Economic co-operation in Africa present situation and proposed programme of activities for 1967 - 1968

UNITED NATIONS

ECONOMIC

SOCIAL COUNCIL AND

GENERAL

e/cn. 14/386 13 January 19 6 7

ECONOMIC COMMISSION FOR AFRICA Eighth session

Ljigos, 13 - 25 February I967

Provisional agenda item 6

DOCUMENTS Cs ; -K *

FlLi lir

NO TO BE TAKEN OUT

SCOJTOMIC CO-OPERATION IN AFRICA

PRESENT SITUATION AND PROPOSED PROGRAMME OF ACTIVITIES FOR I967 - I968

K67-15

E/CN.U/386

CONTENTS

1, General review and objectives for the

I967-I968 x

2, North African sub-region 5

I» The present situatior 2

II, Activities in progress

III. Proposed programme of activities 9

for 1967-1968

3, The Soonomic Community of Eastern Africa !3

I. The present situation ^

II0 Activities in progress ^

IIIO Proposed programme of activities

for 1967-196B l6

Annex I Draft Agenda Interim Council of Ministers of the Economic Community of Eastern Africa(S©oond Meeting)

Annex II Draft Agenda Interim Economic Committee of the Economic Community of Eastern Africa(Piret

Meeting) 22

4, Central African sub-region 2^

I, The present situation 2^

II. Activities in progress 23

III* Proposed programme of activities

for 1967-1968 25

5, Vest African sub-region 2»

Io The present situation 2'

lie Activities in progress 3°

III. Proposed programme of activities

for 1967-1968 ^2

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1, General Review and Objectives for the Bienrium 1967-1968

This report presents in summary form the progress which has been made in establishing the institutions and processes of economic co-operation in the African region. The logic of the multinational approach to economic planning and development in Africa has gained general intellectual accep tance among politicians, officials and economists both inside and outside the region. The peoples and -their governments have com© to reject poverty and economic dependence, and national development planning is directed, with varying degrees of clarity, consistency and determination in the different countries, towards their elimination. But in every national attempt to diminish poverty and economic dependence the disabilities caused by the economic fragmentation of Africa have become readily obvious. TSany branches of economic activity, especially those which could contribute

the most to the modernization of the country, to higher levels of income,

and to the local supply of the sinews of national development, are closed to the majority of African countries owing to their small economic size.

The region has had no success in solving this problem of the frag

mentation of the continent through changes in political organization. l*o

federations or confederations of independent African States have been

formed? on the contrary a number of such larger units have broken up. In

this situation the approach recommended by the secretariat to member States is to try and find a means to consolidate their economies into more viable units and to plan jointly for the exploitation of the larger economic

opportunities thereby opened up, while the political structure of small independent sovereign States remains unchanged. The popular conception of

this policy of inter-state co-operation for economic development runs in terms of forming an African common market or a number of sub-regional common markets, and the Commission itself has passed many resolutions to this effect. At the policy making level,however, the content of the principle of economic co-operation must be translated into more complex

institutions and activities which in fact need not involve the formation of common markets in their technical acceptation although increased trade is a central component of any programme of economic co-operation. In its

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resolutions the Commission has touched on manyf^cots cf-the process ^£

economic co-operation including the liberalisation of trade, the organi sation of the means of payment, the development of transport links, joint

planning and consultation, and the influence of external factors on

eoonomic co-operation in Africa,,

It is clear that any group of independent States whioh wants to

achieve effective co-operation in their economic development musts

(i) Set up institutions in which they can discuss and take decisions on their collective policies and projects, frequently and on a

working level, in the same way that national policies are made

in cabinets and committees;

(ii) Create a civil service machinery which will adiri.se them and

promote their joint undertakings. This is particularly important since each participating government is constantly getting advice based on individual national interest from its own civil servants and there is need for a strong and neutral focus for the multi national approach. Besides, the common interest of a group of countries tends to be nobody's interest in particular and is always in danger of going b} default in the midst of all the pressing details of national policy which occupy the authorities in each country;

(iii) Agree on and find means of implementing a number of concrete development projects which increase economic contacts between their countries and thereby enhance their joint prosperity.

So far the progress made by the four sub-regional groups which the secretariat has tried to foster as a first practicable stag© in inter- African economic co-operation has been verj uneven. As the subsequent sections of this report show the countries of the Maghreb and of the East African sub-region have shown the greatest willingness to create machinery through which an effective inter-governmental dialogue can be conducted on these very important and intimate matters. The Vest African countries after manj false and partial starts have taken some new tentative steps

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in that direction, while the countries of the Central African sub-region continue to show a marked reticence in "building a "bridge between the five UDEAC countries on the one side and the Democratic Republic of the Congo on the other, Within the area of UUMC, by contrast, economic policy and development are very closely co-ordinated among the five member States,

Up to the present none of the sub-regional groups has built up a

strong technical arm. The small joint secretariat of the Maghreb countries with the assistance of the jSCA sub-regional office in Tangier has been able to produce a certain amount of technical work and to mobilize external

assistance from both multilateral and bilateral sources to meet part of its

needs for professional work. Very little technical work has been done by or for the Economic Community of Eastern Africa, and the tfest and Central

African groups have not got to the stage where this could even begin to be

organised. The result of this situation is that a number of opportunities

for enlarging the scope of economic development through multinational

co-operation have been identified through the pre—feasibility studies of the

EGA secretariat and sometimes in discussions between representatives of the member States. But the gap between such preliminary prospecting and the formulation of properly documented, feasible, projects has yet to be bridged owing to the absence of the requisite technical and civil service work. A fortiori, the sub-regional groups cannot as yet point to any

multinational projects of major significance which have actually got off the

ground.

