Differentiate between the motivating factors for regional integration for developed nations such as UK and developing nations such as African countries. Journal of African Business, Vol.10, No.2 7 January 2010. These were pursued by a large number of regional integration agreements in the developing world as well. 14 0 obj 4. Our mission is to liberate knowledge. 5. The second was the integration of the new members into the ASEAN regional body. %���� endobj Regional integration is often viewed as a way to support development and economic growth in developing countries through the related with it benefits to trade and welfare. Economic integration theory goes through two development stages each of which addresses the political and economic context relevant for its time. August 25, 2000. by Michael Mussa Economic Counselor and Director of Research IMF Presented in Jackson Hole, Wyoming at a symposium sponsored by the Federal Reserve Bank of Kansas City on “Global Opportunities and Challenges,” This raises the need to bring the political economy of regional integration to the fore, including the role of (*���(%�8H����8c�-�� f�ԉd�9�@6_IjH��9���(3=�D����R�1%? Regional integration may also be pursued to provide the policy credibility which is … 45 0 obj Regional economic integration has a fairly long history in virtually all parts of Sub-Saharan Africa (SSA). Regional integration helps countries overcome divisions that impede the flow of goods, services, capital, people and ideas. One was the integration of the ASEAN market. )U!���$5�X�3/9�� �(�$5�j�%V*�'��&*���r" (,!��!�0b;�C��Ң2(��ɘ� I�8/ Since the mid-1950s, regional integration has intensified on every continent, with the European Union (then known as European Community) in the lead. It also looked at additional issues, such as diploma recognition, integration into the destination country society, and potential reasons and incentives for ... WHO Regional Office for Europe Further, support to regional integration is one of the key stated objectives of the European Union’s trade ... factors that underpin corridor initiatives and the different inter and intra-country interests. A desire to help neighboring countries stabilize and prosper. Integration facilitates the expansion of the An important motivation behind regional trading arrangements has involved the prospect of enhanced economic growth and increased welfare. POLITICAL ASPECTS/FORCES THAT MOTIVATES REGIONAL ECONOMIC INTEGRATION Many regional economic communities have been driven by political rather than economic goals. 2.1 Regional Integration Theories of regional integration have been developed to explain European integration. Sakakibara and Yamakawa examine the motivating factors and underlying dynamics of the progression toward closer cooperation in the region beginning from a historical perspective, which sets the stage for an evaluation of the form that regional cooperation might take so as not to sacrifice the benefits of the region’s already achieved openness. endobj The first stage is regarded as classic theory or static analysis and … The healthy effects of such a regional economic integration are presumed to be as follows: 1. 79TW��;�>��2y� օ ��z8P��e�/V�x�����(�O���^��BLV[ܘdGsq�X�j�側?CV�����”�ƵE�P�e%��8���}V�S1�܀���m�s�R�Ŋ�KWܔd„vq�6�ʌw�Pn�F�:��2���ζ�e�Uu����ˍeS1��W�3�,�C��ri/ލ��BE]���(r �l*Cr���ů����rF�����ۖ�p�K-~n�E�����\���pɦ�̧\�oN��g�"���І�����r��K���9�7�,��!�C%��?�ݯ�-Ydl?C���n��&��Q�F]�?���Ŝ=s� -��(�w��`�,e;�>70�яlA��}�00��5z�����bE��^�ul�H0��ir�[a3߃Mc��i��@�����HJ�����\z�t. Regional economic integration has enabled countries to focus on issues that are relevant to their stage of development as well as encourage trade between neighbors. RCI promotes growth and narrows development gaps between ADB’s developing member countries by building high quality cross-border infrastructure, closer trade integration, intraregional supply chains, and stronger financial links, and motivating provision of regional public goods, enabling slow-moving economies to speed their own expansion. p �Yrʁ< qQ�[x h��!�"H& |8Bi)(�"�D t���iz!�_B��=�`�b��0vI�� R���� ExDl�s0j��L�J~ !�r.��YC\;�<8�Dv0� A��Rگ��K Expert Answer Motivating Factors for both types of nations: For Developed Nations For Developing Nations Maximising the profit potential by reaching to overseas market with high demand due to high po view the full answer Although REI’s role in contributing to growth and development was recognised and acknowledged, its importance in Africa has never been properly outlined. Disclaimer deal of momentum towards regional integration, inspired by the growing awareness of globalization, increasing homogeneity in issues relating to fiscal, financial and technical barriers to trade. integration are applicable to the integration arrangement among developing countries and tries to summarize these theories in three main groups – general economic, market-related and trade-related factors and effects. Yet, in practice, intra-regional integration has not received great traction, especially in South… endobj This will cause other free trade member countries to lose import business. Against an international backdrop of changing political and economic priorities, Africa must plot a new course for its industrialisation and economic development, using the momentum of regional integration. PreserveArticles.com is an online article publishing site that helps you to submit your knowledge so that it may be preserved for eternity. Differentiate between the motivating factors for regional integration for developed nations such as UK