civicsNo Comments

default thumbnail


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. Economic integration has several disadvantages, which include the following:

1.Trade diversion: Low cost trade can be replaced by a high cost trade due to the geographical restrictions. A country can buy goods at a higher price than it is used to buy from another country, which are not members leading to the decline in profit or income generation. The other countries can start enjoying economic advantages in trade.

2.Movement of goods can be in one direction leaving other countries without goods. This can encourage the occurrence of polarized development in which some countries develop at a higher speed than other countries.

3.Countries may be compelled to buy goods of poor quality within the region especially if the level of technology is low. This is a great problem in African countries where there is low level of technology in many countries. Agricultural products, for example, tend to be very poor due to poor methods of cultivation and processing among the countries.

4.Because of uneven industrial development, one country which is more industrialized. In the East African Community, for example Kenya was developing faster and at the expense of Tanzania and Uganda because of more industries that made her keep on exporting manufactured goods of high quality.

5.Economic integration is usually associated with political problems, as some leaders tend to be in need of holding positions permanently so that they can keep on looting while in position.

6.Cultural disruptions, which tend to stifle cooperation among the members, can occur following the multiple interactions of people from different member countries. In East Africa for example, one can see deterioration of morals, and prevalence of other unwanted behavioural aspects.

Be the first to post a comment.

Add a comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

error: Content is protected !!