Session 10: Agricultural value chains in the region
This paper examines the reasons for the growth in the poultry industry in Malawi in the past 10 years.
Session 9: A regional collabroation: Different approaches
There is long-standing, wide consensus on the need for greater economic connectedness in Africa. Despite the rhetoric and apparent policy consensus, implementation of related commitments lags seriously. The lack of progress towards the free movement between national markets of goods, services, people and capital is frequently blamed on a combination of lack of political will and lack of capacity. Yet, it is necessary to better understand what these twin deficiencies actually entail. This paper takes a politicaleconomy approach to regional integration to try and understand progress on regional economic integration.
Session 9: A regional collabroation: Different approaches
This paper reports on the results of an investigation into the contribution of cooperative management of water resources to regional integration in SADC. The study found that, while a few bilateral projects had contributed to economic development, there was little evidence of a systemic contribution to formal integration. An evaluation of the opportunities and constraints suggests that more effective intersectoral coordination at national level to make better use of resources to stimulate industrial development is the first priority. A more general conclusion is that a functional approach to integration that seeks and supports practical opportunities for mutually beneficial cooperation is more likely to succeed than a focus on generic regional institution building.
Technical regulations lay down compulsory requirements for product or service characteristics or their related processes and production methods. They have specific administrative provisions and conformity assessment requirements with which compliance is mandatory for safety, health, environmental control and consumer protection. The capacity to comply with international standards, norms and technical regulations underpins the potential for economic and industrial growth. Standards and conformity assessments are required to prevent the influx of substandard and injurious products into African markets and to improve the quality, and enhance potential access, of African products to export markets.
This policy brief examines the implications for regional integration that the strengthening of technical infrastructure capacity in African countries for metrology, standards, accreditation and conformity assessment and compliance could have for Africa's industrialisation efforts.
This paper forms part of a broader research project TIPS has been involved in around common regional industrial policies. It looks at three examples of regional integration: the Association of Southeast Asian Nations (ASEAN), the European Union and Mercosur. The focus is on understanding the drivers and motivation for regional integration in different parts of the world. It looks into how integration was supported and directed, and specifically how these blocs deal with issues of common industrial policies. It aims to assist in understanding the supply and demand for deepening regional integration and how integration options and approaches can be designed to respond to highly specific contextual circumstances.
Southern African Development Community (SADC) members signed the Trade Protocol in 1996, however progress in the region to reap the benefits purported to accompany regional economic integration appears limited. Although SADC has adopted a growth and development through trade strategy, indications are that more needs to be done to implement this in a way that yields more positive results.
Countries in Southern Africa have only recently begun considering the possibility of jointly developing comprehensive industrial policies under the auspices of regional integration bodies such as the Southern African Customs Union (SACU). Regional co-operation in industrial policy design and implementation has the potential to both identify and capitalise on the productive synergies that exist between states, and to enhance the integrated performance of industrial sectors across borders.
Author: William S. Mbuta
Session 7B: Regional Issues
Session 1B: The Financial Crisis: Global and Regional Impacts
Information on the impact of immigration on a host country's trade with particular reference to the African continent and the SADC region remains scant, if indeed it is ever available. This study seeks to fill this gap with an analysis of data. More specifically, the main objective of this study is to analyze the impact of cross-border movements of SADC citizens into South Africa on the latter country's trade (exports and imports) with SADC countries from which the migrants had originated. The estimated results of this study confirm the existence of a positive and statistically significant migration-trade relationship in the case of South Africa's trade with its SADC trading partners.
This paper proposes that non-temporary circular migration creates and sustains 'circular migration flows', which are the outcome of the continuous interaction between sending and receiving countries that is created and sustained by migration and by transnational networks. Circular migration generates both pecuniary and non-pecuniary flows which are conducive to enterprise creation and development. A positive migratory experience will see an individual increasing his or her financial, human and social capital, and this facilitates entrepreneurial activities in both home and host countries, including fostering trade linkages between sending and receiving countries. Hence this paradigm helps us consider how migration can stimulate employment. This paper considers this premise with reference to the Southern African sub-region.
