ECOWAS: perspectives on treaty revision and reform

UNITED NATIONS

AFRICAN INSTITUTE FOR ECONOMIC DEVELOPMENT AND PLANNING

ECOWAS : PERSPECTIVES ON TREATY REVISION AND

REFORM

Edited by Jeggan C. SENGHOR

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Price : CFA 1,000 ovember 1993

IDEP WORKING PAPERS

September 1993

TABLf OF CONTENTS

NO.3

Abbreviations Contrihutors Preface

1. Regional Economic Co-operation and Integration: Available Options hy Adebayo ADEDEJI

2. Comparative Analysis of the Treaties of The African Economic Community and The Economic Community of West African Sta tes h) Sam K. B. ASANTE

3. Supranationality and the Decision-Making Process in ECOWAS by jack WIL~10T

~. Regional Peace and Security in West Africa in the Light of the ECOWAS Protocols on Non Aggression and Mutual Assistance in Defence by lbrahirna FALL

5. The ECOWI\S Secretariat: Institutional and Related ^{ISSUl) S} by jeggan C.SENGIIOR

6. Notes on the Theory of Eco n o m ic Intcgr uo n an d its Applications by Pascal ZAGRE

7. Note on Promotion of ECOWA<:) joint Production l-ntcrpriscs by fataki UONDJO

IDEP WORKING PAPERS NO.1, February 1992 Les consequences sociales de I'ajustement structurel

au Senegal (Edited in French only)

1. l.cs dimensions sor ialcs de l'ajustcrnent strur turcl au Senega l:

cad re d'analyse par Mohammed IIADDAR.

2. L' uj u s te rnc n t structurcl dans les sccteurs de l'cdur ation 't de la sa n te par Epitarc RlJRlf\IWlSllICiAo·

3. L'a] usterncnt strurturel ct le sccteur de l'education scol uirc par Mamadou NOOYf:.

4. l.cs incidences soriulcs du dcscngugcrncnt de l'Lun par Tharcisse NTll.lVAf\fl.lNDA.

5. l.es strategies de survie au Senegal: perspectives ernpiriques ct axes de recherche dans les annces ()O par Jacques BERARDo 6. Une strategic de survie: la participation des populations aux

soins de sante par Epitace RURIf\lWISHIGA.

IDEP WORKING PAPERS NO.2, October 1992 Is Planning Dead? (in French and English)

Views of a Panel of Experts composed of four members:

1. Arnadou Aly DIENG, Economist, former Chief of Div is io n BCEA(), Dakar.

2. Boubacar SOMPO-CEESAY, Deputy Permanent Secretary, Ministry of Finance & Economic Affairs, Banjul, The Gambia.

3. Hamid TEl\tMAR, Principal Economist, lJNDP, Dakar and 4. Philip QUARCOO, Head, Training Division, JOEl', Dakar.

ABBREVIATIONS

:\CABQ.

AC BlJ~1

AnB ANAO

A~fll

CACM CEA CEAO CEI' CIMAO EAC ECA ECCAS ECOBANK

ECO~fOG

ECOSOC ECOWAS EEC-ACP EFTA EPG IDEP lGO Il\tF NGO OAU Ol\NG PMA PNA PTA SADCC SAP TNC LJDEAC UDAO lJDEAO UNCfAD UNDP USSR USA WARDA

Advisory Committee on Administrative and Budgetary Questions

Advisory Cornrniucc on Adrnnistrutivc and Budgetary Matters

African Development Bank

Accord de Non-Agression ct d'Assistanrc en matiere de Defense

African Monetary Union

Central American Common Market Economic Commission for Africa

Cornrnunaute Eronorniquc des Hats d'Alriquc de l'Ouest Common External Tariff

Compagnie Oucst-Africainc de Cimcm East African Community

Economic Commission for Africa

Cornmunaute Economique des l.tats d'Afrique Centrale Economic Development Bank for ECOW/'--~

Economic Community Monitoring Group Economic and Social Committee

Economic Community of West African States Africa Carribean Pacific-European Community European Free Trade Association

Eminent Persons Group

Institut africain de Dcvcloppcment Er o n o rn iq u c et de Planification

Inter-Governmental Organisation International Monetary Fund Non-Governmental Organisation Organisation for African Unit)'

Organisation pour la Mi c en Valeur du Ileuv ' Garnhie l'rotorole d'Assi tanrc Mutuellc

Protorole on Non-Agr sion Prefercn tial Trade Ar a

South African Development Co-ordination Cornrniu Structural Adju tm .n t Programme

Transnational Corp r•rti n

Union Douaniere de Et d'Afriqu nt Union Dou ni rrc d l'Afriqu d l'Ou t

Union D u ni ere et E.o n o m iq ue d Et t d'Afrique d l'Oue t

United Nations Coni rcn ' n ~l ade nd 0 veloprnent United Nations [ veloprncnt Programme

United So ialist Soviet Rcpubli s United tates of Am ri a

We t African Ri e D velopm nt As 0 tion

Adcbay 0 ADEDEJI

Sam K.Bo ASANTE

Ibrahima fAll

Fataki L10NDJQ

jeggan

c.

Jack WILMOT

CONTRIBUTORS

Former United Nations Under Secretary General and Executive Secretary of the United Nations Economic Commission for Africa. Currently Executive Director of the African Centre for Development and Strategic Studies, Ijebu-Ode, Nigeria.

Has been Professor of Political Science at University of Ghana, Legon, and University of Florida, Cainsville, among others. Recently Deputy Director of the United Nations Institute for Namibia and is, at present, Coordinator, ECI\- Multi-disciplinary Regional Advisory Group, Addis Ababa,

Professor of Law and Former Dean of the faculty of law, Chei kh Anta D i⁰ P University of Dakar. Former Minister of foreign Affairs of Senegal. Presently United Nations Assistant Secretary General and Director, Centre for Human Rights, Geneva.