The work programme outlined for each sub-regional group in the following sections of this report aims to bridge this gap as rapidly as possible during the coming bienrdum, starting from the stage of organisa tion which each group has been able to attain through political agreement.

The ECA secretariat has already provided ii, its four sub-regional offices

a small complement of professional staff to form the nucleus of the tech

nical arm of each sub-regional group, while the headquarters staff will

continue to lend its help in further elaborating and promoting projects

of sub-regional importance. The uember countries of each economic group

are being asked to strengthen these offices, especially by adding

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a few of their own chosen men so that these institutions can indeed become their own, and b;y giving them.other material support. Inevitably, most of the technical resources required to undertake economic and en gineering feasibility studies in support of multinational development will have to be provided from outside the region. But all the indications are that once the member countries have built up their own policy making machinery and made up their minds seriously to pursue any particular projects - in trade liberalization, in transport and communications, in agriculture and in industry - such external assistance will be readily forthcoming from both United Nations and biiateral sources.

It is the hope that bj tackling vigorously the work programme out- "

lxned for each sub-region the member countries can achieve during the

coming biennium a few successes in the final goal of economic co-operation,

namely, some concrete measures of economic development which would not

have occurred without multinational co-operation and whioh will contribute

to the reduction of poverty and economio-^ependenoe in Africa,

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2. North African Sub-region

I. The Present Situation

Intern-Governmental Organisations

1* *2ha four Maghreb States - Algeria, Libya, Morocco *a&

pioneered the movement for formalized and syflteafttiO economic oo_operation between independent African States in the North African sub-region by agreeing, in 196"4> to oo-or&inate their

development efforts.

2. For this purpose they have created a coherent system of joint institutions comprising:

(a) The Maghreb Council of Ministers for Economic Affairs;

(b) The Maghreb Standing Consultative Committee;

(c) The Secretariat of the Standing Consultative Committee;

(d) A number of Specialized Commissions and Sub—Commissions covering industry, trade and transport? posts, telegraphs and communxca4ixins. and—tourism $-• statistics and national

accounting.

3. Ministerial meetings were held in Tunis in September 1964 and in Tangier in November. There were three meetings in 196? -

at Tunis, Tangier and Tripoli - and one in Algiers in February 1966 before the .3CA sub-regional meeting which brought together the Maghreb States and the other countries of the sub-region in Tangier in June I966.

4. The Standing Consultative Committee was established permanently in Tunis after the Algiers Ministerial meeting together with its secretariat. Its members, all senior officers in their governments, are in principle full-time and are each supported by one alternate member.

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5. A parallel organization for co-operation in the field of

education - the Standing Consultative Committee on Education - was formed after the conference of Ministers of Education in Tunis in February 1966.

XX* Activities in Progress

1. Consultative Process - At the beginning of 1964 the ECA prepared a study on industrial co-ordination in the Maghreb for the four

countries similar to the studies which were presented to the

other sub-regional meetings in 1965 and I966. The Maghreb,

countries however took matters forward by themselves, orga

nising some thirty specialist meetings on individual branches of production or projects in the past two jears.

The studies that have been commissioned by the Standing

Consultative Committee and the specialist commissions from the ECA alone have covered, among other subjects, existing indus

trial capacity in the Maghreb, the demand for industrial products, production and demand for food products, other agricultural crops especially agricultural raw materials for industry, the marketing of citrus fruit, wine, olive oil and alfalfa, the hartnorization of customs

and statistical nomenclature and industrial standardization.

2. Co-operation in Individual Sectors - As a result of the consul tative process which has gone on steadily in the Maghreb, the following situation has been reached in economic co-operation in the various sectors;

(i) Trade

v

Lists have now been drawn up by the Commission on Trade of those products on which a complete removal of tariffs is recommended; and those on which tariff preferences

(of 10, 20 or 30 per cent) are to be granted by the

Maghreb States to each other. These first steps

towards a Maghreb Common Market are now to be discussed by the Ministerial Council.

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It has been agreed to establish a common marketing centre for alfalfa which features prominently in the external trade of the four countries. A co-ordinated policy for their relationships with the European Common Market has also been accepted.

(ii) Industry

With, the assistance of the UNDP the Maghreb countries havs established a joint Centre for Industrial Eesearch which will promote industrial development in the four countries by carrying out studies on "both the technical and economic aspects of individual projects leading to the production of feasibility studies.

The branches of industry whose development is now

being considered within a multinational framework include iron and steel, vehicle assembly, glass and electrical and electronic goods, with ciiemicals, textiles and food industries next to come.

(ill) Transport

A permanent committee on maritime transport is working towards the co-ordination of the activities of the

national shipping lines and co-operation in the training of personnel.

Another permanent committee on air transport has

under consideration the commissioning of a stud^ on the economic and juridical aspects of the proposal to set up a joint Maghreb airline. Meanwhile co-operation between the four national airlines has started on such matters as commercial representation and common facilities at various airports.

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towards a common driving' licence valid in all four countries, uniform rules of the road and. the simplifi cation of customs formalities at the frontiers.

A Tunis-Algiers-Casahla^ca oa"ble service was restored in 1965 and a Tunis-Tripoli link is due to open early in 1967.

