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In spite of some political twists and turns in some member states over the years, the Economic Community of West African States has not deviated from its principal objective of fostering economic development and regional integration
| By Maureen Chigbo | Jun. 30, 2014 @ 01:00 GMT
THIS year’s 39th anniversary of the Economic Community of West African States, ECOWAS, has provided another opportunity for the regional body to assess its journey so far especially in achieving its principal objective of fostering economic development and regional integration. From its inception in May 1975 the regional economic bloc has been navigating many twists and turns in the political sphere, weathering endless number of crises in some member states but, nevertheless, it continues to steer the Community of more than 350 million people on the path of political stability and democracy with measured economic growth and development. It may not be yet Uhuru, but the sustained level of overall progress, and especially economic growth was captured in the 2013 and latest annual report of the ECOWAS Commission, which coordinates the activities of all the Community Institutions.
The Annual Report entitled “ECOWAS’ Adaptation to Climate, Security and Development Changes,” gives a comprehensive account of the status of implementation of the Community Work Programme in 2013 and outlines key challenges and prospects for the region in 2014. It also assesses recent socio-economic developments in West Africa and the international environment and highlighted potential challenges, prospects and the way forward in the regional integration process. The report equally captured regional economic performance and reforms being implemented in the Member States.
It also discussed climate change and its impact on agricultural productivity in the ECOWAS region, detailing regional policies to mitigate the potential adverse effects. Also covered were the activities and achievements of other Community Institutions such as the ECOWAS Parliament, the Community Court of Justice, the ECOWAS Bank for Investment and Development, EBID, the West African Health Organization, WAHO and the Inter-governmental Action Group Against Money Laundering in West Africa, GIABA. In addition, the report also examined the status of programmes being implemented by regional agencies such as the West African Power Pool, WAPP, and the West African Monetary Agency, WAMA.
The work programme of the Commission during the period under review was anchored on four major priority areas, namely, consolidation of peace, security, democracy and human rights. These envisage the acceleration of regional integration in all areas of economic and social life; promotion of economic prosperity by establishing a viable regional environment that enhances investment and entrepreneurship; and the building of relationships and mutually beneficial partnerships with all other parts of Africa and the world to address the challenges of globalization.
Towards achieving the set objectives, the ECOWAS Commission has chalked a measure of successes captured by the Report, which has positive growth forecasts for West Africa making the region one of the best performing regions on the continent, with a projected GDP growth of 7.1 percent in 2014, up from 6.3 percent in 2013 and 6.7 percent in 2012.
Despite the slight decrease in 2013, the dynamism of the regional economy continues to be driven by the good performance of the petroleum and mining sectors, as well as agriculture and services, and a relatively high demand due to consumption and investments. This performance was mainly due to growth consolidation in most ECOWAS member states where growth is expected to exceed 5 percent.
Eleven of the 15 ECOWAS countries with high growth rates are (Benin, 6.5 percent; Burkina Faso, 7 percent; Cote d’Ivoire, 9.1 percent; The Gambia, 8.5percent; Ghana, 8.0 percent; Liberia, 6.8 percent; Mali, 6.6 percent; Niger, 8.2 percent; Nigeria, 7.4 percent; Sierra Leone, 14.0 percent; and Togo. 6.0 percent).
The annual Report also noted that the Commission and other community institutions recorded achievements in the implementation of activities programmed in the various intervention areas.
On monetary integration, the report said that progress was made in the harmonization of economic and financial policies of member states within the framework of the ECOWAS Multilateral Surveillance Mechanism as well as monitoring the effective implementation of the roadmap for the ECOWAS Single Currency Programme. Key activities accomplished included monitoring and evaluation of economic performance in member states and assessing the overall status of macroeconomic convergence in the region; strengthening the conduct of multilateral surveillance and the establishment and operations of institutional organs of the ECOWAS Multilateral Surveillance Mechanism. There was also comprehensive assessment of the status of implementation of the roadmap for the ECOWAS Single Currency Programme and progress towards the realization of the 2015 target date for the launch of the second West African Monetary Zone, WAMZ; completion of studies on the harmonization of public debt management and public procurement policies and practices in the ECOWAS region. Efforts are equally being coordinated towards the harmonization of ECOWAS and UEMOA Commissions programmes and policies; strengthening inter-institutional cooperation and collaboration with the UEMOA Commission, West African Monetary Agency, WAMA, West African Monetary Institute, WAMI, and the ECOWAS Bank for Investment and Development, EBID, in the implementation of the Roadmap for the ECOWAS Single Currency Programme.
