Opinion
Lessons in economic integration for the African Union
However, while Europe has succeeded in many technical areas, the recent Euro crisis shows how political goals were pursued without the necessary backbone of economic and financial integration.
“The greatest caveat has emerged only recently and it came from the macro and monetary integration process,” Erwin said.
“Despite attempts to force a degree of harmonization – with the Maastricht Treaty which established the European Union – it became clear that in fact the economies were too disparate in size, efficiency, and economic stability to survive a crisis.”
He said there is a clear lesson for Africa in that there has to be a systematic plan toward economic integration.
“We run the risk of running into problems with trade liberalization,” he warned.
“Whilst this is important, it can backfire seriously if handled incorrectly. Trade liberalization requires good trade facilitation between the economies and responsive economies.
“Both of these requirements essentially revolve around affordable and accessible energy, logistics and communications. In addition, there are a host of institutional trade facilitation reforms that have to be made.
