Sadc Regional Integration-(vc Oparah, 2005)

INTRODUCTION The post-colonial conundrum of multiple motives and meager means has left developing countries a slim opportunity to strive to become active participants and claimants in the international arena. In early 1990s, Africa and Southern Africa realised the severe constraints on the freedom of actors (governments) in developing countries during the cold-war periods. African decision- makers were constrained by the need to consolidate power and meet socioeconomic demands at home.1 In this essay, I am going to define and explain the nature of regionalism in Southern Africa on the first part and on the later part, a detailed account of role of the Southern Africa Development Community (SADC) in the context of the region’s integration strategies will be highlighted and discussed alongside its merits firstly and then the demerits. Also, I shall conclude by pointing out what need to be done to achieve the much needed collective goal. DEFINITION AND THE NATURE OF REGIONALISM IN SOUTHERN AFRICA The playing field in world economic policies had already been determined before the emergence of most developing states. The monetary economies of these states had been formed through their incorporation as sources of primary products and markets for manufactured goods and services, within a global structure of north-south trade, dominated and controlled by their colonial countries.2 So, Southern Africa falls under the developing states and can be defined as the those twenty-two African countries that falls under the south of the Equator. In 1999, it was reported to have 280 million people and the size of the region is eleven million square kilometres by ten million square kilometres3. However, for the purpose of this essay, the political economy of the region will be discussed with the 14 member SADC countries* in focus. Paramount on the agendas of the developing countries including Southern African countries is to use a multilateral approach to promote development in the developing nations in other to address the current asymmetries between the core (north) and periphery (south) countries. The emergence of regional blocks such as Economic Community of West African States (ECOWAS) and SADC take a cue from one of the most powerful and enriched regional blocks, the European Union (EU). However, the extent to which this gap between the North and the South is being bridged is yet to be ascertained or determined. Regional integration has been applied in many forms of economic co-operation between groups of neighbouring countries. This co-operation is often characterised by contradicting political motives ranging from mere compliance within a world of independent sovereign states, to projects for complete political and economic integration.4 1

Christopher Clapham, “Sub-Saharan Africa”, in Clapham, C. (ed.) Foreign Policy in Developing States: A Comparative Approach, Praeger, New York, 1977, p. 79. 2 Christopher Clapham, “The changing world of regional integration in Africa” in Clapham, C., et al, (eds.) Regional Integration in Southern Africa: Comparative International Perspectives, SAIIA, Johannesburg, 2001, p. 60. 3 McGowan, P. “The regional sub-system of Southern Africa” in Nel, P and McGowan, P. (eds): Power, Wealth and Global Order: An International Relations Textbook for Africa, University of Cape Town Press, Cape Town, I999, P. 267. SADC countries: Angola, Botswana, Congo, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. 4 Clapham, Op.Cit. p.59.

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The idea behind integration is that no state should isolate itself or be an Island of its own but rather individual states must collaborate with each other to achieve the much needed economic balance and sustainability. At the end of apartheid, South Africa allayed fears of members of the former members of the defunct Southern African Development Co-ordination Conference (SADCC) with reassurance that it has no intention to impose its will by force in the region or form dominance with its greater resources and economic power. This led to the formation of the SADC in August 1992 SADCC summit meeting in Windhoek, Namibia. Its objectives were “to achieve development and economic growth; evolve common political values, systems and institutions; promote and defend peace and security.”5 However, the region has struggled to achieve its objectives which due to different reasons which will be elaborated herein. Regionalism in Southern Africa is more or less based on the dependency on the core countries of the North due to the fact that individual states within the region has nothing much to offer. The countries are only involved in just the production of primary products and provide markets for manufactured goods and services to the countries of the developed world.6 This can best be summed up as battle of survival with each state trying to outwit each other to attract foreign loans and financial aids. They lack the ability to internally generate funds to improve on commercial activities and industrial drive. Again, regionalism demands countries to lose their sovereignties to an extent for the general good of the member countries involved. However, most states in the region are mainly concerned with the upholding of their national sovereignties and also preservation of their own powers within their states. Economic integration schemes often raise conflicting issues relating to taxes and migrant labour.7 Some states such as South Africa still adopt protectionist policies to protect her infants industries (such as textile and vehicle manufacturing plants) even though the neighbouring countries are not able to compete with Pretoria. Similarly, all neighbouring countries in SADC except until recently Mozambique visit South Africa with valid visas which are not supposed to be the case. South Africans in the other hand obtain visas whenever they are going to some of these other countries. The region is suppose to follow the example of ECOWAS and EU travel legislation which allows people from member countries of the region to travel within the region without visa restrictions The delays and time expended on the process of acquiring these visas could be channeled towards making business trips and trade negotiations. South Africa claims that most of the visitors snicking illegally into the country through its boarders are from the region. This claim is yet to be ascertained as there are still illegal immigrants from other African countries coming in through the boarder. The Immigration Acts of most of these countries do not encourage economic developments, neither are foreign skills and investment attracted. Companies are in most cases mandated by laws to pay 2% or more remuneration penalties to employ foreigners even in positions where the countries lack local skills. 5