Empirical studies on regional economic integration process in Africa exhibit sluggish progress and there by limited level of intra trade. The existing literatures in Africa, particularly in Southern African regional integration bloc, SADC have neglected effects of regional economic integration dealing with disaggregated data. This study analyzes trade creation and diversion effects of the Southern African Development Community (SADC) using disaggregated data from 2000 to 2007.
The investigation estimates an augmented gravity model using panel data and random effect estimator methods. The results show that the intra -SADC trade is growing in fuel and minerals, and heavy manufacturing sectors while it displays a declining trend in agricultural and light manufacturing sectors. This implies that SADC has displaced trade with the rest of the world in both fuel and minerals, and heavy manufacturing sectors. SADC has served to boost trade significantly among its members rather than with the rest of the world. Countries participating in SADC have moved toward a lower degree of relative openness in these sectors trade with the rest of the world. However, the increasing trend of extra-SADC trade bias over the sample period in both agricultural commodities and light manufacturing sectors means that there has been a negative trade diversion effect. In other words, the value of trade between members and non-members has been increasing for the two sectors. These results seem to suggest that SADC countries retained their openness and outward orientation despite they signed the trade protocol for enhancing intra-SADC trade in agricultural and light manufacturing sectors.
Trade in services generally is viewed as a potentially viable option to contribute to the much needed economic diversification in Botswana. This study is informed by the ongoing policy discussions about the need to develop an educational hub in Botswana. It is intended to be a constructive contribution to these policy discussions. We analyse trends in tertiary education trade. Both exports and imports of tertiary education are discussed. The study does an audit of the policies, regulations and institutions in the education sector with the view to assess their readiness to support the establishment and maintenance of an education hub. The data we use are obtained mainly from the Government of Botswana, which grants most of the scholarships to citizens studying in different countries across the globe. Other information is obtained from the local tertiary institutions, which offer education mainly to citizens but do enrol a few foreign students. Also, the study discusses the trade arrangements that Botswana is party to and makes an assessment of how they can assist (or inhibit) Botswana's endeavours to develop and education hub. The study is intended for policy makers and it is hoped that it will promote productive policy direction.
This study focuses is on the movement of talent. There is already free movement of labour within the European Union and the CARICOM region, SADC aims to achieve this by 2015. We examine the Caribbean region where the Caricom regional initiative provided the enabling environment for intraregional migration to take place.
Given that the Southern African Development Community's (SADC) intention is to become a common market (CM) whereby labour and capital will be envisioned to freely move among the bloc's member states, the study investigates the extent to which the region is prepared for free movement of natural persons. The study investigates the extent to which the current regional member countries' laws and regulations, measures and practices encourage or inhibit free movement of citizens across their respective territories.
The research found out that, national laws, regulations and practices inhibit free movement of regional citizens across member states. Some of the regulations, laws and practices which inhibit free movement of people include stringent visa requirements, different requirements for registration of foreign business, non recognition of relevant educational qualifications obtained in other member states, strict entry requirements in certain sectors such as medical and legal fields, application bureaucracies and the cost of applying for permits. The study suggests some possible actions that the regional bloc may consider implementing in an attempt to encourage and ensure the successful implementation of the envisioned common market, especially with regards to free movement of regional citizens.
The policy suggestions recommends commitment by SADC States to the implementation of agreed Protocols and policies on enhancing free movement of people through (i) recognition of qualifications obtained in regional institutions of higher learning by all member states, (ii) expedition of the ratification of the Protocol on Free Movement of People, (iii) making labour markets more flexible, (iv) simplify administrative procedures, (iv) development of SADC expert and employment vacancy database in collaboration with the United Nations Educational Scientific and Cultural Organization (UNESCO) and International Organization of Migration (IOM) (v) prioritizing employment of regional qualified personnel before considering non-regional candidates.
Through the analysis of trends in South Africa's higher education enrollment of Southern African Development Community (SADC) citizens over the years, the study investigates the extent to which the country has strategically marketed its educational services and positioned itself as the educational hub of Southern Africa. The analysis reveals that South African universities' export of higher education services has been modeled in line with three of the four modes of supply identified in World Trade Organization's (WTO) General Agreement on Trade in Services (GATS). The three modes that the country has utilized are: (i) cross-border supply, (ii) consumption abroad, and (iii) commercial presence, and as a result of that, it has become the educational hub of southern Africa.