(v) Tourism

Apart from initiating mcv^s -covarda the snttir:^ up of common training facilities for the tov.rJ.yfc trade, the Maghreb countries have attempted to iot:l an associfitio:.;

of tourist organisations and to outalDlish a oocunou travel

agency.

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III. Proposed Programme of Activities for 1967-1968 1. The Extension of Sub-regional Co-operation

The sub-regional meeting held in Tangier in June 1966 expressed the desire to see the process of economic co-operatior. which has started among the Maghreb countries extended to their neighbours in the sub- region - Sudan and the UAR. The fields indicated as being probably fruitful for co-operation among all six countries in the immediate future included transport, telecommunications and tourism,

2» Projects and Programmes

(i) Education

The ECA will prepare an outline scheme for achieving comple mentarity between the Universities in North Africa especially in the teaching of technological and higher professional subjects where the requisite facilities and minimum economic student

numbers make multinational co-operation necessary and mutually beneficial. The preliminary list of subjects selected for examination with a view to possible sub-regional co-operation includes the training of transport and telecommunications personnel, electricity and power, food technology, petroleum, mechanical and electrical engineering, industrial chemistry

and petro-chemistry, geology (including problems of erosion)

and biochemistry.

The study will also include projections of student en rolment and of staff and "budgetary requirements. A future

development of this project could also lead to the establishment of a generally accepted system of equivalences between the

degrees and diplomas awarded by the institutions of higher

education in the whole of North Africa. This should facilitate

the mobility of skilled and professional people in the area.

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(ii) Maritime Transport

The EGA is preparing a comprehensive study on the development of maritime transport for consideration "by the North African States. In the meantime the sub-regional meeting recommended action to organize the exchange of information on the organiza tion and capacities of merchant fleets, maritime regulations, the simplification and harmonization of formalities and co

operation "between the existing maritime companies in matters of

representation, consignment of ships, lighterage and transit operations.

(iii) Air Transport

The sub-regional conference recommended the granting of traffic

rights by the North African countries to each other so that an efficient network of interconnexions can be scheduled through out the area. Consideration was also to be given to the question of air links between North Africa and other parts of the continent, and to sub-regional co-operation in the training of air transport

personnel.

(iv) Energy

The opportunities for co-operation in the field of electricity generation and distribution are to be studied especially as concerns power development in border districts and the hooking

up of the existing, national high tension grid systems at suitable

points.

(v) Agriculture

Consideration is to be given to a scheme for a joint fisheries

researoh projeot to aid the development of an industry in which

the sub-region's potential seems to be great but as ;yet unrea lized.

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Problems of irrigation, re-afforestation ana erosion are common to the North African countries - and very important

obstacles to agricultural progress in all of them. Co-operation between them in studying how to tackle these problems could be mutually beneficial and proposals for a joint researoh institute

are accordingly to be drawn up.

(vi) Industry

The SCA has commissioned a study on the long-term development of a balanced structure of industries in the sub-region. This will be presented in the form of an industrial map of North

Africa for discussion b^ the countries.

In the meantime there is an impression of unutilized

production capacity in some countries for commodities - some

metallic and electrical goods, chemical products, building materials, even some food products - which other neighbouring countries still import from outside the sub-region. Information

will be collected on these unutilized capacities and advice

given on the conditions which must be fulfilled if they are to

be put to work to supply the markets of the other countries in

the sub-region.

Some first steps in the field of standardization could be discussed such as exchanging information on existing codes, c establishing equivalences and norms, considering new foreign

or international standards jointly and deciding on the means of

applying them in the sub-region, including necessary modifications, and co-operation in training.

(vii) Tourism

The establishment and joint utilization of training facilities

and the joint organization of travel in the sub-region by foreign

tourists. Already Tunisia and norocco have been charged with

the responsibilities of respectively promoting the formation of

a joint travel agency and a federation of hotel and tourist

organizations in the Uaghreb,

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(viii) Statistics

Considerable progress has already been made in standardising statistical work in the sub-region, especially in the field of national accounting. This should be further pursued together with the organization of exchanges of statistical material and of co-operation in the training of statistical personnel.

(ix) Family Planning

This represents an area of common difficulty in which it is proposed to provide opportunities for the North African countries to

compare experiences and learn from each other. In particular, a seminar on family planning and the exchange of documentation are envisaged in the work programme for the coming biennium.

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3« The 'jgoonomic Community of Eastern Africa I. The Present Situation

Membership

The following countries have initialled or signed the Terms of Association of the Community: Burundi, Ethiopia, Kenya, Malawi, Mauritius, Somalia, Tanzania and Zambia, Rwanda and Madagascar have signified their acceptance and only the formal signing of the Terms of Association await* completion. There still remains Uganda, which was represented at the Lusaka meeting, and 3otswana, Swaziland and Lesotho, which were not represented at the meeting. The latter countries in particular need to diversify their economic contacts in the direction of

the neighbouring African countries, A special effort would therefore seem to be called for by the Economio Community of

Eastern Africa to provide them with new economic links and through these vzith wider opportunities for economic development.

II. Activities in Progress

I (i) Organization of the Community

The Interim Council of Ministers now embraces represent

tatives of 10 out of the 14 countries which are eligible

for membership. The Council of Ministers has delegated to the 3CA the task of preparing the proposed Treat} for the Community and promoting the specific projects and programmes

of the Community in its first year,

(ii) Trade

The Governments of Kenya, Uganda and Tanzania have continued to discuss a new basis for the East African Common Market.

