Answer to Question #175486 in Macroeconomics for Deen

Question

discuss the concept of economy integration in your view as ecowas beenable to deliver on its set objectives to member countires

Answer 1

Solution:

Economic integration refers to the unification of economic policies between different states through a partial or full abolition of tariff and non-tariff restrictions on trade. It involves setting up preferential trade agreements (PTAs) between independent states to secure potential economic advantages for their own interests. The objective is to create a wider market space for increasing trade between domestic firms and those of other states, but at the same time creating new barriers to exclude previous trading partners. The most common form of PTA is the use of the free trade area which involves the removal of restrictions on trade between member countries but does not affect trade with other countries. Other forms include customs union and common market.

The Economic Community of West African States (ECOWAS) main objective is to foster economic cooperation and development between member states especially in the areas of industry, transport, energy, agriculture, natural resources, monetary and financial matters, including social and cultural aspects. As a result of such cooperation and development, ECOWAS intends to improve the standard of living among its members by enhancing their economic stability and promote closer relations within the community.

ECOWAS has been very successful in meeting most of its objectives to member states despite facing many challenges by maintaining an economic balance between member states through assisting and compensating countries from which trade is diverted by other member states; integrating regional trade and increasing external trade of processed goods, thereby creating jobs; creating uniformity of prices; reducing costs of transaction; improved competition; economies of scale and factor productivity. It has also led to many road infrastructure developments, no strict borders between member states, fostering good relations, and enhancing peace and security among the member nations.