FREE TRADE AREA OF THE ECOWAS:
AN EVALUATION OF ITS ACHIEVEMENTS AND
CHALLENGES
(1990-2010)
BY
MUHAMMAD MUHAMMAD UMAR
A dissertation submitted in fulfilment of the requirement for the
degree of Master of Political Science
Kulliyyah of Islamic Revealed Knowledge and Human
Sciences
International Islamic University
Malaysia
APRIL 2013
ii
ABSTRACT
Third World Countries have been putting efforts since the 1950s in the area of regional economic
integration. In the past three decades in particular, a great number of broadly defined Regional
Integration schemes have been adopted by all the countries in Sub-Saharan Africa (SSA), and
elsewhere among the Third World Countries. Those Regional Integration efforts actually gave
birth to the Economic Community of West African States famously known as ECOWAS.
ECOWAS was established on May 28, 1975 in Nigeria with the starting members of Benin,
Burkina Faso, Cape Verde Islands, Gambia, Ghana, Guinea, Guinea-Bissau, Ivory Coast,
Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, and Togo. At its onset,
ECOWAS aspired to increase trade interaction between its members through certain objectives,
such as the elimination of customs duties and other charges of equal effect in respect of the
importation and exportation of goods between member states; abolition of quantitative and
administrative restrictions on trade among the member states; establishment of a common
customs tariff and a common commercial policy towards third countries; and abolition (as
between the member states) of the obstacles inhibiting free movement of persons, goods,
services and capital. Giving a new era to the organization, the ECOWAS members signed a
revised ECOWAS treaty in 1993, in order to spur economic integration and political cooperation
in the region. This study assesses the ECOWAS performance from 1990 to 2010 in the areas of
trade integration. The study concludes that, despite the target to comparatively increase intra-
ECOWAS trade, the volume of trade flow between ECOWAS member countries has been
unsatisfactory, as the majority of the objectives of the regional trade integration in this region
have not been realized. Secondly, the level of trade liberalization and intra-trade relations among
the member states have still not improved. Therefore, the ECOWAS has failed to move towards
achieving its Free Trade Area goals.
iii
ECOWAS82
5791
ECOWAS5771
ECOWAS57718151
ECOWAS
iv
APPROVAL PAGE
I certify that I have supervised and read this study and that in my opinion, it conforms to
acceptable standards of scholarly presentation and is fully adequate, in scope and quality, as a
dissertation for the degree of Master of Human Sciences (Political Science).
….. ………….………… ..………..……………
M. Moniruzzaman
Supervisor
I certify that I have read this study and that in my opinion, it conforms to acceptable standards of
scholarly presentation and is fully adequate, in scope and quality, as a dissertation for the degree
of Master of Human Sciences (Political Science).
……...…...…..….....……………...........………
Prof. Dr. El Fateh A. Abdel Salam
Examiner
This dissertation is submitted to the Department of Political Science and is accepted as fulfilment
of the requirement for the degree of Master of Human Sciences (Political Science).
..............….…..……………..…………..………
M. Moniruzzaman
Head, Department of Political Science
This dissertation is submitted to the Kulliyyah of Islamic Revealed Knowledge and Human
Sciences and is accepted as fulfilment of the requirement for the degree of Master of Human
Sciences (Political Science).
…………..……..….……………....……...........
Mahmoud Zuhdi Abd. Majid
Dean, Kulliyyah of Islamic Revealed
Knowledge and Human Sciences
D E C L A R A T I O N
I hereby declare that this dissertation is the result of my own investigations, except
where otherwise stated. I also declare that it has not been previously or concurrently
submitted as a whole for any other degrees at IIUM or other institutions.
Muhammad Muhammad Umar
Signature Date 18/03/2014
v
vi
INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA
DECLARATION OF COPYRIGHT AND AFFIRMATION OF
FAIR USE OF UNPUBLISHED RESEARCH
Copyright © 2013 by International Islamic University Malaysia. All rights reserved.
FREE TRADE AREA OF THE ECOWAS,
AN EVALUATION OF ITS ACHIEVEMENTS AND CHALLENGES, FROM (1990-2010)
No part of this unpublished research may be reproduced, stored in a retrieval system, or
transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or
otherwise without prior written permission of the copyright holder except as provided below.
