Ragna Rantsiripane of Moeding College Essay

What measures should be put in place to ensure that the SADC Free Trade Area benefits the people of the region in the fight against poverty?

The origin of SADC (Southern African Development Community) lies in the 1960s and 1970s, when the leaders of majority-ruled countries and national liberation movements coordinated their political, diplomatic and military struggles to bring an end to colonial and white-minority rule in Southern Africa. The immediate forerunner of the political and security cooperation leg of today's SADC was the informal Front Line States (FLS) grouping. It was formed in the mid-1970s. The birth of SADC dawned on April 1, 1980 then under the name Southern African Coordinating Conference (SADCC) with the original fundamental objective of the reduction of economic dependence on apartheid South Africa, and critically venturing into creating a disseminatory channel for donor aid in the region. SADC was founded by nine states namely, Angola, Botswana, Lesotho, Malawi, Mozambique, Swaziland, United Republic of Tanzania, Zambia and Zimbabwe, after the Lusaka Declaration was agreed upon. Even so, membership of the FLS and SADCC sometimes differed.

The transition from a Coordinating Conference to a Development Community commenced on August 17, 1992 after the Declaration and Treaty establishing the current SADC was signed at the Summit of Heads of State and Government in Namibia. The 1992 SADC provided for socio­economic, political and security cooperation. The FLS was dealt away with only in 1994, after South Africa's first democratic elections. This also marked the accession of South Africa, which generates about three quarters of Southern African GDP into the membership. Subsequent efforts to place political and security cooperation on a firm institutional footing under SADC's umbrella failed.
On 14 August 2001, the 1992 SADC treaty was amended. The amendment laid out the refurbishment of the structures, policies and procedures of SADC. One of the changes is that political and security cooperation is institutionalised in the Organ on Politics, Defence and Security (OPDS). As one of the principal SADC bodies, it is subject to the oversight of the organisation's supreme body, the Summit, which comprises the Heads of State of Government. SADC at present has fourteen member states, the founding nine plus the Democratic Republic of Congo, Madagascar, Mauritius, Namibia and South Africa.
With the hope of building a strong, solid organization, SADC has aimed to:

  • Promote economic cooperation and integration amongst member states with a solid goal of becoming a thickly woven common market;
  • Strengthen regional union, peace and security;
  • Promote and maximize productive employment and utilisation of resources of the region;
  • Achieve sustainable utilisation of natural resources and effective protection of their environment;
  • Strengthen and consolidate the long standing historical, social and cultural affinities and links among the people of the region and
  • Achieve pursuance of common economic, political and social values and systems.

These aims set out to address the many social, development, economic, trade, education, health, diplomatic, defence, security and political challenges. Some of these challenges cannot be tackled effectively by individual members.

Political instability can disrupt the economic status of the region; as is the case in Zimbabwe. The sustainable development that trade could bring is threatened by the existence of different product standards and tariff regimes, weak customs infrastructure and bad roads. The socio­economic and political and security cooperation aims of SADC are equally wide-ranging, and intended to face head-on with such problems.
This paper will examine the economic status in Southern Africa, analyse the parallel process of regionalism in the context of the SADC FT A (Section II) and outline measures that could be put in place to ensure that the SADC FTA benefits the people of the region against poverty. This will be done by identifying the problem and allocating it the measures and strategies that are suitable as in Section III.

II SADC FREE TRADE AREA

Regionalisation is not a new phenomenon in Africa. SACU, which includes South Africa and the BLNS states (Botswana, Lesotho, Namibia and Swaziland), is the oldest customs union in the world. Regionalisation encompasses efforts by a group of nations to enhance their economic, political, social, or cultural interaction. SADC has aimed to embark on regional integration with a fundamental principle of the Free Trade Area (FTA). This is a form of market integration whereby tariffs are removed among member states and goods being imported are free of customs duties. The SADC FTA which came into effect on January 1, 2008 has been under critical discussion for quite some time and it is expected that it would bring some good reward in the future. After 2008, a common customs union will be established by 2010, a common market by 2015, a monetary union by 2016 and a single currency by 2018.

Perhaps the most important element of regionalisation is that it eliminates the adverse political indifferences among countries therefore encouraging a strong political tolerance within and between nations, primarily by enlightening politicians (and other influential persons such as non­state actors) to learn from others.

