towards regional integration around the world, since World War II has been a
recorded success especially in the EU and many arrangements have been formed or
expanded. There has been 194 agreements notified to the GATT and the WTO since
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95 The EU Commercial Policy is said to have led to high-cost sources of supply which has supplanted lower-cost sources many times since it was established.
96 Kindleberger, C.P. (1973), International Economics, 5th edition.

1999, 87 (45%) and up to 1990,97 leaving most of the world’s nations to belong at least
to one regional integration arrangements and one followed by that line is the African
region.
Africa has had numerous schemes of economic integration, with particularly all the
African countries belonging to more than one scheme (as shown in the chart below) and
may possibly record one the oldest schemes of integration arrangements in the world:
the Southern African Customs Union (SACU in 1910).
One of the expected outcomes of deeper integration in Africa is the strengthening of
intra-African trade and despite the trade liberation schemes of the RECs, intra-African
trade is still very low, accounting for about 10 per cent of the value of total exports.
Note: Africa has 14 RECs of varying design, scope, and objectives. Six of them dominate
the integration landscape. The figures in the chart represents the number of members.
Many levels of integration have been seen in the region since the 1960 and 1970’s
though slow, in the 1980’s, the 1990’s recorded great revitalization of integration efforts
with the establishment of the African Economic Community.
The EU has shown that regional integration arrangements can lead to income
convergence but the East African Community has shown that regional integration
arrangements can lead to income divergence, with comparative advantages and
agglomeration effects in the region.

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97 (World bank 2000b) Report.

Basically, this has created the argument that income divergence is more likely in regional
integration arrangements among developing nations and convergence is more likely in
arrangements between industrial and developing countries.
Due to weak production structures and constrains by a variety of inadequacies, most
African countries are small with low incomes and its domestic markets get affected by
these factors which affects its size limits98.
African countries can benefit from regional integration if they design integration
arrangements suited to their needs and capabilities.
Integration will help overcome Africans problems by overcoming constraints arising from
small domestic markets which will allow the region reap the benefits of scale economics,
and more domestic and foreign investments. These benefits will raise productivity and
diversify exports.
Integrated nations in the region can create common results and solutions using
comparative advantages of their resources for efficient outcomes of these
arrangements99.
Regional integration arrangements can help make deeper reforms for the region and
provide a framework for coordinating policies and regulations to help ensure compliance
and provide mechanism of collective restraints.
It’s been suggested that if Africa maintains the idea of the formation of regional
integration arrangements it should decide what countries should be members and what
policies should be adopted and if it can be consistent with it joining members.100
Integration however, is seen as just one tool for the advance of African countries. As
effective integration is required as a part of any overall development strategy and should
implement developmental programs for which they were best designed for.
Africa’s Regional and Sub-regional Economic Communities (source: adapted
from the World Bank).

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98 ECA report: Accessing Regional Integration in Africa – www.unesa.org/aria

99 Market forces dictate production based on comparative advantage, which increases the marginal welfare of people in a common market.
100 Ibid.,p51

CHAPTER FIVE
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DISCUSSIONS

5.0 Introduction
In the course of carrying out the research of this paper, the use of discussions instead of
a methodology became necessary.
We have already reviewed in earlier chapters the concept and theories of regional
integration arrangements and its effects on a country’s economy.
Been that this paper has become more literature based; the use of discussions has
become more essential than that of a methodology.
Note that the use of current media articles and viewpoints became necessary, as the
issue of African integration has become a debate for argument and economic research
and since no questioner was drawn up or interviews conducted for the purpose of this
research.
5.1 Discussions
I have had quite a good number of discussions with people on the issue of Africa’s future
and her drive towards achieving its dream of a ‘United States of Africa’.
During a class trip to Brussels, I asked a member of staff at the EU parliament what she
thought about the whole idea; and she was quite optimistic and believed the region had
a good chance of achieving its goals.
Most (African) Students of International Trade were not very optimistic about the idea
and thought the region had a long way ahead. Also that it was better off with its regional
blocs than a single entity.
But since no method of a quantitative or qualitative nature of a questionnaire was used
here, the paper will outline different articles past and present on the views of Citizens,
Governments and International institutions on the issue.
After his swearing into a democratic government, Nigeria’s President; Umaru Yar’Adua,
affirmed his country’s support to the ultimate goal of the AU being “a full and political
integration leading to the United states of Africa”. However, he states on, “Africa should
take a gradual approach to achieving its integration because of the critical need to focus
on strengthen and consolidation of internal governance”101.

