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

Description

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.

Subjects

• Books
• Professional resources

Informations

• Published by: Africa Institute of South Africa
• Published: 27 December 2012
• Reads: 1
• EAN13: 9780798302647
• Language: English
• Document size: 5 MB

Exrait

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

No part of this publication may be reproduced, stored in a retrieval system, or transmitted by any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission from the copyright owner. Any unauthorised copying could lead to civil liability and/or criminal sanctions.

To copy any part of this publication, you may contact DALRO for information and copyright clearance.

Telephone: 086 12 DALRO (from within South Africa); [phone] Telefax: [phone] Postal Address: P O Box 31627, Braamfontein, 2017, South Africa www.dalro.co.za

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; Freebigpictures.com; B. Patro; Dios Com; Drouu

hŝ ôô ŝ éçàé ô é ôàŝ ô é Mûŝà Oààé ô Cûé Sçôô, ôçàé  é Cû Dŝç ô ûà Zàé, ô àé ôŝ é àéŝ ô ïV/AïDS.

hé ôààé, ç ŝ û  éé éôé ûé é çôôà- ô ô Aûà Sûŝà Dà, ô ŝ éŝé ôé  éàŝ ô, àŝ çôûé ô àçé ŝéôûŝ éŝôûçé çàééŝ ŝçé ŝ éŝàŝé  2. Vé é ŝ ô àôû é à ŝûéŝ ô éŝé ç- é àŝ é ôààé ŝ ôçàé  à éôé àéà. TRADES Céé ôû ééôé é ô çôûé é é éŝôûçéŝ ôàé ô é ŝàé ô ŝ ûçàô ô ŝûô ôŝé  éé. Aççô, é ôçééŝ ô ŝ ôô  ô ôàŝ ŝûô é ôààé. Yôû çà àŝô ŝûô é ôààé  çôàç TRADES Céé ô àéŝç@àéŝçéé.çô..

Contents

Foreword

About the contributors

Abbreviations and acronyms

Introduction

1

2

3

4

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

xîîî

xv

xîx

1

16 18 26

37 40 41 44 48

51 61 63 66 69

77 78 80 95 96 98

viii

5

6

REGIONAL TRADE INTEGRATION, ECONOMIC GROW TH AND POVERT Y REDUCTION IN SOUTHERN AFRICA

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

7

Concusîon

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

CONTENTS

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

ix

179

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