and developing nations such as African countries. yQ�f What is the Concept of Regional Economic Integration? Regional integration is often viewed as a way to support development and economic growth in developing countries through the related with it benefits to trade and welfare. The third was the integration of all modes of ASEAN cooperation – political, economic, and social – into one coherent and coordinated effort. Factors Driving Global Economic Integration -- by Michael Mussa, Economic Counselor and Director of Research, IMF. Since a regional common market obviously provides a much larger market than that offered by the domestic market of a single country, economies of scale, both internal and external, become possible with the widened size of the market. Integration is where design meets reality, where theoretical meets practical implementation. Bibliography. nB�io��Ԅ��>�$� �E�X&tLp��~��_ ���"S;C�_�7�#�ŕxb#I/!�AY�B��W��8��mYEpCAq V �KF�%�q B��? endstream 12 0 obj 13 0 obj 2. Regional Integration in East Asia Challenges and Opportunities Part I: History and Institutions ... motivating factors and underlying dynamics of the European Union and the North American Free Trade ... and Integration is part II of this paper. The paper demonstrates that, besides the multiple membership problems, many other factors explain the low level of the Democratic Republic of Congo’s regional integration, namely poor diversification of its industrial sector, political instability and the lack of a clear and well defined strategy for a regional integration process. FACTORS MOTIVATING INTEREST IN SUB-REGIONAL INTEGRATION Building a sense of security among neighbours The motive for regional economic cooperation is often political as well as economic. All the articles you read in this site are contributed by users like you, with a single vision to liberate knowledge. 64 0 obj overview. I don’t see the future of development in Africa without successful regional integration. The chapter also distinguished between regional integration based on the exchange of trade preferences and policy coordination, where the objectives are to promote a more efficient allocation of resources, to intensify competition and to underpin political credibility vis-à-vis private investment, on the one hand, and regional cooperation where the primary objective is to ensure the supply of regional public goods, on the … At that time, I referred to three forms of integration. Section 15.3 traces the changing drivers that influenced RCI’s evolution in East Asia and Southeast Asia—the subregions that benefited most thus far from regional cooperation and market-driven integration. 2 0 obj World Bank Regional Integration Projects. endobj 2.1 Regional Integration Theories of regional integration have been developed to explain European integration. A number of leaders called for the integration of Africa already soon after independence, but it was only in the 1970s and 1980s that concrete steps were taken to re-launch or establish economic integration institutions in all sub-regions. 11 0 obj The deeper integration of regional markets through the elimination of non-tariff barriers can reduce trade and operating costs. The deeper integration of regional markets through the elimination of non-tariff barriers can reduce trade and operating costs. endobj instance, it is common nowadays for the terms regional integration and regional economic integration to be used interchangeably in spite of the importance accorded by literature to non-economic factors of integration, particularly to political ones. Economic integration theory goes through two development stages each of which addresses the political and economic context relevant for its time. implementation of ambitious regional integration efforts must take into account regional asymmetries and inequalities in Southern Africa and other barriers to the implementation of existing commitments. Finally, all of these factors in unison lead to a rise in living standards and levels of security that Europe had not experienced for centuries. What are the Different Types of Economic Integration? <> 3. Integration is where design meets reality, where theoretical meets practical implementation. ... Everything. Regional Integration… Step Two: When barriers to trade are eliminated, imports will enter through whichever country has the lowest external tariff and trade restriction. endobj %PDF-1.7 regional integration contributes to achieving development outcomes like economic growth, addressing inequality, and diversification. Moreover, the possibility of specialisation for regional trade would encourage the flow of investment into industries which have a comparative cost advantage, so that gains from international trade would rise. Regional economic integration has enabled countries to focus on issues that are relevant to their stage of development as well as encourage trade between neighbors. Asia and the Pacific. 28-10-2014. WHO. Factors Motivating Exports: The Canadian Evidence Peter Yannopoulos, Faculty of Business, Brock University, ... provide some export assistance according to regional needs and rather complimentary to federal support. I don’t see the future of development in Africa without successful regional integration. Copyright. <>/Font<>>>/Rotate 0/StructParents 407/TrimBox[0.0 0.0 516.0 728.5200196]/Type/Page>> Thus, by capturing the concepts and observed processes underlying the European experience can we expect to make any contribution to understanding the phenomenon of new regionalism and regional integration elsewhere. There are four main types of regional economic integration. 