Thematic Focus for BoN
Annual Symposium 2005

The Benefits of Regional Integration for Smaller Economies.

One of the super trends in the international relations is the growing regionalisation – the increasing number of regional integration arrangements and configurations. Indeed, regionalisation and globalisation have become two of the major trends in modern international relations. No country, whether developed or developing can escape them, otherwise, it will lag behind and fall into disadvantage in the international division of labour. A lot has been said about regional integration such as increasing market of the country’s product, increasing investment and productivity, improving competition, accelerating trade and reduction in transaction costs. However, integration might yield undesirable results, if not properly managed, such as revenue losses, polarization, trade diversion and deterioration of the country’s terms of trade, to mention a few. Based on the above, this theme will attempt to understand the expected benefits and the extent to which the Namibian economy benefited from the integration efforts, and furthermore assess what could be done to maximize such benefits.

Symposium Papers

Overview of Namibia’s participation in Regional Economic Integration

This symposium paper will give background overview on the evolution of regional economic integration in Southern Africa with a specific focus on Namibia.

This review will also look into issues of trade and investment trends, capital flows, financial and monetary integration. The assessment should be undertaken in the context of all the relevant regional bodies such as SACU, SADC and CMA. The paper should also raise the key challenges facing Namibia’s participation in regional integration arrangements.

By: Mr Paul Kalenga, Senior Research Fellow on International Trade Policy and Relations at the Trade Law Centre for Southern Africa (TRALAC) based at the University of Stellenbosch in South Africa.

Benefits of Regional integration: The experience of small economies in Europe

This paper will draw some experiences from regional integration by small economies in Europe. The review in this paper will highlight the benefits and challenges faced by these economies in the context of growth, investment, industrial development and employment creation. Furthermore, issues such as welfare gains by consumers from lower prices, gains from enlarged market size through increased foreign direct investment, competitive gains and economies of scale for producers should be highlighted. The paper should also shed some lights on the reduction in tariff revenues and how the small economies in Europe have been compensated for the net losses caused by regional integration. Arrangements for redistribution of resources from richer to poorer countries should also feature. Finally, lessons learned from these experiences should be drawn up and highlighted in the paper for Namibia.

By: Dr Filippo Di Mauro, Head of the External Developments Division at the European Central Bank in Frankfurt, Germany.

Challenges and Opportunities of Regional integration for developing economies: Namibia’s perspective

This paper will highlight the key challenges and opportunities facing the developing countries in the context of regional integration. The challenges which confront these countries range from industrial polarization, export bias, undiversified export, removal of tariff and non-tariff barriers, lack of capacity to participate in regional policy formulation processes, supply side constraints and institutional and infrastructural bottlenecks. The paper should review the effect of regional integration agenda on the growth and investment prospects, industrial development and employment creation. Furthermore, the issue of tariff revenue losses should be addressed and how it should be overcome. Finally, the paper should also recommend appropriate strategies to be pursued by these economies in general and Namibia in particular in order to maximize their/its benefits from these arrangements, while minimizing the costs.

By: Professor Samuel Asante, Executive Director of the SKB Asante International Consultancy Services in Ghana.