International Civil Servant. Officer-in- Charge, Economic Groupings and Fntcrprtscs Branch, llNCTAO."

Director of IDEI', Dakar, an d form rly Speci al A sl tant to th Exe c u t i v e S cr tary of ECA and . ecretary to the Commission.

Se rved as Gh a n a ' Ambas ador to the European Corn m u n ity and is now Dire tor, Ministr of Foreign Affair, A era , Ghana.

Pascal ZAGRE lias been Minister of Economic Planning and Cooperation and is a Sen ia r Technical Adviser in the Government of

Burkina rasa.

PREFACE

Th e articles contained in this 'ol u rn c are a select io n from a number of" papers prepared by members of the Eminent Persons Group (FPC) to review the Il),5 ECOWAS Treaty. chaired hy His Exc e ll e nc y Ge n e r a l Yaku b u Gowon. former 11<.'..1<.1 of State of the Fed e r a l Republic of Nige r ia .

Fhc FPC was cstub lishcd in ~Ia~ ll)l) 1 under direction of the Au th o rity 01 Heads or State and Govcr n mcnt. in Deci sion / DJ:C. I0/ 5/l)() dated 30 ~lay Jl)l)(). adopted at its lhi rt ccru h Ord in a ry Sess io n in Banjul, The Cambia. Against the ba c kground of vast changes that had taken place in the su b- rcg io n , the continent as a whole, and in the world, since the existing Trea t) was adopted in f\lay

J()"i5 it W. I S concluded that there was need for the Co m m u n ity to adjust

itself and to adapt in order to he better positioned to meet the challenges or the luture.

In it~ functioning in the pre v io us fifteen ycar« the Cornmunity had expe r ie n ced in ..idcquarics in 50 l11 C areas. gap~ in other s, an d , ~ ct in a few fields, rigidities which sev e r e ly ro nstr.rincd the re aliv.nio n 01 its fundamental goals and objectiv es. At the same time, parti.ul.irf, in the light of the dismal performance of the crixcs-I adcn sub- rc g ional economics it was imperative that a more detcrrnincd effo rt he made to effectively organize and manage the integration pro r ''Is. I'Iw "1 r '.Il) , .1S

the bask: legal text governing all aspects or lilo Ill' the COIl1 I1l Un il) , was an indispen sable instrument for this purpose,

Whi lst the FP( ; wa s to review the Treat) in its cnt ircty ,IIH,I not rcst.rir t proposed rcvivions to an) particular vuhj '(t-ar ',1 i h«

Authority requested th.u particular attention h i paid to:

(a) the lcg l lathe pow -rs of the uthor ity of II 'ads of St,lll' and .ovcrnmcnt.

(h) the financing 01 the b udg t'i of the Comrnunity institutions. an d

(c) the dcri ion-m a k in g pror du re ⁰ the Authority an d the CounciI of Mini:t .r .

To a ist it in ca rry in g ou t it epo ch -making ^{tav], •} th ' l:P(;

com m i sioncd a ric of p per h) its m mh rs. Giv .n th . purpo for which the) were pr p red the p p .r \\ .re , irvt. to r 'Ia t ' dir -et l) to the relevant ert jo n of the xisting '!r 'a t) and, -r ond , to be ori .ru -d towards lon er -tc proposals for 'l r 'a t) r \ is ion. In ot h e r words.

ab tra ct tc chnic al disruvvion s were I'ss irnpor t.m t tha n a prartical approa ch to the differe n t top ic co ve red . I he \ i ws and 0 inion s expresse d we re solei) those of the au t hors and not oJ the organ iz at io n s and institutions to wh ic h the) .ire or hav t' ht-r-n affiliated.

With the uppor of the EC ixeru tivc e rota ry thro u g h thi -olu rne IDI:P i bringin g election of th \ om m i ioned pap r to a wider audience. It is hoped that th is will enlighten intc rc ted re der on ⁰ e of the burning i sue onfronting 'COW today and timul a te fu rt he r debate on way in which the Comm u n ity an b endowed with the wherewith al t a hie -e the nobl e ta ks it ha et it If.

,

E IONA l E ONOMI - OPE ION

D INT G A I

VA lA Bl OPTIO NS by Adebayo Adedeji

INT RODUCTION

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These were some of the basic ideas and objectives which the founding fathers of ECOWAS cherished for a dynamic West African Economic Community. However, these aims and objectives could not he attained automatically. Without a well-conceived and intensive effort and without adequate planning and the adoption of an appropriate form of integration, ECOWAS could lead to the perpetuation of neo- colonialism, under-development and inequality: to increased rather

than decreased external dependence.

Given this background, what is at issue, therefore, is not the imperative of economic integration in West Africa hut the kind of approach to the process of integration that will he most effertive in realizing the potential of the sub-region for the benefit of its population.

Thus, over the years, with the slow process of West African integration and the disappointing practical results, the key problems facing the West African leaders are those of deciding what forms of sub-regional economic co-operation and integration are

most likely to succeed and of how to design arrangements for mutual benefit.

This chapter, which is divided into five sections, attempts to respond to this issue. Section I examines the meaning and scope of a West African economic community, while section II reviews briefly the various options and types of co-operation available. In section III the basis for developmental regionalism in West Africa is briefly discussed, while section IV focuses attention on the type of integration approach that would enable ECOWAS to realize the potential of the sub-region for the benefit of its population. In section V the economic, political and social aspects of integration, hitherto neglected, have been highlighted.

