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

Moses Tekere

Publication Year: 2012

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.

Published by: African Books Collective

Title Page, Copyright

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pp. i-vi

Contents

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pp. vii-xii

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Foreword

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pp. xiii-xiv

This book is inspired by the work Trade and Development Studies (TRADES) Centre has been undertaking over the past decade, since its establishment in 2000. TRADES Centre’s work has covered various areas, such as economic reforms, growth and development, multilateral trade and financial issues, and climate change. But it is the issue of regional ...

About the Contributors

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pp. xv-xviii

Abbreviations and Acronyms

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pp. xix-xxiv

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Introduction

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pp. 1-15

The Southern African Development Community (SADC) region is endowed with abundant natural and mineral resources, such as gold, diamonds, platinum, copper and oil, yet it also has a litany of poverty statistics. It has one of the lowest life expectancy, social and human development ...

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1 Foundation for Analysing the Impact of Regional Trade Liberalisation on Economic Growth and Poverty Reduction

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pp. 16-36

The Southern African Development Community (SADC) region is endowed with abundant natural and mineral resources (such as gold, diamonds, platinum, copper and oil), yet it also has a litany of poverty statistics. It has one of the lowest life expectancy, social and human development...

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2 Southern Africa and Contemporary Global Economic Environment and Challenges

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pp. 37-50

The financial crisis is threatening to turn back the clock on the progress achieved during decades of reforms that have geared economic policy toward ensuring that Africa becomes a more attractive destination for private capital.1 The global financial crisis, which as many believe has also turned into a global economic, social and developmental crisis, with ...

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3 Poverty Dimensions and Reduction Strategies in the SADC Region

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pp. 51-76

Poverty in SADC member states remains one of the greatest challenges the region is facing and, as such, member states lag behind in their implementation schedules to achieve the Millennium Development Goal (MDG) targets. The levels of poverty have remained high. About 32 per...

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4 Status and Progress of SADC Regional Trade Integration

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pp. 77-106

The SADC region has been in existence since 1980. Initially, it was formed as a loose alliance of nine majority-ruled states in southern Africa (the Frontline States), known as the Southern African Development Coordination Conference (SADCC), with the main aim of coordinating development projects in order to lessen economic dependence on the then ...

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5 The Delink Between SADC Trade Liberalisation and Poverty Reduction

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pp. 107-132

By defining pro-poor consumption and production baskets across the SADC region, this chapter explores the link between free trade agreements (FTAs) and poverty eradication. It attempts to link the provisions in the SADC Trade Protocol (TP) and the incidence of reduced poverty ...

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6 Selected Country Case Studies on the Impact of SADC FTA on Poverty Reduction

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pp. 133-231

Angola’s economic growth rate has been impressive over the past decade, following the end of the civil war. The economy grew by an estimated world high record of 19,7 per cent in 2007, up from 18,6 per cent in 2006.1 Economic growth has been supported by increasing oil production and prices. Angola’s economy is entirely dependent on oil and diamonds, ...

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7 Complementary SADC Programmes to Address Poverty Reduction

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pp. 232-248

The main objective of this chapter is to provide a holistic analysis to the SADC approach of addressing regional poverty. Trade liberalisation measures alone cannot reduce poverty; hence, SADC has several other programmes that complement each other. Accordingly, this chapter pro-vides a brief analysis of the progress and status of these programmes and ...

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8 Conclusions and policy recommendations

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pp. 249-265

The main conclusion of the study is that the SADC region has recorded impressive growth in its trade and economy in general over the past decade. However, its linkage between trade liberalisation and growth and poverty reduction is not automatic, but multiple, complex and indirect. Accordingly, three sets of conclusions are drawn from the findings:...


E-ISBN-13: 9780798302647
Print-ISBN-13: 9780798303040

Page Count: 288
Publication Year: 2012