1. Any material contained in or derived from this unpublished research may be used by
others in their writing with due acknowledgement.
2. IIUM or its library will have the right to make and transmit copies (print or
electronic) for institutional and academic purposes.
3. The IIUM library will have the right to make, store in a retrieval system and supply
copies of this unpublished research if requested by other universities and research
libraries.
Affirmed by Muhammad Muhammd Umar.
…………………….. ………………………
Signature Date
vii
To my beloved daughter Ibtisam.
viii
ACKNOWLEDGEMENTS
“Whosoever obeys Allah and the Messenger, they are with those unto whom Allah has shown
favor, of the prophets, the saints, the martyrs, and the righteous. The best company are they.
(an-Nisa, 69)
Eternal thanks and praise are due to the Almighty Allah, Most High for making the worth of all
creatures, and in particular that of mankind, reach its peak with the blessed Prophet (Muhammad
S.A.W.), Who is hailed as the Beloved of Allah, and thus, the crown of all Prophets. All praise
and appreciation are due to Allah, the sustainer and the giver of life and security, Who provided
me with health and opportunity to complete this work, without which nothing could have been
possible. May His peace and blessings be upon his messenger Muhammad (SAW).
First and foremost, I would like to express my sincere gratitude and appreciation to my
supervisor Assoc. Prof. Dr Moniruzzaman whose remarkable effort, encouragement and useful
supervision were all behind the success of this work by making possible corrections, without
which this work could not have been completed. May He the Almighty reward him for his
efforts.
I would also like to seize this opportunity to express my gratitude to our inspired mentors in the
Department of Political Science (IIUM): Prof. Dr. Abdul Rashid Moten, Prof. Dr. El Fateh A.
Abdel Salam, Assoc. Prof. Dr. Ishtiaq Hossain, Assoc. Prof. Dr. Wahabuddin Ra’ees, Assoc.
Prof. Dr. Garoot Suleiman Eissa and all lecturers in the department, for their continuous
guidance and knowledge-sharing, motivation and inspiration.
I am always grateful to my dear father M. Muhammad Umar Ali, I would like to thank him for
all the support and concern, he is the best father one could ever have, he is always there for me
whenever I need help, he really means the world to me. My deepest appreciation to my dear wife
Aisha, and my beloved daughter Ibtisam for their love, support and courage throughout the
period of my studies. My deep gratitude and appreciation to my entire friends and colleagues
who have assisted towards the completion of this work direct or indirectly.
ix
TABLE OF CONTENTS
Abstract ..................................................................................................................... ii
Abstract in Arabic ..................................................................................................... iii
Approval Page ........................................................................................................... iv
Declaration Page ....................................................................................................... v
Copyright .................................................................................................................. vi
Dedication Page ......................................................................................................... vii
Acknowledgements ................................................................................................... viii
List of Tables .......................................................................................................... ix
List of Abbreviations ................................................................................................ x
CHAPTER 1: INTRODUCTION…………………………………………………1
Background to the Study ........................................................................................... 1
Statement of the Problem ............................................................................. 3
Research Questions....................................................................................... 3
Objectives of the Study ................................................................................ 4
Literature Review ........................................................................................ 4
Theoretical Framework ................................................................................. 12
Free Trade Defined ..................................................................................... 13
Analytical Framework ................................................................................ 15
Data Sources and Analysis……………………………………………. ..... 17
Chapter Outline ............................................................................................ 17
CHAPTER 2: THE HISTORICAL BACKGROUND OF WEST AFRICA ..... 19
Introduction ............................................................................................................... 19
Population of the ECOWAS Region ……………………………………... 22
Formation of ECOWAS ............................................................................... 26
Rational for Integration ............................................................................... 28