1. MEANING AND SCOPE OF COMPLETE WEST AFRICAN REGIONAL INTEGRATION

Although there is no simple or satisfactory definition of "full"

or "complete" integration, integration might seem to be more fully achieved the more it leads to the economy of the co-operating group approximating to that of a single State. In the African setting, however, the peculiarity of the characteristics of the economies and the evolution of political and other institutions make it unrealistic to apply the term "integration" in the same sense as used in the developed countries. It is necessary therefore to paint boldly and fix firmly in our minds the economic, social and political realities of Africa in any discussion of African economic integration. This is particularly the case in the West African sub-region which, as compared with other sub-regions, exhibits the following number of

'ip rinl «hurartcrist ics that sh o u ld he taken into account in deciding on a ...tr,ll<,·g~ an d sco pe oi economic integration in the su b-reg io n .

Firs t , it is the most heavily populated of all the sub-region s.

wit h 1SO million people, equivalent to the population of Japan or of lr.uuc an d west German) combi ncd. Wh ilc this p rovidcx a large pntcnt inl market, the realization of this potential is at present limited hy the low income per capitu in the sub-region.

Se cond. it has the largest number of' countries. numbering 16 in all, wit h a population ranging Irorn 332 thousand in the case of' Cape Ve rd e to about 100 million in the case of Nigeria.

Third, it contains the largest number of' in tcrgovcrnmcnral organizations (about 30 in all) dealing either wit h gen eral cronomu in rcgration matters (E. OW/\S, CEAU. Mano River l nion) or co nce r ned onlj with limited se cto ra l art iv it ics . (example \V RD , OMVG ). Th i

multiplicity of ICOs imposes a heavy burden on the budget of individual states without providing them with corres po n d in g ben e fit s and it also creates immense possibilit ics for \\ idcsprcad duplication of ar tivi ties.

fourth, the region emb races two maj or ecological zon e s - the Savannah in the North and the fore st zone in the Sou t h - which provides some basis for complemental") economic activ it ies ( olton.

millet, sorghum in the sav a n n a h areas. and co ttcc , rO t oa, palm products. plantain and manior in the lon''''t zon l. \\ hil · ^"i me cereals . such as rice and maize are produced in both ecological zo n 'S.

Fifth, the general relief is rclut ivcly flat, a at u r e \\ hirh facilitates the ron struction of roads and railway , alt h o u g h the int r- connections of' n.uionul rail networks an' rn.ulc dill irult h) g, uge differences,

Sixth, it possesse s a relatively large roavt line - only three of the sixteen countric are landlocked - that should provide great opportunity for coastal traffic and for exploiting the ab u n d a n t fish resource. of the coa tal wat rs which co n st it u t one of the mos t fertile fishing ground s ill the world.

Seven t h , other ignifi ant chart•.llt >r is tic of 'it frira are fir t, the le v el of poverty and, -cond , the st.mdard of living in the ub-re g ion which is one of the lowe t in the world . Th ) ave age ^I P wa ab ut S76 p r ca p it in 1< 8 ), in luding uhsi t nee in m Eight of th e 1b m irn bc r Stat of EC ) S ar \ offici.lll) list -d among the -t2 I a t dev loped ountri of the world. Th ar B nin, pe Verde, The Gambi ,Guinea, Liberia, Mali, ig r, nd Burkina Fa o.

Eighth, the anificialit) 0 th fr nti r or nat i o n a l boun da r ic . for if fr rulers ar rufi ial and arbitral) on th riran

3

cont inent in g neral, th y a r e absurd and capri 1 u in hi ub- re gio n. run inward fro m the coa s t, cut ing a ro ibal, rultur l.

n lin g u i ti bard rs. hu , for exa rnpl , h· 'we- pe eking p op le are 'till div i d b tw en h R pu b li of Ghana and To 0: orne

oruba sneaker live in th R public of Renin whil th majority f h ir kin nen re ig ria n . To this should be d d the gre t fri -, n po lit i.al di -id : Fr en .h . :n glish , an Portu uese- pe ak in g rcgi n

~ nd, un til the EEC- CP Lom e ~ nv ntion of Feb ru: ry 1 7 S, th Ef .a i te an d non- ocicte which had bed viled inte zrati on an d op ration m v n in th past,

'i n ally, the re gi n i l e s d with a wide ra nge f min ral r ourr : petro l um ( ig c ri a ) . pho ph te (Sen gal and Togo). ir n (l.ib ria , t uritani a ), bau xit (Gu inea-Co kry), urt nium ( ig r tr ., 11 ⁰ hi h ho ul i prov ide ' ood br i for 'ia b l indu tr ia l tr u c ture .

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nomic lic.nio n, i i, Ii 'en i ba kgr un f I rg ~ n

r gion that i high ly ragme n cd polit i

il t ration 'i ll h, ' to r I. ' b ed and wide 1

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ul r I. pr Ii ie, I nd on mi can ider a tio n , I ir ,it mu t b ) en a me ho d f pro id in g lid h i for cronoml gro \th nd , m r pe i II ', fo r .oa n ion nd di 'er ifi ation 01 m ri I produ non or ac 1 rat d in d u tria liz tion: eco n d , for re a in rtuni ie to

01'e pr bl m of uncrnplo -n n t and un d e re m p loyment of r ou rr p rti ul rio' human re urces: th ird , f r en h n in th barguinln

0\ ' r 1 the t Iric:n -0 n t i . on er onomi i u i -a- 'i' th ev 10 ed rou tries: nd fou rt h, for increa ing th ir p Ii i al trength , nd influ nr c in African a fairs and i the i tern . tionul rnrnunitj .u 1 rgc,

Ilene, ..1 We 't A rican c ono mir inte g r tic n s h uld b

" pa n 1\c in it cop in rd r to achieve the de 'e lo mcnt implie d h) th ex i renee of izc able arkcts, a vigore ro n mi IiIe, le e Ilol ogi r..tl progrcs: ne the ho r in g lip 0 cu lt u I -alu s: t

ireng th .n the n.uional ignt. of he memberSt te , making them m r inde endent. gr: n ing ur -e to heir rei' tion 'h ip inter- d pend n and -n bling them to b •b ter-cqui ed to fa c th unjus t .ploit Ilion to ,\hie . oth e n seck to ubrnit th rn. 'I hus the ,~t

Iru an countri Ii 'ill no t cnvi ..tgc th ir ronomi ( mmunit,' n ex lu iv ly nornir undertaking. ut rt h r mulu-I <. ned e t rpri h ' t. pe 01 e<. onomi integrati n l b pted in l'st Iri III h, ^(I to h .ornpr -h 'n'ii t c P nd uat l o t h re, litie 01 he uh-rcgion.

