Economic Integration
Background
This lesson resource is designed to deepen knowledge of areas of economic integration in
Europe and Africa. Free trade is often argued to be a route to economic growth and
development, and many countries are now part of integrated areas. Such integration also
has strong political benefits. Key economic include specialisation according to comparative
advantage (and the accompanying gains in productivity), being able to take advantage of
economies of scale from supplying a larger market, and a reduction in the chance of war
between countries.
Warm-up starter
Explain the key terms relating to integration given in the Venn-type diagram below.
Total Economic Integration
Economic and Monetary Union
Economic Union
Common Market
Customs Union
Free Trade
Area
Preferential
trading
area
Task One - Integration in the European area
Source: http://one-europe.info/debates/european-integration-europe-europeans
Name the countries in each of the areas of integration in the diagram above, and describe
the degree of integration:
Eurozone:
European Union:
EU Customs Union:
Schengen Area:
European Free Trade Association:
Monetary Agreement with EU:
Council of Europe:
GUAM:
Central European Free Trade Agreement:
Customs Union of Belarus, Kazakhstan and Russia:
Task Two: integration on the African continent
Source: http://www.thesouthafrican.com/vast-new-common-market-mooted-for-intra-african-trade/
1. Describe the type of economic integration in each of the areas described on the map:
a. ECCAS:
b. ECOWAS:
c. CEMAC:
d. WAEMU:
e. SADC:
f. SACU:
g. Nile Basin Initiative:
h. Inter-Government Authority:
i. Indian Ocean Commission:
j. COMESA:
k. East African Community:
2. Use the information from the World Bank
(http://data.worldbank.org/indicator/NY.GDP.PCAP.CD) to calculate the average GDP
per capita for each of the integrated areas in Africa. Is there any relationship between
GDP per capita and degree of integration?