Africa Lack Of Integration

This essay aims to address the factors that account for Africa’s lack of integration into the global economy by looking at both internal and external factors. Africa has indeed suffered a lack of integration in the global economy and therefore faces a multi-dimensional challenge while other developing countries have been successful in closing the gap that was created between developing and developed countries. Particular focus will be drawn to the prerequisites for development and integration into the global economic system, the effects of the financial institutions under the Bretton Woods system in Africa, the challenges that the New Partnership for Africa’s Development (NEPAD) face and the theoretical approaches on the obstacles to integration.

If one were to look at Africa’s economic growth over the past decade, it is evident that there has been significant and substantial growth and development, however in comparison to other developing countries, the growth rate is minimal and as a result, Africa falls short of being integrated in the global economy (United Nations 2014, 2). It is vital to acknowledge the prerequisites for development and “effective performance in the global economy” (Flatters 2003). A developing country should work together to achieve ‘openness’ in their economy which “facilitates international trade and investment” (Flatters 2003). This would result in an increase in an economic growth rate (Flatters 2003). One cannot place enough importance on the need for effective domestic policies which will inevitably benefit the economy and make every effort towards global economic integration (Flatters 2003). African countries should join together and work as a continent to aim for a trade and investment enabling a policy environment which is required for “sustainable economic growth and poverty reduction” (Flatters 2003). Another aspect that should be regarded as

Two theoretical perspectives that will aid our understanding of the obstacles to development are the Structuralist theory and the Modernization theory (Thomas 2005, 418). The Structuralist theory was established through identifying the barriers to “Southern development in structural differences between production and trade in the North and South rooted in colonial history” (Thomas 2005, 418). The south relied on the export of resources and primary products in order to pay for the imports of manufactured goods from the north which ultimately caused the terms of trade to deteriorate (Thomas 2005, 418). In order for development to be successful attention and effort needed to be centred in the industrial sector rather than the primary sector and this would result in a decrease in dependence and an increase in intra-south trade (Thomas 2005, 418). This theory helps us understand why Africa lacks integration in the global economic sector. The modernization theory suggests that if one were to look at the successful path of development that the north took, there would be a possibility of successful development for the south, however this theory suggests that the obstacles to development are weak legal systems, administrative