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101 The Peoples Daily Online – ( www.english.people.com.cn)

Integration in Africa is not an event but a process and the process is already here. Our
integration is an ongoing process at different levels – regionally and continentally102.
The virtues of regional economic integration in Africa can reduce the cost of developing
essential infrastructure and facilitate large scale investments by “reinforcing the
attractiveness of our economies and reduce any risks103”.
A Single African currency will one day become a reality; although it may seem crazy at
the moment. – Senegal Artist, Mansour Ciss104.
Africa should build on its existing sub-regional and bilateral arrangements in order to
broaden and deepen its regional economic integration and the creation of a single
regional market can increase its economic efficiency105.
In the decades after independence the obstacles to progress at African integration have
been formidable, not the least due to the diversity on basic constitutional principles and
socio-economic characteristics. But there is reason for optimism because Africa seems to
be much more homogeneous in these respects106. Regional economic integration is a
fundamental part of national development strategies because it smoothes the path to a
gradual and harmonious integration into the world economy.
The EU has the experience of its own integration, which is the world's most evolved form
of a closer Union between sovereign its states.
The EC’s support for the African Union and for NEPAD must be based on the aims set by
Africans themselves. The international community widely welcomed the NEPAD initiative
based on the principle that Africa should assume ownership of its development
strategies. Of these strategies, regional integration is the centrepiece of the NEPAD
action plan, with emphasis being put on strengthening regional economic integration
areas, improving the macroeconomic environment, stepping up integration, and
developing regional trade.
102 Press comments made by South African Foreign Minster Dr Nkosazana Dlamini Zuma and Minister of Foreign Affairs, Co-operation and African Integration of Niger. 18
April 2007. culled from – www.dfa.gov.za/doc/speeches
103 President Abdelaziz Bouteflika of Algeria on Making African Integration a Reality.

From Africa Recovery, Vol.16 #2-3 (September 2002), page 10 (http://www.un.org/ecosocdev/geninfo/afrec/)
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104 Cf. from Africa Recovery, Vol.16 #2-3 (September 2002), page 10
105 Culled from; a report on the need for African integration in the Statesman Newspaper Ghana. - (www.thestatesmanonline.com).
106 Culled from: the CCIS Research Series Working Paper No. 4 by Dr. Wolfgang Zank

The strengthening of regional economic communities is a necessary stage in the creation
of the African single market107.
Many have given their opinion of the success of the AU and some have recommended
that it will only succeed if truly structured in the image of the EU in both concept and
practice.
Comments have been reviewed in the media and academic presentations on its success.
We review some of these comments from a BBC talk point forum;
Comments:
If the political ideology of the African Union is well articulated and well implemented,
then the AU ideology can help to heal the tribal, ethnic, religious and colonial divisions
(francophone and Anglo-phone) that have prevented Africa from achieving unity.
Nsambila Cecilio Mbolela, Zambian108
Turning Africa around will take many decades but the continent has great potential. It
will need to develop her economies more, stop corruption, clamp down on wars and
undemocratic states, and develop the transport infrastructure.
An African Parliament, Court of Justice and Central Bank seem sensible but must be set
up properly. They must try to avoid the excessive bureaucracy that has occurred with the
European Union.
The Peace and Security Council I expect will have a very important role to play. However
there must be representation for the indigenous peoples and languages and regions of
Africa somewhere in the organisation. The African Union is the first good sign of hope for
the continent in generations but it has a very huge task ahead which will take many
decades. I wish it well and hope it succeeds. Alex Naughton, UK109
The AU is an unworkable monstrosity created to keep despots in power for longer than
they merit. It is a union of presidents who will come to the rescue of their peers even
when the electorate no longer wants them - the Gaddafi’s, Mugabe’s, Moi’s, Oma Bongos.
107 Speeches and articles by Pascal Lamy on First forum of African parliamentarians in the framework of the New Partnership for Africa's Development, NEPAD Forum,
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Pascal Cotonou, 7-9 October 2002 (www.ec.europa.eu/)
108 From the BBC Talking point forum and comments. Available online at; http://news.bbc.co.uk/1/hi/talking_point/debates/african/2116564.stm
109 Ibid.,