Through regionalisation, the SADC FT A provides the opportunity for industries that are still in the foetal stage, as well as those that their functionality is based upon economies of large scale to prosper. In other words, integration of countries increases the market base leading to development of industries which could contain the demands of a growing population (as is the case in developing countries). It should also be noted that regionalisation can change a number of countries for the better but such measures can and will not work for a country in isolation.
The FT A also serves the purpose of curbing external barriers, such as the international division line of labour and the tessellations of trade as portrayed by the nature of primary commodity exporting countries versus manufactured-good exporting countries. Furthermore, the integration of SADC states into a free market would encourage industrialisation as well as competitiveness in the global village. As a result, the orthodox bias of the nature of international trade between developed and developing countries is brought to a balance and exploitation on the less developed countries is reduced.

As a social centerpiece, the SADC FT A serves to unite countries and promote the cultural bonds that exist between them. It aims at simplifying the lives of the peoples of Southern Africa by allowing free movement of goods and people across borders. As such, the money for customs duties is spared for other developments such as poverty eradication and the general improvement of the welfare of people.

But how does this FTA cater for the increasing number of poor women and consequently their children? It provides equality in work by offering a wide range of job opportunities; hence the socio-economic gap between men and women is altered so as to actively rescue women from their burden. "The FT A will contribute to the creation of five million jobs in the short term and add $2.6 billion to SADC's GDP," the former executive secretary of SADC, Kaire Mbuende has said.
The main purpose of having the FT A enables members - especially those which are poorer ­to reap some of the gains from trade via larger markets and improved efficiency, without exposure to non-regional competition. Consistent with the predictions of neoclassical theory (which assumes that there are no barriers to trade), there is evidence that regional trade groups form convergence clubs, where poorer members catch up with richer ones through the process of trade.

III BENEFITS OF THE SADC FTA TO THE PEOPLE

Poverty is caused by many factors. For this reason, poverty eradication must be addressed in the context of combating the HIV/AIDS pandemic, sustainable food security, gender equality, Overlapping economic organizations and equality in income distribution and wealth. Good governance towards poverty eradication is also a key working area. This section will outline the problems and allocate them suitable measures and strategies to clearly show the importance of the SADC FT A to the people of Southern Africa.

THE HIV AND AIDS PANDEMIC

This is the greatest public health and developmental challenge that the SADC region is facing. In spite of the many interventions targeted at reducing the prevalence of this scourge, the numbers of infections are still increasing. Therefore, the need to tap the issue and come up with better ways to deal with this problem is high. Both the region and the nations should collectively embark on advocating for clear and comprehensive measures to deal with HIV and AIDS.
Statistics reveal that more than two-thirds of HIV infections occur before the age of 25 years and young women are disproportionately at greater risk than young men of the same age. The HIV I AIDS epidemic has had its most profound impact to date in Sub-Saharan Africa. The majority of people living with HIV/AIDS (63%), new HIV infections (65%), and AIDS-related deaths (72%) are in this region, which only accounts for 11 % of the world's population. Life expectancy gains over the past century have been halted and in some cases reversed in many of the hardest hit countries in Sub-Saharan Africa.

The epidemic has already posed serious development challenges for the region and has affected communities, families, livelihoods, and numerous sectors of society. Yet the epidemic is quite diverse throughout Sub-Saharan Africa and, despite these challenges, there have been success stories, with some countries experiencing stabilization and even reductions in HIV prevalence. For example, HIV prevalence has declined among young people over the past several years in 8 of 11 countries with sufficient data to analyze these trends. However, the successes are not strong or widespread enough to affect the overall impact on the region. In 2005 alone, AIDS claimed an estimated 2.4-3.3 million lives, of which more than 570,000 were children. A third of these deaths are occurring in Sub-Saharan Africa, retarding economic growth and increasing poverty.
Poverty may be seen as the fuel for HIV and AIDS. Say, for example, when poor people seek income in the form of prostitution and other associable factors. But still, it is arguable because many "bread-winners" die and leave homes extremely poor due to AIDS. From this, poverty and AIDS cannot be divorced from each other. In other words, this simply means that the removal of either one of these is a consequent eradication of another and this is where most work is ought to be done.