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ba -k hi tori <111. t he o t in I t .k f th nu m h r and

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run J ' t) P I -op rat ion 'I t, with gr at ar i) th umber of ^l unt i in v 1\' xl, ii) the iz ov r d, (iii) the hi t rica n I lingui ti f th ount ic inv 1\' iv) rganiz ti n: I

v) aim nd ir ru rncrus. he allowing h: i ppr n rnir l -op rat" in an h iden ti I I Ir m th main f .a t r h m and in tru 1 in s put in 0 1\ '

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Market integration approach

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lh tr lit ionnl appr ch, lou r') , rcc gni,«, til 1JOInt (ti n h) developing coun t ri S l n be h n ^I i I, hut ^'Ill h . lilt .u t.i n is

put into pra ti through 'rtain .1 l'l' p t d I ir rnu l. 'Ill h . Irc tr ..de ar ,rust rns uni m, or mrnon m.irk -is. hu the h m "

nrentra ' on the abo lit io n f di\(rimin.uu n nd th r r 'a ion ( .ntru lized d i ion-ma king trurtures. Ihis i, hI ^t'( nomi. integration h traditionally -n impl 111 -n -d, \\ ith nc () til ' primal") als, a aIr all) tat d, in ^J 111. rk 1 p' nvion,

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Progress towards market integration in all the AIri can economic integration schemes has been disappointing, with the share of inter-regional trade in total trade still at the level it was more than two decades ago. This is due to two main reasons. In the first place.

there is the lack of very much in which to trade, particularly if unrecorded trade (smuggling) is excluded. It is basically the low level of production that accounts for the small volume of intra-African trade: it is not likely that the mere removal of trade barriers would produce a rapid expansion of such trade.

Second, regional schemes based on the integration of markets have generated distributional crises which have had deleterious effects on integrative schemes. Cases in point are the experiences of the defunct East African Community, the West African Customs llnion (llDAO), the Customs and Economic Union of West African States (lJDEAO), and the withdrawal of Chad in ]l)()8 from the membership of llDEAe. These amply demonstrate that distributional crises cannot be solved through market mechanisms, as for example, fiscal compensation, which has proven in various cases to be of the least appropriate and politically most unacceptable instrument. This is largely because it fails to address the fundamental issue of balanced development and the equitable distribution of productive activi ties, the location of industrial production within the region with its spillover effect on employment, technological transfer and learning- by-doing.

Generally, when countries face budget and balance of payments prohlems, they seek to avoid the immediate costs of regional integration, which, in the case of market integration, involve loss of customs revenue, of particular importance to the industrially less developed members. But these costs must be borne if longer-term benefits are to be reaped. The smaller and poorer members are also concerned that most gains from integration will flow to the more developed partners and that compensation procedures will be inadequate, as was the situation in the East African Community, UDAO, UDEAO and UDEAC cited above. Indeed, the regime of structural adjustment programmes which has prevailed in most of West Africa (as indeed in the rest of Africa) has hindered the integration process tremendously. SAP policy instruments disregard completely the impact of their consequences on other countries.

Also in ECOWAS, the difficulties faced by member States in .adhering to a given timetable for tariff liberalization because of their low level of industrial development, their high dependence on customs revenue, delays in paying in full their assessed contrihutions to the

"Compensation Budget" to enable the much postponed trade liberalization Scheme to take off on 1 January 1990, are clear evidence of the complex and potentially explosive problems involved in the adoption of market integration approach. It imposes considerable

co ns t r a in ts on the latitude of national decision-making without pro viding the means by which sufficient gains to warrant sacrifi ces might he realized.

Functional approach to integration

The second approach to economic co-o pe ra tio n and integration is the functional approach or Ilcxib le co-o r d in a t i n g bodies and organizutionx to carry out joint programmes and projects, in which individual States can co-o p e r a te selectively at a functional level, varying their involvement from rase to rase. The Southern African Development Co-ordination Conference (SADCC) is a typical example of this approach. Ot he r examples arc CILSS in We st Afrirn and the Indian Ocean Commission based in Mauritius.

Flexible, functionally specific organizations have the advantage of impinging little on the sovereignty of participating States; decision-making power remains concentrated at the national

lev cl.

This approach is perhaps better grounded in the r Iit ics of the African sit u a t io n than that of market integration. It idcnrlf'ies concrete projects where gains from co-operation rna) he r alizcd in the immediate future, project s which an lay the Ioundarion s for further co-operation once the basis for trade has h en .siah li h d. In contrast.

market integration, involving the creatio n of a customs union or lr .c trade area usually rcquir relatively long timc-pcriods fo r fruition so that the initial impart. and perhaps the most important one, i" an cxpcr ta t ion regard i ng f u t urc rnarkct opportu nit i rather than existing trade pattern". Attention, th 'r 'for , has to h paid to the long-run effects which eco norni integration is lik I) to have.

