Economic integrations refer to the combination or grouping together of several countries for the sake of cooperating in various undertakings to as to enjoy economic benefits. It is aimed at increasing the benefits of international trade and my result in political integration, which can be national or inter-state. The Necessary Conditions for a Successfully Economic Integration includes:-
1.Good infrastructure In order for economic integration to be successfully countries in the region of integration must be having good infrastructures to facilitate movement of goods and people from one area to another.
2.Political will and commitment69For a regional integration to be successfully political leaders must be willing and committed to implement various resolutions that are made and to make necessary decisions for the betterment of the integration.
3.Common Language Common language among the people in the integration enables ease communication among the people in the region when they engage in socio-economic and political activities.- Common currency In order to smoothen exchange a common currency is very important in the integration, absence of a common currency makes exchange to be difficult.
4.Differentiated products Exchange cannot take place if countries produce similar products, each country specializing in a commodity of comparative advantage.
5.Trade gains For integration to be successfully each member country must be gaining from trade, if some member countries do not gain from trade or any economic activity then the integration will not be successfully.
6.Similar level of developmentIn order to reduce uneven distribution of gains among the member countries, countries should have similar level of economic development, if the levels of development are so wide, rich members will gain more than poor countries.
7.Member countries must be neighboursIt is easier for member countries to engage in economic activities and establish joint institutions when they are close neighbours in terms of geographical location than when they are located far distance from each other.
8.Cultural similaritiesCultural similarities facilitate interactions among the people in various economic activities such as trade and investments.
9.Trade creationTrade creation is said to occur when a country in an integration import goods from a low cost member country after abolition of tariffs which it was importing from a high cost non- member country.