(a) What is economic integration? (b) Highlight any three problems of economic integration in west Africa.

Assessment: WAEC SSCE - Economics - 2007 (Essay) Subject: Economics

Question 1 Report

(a) What is economic integration? 
(b) Highlight any three problems of economic integration in west Africa.

Answer Details

(a) Economic integration. Economic integration is an arrangement in which two or more countries in a region agree to remove or reduce trade barriers (such as tariffs and quotas) among themselves and to co-operate economically, so as to create a larger combined market and promote their joint economic growth and development. Its common forms are the free-trade area, customs union, common market, and economic community such as ECOWAS.

(b) Three problems of economic integration in West Africa.

  1. Different currencies and payment difficulties. Member states use different, often non-convertible currencies, which complicates trade and settlement of payments among them.
  2. Loss of customs (tariff) revenue. Governments that depend heavily on import duties are reluctant to abolish tariffs on goods from member states because doing so reduces their revenue.
  3. Similarity of products. West African countries mostly produce and export similar primary commodities, so they compete for the same foreign markets instead of trading with one another, which keeps intra-regional trade low.

(Other acceptable problems: differences in official language, poor transport and communication networks, political instability, and widespread smuggling.)

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