Unless there is a clear ‘Charter’ to promote good governance, individual freedoms within
member states which can be enforced, Africa can kiss progress and prosperity goodbye
for keeps.
Muzambiringa, Zimbabwe110
Those who think that the AU can easily emulate the EU are grossly mistaken.
Unfortunately many AU leaders cannot let multi-party democracies exist, and they also
squander our resources and hide them in EU countries. The differences are sharp enough
and too difficult to emulate.
Chidi Nwamadi, Nigeria111
Personally I believe that this newly born union should focus on economic developments
rather than intervene in the affairs of member states, and borrowing western style of
justice and democracy. The AU can't be like EU where their member countries are
culturally and ethnically united but nevertheless AU should try to be like ASEAN
(Association of South East Asian Nations) where there are different cultures and beliefs
yet have common interest.
Abdullah Hussein, Kuala-Lumpur, Malaysia112
The creation of the AU is at best symbolic and at worst substantial. However, the idea of
African Union has been planted, and it is something that all Africans need to embrace.
For sure, our current leaders are too despotic and corrupt to govern their countries and
unite Africa but future leaders can build on the idea and change the destiny of our
continent.
George Mutua, Kenya113
According to the ARIA report, one of the challenges to integration in Africa is inadequate
financing and this seriously creates a barrier to integration in the region. It further
highlights the financial resources to support the regional economic communities come
mainly from assessed contributions, but external assistance has been the prime source
110 Ibid.,
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111 Ibid.,
112 Ibid.,
113 Ibid.,

of financing the operations of the regions REC’s114 which in turn may affect the actual
workings of the African Union.
However, we have seen from the various discussions which have shown different views,
most optimistic, and some negative, about Africa’s drive towards integration but still the
primary question remains, is a unified Africa the way forward?
The question may probably be answered in months or years even; to come but this
research does not intend to reach any conclusion and like many, leave open doors for
further opinions and research with an optimistic view of Africa’s drive towards integration
and a place in the global market.
CHAPTER SIX
SUMMARY, CONCLUSION AND RECOMMENDATIONS

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114 It’s been observed that REC’s do go a long way to support the actualisation of integration.

6.1 Summary
The idea of regional integration and the building of the initiative were relatively simple.
The founding states of the EU had stable democracies (at least quite stable after the war)
unlike the African region where till this day even with the formation of different economic
and peace strategies in place, many problems upshot after many others tend to have
been resolved.
Many countries in the region have been in a gray zone between democracy and
autocratic rule probably leaving the idea of a United State of Africa, a mere illusion, or its
great and challenging walk to reality?
Although it seems that the global community has not yet come to accept the presence of
the AU, the country continues to tackle issues that has stigmatised it in the past; allowing
for a full welcome to the global economies.
On the issue of a creation of a common market, it’s a basic principle that its creation can
be fulfilled with the agreement on the idea of a well maintained market economy and
with borders open for market & economic transactions.
A few years ago, as a young scholar, I was very optimistic of a true West African
integration and in my final year paper, I shared that optimism with the world around me
and this is the same optimism which has led the leaders of West Africa to achieve that
dream.
The creation of Africa’s common market will undoubtedly, lead to a better economic
community of its REC’s and with the consensus to an open market economy, the
integration of these markets forces can occur in the region.
6.2 Recommendations
Africa’s nations of the AU seem to be far too divergent and need to embrace a well
planned initiative for growth of the continent.
Good governance is said to be much more than sound policies and the African
governments have no choice but to put its economic growth for the region into effect
whether by a unified continent, or a state regional bloc.

Page75

I read somewhere once that to ‘Globalise, Africa must Regionalise’. The concept of
globalisation places huge challenges on the economic prospects of the region, which
becomes on major issue of achieving a clear cut dream of regionalisation.
Tackling its challenges to development, the region needs to welcome both
multilateralism and regionalism to promote proper enlargement of its markets and the
exploit its economies of scale.
Safeguarded by the WTO process, it can benefit from unfair protectionist measures and
the region has to ensure that it conforms to the WTO requirements under Article XXIV
of the GATT for the regional integration arrangements.
Quoting the former OAU Secretary General115, “Regional approach must therefore replace
national approach in planning economic and industrial policies as well as the designing of
development projects and the pointer for African initiatives intended for development of
our continent”.
Undoubtedly, the African region needs to braze itself and work towards achieving its
goals to economic growth and development if it wants to accomplish its long term goals,
Africa’s leaders with major world players should begin to develop effective partnership
strategies and policies for addressing the problems that affect integration in the region.
The signing of a joint AU – EU strategic partnership will help the African Institution build
up and forge a new and strong partnership that will help renew the relationship with the
regions and provide new identities and help capitalize on the lessons of the past and
provide a effective strategic framework for long-term integration and cooperation.
The creation of initiatives and policies towards achieving its goal is but one step forward
but the education of its citizens is another. As during the Shuman years, he didn’t just
initiate the idea of integration for Europe, he made sure the initiative was taught,
explained and understood by its citizens. Africa leaders and the AU should follow in this
step if integration is to be achieved in the continent.
6.3 Conclusion
Page75
115 Statement by H.E. Amara Essy, OAU Secretary General, at the Third African Development Forum (ADF III), Addis Ababa, 4th March 2002.

