Trade blocs are usually created through trade agreements by the governments of member countries. This has been the quest for Africa. To a greater extent, trade will enhance economic development and improve livelihoods in Africa. However, the aspect of trade which impacts every state in Africa requires a regional trading agreement. The fundamental rule of a regional trade agreement is the liberalisation of the domestic market. Market liberalisation may ultimately incorporate some global perspectives, which would imbibe a multilateral dimension as espoused by globalisation. Trading in Africa has been too secretive since the colonial era. This was underpinned by the behaviour of Europeans who believed in exporting their loot to their mother countries rather than trading within Africa for the benefit of Africans. As a resultantly, Africa continued to suffer under development with all the vast resources found in the continent. To embrace a communal African trading behaviour, indeed there is a need for trade liberalisation which clearly articulates intra-regional trade within the African continent. There has been a lack of clear information regarding the trade components of Intra-regional trade within the African continent. To a greater extent, that is an adverse effect of the colonial damage perpetrated by colonialism to impede development in Africa. The lack of clear information regarding African trade is because a few of the countries pay little attention to the competitive advantage of neighbouring countries in the production of certain products or the offer of certain services. By implication, quite a substantial part of imports into Africa can very easily be sourced from close-by neighbours, and sometimes at far cheaper rates. For example, Kenya imports raw hides from New Zealand, whereas Burundi and Botswana export same product to other continents at much lower prices (Olayiwola, 2020). There is low demand for products manufactured in Africa by other African countries, not because they also manufacture similar goods, but because they consider those products inferior and thus inadmissible to their markets. This paper seeks to assess the impact of the United Nations Economic Commission in Africa (UNECA) in shaping the African continental free trade area, (AfCFTA). The assessment will encompass presenting both backgrounds and of links between UNECA and Afcfta. This will enhance the thrust of the paper towards locating the impact desired from UNECA.
Table of Contents
- Introduction
- Theoretical Framework
- Theory of absolute advantage
- New Trade Theory
- Methodology
- Findings and Discussion
Objectives and Key Themes
This paper assesses the impact of the United Nations Economic Commission for Africa (UNECA) in shaping the African Continental Free Trade Area (AfCFTA). It explores the historical links between UNECA and AfCFTA, examines AfCFTA's role in African development, and analyzes its goals, objectives, and projections. The analysis is framed by the theory of absolute advantage and new trade theory, using a qualitative desk research methodology.
- The role of UNECA in shaping AfCFTA.
- AfCFTA's contribution to African economic development.
- The application of absolute advantage and new trade theories to African trade.
- Challenges to intra-regional trade in Africa (colonial legacy, lack of information, preference for foreign goods).
- The potential of AfCFTA as a game-changer for African trade.
Chapter Summaries
Introduction: This introductory chapter sets the stage by discussing the historical context of African trade, highlighting the negative impacts of colonialism and the resulting lack of intra-regional trade. It emphasizes the need for trade liberalization and the importance of regional trading agreements like AfCFTA to foster economic development and improve livelihoods across the African continent. The chapter introduces the central research question: assessing UNECA's influence on the creation and development of AfCFTA.
Theoretical Framework: This chapter lays out the theoretical foundation for the study, utilizing two key frameworks: the theory of absolute advantage and the new trade theory. The theory of absolute advantage, attributed to Adam Smith, is discussed in the context of its implications for African trade, emphasizing the potential gains from specialization and comparative advantage within the continent. The new trade theory is introduced to account for factors such as economies of scale, product differentiation, and imperfect competition, highlighting potential challenges and opportunities for African countries within the AfCFTA framework. The chapter contrasts the implications of these theories in the Western and African contexts.
Methodology: This chapter details the research methodology employed in the study. It clarifies that the research is qualitative and desk-based, relying on analysis of existing literature on UNECA and AfCFTA. The chapter explains the chosen qualitative research design, emphasizing its suitability for exploring the 'why' and 'how' questions related to UNECA's influence on AfCFTA and the dynamics of trade within the African continent. It also states that it avoids fieldwork or primary research.
Findings and Discussion: This chapter presents the findings of the research, focusing on the role and impact of UNECA in shaping AfCFTA. It highlights UNECA's mandate to promote economic and social development in Africa through international cooperation and its activities in fostering regional integration and addressing specific African needs. The discussion centers around UNECA's role in facilitating negotiations, providing technical expertise, and advocating for policies that support intra-African trade. The chapter also discusses the five sub-regional offices of UNECA and their contributions.
Keywords
Trade, development, regional integration, African Continental Free Trade Area (AfCFTA), United Nations Economic Commission for Africa (UNECA), absolute advantage, new trade theory, economic cooperation, colonialism, intra-regional trade, market liberalization.
Frequently asked questions
What is the main topic of this document?
This document provides a language preview of a paper that assesses the impact of the United Nations Economic Commission for Africa (UNECA) in shaping the African Continental Free Trade Area (AfCFTA). It explores the historical links between UNECA and AfCFTA and examines AfCFTA's role in African development.
What are the key objectives of the paper?
The key objectives are to assess the role of UNECA in shaping AfCFTA, examine AfCFTA's contribution to African economic development, apply the theory of absolute advantage and new trade theories to African trade, analyze the challenges to intra-regional trade in Africa, and assess the potential of AfCFTA as a game-changer.
What theoretical frameworks are used in the paper?
The paper utilizes the theory of absolute advantage and the new trade theory.
What methodology is employed in the research?
The research is qualitative and desk-based, relying on the analysis of existing literature on UNECA and AfCFTA.
What does the introduction chapter cover?
The introduction sets the stage by discussing the historical context of African trade, highlighting the negative impacts of colonialism and the resulting lack of intra-regional trade. It emphasizes the need for trade liberalization and the importance of regional trading agreements like AfCFTA.
What is discussed in the theoretical framework chapter?
This chapter lays out the theoretical foundation for the study, utilizing the theory of absolute advantage and the new trade theory in the context of African trade.
What is the focus of the findings and discussion chapter?
This chapter presents the findings of the research, focusing on the role and impact of UNECA in shaping AfCFTA. It highlights UNECA's mandate and activities in fostering regional integration and addressing specific African needs.
What are some of the keywords associated with this paper?
The keywords include Trade, development, regional integration, African Continental Free Trade Area (AfCFTA), United Nations Economic Commission for Africa (UNECA), absolute advantage, new trade theory, economic cooperation, colonialism, intra-regional trade, and market liberalization.
What are some of the challenges to intra-regional trade in Africa mentioned in the document?
Challenges include the colonial legacy, lack of information, and preference for foreign goods.
What is the role of UNECA's sub-regional offices mentioned in the document?
The document mentions the contributions of UNECA's five sub-regional offices but does not specify the details of their individual contributions.
- Quote paper
- Byron Maforo (Author), 2022, Impact of the United Nations Economic Commission for Africa (UNECA) in shaping the African Continental Free Trade Area (AfCFTA), Munich, GRIN Verlag, https://www.grin.com/document/1584428