Zambia has reportedly been associated with these discussions

at some stages. No decisions have been announced, but the

general position is that tue three governments are seeking

ways of maintaining a common market relationship between them.

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Transport -

A study of transport links erabraoing Ethiopia, Somalia and Sudan has been carried out hy a team provided under bi lateral assistance by the Government of Italy. Aspects of inter—State transport among the more southerly tier of

"countries have also been studied through bilateral technical

■ cooperation arrangements with Canada and UK (railways) and with the US'("road transport).

At the present time, the UHDP (Special Fund) is sponsoring

a transport study for Kenya, Uganda and Tanzania through their joint agency, the Bast African Railways and Harbours Authority. The "World Bank has already been designated as the executing agency for this project and the Special Fund is in principle committed to provide $660,000 for it.

However, as no comprehensive study of transport links with in the sub-region as a whole has been oarried out, it is proposed that this be undertaken, possibly through bilateral assistance provided by the US Government. It has also

been suggested that thinking on transport problems in the sub-region be extended to cover the Great Lakes region, for which the East African seaboard often provides the natural channel of overseas trade.

Kenya, Uganda, Tanzania and Zambia have agreed to aet up a joint shipping line in partnership with an existing private carrier operating between East Africa and Europe.

Meetings of representatives of some of the countries of the sub-region have been organized by the ECA secretariat as part of the search for the. rationalization of air transport in this region. The Lusaka Conference passed a resolution recommending that a common airline be set up by the countries of the East African sub—region.

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However, the technical representatives of these countries to whom the matter has been remitted for study have not as yet produced any proposals for co-operation in any aspect of the operation of the present airlines.

(iv) Industry

Under the existing arrangements for the East African Oommon Market there is machinery for the joint allocation of industry

"between the three countries througi licensing, though none for the joint planning, promotion or development of industry.

Following the Lusaka meeting the ECA has solicited assistance from all the industrialized countries in order to undertake feasi bility and technical studies on a number of industrial projects in Jjlastern Africa, in particular those of sub-regional signi ficance. So far, only the Japanese authorities having succeeded in raising a team to study the chemical industry proposed for development in Tanzania. The same country has also expressed an interest in helping with the technical studies for the textile and engineering industries in Tanzania, while the

Norwegian authorities are considering assistance for the copper wire and engineering industrj.es as well as boat yards and

small-scale industry in Zambia.

(v) Natural Resources and Agriculture

(a) Proposal for Natural Resources/Hydrological Research

Institute for East Africa

At the request of these three countries the UNDP is

considering a Special Fund Project for a Natural Resources

Institute for Kenya, Tanzania and Uganda. The ECA has

also made proposals for a sub-regional project for a Water

Resources Institute to meet the needs of all the countries

of Eastern Africa in this field.

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There are also proposals to consider arrangements for jointly-sponsored studies on the potential for develop ment in the Juba and Shebeli basins.

(b) FAQ Sub-regional Stud.y on Agricultural Development and

Trade in Agricultural Commodities

The FAO has studied agricultural development in the East African sub-region as one of the pilot projects fox its Indicative World Plan. When the details of this study become available a basis would be provided frr further thinking about agricultural specialization and trade in the nub-rogion.

Manpower Education and Training

The University of Zambia has now been opened, with the aim to develop at an early date technological studies related to the Zambian economy. Discussions are also proceeding on the future of the University of Lesotho, Botswana and Swaziland. The federal University of East Africa is one of the common services under review by the Governments of Kenya, Uganda and Tanzania.

Ill* -Proposed Programme of activities for 1967 - 1968 (a) Membership-

The first meeting of the Council of Ministers of the Community

called for providing technical assistance in the legal field to draft the Treaty- for the Community. It is intended within th© resources available to prepares

(i) A paper on "Principles of the Draft Treaty" for discussion

by the Council of Ministersf

(ii) The draft Treaty of the Community based on Council's

reaction to the previous paper, and to be discussed with national legal officers after the meeting of the Council.

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(b) Aotivities on Elements on Economic Co-operation

(i) Trade

As soon as the Governments of Kenya9 Uganda and Tanzania agree on a new form of the East African Common Market9 the ECA secretariat will undertake studies looking towards a formal inter-State convention which will govern the relations of the other members of the Com- raunity to these three countries in matters of trade.

Meanwhile? the next meeting of representatives of member countries will be requested to provide general guide lines for preliminary work by the ECA secretariat in this field.

(ii) Transport

Road and Rails At its next meeting members of the Interim Council of Ministers are expected to convey their Govern ments1 reactions to the proposed comprehensive study of transport links within the sub-region and consider a draft request for technical assistance in the preparation of this study. On the assumption that the Kenya—Uganda- Tanzania Special Fund project will be approved by the UNDP, the terms of this request will include arrangements for the co-ordination of the over-all study with the World Bank study. And if this is acceptable to the countries concerned it will also embrace the proposed Great Lakes Study.

Shipping Line s The present members of the proposed multi national shipping line are to be invited to inform the other members of the Community of their plans. Informa tion will also be conveyed by Ethiopia on its new ship ping line. The Community as a whole should consider means of co-operating in this field. An advisory paper will be prepared by the ECA secretariat for consideration by the Interim Council of Ministers.