This app roa ch. Iso make for the pursuit of int 'g rati n in ways that are less all-embracing. and perhaps more pra rtlruh l . th.in the

tablis h m c n t ofcu stom union and common mark '

Ther arc, no dou b t, prohl m with this fun tion a lis t app roac h: regio nal co-op e r a tion ha .cd nt ircly on a number of sp

progr rnrne , pro pc and/or a tiviti e rna) mi opp rtunitic wider parti .Ipauon an d thu be .ub- prim I in term of realizelion of pot nti:I g in .

A further w knc of a fun ti nal ppr a h i th t it I . th automati piltover effc t a i t'd with mark tint grati n: th r i a danger th t o-o p rati n will h ome cnr p ul t d in a limit d number of proj ts unl cffir t are con inuously mad ' to id in tify new prospe.ts f r o - perativc action. H .re th f th r gi na l secretariat will he ita l.

7

Certainly, this approach, adopted by SADCC, is no guarantee of success for any regionalist scheme in Africa, given the formidable economic and political constraints under which they must operate.

Production approach to integration

The production-focused approach, or "collaboration for expansion and diversification of material production", as the UN Journal of Development Planning would describe it, is a new approach that emphasizes broadening the regional production base and the

•

This approach is based on the premise that expansion of mutual trade can take place only if the interested developing countries are able to produce the desired merchandise in sufficient quantities to meet each other's demand. The possibility of increases in mutual trade is a crucial incentive to expansion of :production, but it cannot be taken for granted that the desired expansion will automatically follow.

Gradual harmonization of industrial and agricultural policies and joint industrial agricultural planning and production are complementary to market integration.

The production-focused approach, which does not necessarily exclude trade liberalization on a broad basis, involves (a) industrial allocation schemes and joint industrial planning; and (b) joint agricultural ventures.

Some limited co-operation schemes

The following four co-operation schemes with limi ted objectives also exist.

(i) Organizations set up to carry out specific, limited objectives or individual projects (for example, developing river basins or inland lakes with several riparian States; managing educational and research institutions, combating disease and natural disasters, running airlines, etc.)

(ii) Pragmatic, ad hoc co-operation without any fixed institutional fonn to promote specific objectives (for example, agreements on transport corridors affecting several countries).

(iii)

(iv)

Join t actio n to improve barga in in g po sition s \ is- a-vis c-ctra-rcgi on al economic factors. This might take the form of co-ordination of marketing of certain primary products (the success of which will depend in part on the market share of the region al partners). The potential for co-operation in other areas exists, c.g., in negotiuti ng ronditions for foreign invcs trnent in a region.

Co-o p e r a t io n to mohilize finanr ial ass istunce from foreign sources. This is parthularty attractive at a time when the international aid co m m u n ity continues to favour regional projects. c.g., funds ava ilnhle for regional co-o p era t io n under the Lome Sys te m.

These are the main types of integration arrangements that exist. Considering the low levels of development in West Africa. the st r u c t u r a l diversity and the intricacy of the 'COIH)m ic, olit ical. and social dimensions of the sub-region, would roopcrut i n ohj ct iv s he realized through the operation of market fo rces? \i hat kind of approach to the process of integration \\ ill he m t fl tive in rculizi ng the potential of the sub-region for the h n fit of it

population? And what should he the g al of West Alri,an econ mic in tcgration?

III. THE BASIS FOR WEST AFRICAN INTEGRATION

A primary goal of an eco n o m ic in tcgrut io n sche me in \i . t Africa, as in other parts or fri a, should he l r du c d -p ndcn of the ECOvVASmembers Oil the outside wor ld .md to l r '.Ite ond it io ns that will make sel f-xu uai n d, aut nOI11OU\ d '\ '10 m .n t ( l\ ib le . In the African setting, uch development c....n only come . h ut ihr o ug 1 the transformation 0 pro d urtiv st r ucture . In other \ rds, in .t

developing ar 'a suc h a _st Africa, the go.l1 of et nomi - Cl - pcr.u l n should he the transformation of the st r uc t u re of pr duenon and distrihution. Given the r 'aIiti of the \ t fril~ n ituati m, ur h transformation can rom abou t nOl l h ro ugh m .r int g •ticn () market but through coIl bor a ti n or pan i n nd div r i i . lio n 0 f materia l production.

West Afr ir n u b-re gional co-operation mu t 'it rt from the prcm i e that th e rcqu i it for In teg ario n do not pr -ru ly xi t but must be cre ated . °1his i in con t ra t to th dominant ap p ro ch of ECaWA') which ha t nd d to ntcrt in a beli e th l in t g at io n in We t Afri a co u ld be I gi luted from hov e , ' " nihil . 'I re i littl purpose in lib e ra ll ing trad wh n th parti h v nothing t ex hange: regi on t c p ration mu t, in t r alia, r at the basi s f r trad e. Otherwi e, We t Afri n m rk tint grat i n will m rei b f r prom ting non-Afri an go d and ervi '

9

IV. TOWARDS EFFECTIVE DEVELOPMENTAL REGIONALISM IN WEST AFRICA

A multi-purpose comprehensive cooperation initiative in West Africa that would have the potential for achicvtng the goals of integration would necessitate a re-arrangement of the priorities of ECOWAS and a review of its treaty by the incorporation of some hitherto neglected economic andsocial aspects of integration.

To achieve the goal of West African economic integration ECOWAS should give top priority to production and devote substantial resources to production integration in order to reduce the sub- region's excessive external dependence, critical lack of productive capacity and internal non-viability of member-economies. It is from the integration of productive structures that the veritable gains of self-reliance will be derived. First, it is at this level that the benefits of the economies of scale will be reaped. Second, given the natural complementarities of endowments in: West Africa, the integration of productive structures would generate new forward and backward linkages in the process of sub-regional development. And, third, integrating production structures would alleviate the persistent constraint of financial resources, as it would enable countries to pool resources and establish multi-country programmes in areas like iron and steel and lake and river basins development.

