Developments in Africa’s
2.5 Information and communications technologies (ICTs)
Regional integration is necessary to overcome the limitations of Africa’s small and fragmented economies and to afford the continent a greater voice in the manage-ment of international economic processes. Increased regional integration and eco-nomic cooperation is important for ensuring sustainable development in Africa and assuring a greater share in the global economy. Mechanisms for integration, such as establishing vertical and horizontal economic links, are desirable for facilitating larger free trade zones and joint development projects.
2.5.1 Telecommunications
Development of a reliable, modern regional telecommunications infrastructure is critical for regional integration. Progress is also being made in increasing telecom-munications traffic in Africa. In West Africa, where direct microwave links have been established to connect regional capital cities, plans are afoot by telecommunications providers to charge a common tariff wherein all calls made within networks in coun-tries in the zone will be treated as local calls9. One institution – the West African Telecommunications Regulatory Association (WATRA) based in Abuja, Nigeria – has already been established. The Telecommunication Regulators Association of Southern Africa (SATRA) has also been established to support regional investment, market integration and inter-operability.
9 The Punch (Nigeria), “West African telecoms regulators plan common tariff”, 3 April 2006.
Overall, there has been good progress in telecommunications infrastructure network connectivity and the implementation of the regulatory framework across the RECs
In SADC, the communications, postal and meteorology sector finalized and adopted the guidelines for developing a communications numbering plan in 2004/2005. It has also developed and adopted model legislative provisions to facilitate e-commerce in the region, and established a fully functional Meteorology Association of South-ern Africa (MASA). Associated policies and legislative and regulatory guidelines for the transformation of the postal sector and the development of a regional serv-ice delivery monitoring system have also been developed. In addition, significant strides have been made with the provision of telecommunications transmission links based on private sector participation. This has provided a backbone for ICT regional infrastructure.
In ECOWAS, a roadmap for the implementation of a single liberalized telecommu-nications community by 2007 has been adopted and plans are under way to imple-ment effective GSM roaming in the subregion by December 2006.
Overall, there has been good progress in telecommunications infrastructure network connectivity and the implementation of the regulatory framework across the RECs.
This is an exemplary showcase of protocol implementation in the RECs. Of course, much remains to be done to harmonize telecommunications policies and legal and regulatory frameworks for the establishment of a telecommunications community.
In view of their inherent multiplier effects, information and communications tech-nologies (ICTs) play an important catalytic role in the development of all the other sectors and in regional integration as a whole. Their role in speeding up and expand-ing regional cooperation and integration has increasexpand-ingly gained considerable atten-tion. A regional approach to ICT development and building of the information society can allow for greater harmonization of national efforts in strategy and policy formulation and implementation. ICTs will have a substantial impact on regional cooperation and integration, provided suitable policies, programmes and mecha-nisms are established.
ICTs are the foundation to improved intra- and inter-institutional communica-tion among regional cooperacommunica-tion institucommunica-tions, thereby promoting trade, financial cooperation and efficiency in key sectors such as agriculture, health and education.
Member States that have been implementing reforms in the ICT sector to improve operational efficiency and to attract private investment into the sector are at different stages of harmonizing their policy and regulatory frameworks in order to create an integrated ICT market and promote regional connectivity.
The development of a reliable, modern, regional ICT infrastructure is critical for regional integration 2.5.2 Current status of regional cooperation and
integration in the ICT sector
The Regional Information and Communication Infrastructure (RICI) is the ECA response to the harmonization of national strategies at the subregional level by RECSs. A RICI plan addresses regional communications policies and financing and regulatory issues in a way that provides a framework for the development of infor-mation and communication infrastructure whilst strengthening capacity and also building a critical mass to facilitate regional economic integration through ICTs.
The development of a reliable, modern, regional ICT infrastructure is critical for regional integration.
ECA has been supporting several RECs, including COMESA, EAC, ECOWAS, SADC, UEMOA, and the Arab Maghreb Union (AMU) in the development of RICI initiatives.
In various subregions, regulatory integration has witnessed the creation and strength-ening of regulators’ associations, thereby facilitating cross-border inter-operability, regional investment and market integration and enlargement. Regulatory asso-ciations now exist in West Africa - West African Telecommunications Regulatory Association (WATRA), Southern Africa – Communications Regulatory Authority of Southern Africa (CRASA), and in COMESA - the Association of Regulators for Information and Communications for Eastern and Southern Africa (ARICEA).