Goals and Objectives of ECOWAS ............................................................. 29
The Organizational Structure of the ECOWAS .......................................... 33
Authority of the Heads of State and Government ........................................ 34
Council of Ministers…………………….………………………………….. 35
Tribunal……………………………………………………………………... 36
The Community Parliament..………………………………………………. .36
The Economic and Social Council (ECOSOC)….………………………….. 37
The ECOWAS Court of Justice…………………………………………….. 37
x
The Executive Secretary……………………………………….……………. 38
The Fund for Cooperation, Compensation and Development….…………… 38
The Specialized Technical Commissions………………………….………... 39
Other Institutions and Committees ………………………………….……….40
Mechanism for Conflict Prevention………………………………….…….....40
The Mediation and Security Council (MSC)………………………………. ...41
The Council of Elders………………………………………………………41
Conclusion………………………………………………………………….42
CHAPTER 3: ECOWAS TRADE LIBERALIZATION POLICY ................... 44
Introduction ............................................................................................................... 44
Trade Liberalization and ECOWAS: A Historical Account .................................... 45
ECOWAS Trade Liberalization Scheme ................................................................. 48
Member Countries’ Achievements on Trade Liberalization ................................... 49
Benin Republic: ............................................................................................ 50
Burkina Faso ......................................................................................... 51
Cape Verde ............................................................................................ 52
Côte d’Ivoire ......................................................................................... 53
The Gambia ........................................................................................... 55
Ghana .................................................................................................... 56
Republic of Guinea ............................................................................... 57
Guinea Bissau ...................................................................................... 59
Liberia .................................................................................................. 60
Mali ...................................................................................................... 61
Niger Republic ..................................................................................... 63
Nigeria .................................................................................................. 64
Senegal ................................................................................................. ..65
Sierra Leone ......................................................................................... 66
Togo ..................................................................................................... . 67
French Speaking Countries’ Performance on Liberalization…….………....68
ECOWAS Regional Competition Policy…………..……………………… 70
Conclusion .................................................................................................. 72
CHAPTER 4: ECOWAS INTRA-STATE TRADE RELATIONS…................. 75
Introduction ............................................................................................................... 75
The Intra-State Trade among the Member Countries .............................................. 76
Country-wise Assessment on Trade Relations ..................................................... 79
Benin Republic: ............................................................................................ 80
Burkina Faso ......................................................................................... 81
Cape Verde ............................................................................................ 83
xi
Côte d’Ivoire ......................................................................................... 84
The Gambia ........................................................................................... 85
Ghana .................................................................................................... 86
Republic of Guinea ............................................................................... 88
Guinea Bissau ...................................................................................... 89
Liberia .................................................................................................. 90
Mali ...................................................................................................... 91
Niger Republic ..................................................................................... 92
Nigeria .................................................................................................. ..93
Senegal………………………………………………………………….94
Sierra Leone…………………………………………………………….95
Togo…………………………………………………………………….96
Discussion…………………………………………………………………....97
Conclusion .............................................................................................................. .100
CHAPTER 5: CONCLUSION …………………….…………………………….102
Policy recommendation……………………………………………………..109
BIBLIOGRAPHY………………………………………………………….…….. 111
xii
LIST OF TABLES