To say this is not to ignore or underestimate the importance of market integration in the building of a viable West African economic community. The point at issue is that, on the basis of past experience, attempts to integrate markets through the removal of trade barriers without simultaneous effort to promote a joint approach to the expansion of production capacities, will be largely ineffective. Not only is it important that the two endeavours should proceed simultaneously and be mutually reinforcing, it is also essential that the removal of trade barriers should be pursued in the context, and as an integral part, of agreements and understandings relating to the planning of production improvements on a sub-regional basis.

Harmonization of national efforts to improve agricultural productivity, restructure industrial production to rely more 0 n domestic rather than on imported factor inputs, rationalize the production and utilization of energy, and improve facilities for repair and maintenance of plant and machinery, among other things, through sub-regional efforts to standardize equipment and parts, should be major components of co-operative programmes that ECOWAS ought to promote if it is to have any significant impact on the development of member States.

ECOWAS priorities

Evert within the production integration approach, priorities must he set. The following specific su b- reg io na l priorities are proposed:

(i) Sub-regional food self-sufficiency and security

Following the objective of estahlishing a human-centred development, particularly in such a food deficient sub-region as West Africa, the first priority area of r o llcrtive self- reliance is that of sub-regional food self-sutIic iency and security. The recurrent food crises in West Africa have heightened the need for integration in agriculture designed to provide self-suff'ictcncy in food, the production and distrihution of seeds, the local manufacture of agricultural inputs, including animal feed, integrated research and animal health facilities, food processing and the establishment of food marketing system on a West-African hasis. Indccd, nothing short of a West African common agr icu ltur.il policy, production and marketing is required.

(ii) Production of intermediate and capital goods

Production of intermediate and capital goods , especially iron and steel, machine tools, fertilizers, c h c m ir alv a nd pharmaceuticals, huilding materials. as well as agricultural.

transport and construction equipment onstiune the s rond priority.

(iii) Joint services

Priority has to he given to the establi shment of joint service s:

air, communications, shipping, insurance, for example, for provision of efficient and reliable sub-r gio n a l S rvicc .

(iv) Infrastrurtural dimension

A new orientation hould be giv n to the int gratio n not only of the productiv ba e but alo o f the phy:i I, in.tituuona l nd ocia l infra tr u tu re to u tain ub-re g ion al produr tion structures and marke t . Of p rti ul r importune in th i integration appro a ch re tran po rt, p ts , and teleco mm un i arion .

(v) Joint re ear h institution and prograrnm

Thi is required for ub-r gional apa it)' building. H u re ear h i pe i liz d, ub-regional o-o p r tion ~ ie ld .

ignift ant c anomie of cal .

, ,

(vi) Joint energy policy and programmes

The integrated exploitation of the region's energy resources, such as hydropower, would enable energy deficit areas to obtain the energy that is critically necessary for transformation. This calls for an ECOWAS joint energy policy, programmes and activi ties.

To reflect these priorities, the following chapters of the ECOWAS Treaty need to be strengthened and put up front:

(i) Chapters V (Industrial Development and Harmonization) and VI (Co-operation in Agriculture and Natural Resources);

(ii) Chapter VII (lnfrastructural Links in the fields of Transportation and Communication.

The language of the Lagos Treaty with respect to harmonization of industrial policies (Chapter V) is rather vague, and it falls somewhat short of the vigorous measures that need to be taken to begin the process of merging West African economies. For example, although member States are called upon in Article 30 to harmonize their industrial policies, no organ of ECOWAS has the power to allocate industries among member States or to ensure that industrial policies are harmonized. The Council of Ministers can make recommendations in this regard but unless the recommendations are accepted by the Authority of Heads of State and Government, they cannot be implemented. This lack of harmonization of industrial policies leaves external forces, particularly transnational corporations (TNCs) in the position to bargain with individual ECOWAS countries and to undermine the goals of the ECOWAS treaty by employing classic divide-and-rule tactics.

The Council of Ministers is also called upon in Article 32 to

"take steps to reduce gradually the Community's economic dependence on the outside world and strengthen economic relations among themselves". Yet no institution or body in ECOWAS is empowered to negotiate with outside forces on behalf of ECOWAS; neither has any institution been established to control the importation of technology.

Indeed, the relations of ECOWAS with the outside world, which are crucial if reducing dependence is to be achie ed, are largely ignored in the Lagos Treaty.

To sum up, the kind of economic community required in West Africa should be one whose main thrust is based on production integration. The under-development of the sub-region that is manifested most vividly in the pervasive lack of productive capacity;

its food and agrarian crisis, small internal production bases,

,"C iv cxternaI depen d en ce for ind ustrial and a g ricu i t u ra I prod uc t and the patent non-viabifity of national industrialization programmes in most countries, underline the urgent need for effective production integration in West Africa. Production and infrastructure should be the underlying areas of West African economic integration, while liberalization of trade within the group should be only supportive of this process.

The effectiveness of a West African economic community based on production integration should include in its scope some economic and social aspects of integration. For integration should com pr ise as many social activities as possible so as to create and strengthen the sub-regional identity of the West African co u n t r ie s as well as facilitate the production approach.

v.

(i) The human factor

Promotion of ECOWAS production-focused integn•rtion should not be seen in isolation. Certain other sectors would need to be stimul ted pari passu to enhance production. Among thorn is th need to strengthen the popular base of the production approach to integration. Towards this end, it is imperative for West Africa, in the light of the current developments in the rest of the world, to map out its production-focused integration strategy which incorporates the human factor so as to lay solid foundations for sustained development.