ECOWAS also made significant progress in the development of a competitive and enhanced regional investment climate for private sector development. Key achievements in this area include the completion of the draft ECOWAS Investment Policy, ECOWIP, finalization of report on ECOWAS Investment Climate indicators, commissioning of a feasibility study on the establishment of cross-border payment and settlement systems, establishment of the West African Market Integration Council and an Investment Guaranty Mechanism in ECOWAS. Other achievements relate to strengthening of collaboration with West Africa Insurance Companies Association, WAICA, and WAMI to facilitate insurance sector integration; organization of the “ECOWAS Investment Forum” in partnership with the Association of Investment Promotion Agencies of West African States; and establishment of an official contact with the government of the People’s Republic of China on financing the implementation of China-ECOWAS programmes.
In the area of research and statistics, ECOWAS continues to strengthen efforts towards harmonizing statistics for effective planning, economic development regional integration. Activities have been launched for the review of the regional poverty reduction strategy paper, RPRSP; harmonizing balance of payment statistics and methodologies in the region; validation of regional research policy and the 2014-2018 Regional Statistics programme by ministers responsible for statistics; management and update of databases; and establishment of methodologies for harmonizing consumer price indices, CPI and national accounts.
On the ECOWAS Community Development Programme, CDP, consultations have been held with relevant stakeholders at the ECOWAS Commission level and member states on the CDP Regional Document; and the establishment of the resource mobilization committee for the formulation of the CDP financing strategy.
In the area of Economic Policy Analysis, key activities undertaken by ECOWAS focused on the completion of three studies on various research themes as well as the compilation of the first volume of the Journal of West African Integration. In this regard, the Commission published two editions of Journal of West African Integration, a book on Domestic Resource Mobilization in selected West African countries and six monographs.
With respect to in-house research activities, the Commission undertook monitoring of the regional integration process in member states with a view to producing quarterly reports on country actions towards or against integration. The reports together with the in house research works form the basis for the annual publication of a flagship report titled “Integration Alert in West Africa”.
According to the Report, activities implemented by the Directorate of Trade included organizing the 7th ECOWAS Trade Fair in Accra from October 31 to November 11, 2013, under the theme “Regional Trade through integration. The Directorate also completed and submitted project for installing and operationalizing the Business Information System, Ecobiz, at trade events organized in member states; finalized and submitted the ECOWAS Aid for Trade Strategy to the ECOWAS Aid for Trade Experts Group which was reviewed in May 2013 and organized a training workshop for member states on formulating trade policy and negotiation arrangements. The Directorate equally organized the ministerial monitoring committee meeting which finalized the report on the overall Economic Partnership Agreement, EPA, document; initiated a WTO Law Advisory Services and Capacity Building project within the framework of assisting the region to prepare for and engage fully in international trade-related negotiations; and organized a high-level expert meeting on the ECOWAS Aid for Trade Initiative.
Towards attaining the ECOWAS Customs Union, activities were organized for the adoption of regulatory texts of the ECOWAS common external tariff, CET; with continued supervision of the implementation of the ECOWAS Trade Liberalization Scheme; harmonization of direct and indirect taxes; and fiscal transition programme and the Directives governing its implementation. Regarding the CET, the ECOWAS Council of Ministers at its extraordinary session held in Abidjan on September 30, decided to, among other things, fix at five years a transition period for the application of Import Adjustment Tax; and make the ECOWAS CET effective from 1st January 2015.The ECOWAS Commission has also started putting in place a fiscal transition programme in West Africa aimed to mitigate fiscal revenue losses that may arise from the customs dismantling when the EPA, being negotiated with the European Union, comes into force.
On free movement, cross-border cooperation and tourism, the Commission organized a regional meeting to critically review the region’s flagship Protocol on Free Movement and develop appropriate action plan to popularize the text and make recommendations for the removal from the texts obsolete sections that are impediments to the implementation of the Protocol. The Commission has also developed the strategic framework of a three-year regional cross-border cooperation programme for the period 2014 -2016 as well as an ECOWAS Tourism Policy which was subsequently validated and adopted by the Statutory Committee on Tourism.
On Agriculture, the Commission’s activities in 2013 revolved around the Regional Agricultural Investment Programme, RAIP, with particular focus on promoting strategic products for food security and sovereignty, promoting an overall environment conducive to regional agricultural development and reducing vulnerability and the promotion of sustainable food access, and governance, coordination and monitoring and evaluation of the ECOWAS Agricultural Policy, ECOWAP implementation. The Commission, with the support of the ECOWAP Donors Group, continued to implement the programmes underway and mobilize funds from the partners of the new projects and programmes for the agricultural sector stakeholders. The financing acquired in the course of the year for the implementation of these major programmes amounted to US$33.35 million.
