6.2. African Regionalism in a Global Neo-liberal Environment
6.2.1 Early Regional Integration in Africa
Early forms of regional integration in Africa were observed in 1910 with the Southern Africa Customs Union. The next notable move towards meaningful regional integration in Africa came with the establishment of the Economic Commission for Africa. The Economic Commission for Africa (ECA) was established on 29 April 1958 by the United Nations Economic and Social Council (ECOSOC) by way of a resolution. As part of its terms of reference, the ECA was among other things put in place to participate in measures that were to bring relief to Africa on matters of economic and technical problems. It was to provide Africa with economic and technical information, to conduct investigations into economic and technical problems related to development, and to provide assistance to the economic and social council whenever requested by the council, in the conduct of its functions within Africa. The members of ECA were basically
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all independent African countries under black majority rule (Gruhn, 1995:24-25). The independent African Countries later formed the Organisation of Africa Unity (OAU). The OAU was established five years after the ECA in 1963, guided by, the first President of independent Ghana, Nkrumah’s vision of what he regarded as a union of government of Africa.
(Gruhn,1985:25). The formation of the OAU marked the beginning of notable regional integration that had provided some oversight role over other sub-regional groupings in Africa.
After the establishment of the OAU, other sub-regional groupings emerged in Africa. The East African Community (EAC) was established in 1967 and lasted until 1977. It was re-established in 1994. The EAC included Kenya, Uganda and Burundi. The Economic Community of West African States (ECOWAS) was established in 1973, and the SADCC in 1980 (Asante, 1985:74).
Onwuka and Sesay (1985:2-3) observed that, despite these developments of regional integration in Africa and the commitments in the formation of sub-regional groupings from 1967 onwards, the African continent saw an increase in conflict. This slowed down economies and buried the envisaged prospects arising from regional integration. Contradictions emerged on the perceptions and expectations about the future of regionalism and hopes for development in Africa. Onwuka and Sesay (1985) observed that many scholars agree that, informed by past events, the future of regionalism in Africa is at crossroads. They argued that by looking at the conditions under which integration was being carried out in Africa, the future of regional integration could be predicted in Africa. A great diversity of languages, cultures and races was noted. Onwuka and Sesay identified three distinct linguistic categories in ECOWAS and SADC. These were French, English and Portuguese. The states also have different population and physical geographical sizes. They also have different natural resource endowment and have been at different levels of economic development. External commitments also differ from one country to the other. They also noted seriously incompatible ideologies and personalities amongst African states and the leaders, leading into endless conflicts. They argued that these challenges stood in the way of regionalism in Africa and any discussion of future prospects for regionalism must take these challenges into consideration (Onwuka and Sesay, 1985:2-3).
African regional integration in the 1960s was meant to come up with a new Africa free of external control and influence, an Africa which was to stand united with one voice as it interacted with the rest of the world. The regionalism of the time was committed to freedom and
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sovereignty of member states. Development of the African region was to be driven by the Economic Commission for Africa (ECA). This ushered in the formation of sub-regions in Africa by the Mid-1960s (FAO, nd:45).
The Lagos Plan of Action for the Economic Development of Africa (1980 – 2000) was an OAU- supported plan for self-sufficiency in Africa. It was a collective response by African leaders to the Berg Report which blamed the failure of Africa on its leadership’s unliberal economic practices. The Berg report was in fact a call for the removal of government influence on the economy. Effectively, the Berg Report pushed for neo-liberalism, or free market economic system. Regional integration was at this point competing with neo-liberalism. The Lagos plan came out after the African leaders blamed the World Bank and the International Monetary Fund for the economic crisis in Africa which came as a result of the Structural Adjustment Programmes. The Lagos Plan was a departure from the neo-liberal thinking which sought to reduce the involvement of the state in economic issues. Also, of concern to the African leaders was the vulnerability of the African economies to the global economic shocks such as the oil crisis of 1973. On the other hand, the Berg Report blamed the African economic crisis on bad leadership. Through the Lagos Plan, African leaders opted for rapid self-reliance, self-sustaining development and economic growth. Economic growth was to be focused on benefitting the people and developing indigenous entrepreneurship with technical competences for greater participation in their economies. The Lagos Plan was to lead to the African Common Market and subsequently an African economic community. There was a thrust to move away from raw material export to value addition. The Lagos Plan was not meant to isolate Africa from the rest of the world, but rather to minimise contributions from outside and limit them to supplementing African effort. It largely called for an indigenous capitalist economy.
The Abuja Treaty of 1991 established the African Economic Community based on self-reliance and which promoted indigenous and self-sustained development. It aimed to reduce poverty and to improve people’s lives. The Abuja Treaty was aimed at strengthening regional economic communities as building blocks of the African economic community. It was to promote a self- sustained industrialisation (FAO, nd). The treaty emphasised on self-sufficiency and development driven by indigenous people.
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The resurgence of global neo-liberal capitalism as the only economic system for the whole world saw pressure being increased to weaken the state and effectively reduce its role in determining the economic activities in the countries and regions. The most recent desire to attract foreign direct investment in most poor SADC countries is a clear indication that neo-liberal global capitalist practices are essential for economic growth and development. For Africa as a region, regional integration was subjected to many forms of pressure related to global neo-liberal capitalism. In the SADC similar trends were observed (FAO, nd).