It must be emphasized that unless the peoples of W t Afrie are themselves aware of the process of ECOW S' production-focused integration, and are interested and enthusiastic ab ut it, all attempts at reshaping integration in the sub-region will come to nil. Therefore, the effective mobilization of public support should b reg rded a crucial ingredient in re ipe for irnplem nting nd m in tain ing sub- regional co-operation and int ration orient d tow rds co li tiv If- reliant, indigenous, and elf-susta ining dev lo p me n t.

Tow rds thi end, Ch pt r II, Arti Ie 4, of the E. W Tre t)

should be amended to provide a foru m for fo rm I x h ng of i w with the private cto r , as n hr in d in Arti Ie 19 -1 8

urop an Com m u nity Rom r , whi h t up the E n mi So ial Comm ittee com po of r pr n rive of the v ri u t g ri of onomi nd ⁰ ial life, in p rti ul r repre n ti of pr du agr i ulturi t , tr n port op r tor , or r, m rch n rti an , liberal prof ion, nd the general inter ts. In oth r word , the in titution al tructure of COW hould be re tru tur to bridge

"t he elite-rna s g p" and to in 01 e the pri ate tor in the Community' d i ion-ma king pro ess.

13

(ii) Common education po I ~

Closely related to this is the need to expand and enhance cooperation in the education field (common curricula, exchange of teachers, exchange of teaching materials, etc.). This will also include such long term policies as opening up the West African Examinations Council to cover all ECOWAS countries; promoting bi-lingualism in secondary, technical and university education; and developing West African centres of excellence. Added to this, the Community must devote some of its resources to the foundation of integration journals (like the Common Market Studies published in the UK) and the promotion of seminars in the field of integration. Such an undertaking would contribute, in no small measure, to the broadening of outlook of West African socio-economic groups as well as the enlargement of their regional understanding, all of which would help to create a favourable climate for integration in the sub-region.

(iii) Enabling environment

One important function that the governments in West African countries must perform in order to promote the production integration approach is to create the requisite enabling environment for economic co-operation and integration. Apart from the creation of an environment to facilitate, among other things, intra-regional movement of goods, services, capital and labour and other customs union or trade matters, there must be an enabling environment in terms of political freedom and human rights; freedom of speech, of thought, and association; from economic and personal insecurity, and from arbitrary arrest. It is in such a political society that values of self- reliance, dedication and loyalty can be developed. It is in such a society that a consensus of values, based on such characteristics as toughness, determination, resilient inner strength, steadfastness in duty and respect for the law, will evolve and grow. In other words, there must be the democratization of the development process both at national and ECOWAS levels.

2

COMPARATIVE ANALYSIS OF THE TREATIES OF THE AFRICAN ECONOMIC COMMUNITY AND THE

ECONOMIC COMMUNITY OF WEST AFRICAN STATES

by Sam K.B. Asante

INTRODUCTION

At Ahuja, Nigeria, in June 19()1, the 27th Summit of the Organisation of African Unity took. a giant step towards Africa's long- cherished goal of unifying the continent's fragmented an d vulnerable national economics into a single, more powerful economic bloc, The adoption of the all-important treaty cstabllxhing a timetable towards the creation of an African Economic Com m u n i ty (ArC) hy the year 2025 is a major histori c undertakin g wh ic h must be seen s vital for Africa's economic survival, in the fare of its economic crisis and growing marginalisation in world affairs 1. It i'i, undoubtedly, Afri .. 's response to the challenges posed hy the emerging world of trading blocs: the highly successful U.S.-Canada Free Tra d e gr menr, the Australia-New Zealand Free Trade Ar , t h e new co n o rn ic bloc in ia and the Far E. st and, above all, the ern r Jin g "I-irtre Eu r o pe" , in

19()2, which thre tens to isolate frica from world market

l..

Withi n Afri . it. II, the buja ^r r'at)' dr s not ( nly po s ~ n w challenge to the strategy of reg ionalism, it hall al 0 giv .n a n w l ase of life to the exis t in g sub-regional onomi r irnrnunit ic - I- W PTA, ECCAS, AMlI, and SA C - wh ic h h III a p xial pia in the prog re ive esta b li hment of the n w Pan- fri . n Community. The Tre ty underscores the imp rt nr e of th ^{' C} mm uniti in the proce s for the auainm nt of the ohj r tiv of the om mun i ty a exec u t in g in tr urn nt of om rnu nity pr gra rnm at th sub- r gi n I

1

2

for a ar Ji r anal)' i of th future A ri an L onomi Communit . .K.H. A ant ,"To rd ontin ental Afri n E onomi om m u n ity by th r 00 0" in Chri tophcr F) Ie ( d.) Afri n I'u t u r (Ed in b u rgh :

-d in b u r g h l niv r ity, 1 ), pp. 71-10<>.

.K.B. A ante, Africa nd the Br 'e ew World of Re g iona li mil, De\ topmen t nd o-op er atio n, -eb .

1991.

15

level, as reflected in virtually all chapters of the Treaty. So central is the role of sub-regional economic schemes to the concept of continental economic unity that without them the new Pan-African Community collapses as a concept and strategy.

As one of its central objectives, the AEC is to "co-ordinate and harmonise" policies among the existing sub-regional economic groupings" in order to foster the gradual establishment of the African Economic Community" (Article 4 (dj). Towards this end, the Assembly, as the supreme organ of the AEC, has the power to "take decisions and give directives" concerning the sub-regional economic communities in order to "ensure the realisation of the objectives of the Community"

(article 8 (hj), This is reinforced in chapter 4 which commits the Community members to take all necessary measures aimed at promoting increased -co-operation among existing sub-regional economic schemes. And to underscore the relations which should exist between the Community and the existing economic communities, the decisions of the Assembly arid the regulations of the Council of the Community are binding on the sub-regional economic schemes (Arts.

10(2) and 13(2). This specific role assigned to the sub-regional economic groupings in the setting-up of the Community is confirmed in the first five stages of the Community's development, starting from the strengthening and co-ordinating of their activities, to the establishment of a free trade zone among member States and the creation of a customs union. .

