One of the major factors that facilitate even and rapid development is economic integration amongst countries, particularly those within the same geographical region. This is given that developmental policies are discussed and implemented in such a way and manner that peculiarities of member nations are put into consideration. It is the advantages derivable from integration of economies that have made it popular in the contemporary word. It is however driven by economic liberalization; increase in intra-regional trade; greater economic openness; and ultimately a single currency. Economic integration is basically about eliminating trade barriers and harmonizing fiscal and monetary policies amongst different countries.
As a social science concept, economic integration is simply described as the process of unifying different economies based on certain terms with a view to have a larger economy and by so doing, make much more gains and achieve politico-economic and sometimes, security advancements which individually, the integrating economies may not achieve. The use of the term economic integration dates back to 1930s and 1940s with scholars such as Gert Von Eyern, Herbert Gaedicke, and Eli Heckscher holding the record of having used the term in its contemporary interpretation. Essentially, economic integration allows for increased economic activities thereby creating more jobs and also strengthens political ties. Integration has several stages. It usually commences from the establishment of free trade areas before progressing to customs unions before talking of common markets. The higher stage of integration is economic union with a single currency. This is what the European Union has achieved with the Euro (€). Other integration efforts such as the BRICS are also fast approaching the same level.
In economic integration, a single currency has the potential to improve price stability, stimulate reduction in costs, and lead to increased trade. This is without prejudice to its downsides which include operational challenges and even loss of sovereignty. Single currency however remains the major face of a successful integration effort.
The economic bloc in West Africa- Economic Community of West African States (ECOWAS) has been in the process of floating a single currency- Eco, an effort that has not yielded positive result. Despite having a beautiful blueprint, it remains to be actualized owing to a combination of factors especially the existence of the West African Economic and Monetary Union's (WAEMU) composed of Benin, Burkina Faso, Ivory Coast, Guinea Bissau, Mali, Niger, Senegal, and Togo with their own Central Bank and a common currency- CFA franc. This is besides the fear of loss of sovereignty which appears entrenched amongst ECOWAS members. Meanwhile, the recent withdrawal of Niger, Mali, and Burkina Faso has further thrown spanner in the integration process of ECOWAS, threatening the timely actualization of a single currency.
There is no gain saying that ECOWAS is facing increasing challenges in it's politico-economic integration efforts. A significant level of success has been achieved, although the recent exits are notable. The fact however remains that a single currency amongst the West African countries would not only bind the subregion more, but would boost intra regional trade. This has become even more expedient in the face of emerging global trade war following policy dynamics by the current US administration.
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