In September 2006, Celtel International, the leading pan-African mobile telecom-munications company,made history by breaking boundaries and offering its cus-tomers in Kenya, Tanzania and Uganda (EAC) the opportunity to move freely across geographical borders without roaming call surcharges and without having to pay to receive incoming calls. This initiative, One Network, the world’s first borderless mobile network, was expanded in June 2007 to include the Republic of Congo, Gabon and the Democratic Republic of Congo. Through this initiative, traditional roaming charges were completely removed and customers were offered the same services abroad that they could access in their home country, such as airtime credit transfer (for prepaid customers), voicemail and customer service in their local lan-guages.
East African Community (EAC) - e-government strategy
The EAC subregion in 2006 developed an e-government strategy as an action road-map in strategic areas supported by an enabling legal environment, secure infor-mation infrastructure and adequate human resources. The framework proposed a
ICTs in general, and electronic commerce in particular, to promote intra-West African trade and attract foreign direct investment (FDI)
review and adaptation of legislation at national and EAC level to ensure inter-opera-bility, competitiveness and fewer legal obstacles for online services and included the following strategic areas: customs and immigration control, e-parliament, e-health, e-banking, e-procurement, e-commerce and e-tourism and meteorological and tidal information.
Economic Community of West African States (ECOWAS) - regional integration through e-commerce
Despite efforts geared towards trade liberalization within the framework of both ECOWAS and UEMOA, intra-West African trade remains insignificant, due partly to lack of market information, poor communication facilities and cumbersome trad-ing processes and procedures. One of the objectives of regional integration in West Africa is to dismantle tariff and non-tariff barriers with a view to boosting intra-regional trade. This can be achieved through the deployment and use of ICTs in gen-eral, and electronic commerce in particular, to promote intra-West African trade and attract foreign direct investment (FDI). This has resulted in the ongoing programme to promote regional integration through e-commerce. This activity will entail the creation of a harmonized legal framework for ICT and e-commerce.
Central African subregion
Activities are currently under way for the development of a regional strategy on the information and knowledge society for the two RECs, Central African Monetary and Economic Community (CEMAC) and the Communauté Economique des Etats d’Afrique Centrale (CEEAC). The objective of e-CEMAC 2010 is to encour-age the use of ICTs in the subregion to enhance regional integration, socio-eco-nomic development and poverty reduction. It proposes new concrete initiatives and subregional projects that promote subregional connectivity and active participation in the knowledge economy.
Arab Maghreb Union (AMU)
Activities are ongoing towards the development of an on-line platform for e-com-merce to facilitate and promote trade and partnerships among North African coun-tries by using ICTs as an enabler and facilitator for ease of access to information and knowledge. Trade among North African countries is now less than 6 per cent of the total trade of the region and represents one of the lowest regional rates in the world.
There is a growing
In August 2001, the SADC Heads of State signed a SADC Information and Com-munication Technology Declaration, which identified priority areas of action as being the regulatory environment for ICTs and infrastructure for ICT development.
The Declaration also urged member States to accord priority to ICT for national and regional social and economic development and proposed a policy to build an information economy in the SADC subregion to avoid increasing exclusion from the global economy.
A SADC ICT strategy is currently under development as part of ECA support to SADC. The e-strategy will address convergence issues, harmonization of ICT indi-cators, connectivity and access to ICT services among and within member States;
and promote ICT usage for regional economic integration. In addition, significant strides have been made with the provision of telecommunications transmission links based on private sector participation.
Overall, there has been measurable progress in telecommunications infrastructure network connectivity and in the implementation of harmonized policy, legal and regulatory frameworks across the RECs. Regional coordination will enable the con-tinent to overcome its limited market size, reach a critical mass and ensure econo-mies of scale. The need to attract huge investments in developing the information society will be satisfied through regional coordination of resource mobilization. In addition, developing a common approach can improve prospects for mainstream-ing developed applications (e-commerce, e-government, e-health, e-education) into other regional initiatives and strategies. RECs should continue to play a leading role in regional consultations and in the development of regional e-strategies that are not only linked to national e-strategies, but address regional communications policy, financing and regulatory issues in a way that promotes harmonization.