SADC (1995) ‘Declaration Treaty and Protocol’, Gaborone. Ibid. p.60. 7 Ibid. p. 60. 6

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Besides, the cumbersome routes of these foreigners to obtain work permits have resulted in most job applicants loosing out of the available jobs.8 Furthermore, there are some ideological differences among member countries in the region with relation to political issues. Some tend to take the path of socialism as against capitalist strategies of economic development. Countries like Angola and Tanzania in the past adopted socialist economic policies and from time to time defend their stands during trade negotiations. Others argue that South Africa and her African Renaissance approach have some hidden agendas. These disparities in ideologies and also to a great degree colonial countries influences on these countries have impacted negatively on member countries to fully liberalise their respective economies.9 Regional institutions tend to have one thing going for them which include intra-regional free trade. Southern African Custom Union (SACU) is ensuring free movement of the factors of production (excluding labour). Paradoxically, Pretoria has dominated trade in the region with 80% of regional supplies to her favour between 1995-2000. This is contained in recent report by SADC Chambers of Commerce and Industry (ASCCI). Some are quick to point out that the current situation could result in reluctance in the part of certain governments to lower trade barriers as some might fear their local industries would not survive competition from South African firms.10 THE INTEGRATION STRATEGIES EMPLOYED BY THE SADC REGION SO FAR HAS ITS MERITS AND DEMERITS The aftermath of the cold war further marginalised Africa politically and economically at the world stage. France, Great Britain, the US, the World Bank and International Monetary Fund increasingly took the stance that Africa’s political and economic decay was homemade. The strategies propounded to solve these problems were “good governance” and Structural Adjustment Programmes.11 Despite the problems in liberalising the economy of the region, the SADC has moved towards open, integrated and liberal market system by internationalising the factors of production and consumption. With six countries of the 14 member countries of SADC classified under the United Nation’s (UN) least developed and particularly disadvantaged to the vagaries and dichotomies in international trade, The region realises that it has to put more efforts in other to challenge effectively the unusual “decline in commodity prices, limitations on market access conditions in product lines of export interest to SADC countries, and the negative impact of these on their balance of payments.”12 Through multilateral trading system, member countries are promoting liberalisation through various mechanisms. 8

George Van Niekerk, “Labour Matters: Changes to Immigration Act will be good for business” in Sunday Times Business Times, Johannesburg, 26 September 2004, p. 4. 9 Clapham, Op. Cit. p. 61. 10 Richard Gibb, “The state of regional integration: The Intra- and Inter-regional Dimensions” in Clapham, C., et al, (eds.)Regional Integration in Southern Africa: Comparative International Perspective, SAIIA, Johannesburg, 2001.p.71 &79. and Moyiga Nduru, “Business in Africa tough” in News 24.com, 3 October, 2004. 11 Roger Pfister, “South Africa’s Recent Foreign Policy Towards Africa: Issue and Literature” in Center for International Studies, Zurich, 29 August 2000, p. 5. 12 Garth le Pere, “Doha, South Africa and the SADC Subregion” in South African Yearbook of International Affairs, 2002/03, Vol. 7. Johannesburg, p. 206

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Firstly, they have participated in ensuring that the trade agreements made in Uruguay Round are implemented through the World Trade Organisation (WTO). Following the failure of the WTO ministerial meeting in Seattle in 1999, the SADC members participated in trade negotiations in Doha and Cancun respectively to deliberate on Uruguay Round agreements. It could be recalled that the Uruguay Round was conducted under the auspices of the General Agreement on Tariffs and Trade (GATT). The common goals of these SADC member countries include: reducing a range of protective and support measures to inefficient ‘grandfather’ industries and sectors in the economies of the developed countries and thereby follow a relocation of production and investment to developing countries which possess comparative advantages in 13 these areas. The trade negotiations is still going on at different for and at any given opportunity to improve on prices of exports to the developed countries as well as make them to cut the subsidies countries like US and those from EU are offering their respective local farmers. In another related development, SADC members are in agreement to liberalisation and open regionalism leading to SADC Free Trade Areas Protocol of 2000. This protocol encourages increase free trade in the region, discourages protectionist policies, encourages competition among members, and ensures comparative advantage policies.14 Furthermore, SADC Council of Ministers meeting in Malawi in August 2001 acknowledged the fact that the region is faced with enormous challenges in economic and human development spheres which have to be addressed. These include; high levels of malnutrition, abject poverty, unemployment problems, and declining life expectancy. The reaffirmation for economic growth and development was also made by the regional body in Johannesburg, South Africa during the 2002 UN World Summit on Sustainable Development (WSSD) with strong emphasis on development strategies for full economic integration in the region and beyond.15 The New Partnership for Africa’s Development (NEPAD) provides avenue for the region to pursue better deals. The region is increasingly conforming to the objectives of NEPAD in areas such as harmonised free trade across Africa, systems of trade, customs, taxation, financial rules and infrastructural standardisation.16 The realisation that good governance is a key to success of the aforementioned has encouraged member countries to move towards democratic rules. Most of the countries are also putting their houses in order so as to conform to agreed political, economic and corporate governance values, socio-economic development codes and standards of the African Peer Review Mechanism (APRM) of NEPAD.17 13