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Air Transport t The Council of Ministers will "be invited to consider'the results of the meetings held so far and to give guidance for further work 0*1 co operation in matters of air transport.

(o) Hext Meeting of the Interim Council of Ministers

For the next meeting of the Interim Council of Minisxoxw of

th« Economic Community of Eastern Africa the Draft Agenda

annexed hereto is suggested (Annex I),

(i) In connexion with Item Wo. 1 - Membership and Draft Treaty - the principal aim would be to get the countries to jointly sponsor a request for the necessary technical assistance in the setting up of the Community, including the drawing up of its instruments and the staffing of its secretariat, and to get the countries in the sub-region which are not now members to join up.

(ti) In connexion with Item No, 2 - Transport - the objectives

would be:

(a) To get the governments to agree on the details of the request for a sub-regional transport studyj

(b) To work out methods of co-operation in maritime

transport, including the utilization of the presently operating and proposed shipping lines by non-partner countries and the possibility of association or shareholding by the other countries in these enter prises;

(0) To consider means of achieving co-operation in air

transport following the meetings of technical repre sentatives of the air line companies.

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(lii) Natural Resources and Agriculture - In connexion with this

item

(a) A-definitive agreement would be sought on the nature

and scope of the proposed training institutes and research programmes in the field of natural resourcss as a whole or hydrology in particular.

(b) A preliminary paper on the development of fisheries

in the sub-region is proposed.

(c) Those aspects of the FAG sub^regional study which are

of multinational interest will be sorted out and action which is now proceeding on them brought to the attention of the Council, together with proposals for further'activities.

(ir) Trade - A policy discussion will be held on a paper on

Principles for the Development of Trading Relations in the

Community.

(d) First Meeting of Interim Economic Committee

The institutional arrangements accepted by the Lusaka conference for the Community included provision for an Economic Committee composed of senior officials of the member Governments to supply the main technical support for the work of the Interim Council of Ministers. It is feopsd to convene this Committee in 1967 to

consider the draft agenda shown below (Anns* II).

(i) The Co-ordination of National Development Plans in East Africa

The iiCA (in co-operation with the United Nations Centre for

Planning Projections and Policies) will produce a paper which will examine the proposals of existing national development plans

in the sub-region in the following fields and outline the

possibilities for their co-ordinations

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(d)

Transport;

Industrial Production;

Agriculturej

Manpower and Natural Resources.

(ii) The Development of an iJastern African Infrastructure

The Committee will review the position with regard "to the development of a transport network which will link up

members of the Community with one another, oovsring in this reviews

Road, rail and lake transport) Maritime transport;

Airline co-ordination;

Tourism.

(iii) Progress in the Economic Community of Eastern Africa (a) The organisation of trade in the Community and

measures for the expansion of such trade.

Progress regarding the major industrial projects suggested for multinational co-operation.

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I

Draft Agenda

Interim Council of Ministers of the Economic Community of Eastern Africa

Second Meeting

1. Membership and Draft Treaty

(i) ITew Members

(ii) Consideration of Principles of the Draft Treaty

2. Transport Projects and Studies

(i) Sub-regional Transport Studies (ii) Ocean shipping

(ill) Co-ordination in Air Transport

3. Natural Resources and Agriculture

(i) Natural Resources and Hjdrologys Research and

Training Projects

(ii) The development of Sea Fisheries in Eastern Africa (iii) Some agricultural developments of sub-regional

interest 4» Trade

Principles governing future trading relations among members of the Community

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AMEX II

Draft Agenda

Interim Economic Committee of the Economic Community

of Eastern Africa

First Meeting _ .'.'.

1. The National Development Plans of Eastern Africas

A Preliminary Synthesis

2. Transport Links: Road, rail and lake transport

Maritime transport

Air transport

3» Trade within the Community

4. Iflajor Industrial Projeots for sub-regional development 5. Development of Natural Resources and Agriculture

(i) Land and water resources

(it) Fisheries •

(ill) Metals and Minerals in jSast Africas Recent Trends

and Developments -;;

6. Manpower, Education and Training

7- Tourism

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4. Central African Sub-region

I. The Present Situation

The Treaty of UDSA.C came into force at the "beginning of 1966,

signed by the Heads of State of the Cameroon, the Central African Republic, Chad, Gabon and the Republic of the Congo.

This provides for a Customs Union and common external tariff,

harmonization of industrial development policies and other measures for permanent economic co-operation.

The UD£AC countries also possess a common central bank - the Banque Centrale des iltats de l'Afrique jSquatoriale et du Cameroun (BCASC) - with national machinery to supervise the carrying out of central banking functions, including control of credit, in each of the member States.

The jSCA Sub-regional Conference on Economic Co-operation in Central Africa which met in Brazzaville in April 19669 recom mended that a Committee should be established at ministerial level by the governments of the area to propose methods of organizing economic co-operation among them, and in particular the relation between the UDiSAC countries and the Democratic Republic of the Congo.

lit Activities in progress

(i) Trade

Following the provisions of the UDjIAC treaty, trade is expanding among the five countries which have adhered to the treaty. On the other hand, it is less than its potential between the UD^AC countries and the Democratic Republic of the Congo, Bilateral discussions on trade expansion have been held between some of the UDiiAC countries and the Democratic

Republic of the Congo.

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(ii) Transport

The franc zone countries of the Central African sub-region are

partners with the corresponding- countries in the West African

sub-region in a common international airline. The Joint transport and communications enterprise of the former French Equatorial Africa - L'Agence Transequatoriale des Communications

(ATEC) - has now been incorporated into the UDEAC arrangements.