Table No. Page No.
2.1 ECOWAS Products and Their Leading Producer Countries 22
2.2 Historical Profile and Some Basic Social and Economic Indicators of the
ECOWAS Member Countries 24
3.1 Timetable for Tariff Reduction and Liberalization Adopted by ECOWAS
Member States 47
4.1 Member Countries’ Performance in Implementing Free Movement of
Persons, Goods, and Capital 78
4.2 Benin’s Trade Relations with the Rest of ECOWAS (Real Growth in Total
Exports/Imports to Major Partners) 80
4.3 Burkina Faso Trade Relations with the Rest of ECOWAS (Real Growth in
Total Exports/Imports to Major Partners) 82
4.4 Cape Verde Trade Relations with the Rest of ECOWAS (Real Growth in
Total Exports/Imports to Major Partners) 83
4.5 Cote d’ Ivoire Trade Relations with the Rest of ECOWAS (Real Growth in
Total Exports/Imports to Major Partners) 84
4.6 The Gambia Trade Relations with the Rest of ECOWAS (Real Growth in
Total Exports/Imports to Major Partners) 86
4.7 Ghana Trade Relations with the rest of ECOWAS (Real Growth in Total
Exports/Imports to Major Partners) 87
4.8 Guinea Trade Relations with the Rest of ECOWAS (Real Growth in
Total Exports/Imports to Major Partners) 88
4.9 Guinea Bissau Trade Relations with the Rest of ECOWAS (Real Growth in
Total Exports/Imports to Major Partners) 89
xiii
4.10 Liberia Trade Relations with the Rest of ECOWAS (Real Growth in
Total Exports/Imports to Major Partners) 90
4.11 Mali Trade Relations with the Rest of ECOWAS (Real Growth in
Total Exports/Imports to Major Partners) 91
4.12 Niger Trade Relations with the Rest of ECOWAS (Real Growth in
Total Exports/Imports to Major Partners) 92
4.13 Nigeria Trade Relations with the Rest of ECOWAS (Real Growth in
Total Exports/Imports to Major Partners) 93
4.14 Senegal Trade Relations with the Rest of ECOWAS (Real Growth in
Total Exports/Imports to Major Partners) 94
4.15 Sierra Leone Trade Relations with the Rest of ECOWAS (Real Growth in
Total Exports/Imports to Major Partners) 96
4.16 Togo Trade Relations with the Rest of ECOWAS (Real Growth in
Total Exports/Imports to Major Partners) 97
5.1 Coups d'etats in West Africa, 1975-2010 108
xiv
LIST OF ABBREVIATIONS
FTA Free Trade Area
RTA Regional Trade Agreement
GATT General Agreements on Tariffs and Trade
WTO World Trade Organization
ECOWAS Economic Community of West Africa
MARIUN Mano River Union
CEDEAO Communaute Economique des Etats de l'Afrique de l'Ouest
IMF International Monetary Fund
EEC European Economic Community
LDC Least Development Countries
NTBs Non-Tariff Barriers
CU Custom Union
GDP Gross Domestic Product
UNCTAD United Nations Conference on Trade and Development
AGOA African Growth and Opportunity Act
ECA Economic Commission for Africa
ECOSOC Economic and Social Council
MP Members of Parliament
MSC Mediation and Security Council
xv
ECOMOG Economic Community of West African States Monitoring Group
SAP Structural Adjustment Program
SSA Sub-Sahara African
ISRT Inter-State Road Transit
ASYCUDA Automated SYstem for CUstoms DAta
WAMA West African Monetary Agency
SDR Special Drawing Right
VAT Value Added Tax
UEMOA Union Economique et Monetaire Quest African
CFA Colonies Françaises d'Afrique
ETLS ECOWAS Trade Liberalization Scheme
CEPS Customs Excise and Preventive Service
LPI Logistics Performance Index
WAEMU West African Economic and Monetary Union
MFN Most Favored Nations
GATS General Agreement on Trade in Services
OTRI Overall Trade Restrictiveness Index
ITU International Telecommunication Union
EMCP ECOWAS Monetary Cooperation Program
WAMI West African Monetary Institute
WAMZ West Africa Monetary Zone
AFCF African Financial Community Franc
USAID United States AID
1
CHAPTER ONE
BACKGROUNG TO THE STUDY
INTRODUCTION
One of the key patterns of the world trading system is undoubtedly the proliferation of the Free
Trade Agreements (FTA). The past decade and a half has witnessed acceleration in the pace of
the formation and expansion of the Regional Trade Agreements (RTAs) among countries with a
motion of Free Trade. Over six decades of the General Agreements on Tariffs and Trade
(GATT), a total of 124 RTAs were ratified to it. However, from 1995, when the World Trade
Organization (WTO) was established, through 2006, the figure rose to 243 RTAs.1 As a result,
virtually every country is now involved in at least one trade agreement or the other, with an
average number of five agreements signed by each country. It has been estimated that nearly 40
percent of the world trade occurs within these preferential blocs.2
Those regional trade agreements have resulted in practicing free trade among the
member countries of an economic unity. Free trade is the absence of artificial barriers to the free
flow of goods and services across the border between the partner countries of an economic
unity.3 It is the step where the member states of an economic community come to eliminate
trade restrictions among the participating members. The greater the elimination of trade
restrictions the closer the completion of the Free Trade Area.
1 Ferrantino, M. ―Quantifying the Trade and Economic Effects of Non-Tariff Barriers‖, OECD Trade Policy
Working Papers, (2007): 28. 2 World Bank: Global Economic Prospects, ―Regional Trade and Preferential Trading Agreements: A Global
Perspective,‖ 25 March, 2011. 3 Dunkley Graham, Free Trade: Myth, Reality and Alternatives, (Dhaka: University Press LTD, 2004), 8.