I have had the opportunity to see and have learnt of the outcome of a well structured
and planned integration of a region as in the case of the EU and as an African, I look
forward to a time where I can travel and trade among regions in Africa, with a single
passport and trade with a single currency without borders or restrictions.
It has been said that one man’s food is another’s poison. Regional integration has worked
for the EU and does not really mean it has to work for Africa.
Undoubtedly, the African region has recorded substantive results with it regional blocs
and REC’s and with successive partnership agreements with other regional blocs of the
world.
Unfortunately, many African nations still remain tied to its colonial countries and would
prefer to remain that way and not letting themselves be singled out from their major aids
received from their outside influences.
Recent reports have shown that even the aid received by the African region from
International Organisations, are used to finance the wars in its different regions. Although
some term this as speculation, we have seen the results from wars and battles in most
African states.
Other news reports and research has shown that the cost of conflict is equal to the
amount of money received in aid by the affected region. It further shows that armed
conflict in Africa, over a 15-year period was nearly $300bn (£146bn) on the cost to the
continent's development116.
Although it is possible in maybe many years from now, to achieve its dream of a pan-
African state, Africa needs to take the process of Integration seriously and in a gradual
process.
We saw the EU celebrate 50 years of achieving integration in 2006, so will Africa hope to
celebrate its success in years to come? However, with the current problems and
challenges facing the region, 50 years may be a long shot but achievable no doubt.
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116 Report by the BBC. Available online from; http://news.bbc.co.uk/1/hi/world/africa/7038348.stm

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Appendix A
Pictorial Representations of the AU and EU Regions.

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Regions of the European Union Integration
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Regions of the African Union (Integration)

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Countries of the African Union Integration

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The Challenges and Prospects of the future of Integration in the African Union

(Comparisons with the EU)

DEPARTMENT OF LAW, ECONOMICS

Anthony Erihre Oneya

Dissertation Supervisor: Mr. Thorsten Lauterbach

Submitted in partial completion of the degree of

Word Count 22,297

Anthony Erihre Oneya

currency - The Euro.

between the AU & EU.

trade topics for the same than for the AU.

so were its articles.

other institutional structures of supra-nationality.

But that future may be far and vague as argued.

Anthony Erihre Oneya

you all for your prayers.

To my Course mates and Friends

Thank you Sir for your support

your support. You made all this possible.

Anthony Erihre Oneya

Acronyms and Abbreviations VI

1.2 Statement of Problem

1.3 Objective of Study

1.4 Significance of Study

1.5 Plan and Scope of Study

CHAPTER 2 – BACKGROUND OF STUDY

2.0 Regional Integration: Antecedence

2.1.0 African (Regional) Integration

2.1.1 European (Regional) Integration

2.1.2 Conceptual Issues

2.1.3 Review of Relevant Literature

2.2 African Integration? Is it Imperative?

2.3.1 The African Union and Its Challenges.

CHAPTER 3 – COMPARATIVE ANALYSIS

3.1 Comparison of the AU and EU

3.2 Africa’s phases of integration; towards the EU blue print.

CHAPTER 4 - REGIONAL INTEGRATION ARRANGEMENTS IT’S IMPACT ON THE

4.1 Regional Integration Arrangements; the Viner Literature

Anthony Erihre Oneya

4.2 Early Studies of (EU) Regional Integration Arrangements

4.3 Regional Integration Arrangements and the African Union

CHAPTER 6 – SUMMARY, CONCLUSION AND RECOMMENDATIONS

ACJ - African Court of Justice

AGOA – African Growth and Opportunity Act

AMU - Arab Maghreb Union (UMA)

APEC - Asia Pacific Economic Co-operation

ASEAN - Association of South East Asian Nations

BOAD - West African Development Bank/Banque Ouest Africaine de Développement

CAF - Central African Federation

CAMU - Central African Monetary Union (UMAC)

CEAC - Communauté Économique d’Afrique Centrale (Central African Economic

CEAO - Communauté Économique d’Afrique de l’Ouest (Economic Community of West

CEFTA - Central European Free Trade Association

CEMAC - Communauté Économique et Monétaire de l'Afrique Centrale

CFSP - Common Foreign and Security Policy

COMESA - Common Market for Eastern and Southern Africa

COREPER - Committee of Permanent Representatives

CPA – Cotonou Partnership Agreement

EAC - East African community

EBA – Everything But Arms

ECOSOC - Economic and Social Committee

ECOWAS -Economic Community of West African States (in French: CEDFAO)