In rendering the Report, the President of the ECOWAS Commission Kadré Desire Ouédraogo commended the progress achieved during the period under review. According to him, the commitment and determination of the Heads of State and Government coupled with the support of friendly countries and the international community, the return of peace and constitutional order in Mali constituted major developments for the Community.
He described the adoption of the ECOWAS Common External Tariff at the Extraordinary Summit held on 25th October 2013 in Dakar and the relevant decisions of the Authority on trade liberalization and free movement of persons, infrastructure development and acceleration of monetary cooperation as “defining steps” in the region’s integration process.
“I seize this opportunity to express profound gratitude to the ECOWAS authorities and all those who contributed to these positive developments,” Ouédraogo said, noting that “the 2013 economic activity of our region unfolded amid a sluggish global economic context.
According to him, ECOWAS recorded some achievements in 2013 with respect to economic prosperity, good governance and security in spite of the challenges faced by the Community.
The negative side of the Report is that the estimated 6.3 percent economic growth rate in 2013 is below the growth threshold of 7 percent necessary to create the best conditions to guarantee the attainment of the Millennium Development Goals, MDGs, particularly the goal of poverty reduction. This notwithstanding, ECOWAS remains committed to intensifying efforts for the alleviation of poverty within the Community.
“Although the 2015 deadline (for the attainment of the MDGs) is nigh, ECOWAS is looking beyond this date to make significant progress with a view to ensuring stronger growth that will sustain poverty alleviation,” Ouédraogo assured. He added: “it is necessary to remind all the stakeholders that the attainment of the MDGs is being hampered by a number of challenges that continuously require the concerted efforts of our member states and development partners. These challenges include climate change, security and development, deepening of the economic integration process, building of adequate infrastructure, institutional reforms and capacity building.”
By and large, ECOWAS has stepped up actions in all the vital sectors to adapt to the new circumstances with a view to achieving its major objectives.
“ECOWAS should therefore carry out activities in the security and development sectors which have strong links. The cases of Sierra Leone, Niger and Côte d’Ivoire which obtained record growth rates close to or more than 10 percent after overcoming political crises illustrate this fact perfectly. These countries have achieved these results due to the restored political stability, and have successfully implemented courageous macroeconomic policies and structural reforms,” President Ouédraogo affirmed.
According to him, infrastructure development is a sine qua non condition to enhance the competitiveness of the region’s economies. “The poor state of infrastructure in our community continues to be a major impediment to domestic and regional market integration, equitable access to social services and growth,” he said, adding that Infrastructure development and good economic management have positive growth effects that would help ECOWAS member states to accelerate progress towards the attainment of the MDGs, in particular the achievement of food security and poverty reduction in the region.
Meanwhile, as part of efforts at re-positioning itself to better respond to the changing dynamics and emerging challenges of regional integration, the Commission has been enlarged from nine to 15 members. This is also aimed at ensuring greater inclusiveness and consistent with the transformation from an Executive Secretariat to a Commission started in 2007 and Vision 2020.
There have also been changes at the management of other Community Institutions such as WAHO, GIABA and the Community Court of Justice, with a set of seven newly appointed Judges, while Ghana’s President John Daramani Mahama has taken over chairmanship of the ECOWAS Authority of Heads of State and Government from his Ivorian counterpart, President Alassane Ouattara, who held the position for the past two year.
One remarkable achievement of ECOWAS in the health sector is its Malaria Elimination Campaign. The campaign, which has aptly been dubbed a War, has attracted the interest and support of partners resulting in a Tripartite Agreement by the ECOWAS Commission, Cuba and Venezuela for the construction of three factories in three ECOWAS Member States (Cote d’Ivoire, Ghana and Nigeria) for the production of biolarvicide product for massive anti-mosquito spraying across the region.
While West Africa bears the highest burden of the socio-economic and humanitarian devastation caused by malaria in Africa, especially the avoidable deaths of children under age five and pregnant women, the good news is that the ECOWAS anti-malaria campaign which focuses on the strengthening of vector control strategy and environmental management has received the strong backing of the armed forces of its Member States. Acting on the directive of regional leaders, Committee of Chiefs of Defence Staff has mobilized the national armed forces of member States to lead in the war to rid the region of mosquitoes and malaria, working with national malaria control programme managers, civil society organizations and the endemic communities.
So, in spite of its many challenges, ECOWAS continues to blaze the trail among Regional Economic Communities and with demonstrable political will from its leaders coupled with unwavering commitment and determination from all stakeholders the Community is well on the way to the attainment of the laudable goals set by its founding fathers.
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