(a) Explain the term economic integration. (b) Highlight any four problems of economic integration in West Africa.

Answer Details

(a) Economic integration is an arrangement whereby two or more countries agree to co-operate and combine parts of their economies by reducing or removing trade and other barriers among themselves, in order to form a larger economic unit and share mutual benefits such as a wider market, freer movement of goods, and faster development. ECOWAS is a West African example.

(b) Problems of economic integration in West Africa:

• Differences in currency: member states use different currencies (naira, cedi, CFA franc, etc.), which complicates trade and payments among them.
• Production of similar goods: most members are primary producers of similar agricultural and mineral products, so they compete rather than complement one another, limiting intra-regional trade.
• Poor transport and communication links: inadequate roads, railways and communication between member countries hinder the movement of goods and people.
• Language and colonial differences: the mix of English, French and Portuguese speaking states with different legal and administrative systems makes cooperation difficult.
• Unequal levels of development / fear of domination: less developed members fear that stronger economies will dominate, so they hesitate to remove barriers.
• Political instability and lack of political will: frequent changes of government, conflicts and reluctance to surrender sovereignty weaken commitment to agreements.
• Loss of revenue from tariffs: removing import duties on intra-community trade reduces government revenue, discouraging full participation.

Any four, well explained, are acceptable.