Regional Trade Integration, Economic Growth and Poverty Reduction in Southern Africa
290 Pages
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Regional Trade Integration, Economic Growth and Poverty Reduction in Southern Africa


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290 Pages


Despite a long history of regional integration and a multiplicity of regional organisations in southern Africa, the effect of regional integration on economic growth and poverty reduction remains debatable or elusive. This causes many to doubt whether regional integration is in actual fact an effective poverty-reduction strategy. Accordingly, the focus of this book is to explore and analyse whether specific Southern African Development Community (SADC) trade integration policies, especially the trade liberalisation regime, have produced economic growth and reduced poverty in the region. While it is generally agreed that economic growth is the panacea to poverty reduction, there is little evidence as to whether regional integration in Africa is associated with economic growth in the countries concerned and subsequently leads to poverty reduction. The book makes recommendations on how the SADC FTAs can contribute to poverty reduction and socioeconomic development, and goes on to suggest policy proposals on how to enhance the contribution of the FTAs to poverty eradication and economic development. It also identifies specific activities to be undertaken to enable supply-side and productive competitiveness interventions to support the FTAs and contribute to economic development. The potential constraints and negative impacts of the FTAs are investigated and highlighted, and possible solutions are recommended and motivated.



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Published 27 December 2012
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EAN13 9780798302647
Language English
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Regional Trade Integration, Economic Growth and Poverty Reduction in Southern Africa
Regional Trade Integration, Economic Growth and Poverty Reduction in Southern Africa
Edîted by Moses Tekere
First published in 2012 by Africa Institute of South Africa PO Box 630 Pretoria 0001 South Africa and Trade and Development Studies Centre 3 Downie Avenue Belgravia, Harare Zimbabwe
ISBN: 978-0-7983-0304-0
© Copyright in the chapters vests in the authors; copyright in this published work vests in the Africa Institute of South Africa 2012
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Opinions expressed and conclusions arrived at in this book are those of the authors and should not be attributed to the Africa Institute of South Africa or the Trade and Development Studies Centre.
Project manager: Nonjabulo Dladla Copy-editor: Deleen Wilson Proofreader: Alexa Barnby Design and layout: Dudu Coelho Cover photos (clockwise from top left): K. Dratwa;; B. Patro; Dios Com; Drouu
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About the contributors
Abbreviations and acronyms
Foundation for analysing the impact of regional trade liberalisation on economic growth and poverty reduction Introductîon Theoretîca oundatîon Anaytîca approach and ramework
Southern Africa and contemporary global economic environment and challenges Mutîpe goba crîses and the împact on poverty în Southern Arîca Cîmate change and îts împact on poverty în the SADC regîon Goba and regîona trade îberaîsatîon arrangements Regîona trade arrangements Concusîons
Poverty dimensions and reduction strategies in the SADC region SADC regîon: Economîc growth îndîcators and poverty proie Goba, regîona and natîona poverty reductîon strategîes and poîcîes SADC’S poverty eradîcatîon strategy Outîne o SADC countrîes’specîic poverty reductîon strategîes Hîgh and ow împact poverty reductîon strategîes în SADC countrîes
Status and progress of SADC regional trade integration Background to SADC întegratîon Orîentatîon o SADC trade îberaîsatîon poîcîes SADC Free Trade Agreement–Trade Protoco and eves o împementatîon Rues o orîgîn under SADC FTA Structure o SADC exports Dynamîcs o întra-SADC trade
16 18 26
37 40 41 44 48
51 61 63 66 69
77 78 80 95 96 98
Share o exports by SADC member states Concusîon
The delink between SADC trade liberalisation and poverty reduction Pro-poor consumer and productîon baskets Dynamîcs o pro-poor întra-SADC trade Intensîty o pro-poor commodîty trade wîthîn SADC Productîon structures and competîtîveness Experîence o other countrîes Concusîon
Selected country case studies on the impact of SADC FTA on poverty reduction Angola case study Introductîon Poverty îndîcators and poverty eradîcatîon strategîes Agrîcuture and poverty An overvîew o Angoa’s tradîng arrangements Emergîng markets and Angoa Concusîon
Lesotho case study Poîtîca economy perspectîve o poverty în Lesotho Sîgnîicance o the agrîcutura sector în Lesotho Lesotho’s vunerabîîty and underyîng causes o poverty Lesotho’s trade arrangements Dynamîcs o Lesotho’s trade în SADC Compementary programmes to poverty reductîon Concusîon and recommendatîons
Malawi case study Maawî trade îberaîsatîon wîthîn mutîatera, regîona and autonomous rameworks Impementatîon o the SADC FTA: progress and chaenges The ood securîty success story o Maawî Hîgh împact poverty înterventîons and essons Assessment o the împact o SADC FTA on poverty reductîon Chaenges or other sma-scae agrîcutura producers: the case o tobacco and sugar SADC FTAs and abour markets: actor prîces, încome and empoyment înkages The SADC FTA and househod consumptîon, prîces and productîon
99 103
107 109 116 127 128 130
133 134 138 138 139 140
143 145 146 149 150 151 153
156 158 163 164 170 173 175 177
Mozambique case study The poverty sîtuatîon and poverty reductîon strategîes Chaenges to poverty reductîon An overvîew o Mozambîque’s tradîng arrangements SADC FTA and Mozambîque demand and suppy response Investment response, market structures and competîtîveness Hîgh împact înterventîons Key chaenges to reaîsîng the beneits o SADC FTAs Concusîon and recommendatîons
Zambia case study Zambîa’s macroeconomîc perormance Zambîa’s poverty dîmensîons and reductîon strategîes Status o îberaîsatîon under the SADC FTA and the demand and suppy response Demand response due to an FTA Suppy response – new învestment and jobs Hîgh împact înterventîon programmes (maîze trade) Concusîon and recommendatîons
Zimbabwe case study Introductîon Zîmbabwe’s trade îberaîsatîon and economîc deveopment Zîmbabwe–SADC trade FTA and Zîmbabwe’s domestîc productîon response Perormance o Zîmbabwe’s agrîcuture sector (2000–2008) The case o maîze trade Donor communîty înterventîons or poverty eradîcatîon Concusîon
Complementary SADC programmes to address poverty reduction SADC heath programme SADC HIV programme SADC educatîon programme SADC energy programme SADC transport and communîcatîon programme Commonaîtîes and dîvergences o natîona experîences and essons or sustaînabîîty and equîtabîîty în economîc growth
182 185 186 188 191 193 195 195
198 200 203 204 205 206 208
211 211 218 220 222 224 226 229
232 234 236 239 243 245