By Renato Baumann, Co-ordinator, International Co-operation, IPEA, Brazil
Developing economies often face a common challenge: after a period of rapid growth they experience a slowdown in both growth and productivity, falling into what has come to be known as the ‘middle-income trap’. Signing preferential trade agreements and participating in global value chains are two common recommendations presented to countries facing the middle-income trap, and are often seen as intertwining processes. Moreover, regional integration is gaining momentum as an enabler of value chains. However, although regional movement of goods facilitated by regional integration might be necessary, it is not the only condition to ensure production in value chains.
It has been three months since Nigeria closed its land borders and to date there are few indications as to when they will open again. The country said it wants to reduce the smuggling of goods and stop illegal inflows of Asian rice and outflows of subsidised fuel. More fundamentally, Nigerian authorities justify the closure by the need to support the domestic agricultural sector and accelerate national productivity growth.
African countries trade much more with countries outside the continent than with each other within the continent. According to the United Nations Economic Council for Africa, trade between African countries stands at about 16% of the continent’s total trade, the lowest intra-regional trade globally. Compare this with 19% intra-regional trade in Latin America and 51% in Asia.
Policies to reduce obstacles to intra-African trade have been a priority for African policy makers. After forging ahead with stronger trade integration within existing Regional Economic Communities (RECs), African policy makers took an additional step in 2018 with the Continental Free Trade Agreement (CFTA). Signed now by 44 African countries, the CFTA marks a milestone on the road towards a single continental market for goods and services. Continue reading “Get the plumbing right: Financial integration should support Africa’s trade integration”
By Sarah Lawan, Regional Co-operation Advisor, Networks, Partnerships and Gender Division, OECD Development Centre, and Rodrigo Deiana, Junior Policy Analyst, Europe, Middle East and Africa Unit, OECD Development Centre
As early as 1963, in the midst of independence movements, Kwame Nkrumah urged, “Africa must unite or perish!” The first president of Ghana pronounced this injunction at the founding meeting of the Organisation of African Unity (OAU) in Addis Ababa, Ethiopia.
The post-colonial thirst for “breaking with the old order and indigenising the direction of Africa’s economic development”1 led to the shaping of the African Economic Community (AEC), a pan-African single market. Africa reclaimed its leadership and ownership with the goal of promoting a self-sustained and self-reliant development trajectory.
2018 witnessed an acceleration of integration efforts with the landmark agreement on the African Continental Free Trade Area (AfCFTA) in Kigali on 21 March. So far, 49 African countries have signed the AfCFTA, which will be the world’s largest free trade area since the WTO’s creation. As the late Calestous Juma put it: “The continent’s regional integration is the most complex and elaborate effort of its kind ever mounted in human history.”2
Soaring and volatile international food prices since 2007-08 have forced West African governments and their development partners to translate their long-standing rhetoric about support for West African agriculture into concrete programmes. Doing so effectively, however, has proven much more challenging than simply meeting the Comprehensive Africa Agriculture Development Programme (CAADP) goal of increasing the share of national budgets and donor funds dedicated to the agricultural sector. A recently released joint study by the Syngenta Foundation for Sustainable Agriculture (SFSA) and Michigan State University (MSU) draws lessons from such efforts over the past 10 years and suggests ways in which policies and programmes can be more effective in helping West Africa feed its young, burgeoning and increasingly urban population. Research by MSU, SFSA and West African scholars provides a number of crucial policy insights. Continue reading “Strengthening Regional Agricultural Integration in West Africa”
Par Laurent Bossard, Directeur, Secrétariat du Club du Sahel et de l’Afrique de l’Ouest (CSAO/OCDE)
La publication CSAO/OCDE « Coopération transfrontalière et réseaux de gouvernance en Afrique de l’Ouest », aborde le sujet – crucial mais trop méconnu – de la coopération transfrontalière, par le biais d’une approche encore peu utilisée en Afrique de l’Ouest et dans le monde du développement : l’analyse des réseaux sociaux. Cette double originalité fait de la lecture de cet ouvrage une expérience pleine d’enseignements.
Plus de 46 % des villes et la moitié de la population urbaine ouest-africaines se trouvent à moins de 100 km d’une frontière. Ces espaces frontaliers couvrent la totalité des territoires du Bénin, de la Gambie, de la Guinée-Bissau et du Togo; les deux tiers de ceux de la Guinée, de la Sierra Leone et du Sénégal; plus de la moitié de la superficie du Burkina Faso et du Ghana. Continue reading “Les frontières et les réseaux oubliés du développement”
The global approach to migration and development is typically framed at the national level, whereby policies are conceived by national governments and mostly implemented with national fiscal resources and by national actors. This is in line with the common perception that migration is subject to national sovereignty, involving country to country agreements and adherence to international conventions. Yet, this national level approach fails to acknowledge the diversity of development and migratory contexts that exist within countries. Indeed, persisting inequalities, one of the identified drivers of migration, exist not only among different countries, but also within countries. Migrants tend to move between specific territories, creating varied local migratory contexts within countries themselves. This is why the links between migration and development need an integral and bottom-up approach from the often overlooked local level. Increasing evidence supports migration as a local development tool that can enhance the dynamism of territories receiving and sending migrants. Continue reading “Migration: An overlooked tool for local development”
By Donatella Gnisci, Sahel and West Africa Club Advisor – Expo Milano 2015 If you agree that a lack of access to sufficient, safe and nutritious food, clean water and energy goes against human dignity, will you join Nobel Laureate Amartya Sen in signing the Milan Charter? The Charter, which is available in 19 languages, emphasises that one of the greatest ongoing challenges for humanity is … Continue reading The Milan Charter: What’s in it for West Africa?