4. <>stream Expert Answer Motivating Factors for both types of nations: For Developed Nations For Developing Nations Maximising the profit potential by reaching to overseas market with high demand due to high po view the full answer The African Continental Free Trade Area has the potential to boost growth and lift 30 million people out of extreme poverty. What Is Regional Economic Integration? 5. Regional integration is essential here as well, since goods, services and people need to be able to flow seamlessly across borders to reduce costs and to help firms become competitive enough to link to these value chains. x�c``������$����WR����~�������|@���T��#���2S/`M. regional integration highlighting the need for a new approach. The first stage is regarded as classic theory or static analysis and … This paper seeks to identify and examine the demand and endobj Data. Regional integration is often viewed as a way to support development and economic growth in developing countries through the related with it benefits to trade and welfare. Against an international backdrop of changing political and economic priorities, Africa must plot a new course for its industrialisation and economic development, using the momentum of regional integration. This will likely lead to the creation of a customs union; where all free trade members adopt a common external tariff with nonmember countries. Regional Integration in East Asia : Challenges and Opportunities, Part 2. <> [/ICCBased 10 0 R] Specific objectives included assessing the effect of leadership on economic integration, determining the effect of Content Guidelines The healthy effects of such a regional economic integration are presumed to be as follows: 1. 2. Since a regional common market obviously provides a much larger market than that offered by the domestic market of a single country, economies of scale, both internal and external, become possible with the widened size of the market. <>stream Africa Journal of Management, Vol.1, No.4 15 December 2015. One was the integration of the ASEAN market. And, Section4summarize the arguments and concludes. The healthy effects of such a regional economic integration are presumed to be as follows: 1. The paper demonstrates that, besides the multiple membership problems, many other factors explain the low level of the Democratic Republic of Congo’s regional integration, namely poor diversification of its industrial sector, political instability and the lack of a clear and well defined strategy for a regional integration process. In this discussion, we’ll cover some guidelines that may help ensure the success of your next systems integration project. :�h�~�Cq�ɺ����"Ua�d�oL������j����Ի+��_��������D��peڹ�GܸB�]�@a��N._�����Mq6��p7 ������i��{��A���� R�۠i1���wd��jR�ݡq+�[>�0��Xn����B�{G��C@�G��/��MVE$=�������r)-���g�.և�^A8jUQ�� �HB��\Y E��(���j4�va[�ˬ���VˊF�N*krYV�O�P�Vn� n�{Ǚ'ʽc�w��Hqڊ�G?�O?A0ʽ��(��A�+ In this discussion, we’ll cover some guidelines that may help ensure the success of your next systems integration project. In short, thus, it has been conceived that, as a factor in the development of the less developed countries, a regional common market is economically far superior to the relatively small national market sheltered behind a protectionist tariff wall. Secondly, the large market so created would permit a hight degree of sophistication and specialisation of products conducive to furtherance of modern industrial development. Furthermore, this may facilitate the realisation of the optimum allocation of resources, and thus, lead to an increase in efficiency in production. TOS Regional Integration: Review of the Management Literature and Implications for Theory, Policy, and Practice. endobj Thus, by capturing the concepts and observed processes underlying the European experience can we expect to make any contribution to understanding the phenomenon of new regionalism and regional integration elsewhere. For Africa, a vast continent of over 1.2 billion people, integration has considerable potential not only for promoting Apart from an increase in the volume of total trade as a result of such an integration, a favourable change in the cost and price structure may also be effected along with, the desirable change in the structure and composition of foreign trade. endobj For the European Union (EU), for example, which has no common foreign or security policy, 2 From the literature3 and experience, some traditional and non-traditional gains from regional integration arrangements could be identified, including: 2.1 Traditional Gains from Regional Integration Arrangements Trade gains: If goods are sufficiently strong substitutes, regional trade agreements will cause the demand for third party goods to decrease, which will drive down prices. Regional co-operation is not the same as regional integration and, as Schiff and Winters (2002) point out, there is rarely little connection between them. The second was the integration of the new members into the ASEAN regional body. Other benefits may include intra-regional distribution of resources and a single regional market for goods, services, labour and/or capital. Privacy Policy Regional integration is essential here as well, since goods, services and people need to be able to flow seamlessly across borders to reduce costs and to help firms become competitive enough to link to these value chains. This is the most basic form of economic cooperation. 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