Sunday, January 10, 2016

THE ECONOMIC COMMUNITY FOR WEST AFRICAN STATES (ECOWAS)

At the time the EAC was breaking up, a similar organization for West Africa was being created. In May 1975 at a conference in Lagos plans were approved to set up an Economic Community of West African States (ECOWAS). The Treaty establishing ECOWAS was signed at Lome in November 1976 by the heads of alt 15 states of West Africa. ECOWAS member-states pledged themselves to set up a customs union over 15 years by progressive reduction of import duties. The whole of West Africa will then become a free trade area, with free movement also of people, services and capital. Industrial development will be co-ordinated in order to avoid duplication of resources and capital. Agricultural policies will be gradually harmonized and joint agricultural projects between member-states will be undertaken, notably in marketing research and food-processing. The first two years of ECOWAS's existence were devoted to setting up administration and gathering information.
The sixteen West African Heads of State signed a revised Treaty on July 24, 1993. The revised Treaty reflects West Africa's regional cooperation experiences over the preceding fifteen years and takes into account the exigencies of continental integration as envisaged in the Treaty of the African Economic Community.
The following 16 member countries make up the Ecowas: Benin, Burkina Faso, Cape Verde, Côte d'Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Mauritania, Niger, Nigeria, Senegal, Sierra Leone, Togo

 AIMS.      
Those who established it had the following aims:
·        To promote cooperation in economic development among member states.
·        To end custom duties and other import barriers between member states.
·        To eliminate the difference in the level of economic development between member states.
·        To abolish all obstacles for the movement of all people, services and capital among member states.
·        To harmonize the industrial policies of member states including agricultural sector.
·        To promote joint development projects such as hydroelectric power between member states.
·        To raise the standard of living among the people of member states.
·        To establish a common external custom tariff.

STRUCTURE OF ECOWAS
The organizational structure of ECOWAS revolves around the Conference of Heads of State and Government, Council of Ministers, Tribunal, Executive Secretariat, Specialized Commissions and the Fund for Cooperation, Compensation and Development. The Conference is the supreme authority of the organization. It meets once a year. Its chairman is drawn from the member states in turn.
Supreme authority: Is composed of heads of state of member countries.  They meet twice a year and the chairmanship rotates around in the various heads of states.
Council of ministers: It is composed of two representatives from each country and it meets twice a year.
The Secretariat: The Secretariat is headed by an Executive Secretary who is elected for a four-year term, which may be renewed once only. There are five commissions namely, Trade, Customs, Immigration, Monetary and Payments; Industry, Agriculture and Natural Resources; Transport, Communications and Energy; Social and Cultural Affairs; and Administration and Finance. Its headquarters are in Lagos
Based in Togo, the Fund is administered by a Board of Directors. The chief executive is the Managing Director who holds office for a renewable term of four years. In 1988 agreements were reached with the African Development Bank and the Islamic Development Bank on the co- financing of projects and joint training of staff, and it was agreed that the Fund should be opened to non-regional participants.
Community tribunal: This organ ensures that the laws of ECOWAS are observed.  It also administers justice between member states i.e settles disputes.
Specialized commissions: The economic community has got four commissions which include the following: Industry, agriculture and natural resources; transport, technology and energy; culture and social affairs; and lastly trade and customs, immigrations, monetary and control.
There is also a Committee of Governors of West African Central Banks, which has been coordinating the implementation of the ECOWAS monetary program. The Treaty also provides for a West African Parliament and an Economic and Social Council.

