NECO Economics 2022 Theory — Question 8

Model answer

(a) Economic Integration can be defined as the merging of the economies and economic policies of two or more countries within a particular region, for the purpose of facilitating their economic development; this can be achieved by eliminating trade barriers as well as coordinating their monetary and fiscal policies, among other measures. Examples of economic integrations include the Free Trade Area, Customs Union, Common Market, and Economic Union, etc. (b) Short-comings/Limitations of ECOWAS: (i) Political Instability in member states: as a result of political instability, many leaders that show great interest in ECOWAS do not stay in office for a long enough time to help achieve the aims and objectives of the community. (ii) Colonial Linkage: this is another factor affecting the community. Francophone (French-speaking) countries that are yet to fully cut the economic chains binding them to France display more allegiance to their former colonial master than they do to ECOWAS. (iii) Increase in social vices: the presence of the community in some member states, Nigeria for example, has escalated the wave of armed robbery, banditry, murder, prostitution, arson, etc. (c) Achievements of ECOWAS: (i) Fostering of Unity: the community has united all the member countries and enhanced a more friendly atmosphere among them. (ii) Increase in Bargaining Power: by coming together under the banner of ECOWAS, the bargaining power of member-nations in the world market has improved, hence the improvement in their terms of trade. (iii) Availability of More Labour: the community has made more labour available from member countries where they are in abundance, to areas or countries where they are scarce.