RELACIÓN DE LOS JÓVENES CON RESPECTO AL AMBIENTE

Most members were unable to pay their annual subventions to the body thus jeopardising the achievement of its set objectives. It is worthy of note that in the July 1987 summit of the Heads of state and Governments held at Abuja, these key problems were touched upon. That summit adopted the programme on monetary integration which would ensure the creation of a common sub-regional currency. When this monetary integration is attained, it will create exchange rate certainty such that intra-community economic relations will not be disrupted by trade restrictions, exchange controls or exchange revisions that may have similar effects on the trade as tariffs. The economic recovery package adopted, emphasized Structural Adjustment Programme, with a proposal of 136 projects at both the national and sub-regional levels.

3.4.6 How a nation such as Nigeria will benefit from being a member of ECOWAS

1. The nation will have access to a wider market both for the sale of products and for the purchase of its requirement at home.

2. Mobility of labour will result especially with the ‘free movement’ objective.

However, the richer nations are likely to suffer the socio-economic and political problems of aliens-influx such as Nigeria has been experiencing before the expulsion of illegal immigrants. This succeeded in creating unemployment for Nigerian nationals, participated in religious riots and other social vices like armed robbery and prostitution.

3. Rational Division of Labour is likely to result among the member nations. This may therefore encourage the growth of industries that have not yet been established.

4. Co-ordinated industries planning are likely to result, especially in those industries where economies of scale are likely to exist.

5. A corollary of the above (coordinated industrial planning) is that there will be resulting accelerated industrial growth since certain industries dominance is eliminated.

6. Trade creation may also occur as a result of the imposition of external barrier and encouragement of internal free trade. Trade creation here refers to a situation where production shifts from high to low cost member nations.The trade diversion when production and consumption of member nations shift from lower cost non-member source of supply to higher–cost member producers that may result will not be totally undesirable if infant industries grow up as a result of larger market and if each member nation were to protect its import substituting industry against cheaper foreign suppliers and more so if employment opportunities are created internally.

3.4.7 How to Achieve the Aims of ECOWAS

a. Trade restrictions in the form of tariff and quota system should be removed b. Industrial development should be harmonized, this will encourage territorial

specialisation

c. Factors of productions should be allowed to move freely from one country to another-geographical factor mobility

d. A common tariff should be established. This will promote trade within member states.

e. Member-country leaders should disengage themselves from the straightjacket of gradualism, raise their political will and commitment, and show increased imagination by taking bolder steps into the more controversial and dynamic areas of integration (Anyanwu, 1993a)

SELF –ASSESMENT EXERCISE 3

Is ECOWAS still relevant as a viable economic union in West Africa?

4.0 CONCLUSION

Economic integration refers to the merging to various degrees of economic and economic policies of two or more countries in a given region.There are five major types of economic integration namely Free Trade Area, Customs Union, The Common Market, Economic Union and Total Economic Integration. Objectives of Economic Integration include: reducing the external vulnerability of the participants, promoting efficiency through specialisation and smoothness of trade transactions, increasing the level of economic activity through increase trade, enlarging the size of the market for firms producing below optimum capacity prior to integration among others.

ECOWAS was formed through the initial moves by the then Nigeria Head of States, General Yakubu Gowon (Rtd.) and the Togolese leader, Gnassingbe Eyadema at the time they signed a bilateral trade agreement in April 1972. That agreement was seen by Eyadema as an embryo of a West African Economic Community. On May 28, 1975, however, the treaty establishing the ECOWAS was signed by fifteen West African Nations in Lagos, Nigeria. ECOWAS institutions are:The authority of Heads of State and Government, The Council of Ministers, The Executive Secretariat, The Tribunal of the CommunityandFour Technical and Specialised commissions. The achievements of ECOWAS include: Easing the Movement of Persons, The ECOWAS Card, Rights of Residence, Telecommunication Projects, Road/Air Transport Projects and Ecobank among others. Some of the problems confronting ECOWAS includes:

Relations with colonial masters-pursuit of different commercial policies, Dependence on revenue from import duties, Pursuit of different social and economic policies, Political instability, Financial Crunch and Differences in Currency.

5.0 SUMMARY

In summary, this unit took us through introduction to economic integration including its meaning and types.We proceeded to a discussion on the most prominent economic integration in West Africa, ECOWAS.Our discussion on ECOWAS focused on theformation, aims and objectives of ECOWAS. We further highlighted the institution of ECOWAS as well as the achievements, benefits and challenges facing the union.

6.0 TUTOR-MARKED ASSIGNMENT Discuss in detail any organ of ECOWAS

7.0 REFERENCES/FURTHER READING

Anyanwu, J.C. (1993a). Monetary Economics; Theory, Policy and Institutions,

Hybrid Publishers Ltd. Onitsha.

Anyanwu J.C. (1993b). Towards West African Monetary Integration: The Basic Issues, Paper Presented for the international Conference On West African Integration, Dakar, Senegal, January 11-12 1993

Anyanwu, J.C., A. Oyefusi, H. Oaikhenan and F.A. Dimowo (1997).The Structure of the Nigerian Economy (1960-1997). Joanee Educational Publishers Ltd.

Anambra, Nigeria. 661pp.

UNIT 2 MONETARY INTEGRATIONIN WEST AFRICA