Is The Experience Of Others Countries In SADC Broadly Similar Or Different From Namibia
Research problem
Impact of regional blocs on members countries need to be investigated. Although the main objectives of forming these blocs are to enhance political, economical and social welfare of the members population, these objective achievement has been less than expected. Experience of SADC members is a good example characterized by great imbalances in gains distribution and less political, economic and social improvement accruing from SADC membership. Actual situation of Namibia can be used to measure the effect of SADC over its participants and access its effectiveness as a regional organization and discover the SADC limitation as result of members conditions.
1. Introduction
In our contemporary world, many economies are attempting to foster trading blocs that will enhance international trade among members. This is aimed at ensuring economic progress of the members countries. Within these trading blocs members focus on harmonizing business regulations and conditions for investment. The general view about this formation is that they have been successful. However some of the partners in these trading blocs have suffered considerable dislocation and strain, a good example being political and social tensions that have been experienced by all parties in NAFTA. SADC is one of the trading blocs in Africa. It was formed in 1992 at Windhoek in Namibia although initially it was known as Southern African Development Co-ordination Conference (SADCC) established in 1980, at Lusaka, Zambia. The member states includes Namibia, South Africa, Democratic Republic of Congo, Tanzania, Zimbabwe, Lesotho, Malawi, Mozambique, Swaziland, Botswana, Zambia, Angola, Madagascar (currently suspended) and Mauritius. In 2004 Seychelles withdrew from this bloc citing financial constrains to attend SADC meetings as well as fulfilling membership contributions. South Africa, Mauritius, and Democratic Republic of Congo became members in 1994, 1995, and 1997 respectively. (International Relations South Africa 2004)
Despite the numerous arguments that customs and development treaties such as SADC should accrue to net benefits to members, withdrawal of the Seychelles raises question about the benefits of membership. Additionally, this confirms that there may be gaps between theory and practice. In practice, there are costs and dislocations of membership which offset a part and potentially all of the benefits of membership.
This research will focus on tensions introduced by membership using the case of Namibia with the ultimate aims of providing insights into the issues where further large-scale research might be necessary to reach a final conclusion while attempting to resolve some of the contested issues directly.
2. Background of the Study
Trade among African countries has been registering low rates for many years. This is one of the endemic situation on which the continent live in. In fact, this is one of the causes of underdevelopment in African economies. Importance of international trade needs to be emphasized in Africa. Since every country is endowed differently with natural resources, trade between these countries will lead to some gains as asserted by theories of international trade. Specialization in areas where each country has either a comparative or absolute advantage will consequently result to more production and gains from trade among these countries. This will be very essential in ensuring economic development. Regional integration is accompanied by reduction of factors that hinders trade such as tariffs, embargoes, legal restrictions and so on. This encourages transactions among the trading partners .increased transactions lead to a spiral effect which stimulates countries economies and their growth. As much about gains from international trade, this still remains questionable. Distribution of the gains attained form regional integration has not been equal.
Despite the claim by Foroutan and Pritchett(1993) that the actual share of Sub Sahara Africa (SSA) imports plus exports was slightly higher than model prediction (model of the determination of trade flows) trade among African countries is still undeniably low and hasnt shown signs of growth. This raises question of how far trade agreement in Africa and SADC in particular have been effective. There is also a need to answer the question of why this situation. During my inspection into African literature and SADC I came across to the surprising affirmation that developing countries sees integration under different perception from those of developed ones. While third countries use integration as an instrument to reach economic development (industrialization), developed nations on the other hand see integration as a way to boost relative growth performance by fasting growth on poorer members than richer one. This affirmation raises the question of whether the right approach is being used by developing country to implement and see regional integration. Is regional integration more important than trade itself Or should regional integration result from a need to enlarge an existent pattern of trade The other area of concern is similar characteristics possessed by members state of SADC. All members are developing countries. They are characterized by high dependence on raw materials as the product to trade on. Their manufacturing and processing sectors are underdeveloped and have little surplus for trade from secondary and tertiary sectors. They lack industrial diversification or inexistence of industries which redirect their import to developed nations as the only way to fulfill their need for manufactured and industrialized goods. To South Africa which is more developed than other SADC members, gains from this trade have been substantial. Since her economy is more diversified, she stands to gain more as she export processed and industrial products to the other members. There is a need for economic activities diversification if gains from trade among SADC members are to be equally distributed. Namibia has been a member of SADC since her its formation. Using this country as a case study then the results will be appropriate to generalize as far as the other members are concerned. Focus on tensions introduced by membership using the case of Namibia will be important in providing insights into the issues where further large-scale research might be necessary to reach a final conclusion while attempting to resolve some of the of the contested issues directly.
3. Objectives
The main objective will be to examine the experience of SADC members since they joined this regional bloc.
Other objectives will be
-To find out which role SADC has played as economic regional integration for its members.-To find out the reasons why SADC does not achieve its objectives.
-Find out benefits and costsdrawbacks of being a SADC member
4. Main concepts
This study will include a set of hypothesis borrowing from theory of regional integration and econometric. Secondly, it will explain theories of international trade. Under theory of international trade concepts such as gains from trade, specialization, comparative advantage and pattern of trade will be explained. Model of trade flow will also be focused on.
5. Methodology
Since this is case study, Namibia is the sample to be used to represent other SADC members who forms the population. Secondary data, qualitative or quantitative will be the main source of information in this research. Sources such electronic library, the library and internet will be of great use. Information collected will also greatly focus on Namibia since she is the case study in this research. Data on Namibia trade pattern will be used as a guide to an exploration of graph, table, and etc. Consultation of experts in international trade will also be employed. Consultation with my supervisor is primordial for the accomplishment of this study to help in understanding concept, table and graph.
6. Expected out comes
At the end of this research I hope to produce useful and practical analysis of SADC under the perspective of gains generation to increase the actual trade and hope that it may be of practical use for SADC improvement. Secondly, come up with information or conclusion drawn from this analysis so as to add value to SADC in particular as well as Africa and the world in general as a way to improve economic regional blocs failure in Africa and as externality alleviate burden on countries outside Africa. Finally, and if possible I also hope that this analysis will be of particular use for Namibia as a source of my case study and can fulfill the ultimate state in the aims exposed above to carry out this research.