Against this background, the concept of the African Economic Community, its take-off and its progressive establishment is closely linked to the economic integration process at the sub-regional level.

Hence, to forestall any possible conflict of interest that might arise and to establish a harmonious and effective working relationship between the continental Economic Community and sub-regional Economic Communities, there is need for a thorough review of the provisions of the treaties establishing the latter schemes to synchronise with the structure, scope and approach to integration of the former. This should particularly be the case when it is considered that the Abuja Treaty has not only taken a leaf from the experience and fluctuating fortunes of the African economic co-operation and integration processes over the years; it has also, against the background of recent economic and political developments in Africa, responded sufficiently to the complex and multi-dimensional aspects of Africa's economic recovery, transformation and development.

AEC AND ECOWAS: THE ABUJA AND ECOWAS TREATIES COMPARED

Th e Abuja Tr ea ty is remar kably significa n t and to a large extent different from the Lagos Treaty in terms of institut iona l and decision-makin g processes , as well as approach and orienta tion . It is

( mp rch c n s ivc in s op , co n ra m m g 10() article arranged into 22 hap ters while th Lagos Tre a t) has ()..J articles cover ing 1..J chapters.

Ab u] : brings together not only the main dcvclop me n^t sectors highlighted in the L.agos Plan of Action, but also many other strictly non-economic or "positive" integration aspects of co-operation. As noted in the preceding chapter, it reflects admirably the holistic vie w of the can cp t of development that links the so-called objective and quantitative factors of production on the one hand, and the so- aile d non- onornir factors - the poli tical, social, cultural, environ m n tal and instttutional, on the other. In particular, the Pan-African rre: ty, unlike that of E 'OW S, rcllerts the essential elements of a demo.ra uc framework or the importance of popular democracy in the development process as forc efully articulated in lINDP''i seminal II u man Development Reports, 1()()O and 1()()1, and the E 's African Charter for Popular Participation in Development and Transformation, adopted in February 1 <)()O, and reinforced b) the OAtI's commitment to democratisation of the development process.

Underlying Principles

Unlike the Lagos Treaty, the Ah u ja Tr ea ty provides instructive prc fa e of a se t of fund mental prin iplcs which br at hc thr ugh the operative chapters. The first is rel: t d to the "promotion of . p ca refu l environment" as a prerequisite for Africa'v .urccssfu l xono nur development. Linked to this, second, i'i the ernpha-i" placed on "till' respect, promotion and prot etio n of human and people rights", in ar or d arue with the provi ions of the Afri n .har t r on II um; nand People's Right» adopted h) the /\ iri L') 1. Third, \fri can Stat '\ ar

.orn m it tc d . under the Tr t), to th pr motion 01 ^{.11 I} ou n tability . economic ^justir and p ^{pulur pa}rti ip.ui n in ^{d '\ -l}o p mcnt.

Conscqucntly, fourth, the om m u nity " s the co-or> -ratir n of African non-government lorg ni tit n (, ^{h )} in ord -r to inv olv ^l the peoples of Africa in the proce s of co no rnir int '~r~lti()n .md to mobilise their skills and financ i I support. Women p _{'riall ~} must he mor act iv e ly drawn into the dev lo p m nt pr

"I h se prin ip l r n c ary a a gu ide .

r '

era of institutionali tio n of th e hum n fa t r in the d v lop rn

- ru

pro c . Th y a re wo rt h revi wing for inr or 0 ati n in th e rcv i d 'COWAS Tre aty, th y ^C n titut th ing r i n , .a.;,p=a.:...r....=.:.;x:..:....=..:..:...=..:..:....::...=

sustainable d \ el pm nt.

Community Obj ectives

L4A.J;;',"'~ d • n t m to ha .

t nd rd provis io n of ti n he m Ith ugh In t rms of mrnunity oh j tiv

much to lea rn from buja , b th r

n

fri n e ono m ic co-ope ra ti n nd Integ 17

Abuja is much more detailed and more clearly set out than Lagos. The main difference is in the promotion of the attainment of Community objectives where, as indicated below, Abuja places the accent on production whereas Lagos stresses the centrality of, and concern for, market integration.

Institutional Structure

The process of integration necessitates creation of suitable institutions to deal with the complex problem of linking the economic destinies of several nations. Indeed, much of the success of the EEC is attributable to the wide range of institutions which have been instrumental in translating its programmes and policies into action.

The Treaty of Rome established clear provisions not only for setting- up these organs, but for a gradual transfer of initiatives from member States to these supranational entities. A significant result of these built-in provisions is that integration among the member States of the Community has become a continuous process, whose scope is expanding along a previously determined time-path. It is the continuity of this process which to a large extent has consistently increased the stake of the member nations in European Community programmes3.

While the institutions of the Pan-African Community and those of ECOWAS are not so elaborate, both Abuja and Lagos recognise the development of adequate institutional machinery as an essential condition for successful co-ordination of development policies. Abuja, however, institutionally goes much further than Lagos in meeting the prerequisites for building-up an integrating community.

The Abuja Treaty provides for the establishment of a Pan- African Parliament to ensure the involvement of the people in the

"development and integration" process of the continent (Article 14).

In this respect, the Treaty reflects current concerns about the role of the people and the democratic imperative in the process of integration.

The Lagos Treaty, on the other hand, does not institutionally provide a forum for exchange of views with interest groups or private sectors in the West African sub-region - trade unions, employers' associations, chambers of commerce, etc. - who are directly interested in and likely to be directly affected by many of the provisions of the

3 S.K.B. Asante, The Political Economy of Regionalism in Africa: A Decade of the Economic Community of West African States (ECOWAS) (New York: Praeger, 1986) pp.

64-5.