2
African countries also follow similar suit in their endeavor to integrate as trade
organizations were instituted. Good examples include the Economic Community of West African
States (ECOWAS), Communaute Economique des Etats de l'Afrique de l'Ouest (CEDEAO) and
the Mano River Union (MARIUN).
These regional organizations are considered as the major feature of the global economic
system in the 20th
century. The basic purpose of the regional economic organizations is to
encourage governments and private sectors to make deliberate efforts to strengthen trade and
economic links more rapidly. Third World countries have been putting efforts since the 1950s in
the area of regional economic integration. Despite seemingly little prospects and meager results,
their efforts continue until today. Nevertheless, the integration process, especially in the
economic area, has been embarked upon by the developing countries and remarkable attention is
attached to it since the booming era of the globalization of the 20th
century.
The deterioration in the living standard of the people in the African continent after its
independence has made the African leaders more enthusiastic of becoming integrated. The
African countries realized that the only remedy to overcome the situation was to cooperate and
integrate among themselves in order to solve their problems, leading to the emergence of many
organizations. One of these organizations is the Economic Community of West African States
(ECOWAS), whose principal objective is to boost economic activities among member countries.
The ECOWAS was established in 1975 with fifteen West African states which consist of
Benin, Burkina Faso, Cape Verde,4 Cote d‘Ivoire, the Gambia, Ghana, Guinea, Guinea Bissau,
Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo. At its inception, the organization
came up with a clear stated goal, which was to promote integration in the fields of economic
4 Cape Verde joined the organization in 1976 making it the 16
th member country
3
activities, particularly industry, trade, transport, telecommunications, energy, agriculture, natural
resources, monetary and finance. In 1993, the organization‘s treaty was revised in order to move
one step further towards a more integrative process to reflect the desire of the member countries,
to deepen and accelerate economic development through the establishment of a monetary union.
It was hoped that this effort in the long run would lead to the establishment of political
cooperation in the region.
STATEMENT OF THE PROBLEM
International trade theory suggests that there is a fundamental importance of comparative
advantage in determining the economic benefits in trade arrangements among countries of the
same region whose relative endowments of primary resources are similar. As such, the Regional
Trade Agreements (RTAs) justified the formation of integrated relations among the ECOWAS
countries and the organization was instituted to create a freer and open market conditions,
eliminating all trade barriers among the member nations. Hence, this research work attempts to
study the performance of the ECOWAS in the area of trade; to assess its progress to Free Trade
Area. In order to do so, the following research questions are addressed:-
RESEARCH QUESTIONS
1. Have the ECOWAS member countries liberalized their trade policies in line with the
ECOWAS Free Trade Area goals?
2. Has the level of intra-trade relations among the member countries of the ECOWAS
led the organization to achieve its goal of Free Trade Area?
4
OBJECTIVES OF THE STUDY
The main objective of this study is to investigate and assess the performance of the ECOWAS
towards the integration in the area of Free Trade since its inception. The study will focus on trade
relations among the ECOWAS member countries using the fundamental FTA elements as a
benchmark to assess the level of trade among the member countries, since the core purpose is to
create an integrated economic group for the welfare of the people in the entire region. The study,
in addition, carries the following objectives:-
1. To estimate the trade potentials among ECOWAS member nations.
2. To highlight the challenges facing the ECOWAS in the trade areas.
3. To suggest the policy solutions to improve the trade relations among the member
countries of the ECOWAS.
LITERATURE REVIEW
The existing literature on the ECOWAS can be classified into two major groups; the first group
talks about integration in general (economic and noneconomic), while the other group focuses
only on economic integration, and particularly, Free Trade Area.
In his article presented in the 1993 Dakar conference on regional integration in West
Africa, Abass Bundu,5 described the situation of the African continent in general and that of
ECOWAS in particular. He suggests that, the future of ECOWAS‘ integration depends on the
possession of an institutional framework on regional integration. Abass argues that more
5 Abass Bundu is an expert on West African affairs. He also held the position of the Executive Secretary of the
ECOWAS from 1989 to 1993.