The ATKC group runs the ports of Pointe Noire, Brazzaville and Bangui, the navigable inland waterways and a number of land

routes including the Congo-Ocean railway.

A report on new transport links among the countries of Central Africa and their immediate neighbours has been prepared by a Belgian team under the auspices of iUCA and is now being examined by Governments. The Brazzaville Conference classified 21 new transport linKs as of priority status. Work is in progress on some of them and others are being studied. A comprehensive analysis has been prepared of the state of eaoh project and

submitted to Governments.

(iii) Industry

An outline of a co-ordinated industrial development programme for the sub-region covering the next 10-15 years was inoluded in the report of the iSCA mission on economic co-operation in Central Africa. This is being followed up b;y detailed studies of individual projects with multilateral and bilateral assis tance. In addition, work has started on a study on inter industry relations with a view to preparing a detailed and , balanced industrial development programme for Central Africa, (iv) Energy

A survey of the energy resources and development prospects in

the sub-region has been carried out with a view to identifying

what further assistance may be provided.

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Page 2p

(v) Natural Resources and Agriculture

(a) Arrangements are being made through "both multilateral and

"bilateral support to augment natural resources surveys, particularly in those countries where surveying has hitherto "been on a limited scale.

(b) The Brazzaville Conference agreed on the principles which

should govern agricultural specialization in the sub- region and arrangements have "been nade to follow-up these

decisions through an ECA/FAO team of experts.

(vi) Research, Manpower, Education and Training

A survey of existing arrangements in these areas has been planned with a view to promoting developments where required and intra sub-regional co-operation in both the utilization

and establishment of iacilities.

III. Proposed Programme of activities for I967 - 1968

1. Transport

Wfcea Governments of the sub-region have examined the Belgian

Transport Report and the ECA cjmorandum on the new transport

links which were adopted as having priority by the Brazzaville

Conference, it is planned to carry out discussions.with in

dividual governments with a view to convening in the. second

half of 1967 a Conference on Transport. This conference would

have three objectives* (a) to establish a co-ordinated and

phased programme of transport development covering the next two

decades; (b) to examine what further assistance is required for

the execution of the first phase of such a programme; and (c)

to consider possible arrangements for permanent co-operation on

transport in the sub-region.

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Page 26

2. Energy

Consideration will be given in the light of the ECA inves- K tigations to the convening of a conference on Energy in the

second half of 1967 with a view to promoting further develop ment of resources and intra sub-regional co-operation. The agenda will cover electric power, natural &as and oil.

3» Agricultural Development and Specialization

The principal task in 1967 will be the investigations of the

ECA/FAO team of experts. Subject to their findings; a Conference

on Agricultural Specialisation will be convened in the first half of 1968.

4» Industrial Development

During 1967? work already initiated in assisting Governments in the study and execution of specific projects and the study of

inter-industry relations will be continued. It is hoped to convene in the first half of 1968 a conference on the establish ment of a comprehensive co-ordinated industrial development programme covering the next decade together with agreements on the distribution of new industries.

5« Seminar on Economic Co-operation

Discussions will be carried out with Governments and Universities

with a view to the possible convening of a seminar on economic co-operation towards the end of 1967. This seminar would discuss the scope for harmonization in the main sectors - transport,

energy, agriculture, industry, research, manpower and training -

and also the scope for closer co-ordination of national develop

ment plans.

6, It is planned to convene the next regular ECA meeting on sub-

regional co-operation in the course of I968, after the spe cialized meetings have been held.

Page 27

5. West African sub-region

!• The Present Situation

Inter-governmental Organizations

(a) General Co-operation and Trade Liberalization

(i) In August 1964 the Heads of Government of Guinea, Ivory Coast,

Liberia and Sierra Leone agreed to establish machinery to promote a Free Trade Area among them. They subsequently set up a Ministerial Working Committee and a secretariat for it based on Monrovia.

(ii) The countries of the former French West African Federation,

with the exception of Guinea, all belong to the West African

Customs Union (UDEAO) which was formed in 1959 as the successor

arrangement to the former free trade regime and common exter nal tariff maintained by '..' ^ica c\*rv hw r-olc^j.La^ .':v> W-j;jjj Africa., This customs union has been generally dormant .

although in theory it has had inter-minjoterial and technical institutions for its management comparable to those of the UDEAC. But it is now reported that a new draft treaty has been

negotiated and initialled (September 1966) to restructure the

customs union, the intention being apparently to maintain a common external tarifx and to harmonize customs legislation.

If this convention were ratified then there would come into force a common market embracing seven of i;he fourteen States in the sub-region viz Dahomey; Ivory Coast, Mali, Mauritania, Niger, Senegal and Upper Volta. The parallel monetary institu

tion - the Union Monetaire de l'Afrique de l'Ouest under which operates the central bank for the franc zone West African

countries (the BCEAO) - has been more actively and continuously

operational since it was formed in 1962, exercising central

banking powers and functions in the seven franc zone countries of West Africa: Dahomey, Ivory Coast, Mauritania, Niger,

Senegal, Togo and Upper Volta0

(iii) Trade between Ghana and some of her neighbours - Guinea, Mali,

Upper Volta - is covered by trade and transit agreements of

various types. These agreements have operated at different

degrees of effectiveness.