2.6 Conclusion
This chapter has demonstrated that Africa has made some strides in creating common regional economic spaces. Common policies are emerging in the areas of transport, water and energy. There is a growing trend in intra-REC trade, though overall intra-African trade has hovered around 10-13 per cent and has remained consistently below 15 per cent of the region’s total trade over the last two decades.
Much still needs to be done to promote greater intra-regional trade and attenuate the constraints to regional international competitiveness. This will require closer amalgamation of trade and integration policies across RECs to create a more unified economic and market space, and actions to boost economic and production linkages
RECs need to focus on strengthening their own capacity, improving macroeconomic policy coordination, and establishing a dispute settlement mechanism to ensure policy credibility and resolve thorny rules-of-origin conflicts
anchored around the transformation of Africa’s natural resource heritage in a mutu-ally complementary and reinforcing manner.
Countries also need to address the low level of implementation of REC resolutions and decisions, which has impeded the integration process as a whole. RECs need to focus on strengthening their own capacity, improving macroeconomic policy coor-dination, and establishing a dispute settlement mechanism to ensure policy cred-ibility and resolve thorny rules-of-origin conflicts.
References
African Development Bank (ADB), “Africa in the Global Trading System: African Development Report 2004”, AfDB: Abidjan
ECOWAS/Sahel and West Africa Club, 2005. “Medium and Long-Term Regional Development Perspectives in West Africa” Proceedings of a Symposium held to mark the 30th Anniversary of ECOWAS
________ Annual Report 2005. Abuja, Nigeria
Nwuke, K. 2006. “Africa’s Recent “Development Plans and the Increasing Role of China in Africa”. Paper presented at the IPPR Conference on China and Africa Tra-falgar House, London, England, June 28, 2006
Stevens, H. 2004, Transport Policy in the European Union. London: Palgrave-Mac-millan
Swann, D. 2000. The Economics of Europe: From Common Market to European Union.
New Edition. London: Penguin Books
United Nations Economic Commission for Africa (ECA), 2006. Assessing Regional Integration in Africa (ARIA II): Rationalizing Regional Economic Communities. ECA:
Addis Ababa, Ethiopia
________ 2003. Assessing Regional Integration in Africa I. ECA: Addis Ababa, Ethiopia
Web references
SADC Review at www.sadcreview.com www.ecowas.int
www.eachq.int
www.african-union.org
The enormous costs of the financial crises in Asia, and in Argentina and Brazil in Latin America at the end of the 1990s/beginning of 2000s drove home the importance of stability
3.1 Introduction
I
nstability in international monetary arrangements has been a fact of life for policy-makers since the breakdown of the Bretton Woods agreements in the early 1970s.The 1980s in particular were characterized by an exceptional misalignment of the major currencies. The decade saw massive capital flight towards the United States and other industrialized countries from the developing world, particularly after the debt crises and the cutting-off of new loans. Macroeconomic policies improved in the majority of developing countries in the 1990s, but the expected growth ben-efits failed to materialize, at least to the extent that many observers had forecast. In addition, a series of financial crises severely depressed growth and worsened poverty (World Bank, 2005:95). The enormous costs of the financial crises in Asia, and in Argentina and Brazil in Latin America at the end of the 1990s/beginning of 2000s drove home the importance of stability.
Yet it is important to remember that things have not always been this way. In the 1950s and 1960s, the economies of the most developed capitalist countries (North America, Western Europe, Japan and Australasia), as well as a great deal of developing countries, enjoyed an unprecedented boom, commonly designated as “the Golden Age”. It was characterized by low unemployment, low inflation and rapidly grow-ing livgrow-ing standards, and one of its cornerstones were the monetary arrangements outlined at the famous meeting in Bretton Woods in 1944, the penultimate year of the Second World War. In so far as it eliminated the spectre of global economic inse-curity that predominated in the 1930s, it was extremely successful. As Table 3.3.1 illustrates, the mean average growth rate for both output and trade reached histori-cally unprecedented levels, with more than three times higher than the pre-war level for output and fifteen times more for trade. Pointedly, the coefficient of variation, which reflects the dispersion around the mean in the performance of these variables, also declined significantly during the Bretton Woods period.