5
ambitious approach which does not exceed the limits on economic development is required and
the small size of national markets and limited resources base should also be imposed.6
Stanislas Adotevi emphasizes only on the cultural dimension as the prime solution to
African integration in general and ECOWAS in particular. In his article Cultural Dimension of
Economic and Political Integration in Africa, Adotevi is highly disappointed by the present
condition of the region‘s ―disintegration‖ and the declining feelings of pan-Africanism, admitting
that the region is ―divided and torn from within and increasingly marginalized from the rest of
the world.‖ He suggested that the entire continent needs to be rebuilt and politically united on the
basis of sound economic underpinnings.
The only solution left to the Africans is by returning to their cultural and historical roots,
as it was the same case with Japanese and Asian dragons. So Africans can only plant the seeds of
integration by sowing the very depth of African soul. To him, it is a cultural heritage, before the
colonial era, which is a dynamic informal cross-border trade. Hence, to promote the free
movement of goods and services, Africans should recognize their culture and tradition and they
will have to restore some of the sovereignty they have wrested from Africa‘s socio-cultural and
regional communities.7
Asante, another writer, is more critical in finding out the prospects of possible conflict in
the near future between the two largest organizations which co-exist together in West Africa-
EWCOAS and CEAO due to the ideological rivalry.8
6 Abass Bundu, ―ECOWAS and the Future of Regional Integration in West Africa‖ in Regional Integration and
Cooperation in West Africa: A Multidimensional Perspective, edited by Real Lavergne (Ottawa: International
Development Research Centre, 1997), 37. 7 Stanislas Adotevi, ―Cultural Dimensions of Economic and Political Integration in Africa‖ in Regional Integration
and Cooperation in West Africa… 67-73 8 Asante S.K.B., ―ECOWAS/CEAO: Conflict and Cooperation in West Africa‖ The Future of Regionalism in Africa,
edited by Ralph I. Onwuka and Amadu Sesay (London and Basingstoke: Macmillan, 1985),74.
6
Daniel Obizoba Mozie mentions seven (7) obstacles that prevent ECOWAS from
progressing since its inception. They are;
1) Weak regional leader; (Nigeria).
2) Lack of supply of integration; ECOWAS too lacks autonomy and power.
3) Coordination gap; lack of commitment from the member nations.
4) Neglecting the importance of the private actors such as businessmen.
5) Civil war effects; since independence; from 1990-2004.
6) Fear of wider inequalities; small member nations versus the bigger ones,9
However, some other authors view the success of integration in a different way. They are
mainly in favor of the major donors‘ roles in developing the region, as the donors can be seen as
the vital hope, should they hold the responsibility of doing so. In their article; ―Donor
Perspective” Real Lavergne and Cyril Kofie Daddieh describe how those major donors namely
the EU, France, the World Bank and the IMF, Canada and the United States play an important
role in promoting regional integration in West Africa as development agents. The donors are
encouraged to work together with African governments and institutions as partners, in setting the
agenda for regional integration.10
Significantly, Sunday Obiajulu provides a thorough analysis of the 1970s/1980s
socioeconomic indicators of the sixteen ECOWAS states. He claims that the economic
imbalance among the member states has contributed to the lack of potentiality for
9 Daniel Obizoba Mozie, ECOWAS: Gap and Strategies for Economic Growth, A benchmark Approach,
(Nuertingen University, 2004/2005), 36-38. 10
Real Levergne and Cyril Kofie Daddieh, ―Donor Perspective‖ Regional Integration and Cooperation in West
Africa…104-127.
7
industrialization and diversification.11
According to him, following the formation of the
ECOWAS, controlling trade variables, the increase in the growth of GDP has been 0.01 percent
per annum.12
Life expectancy and literacy rate were very low, resulting in ―limited development
of the human resources‖. These, among others were the main constrains that prevented the
ECOWAS from achieving its objectives. Yet, Sunday admits that, there is still hope and
potentiality in the region to develop through increased trading relationships among the member
countries of the ECOWAS.13
John Nakpodia is interested in how the organization can rely on itself in development.
Nakpodia opines that even though the general motivation for the West African nations to
integrate was the desire to accelerate joint economic and social development of the states in
order to enhance their people‘s living standards, different and conflicting political ideologies and
instabilities, weak economic base and practical difficulties here become the major constrains in
the realization of the organization‘s goals.14
Politically, ―the general lack of will on the part of
the leaders to honor their mortal and financial commitments and obligations, political instability-
transfer of power (usually through coup d‘ etats)‖15
are seen among the main obstacles.
