Development

Studies
[20]
MODULE 8: REGIONAL
CO-OPERATION

MATER SPEI COLLEGE

 MODULE 8: REGIONAL CO-OPERATION
REGIONAL COOPERATION/ INTEGRATION

TOPIC GENERAL SPECIFIC Regional cooperation is the coming together of countries with main aim of
OBJECTIVES OBJECTIVES addressing common needs.
Learners should be Learners should be able
able to: to:
Regional co-operation is when countries in the same region come together
Regional Co- Develop an -explain regional co-
for several reasons such as, to promote prosperity, to maximise economic
operation understanding of the operation/integration;
growth, to establish financial stability in the region and expand regional
nature of regional co- -identify and classify
trade and development.
operation and its regional co-operation as
impact on the political, social and
ECONOMIC, POLITICAL AND SOCIAL DIMENSIONS OF
development of economic;
REGIONAL CO-OPERATION
Botswana and other -discuss and assess the
(a)ECONOMIC: The general aim of regional co-operation is to promote
Southern Africa. role played by regional
more trade between its members, to generate a great amount and share of
co-operation or
external trade and raise the standards of living of the population of the
communities in the
member state.
development of the
Southern African region;
Some of the forms of economic integration are:
-evaluate the successes
and challenges faced by
1. Free trade area: No tariffs or quotas between member states,.
such regional
Each member countries unilaterally impose tariffs on non-member
communities as Southern
states.
African Customs Union
2. Customs Union: There should be free trade between member
(SACU), Southern
states, but all members must operate a common external tariff on
African Development
imports from non-member states. Sometime money accumulated is
Community (SADC).
shared among member states
-Suggest ways of
3. Common market: In addition to free trade in goods and services,
strengthening regional co-
free movement of factors of production (labour and capital)
operation in the Southern
between member states is allowed.
African region.

4. Economic union: This organisation includes all features of a

common market, and also requires members to adopt common
economic policies in such matters as agricultural, transport and
taxation.

Mater Spei College Development Studies Notes MODULE 8: REGIONAL CO-OPERATION

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(b)POLITICAL: Regional co-operation also serves as a mutual political THE ADVANTAGES OF REGIONAL CO-OPERATION
forum to articulate the voice of the regional grouping.
1. Countries often speak with one voice in international affairs.
It has been common for regional groupings to promote such explicitly
political stance such as peace, democracy, good governance and other 2. Greater efficiency is ensured in administering or planning for
pertinent issues as they arise. larger rather than small units.

(c)SOCIAL: Regional co-operation is also social in the sense that the

interaction of the people within a regional grouping takes place at social 3. There is easy movement of people and goods from member
level. countries across borders.

It is imperative to harmonise the economic pursuits and ideals with social 4. Countries establish a common market therefore benefit from
ramifications within a region. specialisation. Each country produces according to its comparative
advantage, for example, producing what they can do best.
Thus the issue of cultural similarities and differences, language, and other
factors have to be taken on board and complement the economic goals.
5. Several small countries come together to form a common market
The main motive for regional co-operation is economic, political support so as to enable large industries to operate without any losses.
and security.
6. They are able to attract new investors such as larger multi-national
Finding themselves in economic and military weak positions and also companies therefore prices could be brought down through
politically insecure state, nations of the world have moved closer together competition.
by forming collective bodies throughout the rest of the world.

Examples of such bodies or regional organisations are: 7. Regional co-operation enables countries to run common services
together, for example, railways, same central bank and currency
 The African Union (AU) such as EURO.
 Southern African Development Community (SADC)
 Southern African Customs Union (SACU) 8. Countries are also able to solve conflicts or wars together and offer
 European Union (EU) assistance to member states which are impoverished by wars.

