Meaning of Economic Integration
This can be referred to as the deliberate act of government to pool economic resources in order to achieve efficiency in the production of goods and services for the social and economic welfare of their countries with a common interest.
Objectives of Economic Integration
1. To remove trade barrier and ensure the free flow of goods and services
2. To boost cooperative and economical development
3. To create common tariffs
4. To reduce dependency on advanced countries thereby contributing to the welfare of members
5. To ensure economic development and growth
Types of Economic Integration
1. Free trade
2. Customs Union
3. Common market
4. Economic Union or economic Community
Free Trade
Free trade means a situation where there are no restrictions imposed on goods and services coming into and out of the countries, that is, all artificial barriers of international trade are removed.
Protective Laws
These are laws made in a country for the control of international trade in order to avoid dumping of goods and services, protect infant industries, etc.
Problems of Economic Integration
1. Fiscal and monetary differences among the nations in West Africa
2. Problems of different languages
3. Inadequate facilities
4. Uneven development among the member states
5. Political instability among member states
Responses