Generally, intra-regional trade can be described as ―equally low, estimated at between 4 and 6
percent of the region‘s total annual trade‖ largely dominated by Nigeria and the Ivory Coast, and
hence, substantially imbalance.16
However, Nakpodia still views the past experiences as the
11
Sunday Obiajulu Samuel Uzuh, Regional Economic Integration: A Development Strategy in West Africa (Dallas:
The University of Texas at Dallas, 1988), 5. 12
Ibid., 84. 13
Ibid., 5-6. 14
Egbikuadje, John Nakpodia Igho, ECOWAS: A regional approach to development and self-reliance (Stanislaus
California: Xerographic press 1993), 5. 15
Ibid., 82. 16
Ibid., 41.
8
reason for the ECOWAS member states to unite themselves, therefore, to avoid any forthcoming
problem.
Towards the end of the study, Nakpodia called on the attention of the European
Economic Community (EEC) to help develop this region, as West Africa‘s largest trade partner,
by the continuous bond between the two organizations.17
The second group focuses deeply on trade matters leaving other factors of integration.
Kate Meagher for example sees the region‘s problem as a result of the formal way of integration;
―preferential trading link with the colonial masters‖. This, according to her, prevents Africa‘s
success in terms of economic integration, because, it shows only 6% in the 1980s- and as such,
informal or unofficial trading networks have succeeded tremendously by 30-50% within the
member countries of the region. Therefore, she prefers parallel trading as efficient and
responsive-in the history and tradition of the African societies- than official trade. Despite the
fear of its illegal status, this type of trade has been accepted and appreciated by the people and
the governments of the region as part of official policy. And that will bring a lot in the
achievement of integration in the region.18
Some authors19
are interested in looking into the strategies and measures taken by the
governments of the region in fostering economic growth. They found very little improvement to
be mentioned in the area of economic growth in the entire region. Although they put some blame
on several external factors, they argue that the major problem is the internal factor.
17
Ibid., 86. 18
Ibid., 180-182. 19
Olawale E. Ogunkola, ―An Empirical Evaluation of Trade Potential in the ECOWAS‖, AREC Reseach paper 84,
African Economic Research Consortium, vol. 84, (1998): 3. and
Anadi, Sunday Kachima Mcdonald, Regional Integration in Africa, the Case of ECOWAS, (Zurich, 2005), 88.
9
In terms of intra-trade relations, the authors view that reducing incentives for companies
and private sectors discouraged the producers, and hence, products in the domestic markets have
become severely insufficient, and competition less, thus, ended up with (economic stagnation
and continued impoverishment of a large part of the population).20
In fact there are other
important areas that need to be looked at in order to generate better economic growth
performance in the region. In doing so, there is a need to combine both traditional and non-
traditional exports that can be marketed overseas or in neighboring countries.21
Solutions
suggested by the authors are very important in stimulating regional trade and investment. Those
are: import liberalization, increased producer prices for traditional exports, promotion of
nontraditional exports, reduced barriers to intra-regional trade, agricultural research, and
improved infrastructure in support of trade, specialized training programs, and promotion of
professional and public support for policy research.
Abdoulaye Seck found that the nominal rates of assistance to agriculture in the
ECOWAS countries are generally negative;22
although the agricultural sector in the ECOWAS
countries contributes a lot to social and economic wellbeing. In fact, it can be estimated as
greater than expectation, one-fifth of total economic activities, and thus, it is a very dependable
source of income and labor for the entire population. Against this dependence on agriculture, the
ECOWAS treaties eliminated the barriers to this sector in the interest of the population to benefit
and enjoy the Non-Tariff Barriers (NTBs) in the agricultural sector. Unfortunately those NTBs
and other measures, such as Free Trade Agreements, and FTA membership, did not serve the
20
Dirk Stryker J., Jeffery C. Metzel and Lynn B. Salinger, ―A Regional Strategy for Trade and Growth in West
Africa‖ Regional Integration and Cooperation in West Africa… 189. 21
Ibid., 194. 22
Abdoulaye Seck, Lassana Cissokho, Kossi Makpayo and Jonathan Haughton, ―How Important are Non Tariff
Barriers to Agricultural Trade within ECOWAS?‖, Research Working Paper, 2010-3 (2010), 22
