(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 come together and agree to reduce or remove trade barriers (such as tariffs and quotas) among themselves and to co-operate in economic matters, in order to form a larger single market and promote their joint economic development. Examples of its forms include free-trade areas, customs unions, common markets, and economic communities such as ECOWAS.

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

1. Differences in currencies. Member states use different currencies with different values, and the absence of a single convertible currency makes trade and payments among them difficult.
2. Loss of revenue from import duties. Removing tariffs on goods from member countries reduces the customs revenue that governments depend on, so some states are reluctant to comply fully.
3. Production of similar goods. Many West African countries produce and export similar primary products (for example cocoa, groundnuts, crude oil), so they compete with rather than complement one another, which limits intra-regional trade.

(Other valid problems: language and colonial-heritage differences, poor transport and communication links, political instability, and smuggling.)