Ibid. p. 205. le Pere, Op.Cit. p. 211 and Gibb, Op.Cit. p. 72. 15 Natashia Chhiba, “The Southern African Development Community: An Overview” in South African Yearbook of International Affairs, 2002/03, Vol. 7. Johannesburg, p. 69. 16 Ross Herbert, “The African Union and Nepad in 2002: A Pivotal Year” in South African Yearbook of International Affairs, 2002/03, Vol. 7. Johannesburg, p. 241. 17 NEPAD, “Guidelines for Countries to Prepare for and Participate in the African Peer Review Mechanism”, in NEPAD/APRM/Pannel3/guidelines/11-2003/Doc8. 14

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The regional body is seen and behaving as an integral part of the African continent and the World communities. It adept to strengthening mechanisms for conflict resolution in different countries of Africa such as Sierra Leone, Democratic Republic of Congo, Lesotho, and Burund.The region has taken Africa and world problems as its own through preventive diplomacy, peace enforcement, peace making, peacekeeping, and post-conflict peace building measures.18 The Windhoek Declaration mention, “providing a framework of co-operation for…strengthening regional solidarity, peace and security”19 Further in Africa, these strategies are also being constructed in African Union (AU), leading to the creation of Peace and Security Council (PSC) protocol. All things being equal, PSC protocol when ratified will ensure that military and financial contributions are made by member countries of Africa. It has also contributed immensely towards the formation of a Pan African Parliament (PAP).20 One other interesting development is that SADC members have agreed to adequately act on issues of common regional concern such as HIV/AIDS. The negative impact of this pandemic is recognised globally as one of the most profound cog to human and social development. The region of Sub-Saharan Africa is estimated to be affected with disease by 25.3 million people. SADC Parliamentary Forum has formed a standing committee on HIV/AIDSS to address this human health problem and there have been summits to this effect. For instance, there was SADC summit in South Africa in June 2001 organised by the World Economic Forum (WEF). Subsequently, countries like South Africa, Botswana and Zimbabwe to name a few have introduced the use of anti-retroviral drugs to people infected by this disease.21 Everything that has merits equally has demerits. Mutual vulnerability means member countries are affected by one another’s actions. Political instability and wars have a way of spreading across a regional block. The Zaire/DRC war threatened to destabilise the entire region of Southern Africa with the influx of refugees into different neighbouring countries. The economies of these countries came under pressure as a result of this leading to political tension in these neighbouring countries like Zimbabwe, Lesotho and Angola.22 Again, the views of member countries do not always tally as there are usually stalemates and disagreements on policies and mandates. Sometimes, they do not trust each other due to ideological differences as discussed in the first part of this essay. Hitherto, there has been no concrete stance or decision taken by the regional body on the Zimbabwe crisis. Different countries support different parties to the quagmire, putting Zimbabwe into economic collapse. 18

Garthe le Pere, and Anthoni van Nieuwkerek, “Facing the New Millennium: South Africa’s Foreign Policy in a Globalising World”, in Korwa, G. and Rok Ajulu (eds.) Globalisation and Emerging Trends in African States’Foreign Policy-Making Process: A Comparative Perspective of Southern Africa, Ashgate, 2002, p. 157. 19 James Barber, Mandela’s World: The International Dimension of South Africa’s Political Revolution, 1990-99, David Philip, Cape Town, 2004, p. 192 20 Herbert, Op. Cit. p.249. 21 Chhiba, Op.Cit. p.71. 22 Nel, Op.Cit, p. 282