ACHIEVEMENTS OF ECOWAS
·        Creating the use of local inputs in industries in the region.
·        Reducing foreign ownership of enterprises.
·        Encouraging specialization along lines of comparative advantage.
·        Creation of large markets that attract foreign investments.
·        Enabling member states to benefit from cheaply run common services like airlines, telecommunication and transport.
·        There is easy internal lending because of the trustworthiness.
·        Enabling the free mobility of factors of production such as labour and capital within the region.
·        Landlocked countries have got free access to the sea
·        Encouraging competition of different firms from different states, which help in neutralizing the position of monopolistic firms.
·        Removal of trade barriers has promoted trade.
·        Getting arid of colonial boundaries to suit the political interests of people from West Africa.
·        Natural hazards that affect the area are jointly addressed
·        These states have even benefited politically because they can be heard more in international affairs. This is due to their unified voice for example OAU and the UN gave the group a Mandate to send to Liberia their peacekeeping force - Ecomog (Economic Commission and Monitoring Group) to monitor the peace process for the war torn Liberia.  They left when Liberia settled down with elected democratic government.
·        Its peacekeeping force, the ECOMOG managed to overthrow the military junta under Koroma and reinstated Tijan Kaba as a President of Sierra Leone who was democratically elected.
·        ECOWAS aims to promote co-operation and development in economic, social and cultural activity, particularly in the fields for which specialised commissions are appointed to raise the standard of living of the people of the member countries.
·        Trade and Monetary Union: Elimination of tariffs and other obstructions to trade among member states, and the establishment of a common external tariff are the major concern in this realm.
·        Travel, Transport and Communications: Free circulation of the region's citizens and the rights of residence and establishment of commercial enterprises are the elements of the Protocol signed in 1979.
·        Economic Development: A private regional investment bank, Ecobank Transnational Inc based in Lome, Togo is in operation to harness the investment potentials of the region. The Industrial forum sponsored by the organization is held every two years to promote regional industrial investment.
·        Defence: A protocol of non-aggression was signed at the third Conference of the Heads of State and Government. In 1990 a Standing Mediation Committee was formed to mediate in disputes between member states.
·        Energy: A work programme for energy development, involving a regional analysis of energy issues and plans for increasing efficiency and finding an alternative source was planned in 1981. The creation of an Energy Resources Development Fund was approved in 1982. Other plans in this area include a regional information centre and database to disseminate information on renewable energy resources and the construction of an ECOWAS refinery to supply refined petroleum products for the region.
·        Agriculture: An Agricultural Development Strategy was adopted in 1982, aiming at sub-regional self-sufficiency by the year 2000. The strategy included plans for selecting seeds and cattle species, and called for solidarity among member states during international commodity negotiations. Seven seed selection and multiplication centres and eight livestock-breeding centres were designated in 1984. 
·        Social Programmes: Four organizations have been established within ECOWAS by the Executive Secretariat: the Organization of Trade Unions of West Africa, the West African Youth Association, the West African Universities Association and the West African Women's Association. The West African Football Union coordinates the region's soccer activities. Regional sports competition is held annually. A health organization was formed in 1989 by member states.
·        Member States have committed themselves to the coordination and harmonization of national economic and financial policies in order to enhance the effectiveness of national structural adjustment and economic reform programs. The monetary program adopted by the Community has the medium-term objectives of achieving regional convertibility of the nine national currencies and, in the longer term, the creation of a single monetary zone.
·        Meanwhile, an ECOWAS travelers check was launched in October 1998 to facilitate regional travel and commercial transactions.
·        In addition to the above, the Community has been implementing such sectoral programs as the inter-connection of national electric grids and regional pipeline for the distribution of natural gas, Community seed production and cattle breeding centers, agricultural research program, regional master plan for industrial development, coordination of desertification control programs, rural water supply schemes, cooperation in health matters, establishment of equivalence for degrees and diplomas.
·        In the Treaty, particular emphasis has been placed on promoting the involvement and participation of the private sector and the general public in the development and integration of the economies of the region. Already, the Community has encouraged the establishment and functioning of a privately-owned regional commercial bank (ECOBANK), Federation of West African Manufacturers Associations, Federation of West African Chambers of Commerce, West African Journalists Association, West African Youth Union, West African Women's Association, West African Road Transporters Union, etc.

·        ECOWAS has failed to institute a common monetary unit for the member countries.
·        ECOWAS has failed to remove high tariffs between member countries especially in the trade and customs and excise departments among member nations.
·        Free movement of labour and other factors of production like capital is still far from reach.
·        The standard of living among the citizens of the member states is still very low especially those located in dry Savannah.
·        Failure to get rid of foreign ownership of large business companies.
·        Differences in ideological and colonial backgrounds of the member states.  After independence, some countries adopted socialism; others took capitalism.  Some countries are attached to the Anglophone, Francaphone while others are Lusophone.
·        Failure for member countries to provide agreed financial contributions to the organization’ secretariat in Lagos.
·        Small and poor states fear the dominance of Nigeria especially with the influence of ECOMOG.
·        Most of the industries and other enterprises are owned by foreigners such as the British, Americans and Japanese who put more influence on the economy.
·        Ecowas failed to solve the problem of civil wars and political conflicts among member countries. Sierra Leone has been unstable for long and yet the problem comes from Liberia.
·        Total failure to implement most of the projects identified. Most of the declarations stop on paper with any implementation.

§  Less efficient use of resources because member states produce similar goods and this affects trade.
§  Different levels of Education among member states.
§  Language differences hence communication within the union is not uniform- English, French and Portuguese are the official languages used by the various member states.
§  Different levels of development making the richer members to benefit more inform of new industries and more jobs and incomes.
§  Industrially weak members pay high prices for poor quality goods origination from other member states.
§  Loss of Tax Revenue by member states because of the Free trade Area.
§  Member states which are economically stronger want to dominate the union eg Nigeria.
§  Some member states ignore the union economic objectives in their economic planning.
§  Malicious foreign interference on Ecowas by developed countries since such unions usually challenge them and therefore imitate them.
§  Member countries have different colonial backgrounds.  Former French colonies belong to the French community while the former British Common wealth membership in these organisations affects the operations of Ecowas on trade.
§  Member countries are too many for an effective economic union.
§  Member countries are far from each other and this affects trade between them.
§  Existence of other intergovernmental organisations in the region.
§  Failure by member states to provide the agreed financial contributions for running the union hampers. It’s economic development programs.
§  Lack of a common currency.
§  Ideological / personal differences among leaders eg religion



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