Besides the economic advantages it brings about, pursuing economic integration in East and Horn Africa will reduce the tendency for conflict in the region. The experiences in the region demonstrate the fact that countries that are interlinked in infrastructure, and hence economically, are less likely to engage in conflicts. During the 2019 World Economic Forum, which is recently held in Davos Switzerland, Prime Minister Abiy Ahmed said that neighbors that engage in intimate rule-based trade and economic integrations are unlikely to resort to conflict.
“That is why we believe integration must be viewed not just as an economic project but also as a crucial element to securing peace and reconciliation in the Horn of Africa. This development comes at a time when the ever-rising economic interdependence in the region may be slowly altering the interests and incentives for conflict.” While Ethiopia has built a friendly relationship with its neighbors, last year’s peace pact with Eritrea, which ended almost two decades of hostility between the two neighbors, has created a fertile ground for economic integration. And if with successful economic policies, the economies of East Africa managed to come up with successful economic integration initiatives, political volatility will soon cease to be the order of the day in the region.
Put it simply, economic interdependent will make complex for states to engage in conflicts. And besides the infrastructural linkage, there are potential areas to enhance the integration process such as boosting livestock trade, and enhancing natural resource utilization, energy supplies, and port facilities.” With this background, Ethiopia has shown strong willingness and commitment to lead the integration process in terms of promoting power export to neighboring countries, joint port development, and infrastructural connectivity.
That is why the government of Prime Minister Abiy Ahmed has made regional integration among its major reform agendas. But as many experts advice, the economic integration initiative should not be a onetime agenda. It has to be a sustainable agenda and should be sought after as a long term project in a sustainable manner.
This is because, though the Preferential Trade Area (PTA) among some Eastern and Southern African countries including Ethiopia was formed in 1981, conceiving the idea of economic integration, countries in the region have not yet come closer to achieve the objectives set. The PTA has not been fully successful in accomplishing the establishment of a Free Trade Agreement (FTA).
The Common Market for Eastern and Southern Africa (COMESA) which was formed in 1994 to replace the PTA is not also successful at the desired level, as regional economic integration is also a matter of bilateral relations. In short, it has to be supported by bilateral trade agreements between states in the region. In this regard also, Ethiopia is exemplary.
It has been striving to build strong economic linkages with its neighbors in terms of transport infrastructure, power export, and joint port developments. As many economic and regional experts advise, it would be difficult to achieve the goal of regional economic integration while the economies of the region produce primary commodities and compete with each other to export these same products.
Hence, in order to trade with each other, East African economies need to add values to their products and diversify their export base. And above all, they have to jointly strive to ensure sustainable peace, which is the necessary condition for economic integration. And in the long run, the economic integration by itself would be the best tool to maintain peace and stability.
The Ethiopian Herald, February 7/2019