Page 28

(iv) In November 1965) the Governments which participated in

the joint development of the Senegal basin declared their intention to widen their co-operation in the direction of a general inter-governmental arrangement for economic planning and development which was to be open for other West African countries to join* The countries involved were Mauritania, Senegal, Mali and Guinea.

(v) Finally, at the sub-regional meeting in Niamey in October 1966, the representatives of all the West African countries

recommended to their governments the setting up by April

I967 of inter-governmental machinery for economic co

operation modelled after the institutions already set up by the countries of the East African sub-region.

Limited or Sectoral Co-operation

(i) All the franc zone countries of the West African sub-

region also belong to OCAM under which attempts are being made to organize common production and trading arrangements in respect of sugar.

(ii) An African Groundnuts Council was formed in June 1964 by

the Gambia, Niger, Nigeria, Senegal and Upper Volta to co-ordinate policies in this trade which is of primary

significance for the balance of payments of these countries.

(iii) The Entente countries - Dahomey, Ivory Coast, Niger, Togo

and Upper Volta - have set up a Committee for Production and Distribution of Meat.

(iv) Together with coffee producing countries from other sub-

regions the major West African coffee producers belong to the Inter-African Coffee Organization.

In addition, the eight coffee producing countries of OCAM, inoluding Togo, Dahomey and Ivory Coast, have formed

themselves into the African and Malagasy Coffee Organization

(OAMCAF) which is treated as one v-.::t for purpc^ep cf

operation of the International Coffee Agreements These

e/cn.14/386

Pa^e 29

countries receive a "block quota under that Agreement and distribute it among themselves through their own con sultative machinery.

(v) T;ie major cocoa producing countries of West Airica -

Ghana, Nigeria and Ivor^ Coast - form, with Brazil and Cameroon, the members of the Cocoa Producers' Alliance which was set up in 1963 to co-ordinate sales and other aspects of the cocoa policies of these countries.

(vi) The franc zone countries of West Airica together with

those in Equatorial Africa own jointly a common airline - Air Afrique - which has been in operation since 1962.

The West African Transport Conference which met in

Monrovia in I96I decided to set up a permanent committee to co-ordinate the development of transport links, in particular road links, within the sub—region.

(vii) The West African countries have also agreed in principle

to form an Iron and Steel Authority which would operate within the framework of a general system of economic

co-operation,

(c) Regional Planning and Development of Natural Resources

In addition to the above attempts to build institutions of overall or sectoral economic co-operation the West African countries have also set up machinery to plan the development of the three major hydro^raphic areas in the sub-region.

(i) The Inter-State Committee for the Development of the

Senegal River was set up in July I963 under a formal convention between the countries listed above. It is now served by a permanent office under a Secretary General and a number of consultant groups.

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Page 30

(ii) The development of the Chad Basin area is also being

planned on the basis of an inter-State convention signed in Ma^- I964 under which a permanent Commission has been

set up. The participating countries are Cameroon, Chad, Niger and Nigeria,

(ill) The Niger Basin is similarly covered by a formal agreement -

the Act of Niamey (October I963) - which has been

subscribed to by Cameroon, Dahomey, Guinea, Ivory Coast, Mali, Niger, Nigeria and Upper Volta, and under which

a permanent Commission has been set up.

H« Activities in Progress

(a) General Co-operation and Trade Liberalization

(i) The Ministerial Working Committee of the proposed West

African Free Trade Area met in February 1965 and agreed to set up an Interim Organization consisting of a

Ministerial Committee and an Administrative Secretariat.

The Secretariat was requested to undertake studies

preparatory to the initiation of measures of trade

liberalization within the area. No action has since

been reported.

(ii) The Senegal.Basin countries decided to entrust to the ECA

secretariat the task of proposing to the West African coun

tries a possible institutional framework for economic co

operation among all the countries of the sub-region.

Limited or Sectoral Co-operation Primary Commodities

(i) The project for common policies on sugar among OCAM

countries is understood to be still under study,

(ii) Tiie Groundnuts Council has met a number of times and

decided to set up information offices first at Dakar

and later on at other centres. These would initially

handle market intelligence but are meant to be a first

step towards the establishment of a joint sales office

to handle the produce of all four countries.

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Page 31

Industry

(iii) The West African Conferences on Industrial Harmonization which were held in Niamey and Lagos (July 1962 and January and

December 19&3) under the auspices of the Government of Niger, and in Bamako (October I964) under the auspices of the ECA3

were followed by meetings on Iron and Steel held in Monrovia

(August 1965)5 Abidjan (October 1965)3 and Freetown (April

1966), Since representatives of the West African countries had decided at Abidjan to place their co-operation in tho development of the iron and steel industry firmly within the context of general, institutionalized, economic co-operatic;., and the Niamey Sub-regional Meeting on Economic Go~op^-.:cLlo^

had not then been held, the Freetown meeting postponed a final decision on the question of setting up the West African Iron and Steel Authority which had been accepted in principle in Monrovia* The Niamey Meeting on Sub-regional Economic Co

operation (October 1966) recommended the establishment of an

iron and steel sub-committee of the Committee on Industry envisaged within the machinery for inter-governmental co operation in West Africa.

Transport

(iv) The Niamey Meeting of October 1966 decided to revivo the at

tempts at transport co-ordination and to set up a Permanent Transport Committee within the framework of the organization for general sub-regional economic co-operation.

