ECOWAS Flashcards
(9 cards)
What is ECOWAS and when was it founded?
How many people and GDP does ECOWAS represent?
ECOWAS (Economic Community of West African States) founded in 1975 with 15 member countries.
Population: ~400 million people (2023).
Combined GDP: Approx. $700 billion (2023).
Nigeria is the largest economy, contributing nearly 50% of ECOWAS GDP.
How does ECOWAS contribute to globalisation?
What characteristics of globalisation are evident in ECOWAS?
Promotes free movement of goods, services, and people → increases economic interdependence.
Encourages cross-border investment and trade → integration into global supply chains.
Facilitates shared infrastructure and regional cooperation → reduces barriers to trade.
Example: ECOWAS Protocol on Free Movement (signed 1979) aids regional travel and trade.
What type of trading bloc is ECOWAS?
What are its key features?
ECOWAS is a customs union and free trade area aiming for a common external tariff and the elimination of internal tariffs among members.
It is moving toward a common market with plans for deeper economic integration.
Benefits: increased trade within West Africa, enhanced bargaining power internationally.
Challenges: uneven economic development and infrastructure gaps among members.
How does ECOWAS influence trade patterns?
How do comparative advantage and emerging economies play a role?
Encourages intra-regional trade, shifting reliance from external partners to local suppliers.
Countries specialise based on comparative advantage (e.g., Nigeria in oil, Ghana in cocoa).
Emerging economies within ECOWAS grow in influence, diversifying trade beyond traditional exports.
However, trade barriers and poor infrastructure still limit potential.
What benefits do smaller ECOWAS countries gain from the bloc?
How do they trade with dominant partners like Nigeria?
ccess to a larger regional market → economies of scale and increased export opportunities.
Smaller countries (e.g., Benin, Togo) gain access to Nigerian market (largest in West Africa), boosting exports of agricultural products and manufactured goods.
Reduced tariffs and trade barriers promote intra-regional trade, estimated at around 15-20% of total trade (still low but growing).
Regional infrastructure projects (roads, ports) improve market access.
What challenges hinder ECOWAS’ trade integration?
How do these problems affect smaller countries?
Non-tariff barriers persist: customs delays, poor border infrastructure, corruption.
Dominance of Nigeria can lead to trade imbalances and market dependence, hurting smaller economies’ bargaining power.
Political instability in some states (e.g., Mali, Burkina Faso) disrupts trade routes.
Poor transport infrastructure increases costs, limiting competitiveness.
What is the scale of intra-ECOWAS trade?
Which countries dominate trade flows?
Intra-ECOWAS trade is about 15% of total trade, compared to ~60% in the EU.
Nigeria dominates with about $60 billion in annual exports, mainly oil and manufactured goods.
Ghana and Ivory Coast export cocoa, gold, and agricultural products.
Smaller countries rely heavily on exports to Nigeria and other neighbors.
List key economic benefits of ECOWAS for member states.
Promotes economic diversification and reduced reliance on external markets.
Enables free movement of labor → remittances boost economies.
Attracts foreign direct investment (FDI) due to larger integrated market, eg Chinese firms into Sierra leone
Improves bargaining power in global trade negotiations.
What are the main risks and downsides of ECOWAS economic integration?
Unequal development → Nigeria’s economic dominance can marginalize smaller economies.
Currency instability (before ECO launch) causes exchange rate risk.
Trade barriers and protectionist policies persist, limiting full integration.
Security challenges (terrorism, conflicts) disrupt trade and investment.