The study found out that South Africa can act as the educational hub of Southern Africa. It has been found out that it is competent in most education attraction factors. It has the highest number of public universities in Southern Africa. South Africa universities dominated the top ten highly rated Universities in Africa. In terms of factors that lead to internalisation of higher education South Africa Universities offers international recognized academic qualifications. South Africa in general is highly rated in terms of local availability of research and training institutions, quality of scientific research institutions quality of overall infrastructure and institutions. The study further provides some policy suggestions as to how best South Africa and SADC countries can improve their respective higher education laws, regulations and strategies in order to attract more foreign students into their respective universities. Some of the possible regulations to enhance enrolment of regional citizens in the universities of member states includes: (i) allowing students on study permit to also work in the country of study whilst studying without having to get a separate work permit, (ii) harmonizing recognition of educational qualifications across the region thus making it easier for potential students from one regional country to apply and be accepted at a university in another country, and (iii) introduction (or increasing) of flexibility in studies for instance, through block release where students come for a limited period for face-to-face tuition whilst distance and online learning constitute a larger proportion of the qualification tuition.
This paper looks at the nature and extent of linkages between trade and industrial policies in Zimbabwe. The paper establishes that the trade and industrial policies are interlinked in Zimbabwe. The study indicates that trade policy is one of the implementation strategies of the industrial policy - further illustrated in this paper specifically using the example of the clothing and textile industry. The policies are strongly linked in that one focuses on production capacities and the other provides a platform for the exchange of the goods produced. Also, the paper highlights the fact that the two policies are dependent on regional integration.
The paper recommends that the country needs to create a conducive macroeconomic environment for the economic agencies. It is critical to restore and increase the country’s normal capacity utilisation and other sectoral linkages such as the agriculture, mining, tourism and construction which have been under severe stress in the past ten years. The paper suggests that while a strong focus has been placed on priority industries, the country must also give priority to other products.
The heads of states of the Common Markets for East and Southern Africa (COMESA), the East Africa Community (EAC) and the Southern African Development Community (SADC) met in Uganda in October 2008 to discuss broader objectives of the three regional trading blocs. This was later referred to as the Tripartite Summit. Discussions centred on achieving acceleration of economic integration on the continent in line with the Abuja Treaty and on the African Union objective of the formation of one continental economic bloc. The key issues for the three blocs were regional trade liberalisation, infrastructure development and a legal and institutional framework. The leaders agreed to initiate a process of coordination and harmonisation of programmes in order to progress towards the goals of expanding trade, alleviating poverty and attaining the overall development objective. The Summit provided a platform for the three blocs to join forces in forming a larger Free Trade Area (FTA).
The drive towards SADC trade liberalisation is a goal that is emphasised in most documents of the SADC Secretariat, including the protocol on trade and the regional indicative strategic development plan (RISDP). This trade liberalisation aims to deepen regional integration through increased intra-trade between SADC member states, which was to be facilitated by the removal of trade barriers. Up to so far, the only barriers that have noticeably been reduced are import tariffs. At the same time individual member states are required to meet the growing challenges of global and regional competitiveness. The trade profile of an average SADC member country is characterised by high reliance on few products for trade revenue, which also contribute enormously to the value of total trade, and also has most prospects of industrial development. Therefore, the need for competitiveness is dependent upon the ability to protect the very same sectors that are being liberalised.
The initial steps of trade liberalisation in the region involved reduction of tariffs under the implementation of the protocol on trade, however the expected response from trade was low. It is a well known fact that there exist other weaknesses in these economies such lack of productive capacities to respond to trade incentives and infrastructural constraints which restrain potential trade. This study examines the extent to which trade protection under regional integration processes of developing countries affects the least developing members of the bloc. The static comparative tariff analysis method of relative tariff ratio is applied to determine the degree of protection between members of SADC. The results show that the least developing members of the bloc grant more access to the developing members, and they also face the most restrictive protection in the counterpart markets. Furthermore, the potential for the least developing members to build up their industrial capacity is negatively affected by deeper integration as they rely on trade instruments.