The SADC free trade protocol as a vehicle for the Angolan post-war economic recovery

[摘要] ENGLISH ABSTRACT: Free trade is said to maximize welfare in a world organized by nation-states. To participate in theglobal economy more effectively most nation-states have implemented economic policies withthe objective of freeing international trade. This movement has been facilitated by the process ofglobalization which has had unparalleled effects on the economic policies of countriesworldwide. However, countries-have found it increasingly difficult to manage their economies atthe multilateral level since the benefits of global free trade are not equally shared. This has led toan increase in Regional Integration Agreements (RIAs), which are seen as a tool for strategicgrowth and development while promoting free trade on a more restricted basis.In the last decades of the 20th century, the world has seen an increase in the number of RIAsparticularly in Sub-Saharan Africa, However, empirical evidence has shown, contrary to whathappened in Europe, that in Africa most attempts at economic integration have failed to promotemeaningful economic growth and development. Notwithstanding that, the Southern AfricanDevelopment Community (SADC) has embraced economic integration as a strategy for growth inthe region. Focusing on SADC and the Angolan economy as the main units of analysis, this studylooks at the theory of economic integration to evaluate its validity for the African context and tofind out how useful integration is in promoting economic growth and development in lessdeveloped countries.The study concludes that economic integration theory, which was developed within the context ofEuropean economies, is not relevant for African economies, which are different in character.Evidence indicates for instance, that in Africa the most important gains from economicintegration are dynamic and not static, as the theory seems to suggest. Additionally, contrary towhat happened in former attempts at forming RlAs in Africa, SADC has implemented adevelopment integration approach aiming at industrialization. This is important, becauseaccording to the Krugman-Venables model of regional relocation the least developed countries can benefit from trade and investment from the most developed ones. The SADe Free TradeProtocol may be harmful for the Angolan economy in the short to medium term because ofstructural problems. However, it was found that if properly implemented it could playa majorrole in promoting growth and development in the longer term.

[发布机构] Stellenbosch University