Capitalise on the Chinese example - Prof Aryeetey tells Africa leaders

Economists have advocated the need to promote regional integration among countries to boost their economic growth. But what does Ghana stand to gain from this initiative? Jessica Acheampong writes

Regional integration focuses on removing barriers to free trading activities, increase the free movement of people, labour, goods as well as capital across national borders thereby reducing the possibility of regional conflicts.
African countries can thus expand their trading frontiers to a global level which will boost their economic growth if much attention is focused on promoting regional integration between themselves and countries beyond the African borders.
The fast developing world markets, which holds high prospects for economic growth as a result of the opportunities it presents must be capitalised on by African countries so they can fully exploit it to their own advantage.
Citing China as an example of a fast developing world market,  the Vice Chancellor of the University of Ghana, Professor Ernest Aryeetey, said African countries must first realise the opportunities that the Chinese economy provides and then capitalise on it to develop their own economy.
He said China is undoubtedly the world’s fastest growing economy with their economic presence in almost every country hence the need for African countries to look beyond doing business with them to adopt some of their economic policies.
According to him, there is the need for an African country to replace China as an established market which can be spearheaded by first trading on a global level.
Mr Aryeetey made these observations during the launch of a book, “the oxford companion to the Economics of Africa” which highlights issues that confront the economy.
Another professor of Economics at the West African Economic and Monetary Union and the University of Lome, Dr Kako Nubukpo also explained that as a result of the weakness of the internal markets of most countries, regional integration is  very necessary to help improve management as well as have a better distribution of growth. 

 REGIONAL INTEGRATION
Although Ghana’s economic activities goes beyond its local borders, it does not extend to the global markets. Trading activities are mostly centered between African countries as a result of several obstacles which scare local exporters and importers.
Professor Aryeetey explained that only six per cent of Africa’s trade is intra regional as a result of the non existence of a good infrastructural system.
Several African countries lack good railway systems and proper means of transportation and as a result moving goods across borders even on a local level poses problems as a result of poor or nonexistent infrastructural facilities
Another economist at the Department of Economics of the University of Ghana, Ms Abena Oduro also highlighted high tariffs at the various borders as another issue that needs to be addressed once focus is to be shifted unto regional integration.
She said high tariffs tend to scare people away and as such there is the need to curb intra regional trade in Africa.

 ECONOMIC BENEFIT
According to Professor Aryeetey, Ghana stands a high chance of benefiting from regional integration as it has been one economy that has recorded significant growth over the years.
Ghana’s economy, he said has recorded a consistent average growth rate of five per cent in 23 years which presents it as an economy worthy of developing economically.
He said there is the need for what he termed as a “meaningful investment” in infrastructural development like railways as well as energy among other systems.
The African Development Bank (AfDB) he said should also be restructured to promote regional integration.
Information also gathered by the GRAPHIC BUSINESS also indicates that the Deputy Minister for Foreign Affairs and Regional Integration, Mr Chris Kpodo, has also applauded the initiative for regional integration for Ghana’s economy.
Regional integration, he said would help to consolidate Ghana’s excellence in regional and international diplomacy.
According to him, this exercise affords us the opportunity to review activities that have commenced and to exchange experiences whilst examining new and better ways of enhancing coordination among stakeholders so as to maximise not only Ghana participation in and contribution to the regional integration process but also enable our nation to derive optimal benefits from our membership of the community.
Mr Kpodo said this is particularly necessary in light of the fact that Ghana, with increased financial resources anticipated from the oil industry will be expected to contribute greater resources to ECOWAS by way of community levies.
Mr Kpodo made the observation when he opened a three-day national stakeholders’ retreat on regional integration organised by the Africa and Regional Integration Bureau (ECOWAS National Unit) of the Ministry, in Dodowa in the Greater Accra Region.