Regional co-operation can thus be defined as coming together or grouping

of countries in the same geographical location to work unanimously to
promote economic development, give each other political support and
ensure security

Mater Spei College Development Studies Notes MODULE 8: REGIONAL CO-OPERATION

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 FORMS OF REGIONAL CO-OPERATION
2. SOUTHERN AFRICAN DEVELOPMENT COMMUNITY
EXAMPLES OF REGIONAL CO-OPERATION (SADC)

1. SOUTHERN AFRICAN CUSTOMS UNION (SACU) It was established in April 1980 as Southern African Development Co-
ordination Conference (SADCC).
SACU was found in 1910. Its member countries are Botswana, Swaziland,
Lesotho and South Africa. In August 1992 it was transformed for SADCC to SADC (Southern African
Development Community).
It was formed to encourage free trade between member states.
SADC has fourteen member states which are: Angola, Botswana, DRC,
Free trade means that little customs duty is charged on products imported Lesotho, Malawi, Mauritius, Madagascar, Mozambique, Namibia, South
into member countries. Africa, Swaziland, Tanzania, Zambia, and Zimbabwe.

Goods imported from outside these countries are charged custom duties and Seychelles has been member of SADC until 2004 when she failed to pay
the revenue is shared among the member countries. her annual subscription and was thus dropped.
Some African countries like Rwanda who are outside the Southern African
South Africa dominates SACU as it has control over the economy of other region are interested in joining SADC. Rwanda has since submitted her
members, and it seems to prevent manufacturing industries from being able application for membership.
to develop in the other three members.
The objectives of SADC are to:
SACU’s STRENGTHS INCLUDE:
1. Achieve regional development and economic growth.
1. Free flow of goods. 2. Alleviate poverty and enhance the standard and quality of life of
people of Southern Africa.
2. Cheaper goods due to reduced tariffs or custom duties. 3. Promote and defend peace and security.
4. Allow the exchange of trained workers and technology.
5. Build infrastructure together across borders.
3. Easy movements of people, for example, skilled people move 6. Get foreign Aid to pay for development.
between the countries 7. Encourage trade among member countries.
. 8. Achieve sustainable utilization of natural resources and effective
4. Expanded or large market area. protection of the environment.
9. Evolve common political values, systems and institutions.
5. Easy flow of capital or money for investment in member countries.

Mater Spei College Development Studies Notes MODULE 8: REGIONAL CO-OPERATION

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 THE ACHIEVEMENTS OF SADC THE PROBLEMS /CHALLENGES FACED BY SADC COUNTRIES

A lot has been achieved in SADC since its inception in April 1980 in 1. Lack of common currency.
Lusaka, Zambia. Some of the achievements are: 2. Lack of a common development strategy
3. Diverse political paths.
 It has demonstrated that regional cooperation is possible. 4. Republic of South Africa dominance.
 It has inculcated a sense of regional belonging as well as a tradition 5. Political instability.
of consultation among the people and governments of Southern 6. Completion and overlap of production of goods and services, for
Africa. example, Beef produced by Botswana and Namibia, Diamonds
 A number of infrastructural projects have been undertaken such as produced by Botswana and DRC.
rehabilitating roads, railway lines and harbours. 7. HIV/AIDS- SADC members have the highest infection percentage
 A variety of seeds have been discovered through research to carter world-wide. This is impacting negatively on the market and skilled
for various climatic conditions of the SADC region. labour force within the region.
 A number of civil wars within the SADC have been ceased 8. Debts: SADC members have large debts especially external debts,
through SADC. some members are repaying International Monetary Fund (IMF)
 Collective bargaining. and World Bank loans and are unable to settle such debts.
 Membership security. 9. Insufficient funds to carry out some projects.
10. An attempt to protect home industries has slowed down regional
 Improved energy supplies.
trade.
 It aims at achieving at least 30% target of women in political and
11. Persistent drought or recurrence of drought. This has threatened
decision making structures and countries are thriving to achieve
food security and heightened the poverty level of some countries.
this in their political circles.
12. Rapidly growing population thus making it difficult to provide for
 SADC capital cities and major towns are linked by tarred roads.
or even solve problems of unemployment or poverty.
 Since the region is prone to drought, member countries have
13. Falling terms of trade.
agreed to share water course systems.
14. Loss of human resources: SADC countries are faced with the
movement of skills and brain drain that leaves member states
 The member states share information on low cost energy vulnerable in essential sectors such as engineering and health.
technologies.

Mater Spei College Development Studies Notes MODULE 8: REGIONAL CO-OPERATION