Regional Economic Integration

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Regional economic integration initiatives has been prospect of enhanced economic growth in South African construction industry. The impact of regional economic integration and globalization on construction industries in South Africa is evidenced by the decreasing market share of the local players in the industry. Developing countries need to institute radical reforms in their development agenda in order to leapfrog, and bridge this difference. That is why increase in foreign participation in construction activities in South Africa, cross border strategic alliances, technology transfer are some impact of Regional economic integration on the industry. The aim of this paper is to understand the term ' Regional economic integration ' and to study…show more content…
That is why Maruping (2005) emphasized that the benefits of regional integration, and indeed globalization, remain a critical part of Africa’s workable development strategy. Region economic integration brings about globalization in the South African construction industry. Maruping (2005) continued that the era of isolated tiny national economies has to give way to strategic alliances that harness knowledge and resource based comparative advantages through integration and this however does not come effortlessly and at no cost, a lot of dedicated planning and hard work must be put in first. REI also bring about increased foreign participation in the construction industry in South Africa from most of the countries within the region. May while, regional economic integration in Africa has not been very effective for some years back. According Alemayehu and Haile (2002), these are caused by Overlapping Membership, Poor Private Sector Participation, Implementation Problems of Harmonization Policies, Loss of Sovereignty and Lack of Political Commitment. In spite of past negative experiences with integration in Africa and other developing regions, there are also benefits and new…show more content…
Due to the focus of Africa’s regional economic integration efforts on trade liberalization policies (tariffs and non-tariff barriers), most analysis mainly focused on the impact of regional integration on trade flows (Alemayehu and Haile (2002)). Such a focus has had a number of problems. Harmonization problems in COMESA, for instance, include: (a) lack of harmonization of tariffs, customs procedures and tax policies as well as incentive package for investment; (b) problems related to donor support. Some donors support SADC while other support COMESA. This usually depends on short-term interest of the donor. Such donor influence creates not only harmonization problems but also unhealthy competition among RECs; (c) lack of common position on SAPs among COMESA members (partly because of the capacity and desire of the sponsoring institutions to deal with individual members) had also created harmonization

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