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Country like South Africa is threading very carefully so as not to be seen to interfere in the internal affair of a Sovereign state rather than lead the crusade for economic sanctions to put pressure on the Zimbabwe government for political reforms.23 Regional integration can lead to unbalance in trade and increase inequalities among countries. In the case of SADC, instead of attracting direct foreign investment and a high volume of measure of trade in goods and services among member countries, South Africa is the major trading power. 63% of the region’s export and 59% of imports are accounted for by South Africa. This is a clear case of unequal trade which makes South Africa to have most of the trade surpluses at the detriment of other member states. In FDI, South Africa makes investments in other countries of the region but there is no SADC investment in other SADC countries or in South Africa. For example, South Africa’s investment in 1997 in Zambia is estimated at US$180 million representing the largest FDI in Zambian economy that year.24 Also, regionalism suppose to create interdependence among member countries but in this context, it has created dependency relationships. For instance, the development of Lesotho is distorted because its economy is structured to provide migrant labour to South African mines.25 The above assertion is not to be to hard on South Africa and does not really represent a Marxists view but to show how things are in the region. CONCLSION This essay has clarified the nature of regionalism in SADC enclave and the integration strategies employed noted with its merits and demerits. The obstacles to intensifying trade within the region have to be tackled if much progress is to be made in the regional alliance. PanAfricanism, regionalism and continentalism are terms usually used in Africa out of an urgency to deal with political, economical and social crisis facing the region in particular and the continent in general. The SADC should continue to stress developmental approach to integration and recognise the fact that the social and human development is fundamental to the region’s integration process. With the rising oil price and falling of export income in world trade, the region has to use a more cut out approach to meet some other domestic challenges of respective countries in the commission and further. They should put into consideration this quote by a leading South African Economist, Andre Roux: The opening up and expansion of trade is often the first step to solid and sustainable economic growth and development… but developing countries that rely heavily on primary commodities as a major source of income are unlikely to share in the benefits of economic globalisation… they therefore need to change the entire structure of their economies and focus more on the 26 production of goods and services that the world want to buy. 23

Ibid. p. 192 Nel, Op.Cit, p. 282 25 Graaff, J.: Introduction to Sociology: Poverty and Development, Oxford University Press, Cape Town, 2003, p. 36. 26 Andre Roux, Everyone,s Guide to the South African Economy. (7ed.), Zebra Press, Cape Town, 2002, p. 163 24

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BIBLIOGRAPHY Barber, J.: Mandela’s World: The International Dimension of South Africa’s Political Revolution, 199099, David Philip, Cape Town, 2004. Chhiba, N. “The Southern African Development Community: An Overview” in South African Yearbook of International Affairs, 2002/03, Vol. 7. Johannesburg. Clapham, C. “Sub-Saharan Africa”, in Clapham, C. (ed.) Foreign Policy in Developing States: A Comparative Approach, Praeger, New York, 1977. Clapham, C. “The changing world of regional integration in Africa” in Clapham, C., et al, (eds.) Regional Integration in Southern Africa: Comparative International Perspectives, SAIIA, Johannesburg, 2001 . Gibb, R. “The state of regional integration: The Intra- and Inter-regional Dimensions” in Clapham, C., et al, (eds.)Regional Integration in Southern Africa: Comparative International Perspective, SAIIA, Johannesburg, 2001. Graaff, J.: Introduction to Sociology: Poverty and Development, Oxford University Press, Cape Town, 2003. Herbert, R. “The African Union and Nepad in 2002: A Pivotal Year” in South African Yearbook of International Affairs, 2002/03, Vol. 7. Johannesburg. le Pere, G. “Doha, South Africa and the SADC Subregion” in South African Yearbook of International Affairs, 2002/03, Vol. 7. Johannesburg. le Pere, G. and van Nieuwkerek, A. “Facing the New Millennium: South Africa’s Foreign Policy in a Globalising World”, in Korwa, G. and Rok Ajulu (eds.) Globalisation and Emerging Trends in African States’Foreign Policy-Making Process: A Comparative Perspective of Southern Africa, Ashgate, 2002. McGowan, P. “The regional sub-system of Southern Africa” in Nel, P and McGowan, P. (eds): Power, Wealth and Global Order: An International Relations Textbook for Africa, University of Cape Town Press, Cape Town, I999. NEPAD, “Guidelines for Countries to Prepare for and Participate in the African Peer Review Mechanism”, in NEPAD/APRM/Pannel3/guidelines/11-2003/Doc8. Nduru, M. “Business in Africa tough” in News 24.com, 3 October, 2004. Pfister, R. “South Africa’s Recent Foreign Policy Towards Africa: Issue and Literature” in Center for International Studies, Zurich, 29 August 2000. Roux, A. Everyone’s Guide to the South African Economy.(7ed.), Zebra Press, Cape Town, 2002. SADC (1995) ‘Declaration Treaty and Protocol’, Gaborone. van Niekerk, G. “Labour Matters: Changes to Immigration Act will be good for business” in Sunday Times Business Times, Johannesburg, 26 September 2004.

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