Energy

(v) The UNDP has been assisting the Governments of Togo and Dahomey

in their joint planning for the exploitation of the hydroelec tric resources of that area. These two countries have now ex pressed an interest in importing electrical power from '"'V*^

and an approach to the African Development Bank and the World Bank has been made for technical and financial assistance to this end. The Went African countries also agreed at Niamey to set up an Energy Committee as a part of their inter-governmental organization for economic co-operationQ

*/4

Page 32

(c) Regional Planning and Natural Resources

(i) The Inter-State Committee for the Development of the

Senegal River has obtained United Nations Special Fund Assistance to the tune of almost #7 million for the studies and other pre~investment activities covering a five-and- a half year period preparatory to the development of power and irrigation in the Senegal river basin.

(ii) The Chad Basin Commission has sought UETDP kelp in staffing

a permanent office and documentation centre under an Executive Secretary who has been appointed sinoe 1964* An agreement has however been signed (November 1966) between the Commission and the UTTDP providing for a water resources survey to cost ,?3 million.

(iii) The Niger Basin Commission has been able to agree on a

Convention between its member States covering navigation and general economic co-operation for the development of that river. Its office is set up under an agreed budget and studies on the development of the basin have been outlined under a draft technical assistance agreement

between thu Netherlands and the main riparian States -

Dahomey, Mali, Niger and Nigeria. This latter agreement, however, has not yet been signed.

Proposed'Programme of Activities for 1967 - 1968

The foregoing review shows that the countries of West Africa have

set up a relatively large number of institutions to promote their

joint interests or to further economic contacts between them. Some

of these arrangements overlap or duplicate each other and from the

standpoint of administrative economy a certain amount of stream

lining would probably be justified already, though the channels

of economic co-operation between the fourteen countries of the

sub-region must inevitably remain rather complex.

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Page 33

At the same time, in spite of this multiplicity of inter-State arrangements, no group of West African States can be regarded as

"belonging to a multinational economic grouping set up consciously to unify a number of national economies and to seek their develop ment jointly such as is to be found in the Maghreb or in Central . and Kast Africa. Consequently, the larger opportunities for

eoonomic development which would undoubtedly oome through economic

co-operation (given the existing size of the economy of the sub- region) are largely unapprehended and absent from the development

planning which has so far been done in West Africa. The growth of modern industry in West Africa and of sub-regional trade in both primary commodities and manufactured goods have been so far inhibited to a marked degree.

On the assumption that the results of the Niamey meeting portend an increased receptivity to the policy of economic co-operation in the sub-region the Governments of Uest Africa are being invited to

adopt the programme of work for 1967-1968 outlined below. This

programme aims at ;

(a) Creating permanent intergovernmental institutions

through which any :;est African States who are willing to do so can consult with each other on a regular and frequent basis on common problems and projects in economic development;

("b) Putting some life into joint West African action on

projects in the fields of industry, transport and energy which have previously been studied in some detail.

Institution Building: Sub-regional Machinery for Economic Co—operation

(i) Replies by Governments on the recommendation of the Niamey

Conference for the setting up of inter-governmental machinery should have been sent in by 15 January I967.

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Page 34

(ii) It is suggested that the main subsidiary organs recommended

"by the Niamey Conference to be integral parts of the institu tions of economic co-operation be also set up as rapidly as possible and hold at least one meeting eaoh in the near future.

2« Activities on Elements of Economic Co—operation

(a) Senior official or ministerial representatives of the West

African countries will be called upon to:

(i) Convey their Governments' reactions to the Niamey

recommendation for the setting up of a West African Economic Community under the terms of the draft Articles of Association accepted by that meeting;

(ii) Hold a number of meetings at the level of governmental representatives of those States which express a willingness

to join the proposed Community;

(iii) Constitute the committees on "Transport, Energy and

Industries recommended at Niamey, including in the latter a working group with a mandate to prooeed specifically with the next stages in the setting up of an iron and steel industry in tfest Africa;

(iv) Consider the results- of the Niamey meeting in the

field of industrial development and give directives for follow-up work by the ECA on behalf of the member countries;

(t) Consider in particular the reports of the iron and * -

steel oonferences previously held.

(b) The Transport Committee will be called upon to:

(i) Study further the two reports on inter-State transport

links completed for West Africa, and concert meano for the implementation of the reoommendations contained in them;

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Page 35

(ii) Consider the results of contacts already established by-

some of the national airlines in the sub-region and

provide a forum for a further discussion on collabora

tion among the West African countries in matters of

air transport?

(tit) Study the ECA report on maritime transport and recommend

future action.

(c) The Baorgy Committee will:

(i) Study possibilities of "standardising method* and equip

ment" in the electrical industries of the sub-region;

(ii) Propose an action programme on the local manufacture of

electrioal equipment and apparatus;

(iii) Make plans for sub-regional co-operation in the train

ing of Africans in all aspects of the electrical industry.

(d) The ECA secretariat will:

(i) Receive replies to the recommendation for setting up

inter-governmental machinery for economic co-operation and call a first meeting of government representatives when an adequate number of responses has been reoeived;

(ii) Convene and service meetings of the Transport, Energy and

Industry committees during the b ;\;;r.- \u -\ 1967

(iii) Prepare studies, in collaboration with GATT,

PAO and other appropriate bodies, on the possibilities of increasing trade among the West African countries;

(iv) Offer technical assistance to promote the further im

plementation of such projects in Industry, Transport, Energy and Agriculture as may emerge from the sub-

regional discussions.