Measures

In coming up with measures to address this issue, the proportion of the pandemic must first be analysed so as to come up with viable procedures. Considering what has been discussed above, this is how the problems should be tackled:

There are numerous programmes that are aimed at reducing HIV infections currently in action throughout the SADC region. But the questions are, are they really working, looking at the exponential increase of infections, and if so, is their effectiveness worthwhile? Surely the answer to this is no. Policies governing these programmes should be reviewed. There is no point having a programme that does not function yet its capital demands are still in place. This is yet another factor that perpetuates poverty in most Sub-Saharan Africa, funding programmes which are not viable.
Strategies and structures which are in place with the SADC FT A must be consolidated and strengthened through dissemination of more knowledge about the pandemic. New programmes that are formed must work towards alleviating the occurrence of HIV and AIDS among the children, under privileged people and other groups which are most vulnerable. These should also take the edge off the socio-economic impact of HI V and AIDS such as the key one, poverty.
There should be strict monitoring of the progress of the commitment that Member States have in collective participation against HIV and AIDS. This would ensure that all countries pull together towards one common goal and the process will be easier and well coordinated.

Strategies

The strategies that are outlined below target the roots of poverty because for any problem to be overcome, the source itself must be eradicated. These are:
Encouraging Children and their parents to communicate more and well about the disease. Many people overlook this but in many traditionalistic homesteads (which are common in this region), there is never any discussion about HIV and many of these suffer grave losses.

New leadership in the fight against HIV and AIDS should be encouraged. Fresh ideas need to be sourced out which can probably help in this fight. But if the already-in-place leaders are allowed to expend their terms it only stales the structure.

Aiding technical feedback by providing mechanisms and frameworks for the development of rules and regulations, and sharing of knowledge in key targets such as educating students in regular classes during specific time periods, based on their skills about HIV and AIDS and Prevention of Mother to Child Transmission (PMTCT) and support to orphans as well as home based care.

Also, all the SADC members must try to reverse the spread of HIV, and all Africans and young people should be re-engaged in efforts to combat the epidemic.

Due to all these, the region's people are able to participate in matters that touch them such as entrepreneurial work and other activities that benefit them the most. Children who are the forthcoming generations' producers will be in safe hands and thus granting them the possibility to live happy and wonderful lives.  

Lack of Sustainability in Food Security

The extent of food insecurity in SADC is very high and increasing at a very rapid state. 15.2 million people were affected by the persistent food crisis in 200112002 only. Many people were left without food and many died. The importation of food has practically doubled over the past fifteen years as a result. These imports are too costly and they put high demands on foreign exchange receipts. Per se, resource is diverted from productive investments such as Agriculture and in the end the regions people suffer. From this it is conclusive that ensuring food security which is sustainable adds greatly to poverty reduction.
The SADC region is mostly an arid place with a climate that at most of times, does not favour food and cash crop production. This is a cause by intermittent floods and droughts and the loss of able-bodied mankind due to AIDS. As such, these are to an extent clear of the control of the peoples of SADC. This need not drown our hopes as the production of food can be improved by more access to productive resources, enhanced market prices for agricultural produce, social stability and strong, good governance.

Measures

In order to achieve sustainable use of good, safe and adequate food throughout, this is what the SADC FT A should do and immensely contribute to the alleviation of poverty:

  • Promote farmers access to key agricultural inputs such as improved seeds (those that are disease resistant), fertilizers and credit;
  • Control of trans-boundary animal diseases such as Foot and Mouth;
  • Organise ways in which the researchers and the farmers could meet and disseminate technologies to enhance agricultural production;
  • Empower women by granting more and more of them the opportunity to own land, train them and offer them credit. Small scale farmers should also be included in this one as well;
  • Promote the careful use of natural resources and diversify agricultural systems. This would prolong agricultural production and ensure food security;
  • Large scale farmers should be included in national food production so as to uplift the total food production;
  • Promoting efficient and effective irrigation schemes to overcome the problem of low rainfall which is unevenly distributed in the region.

The issue of Agricultural Marketing Boards

Marketing boards are a hindrance to food production and security. The reason for this is that they do not offer a wide range of buying and selling of farm produce. They also pull down production by setting prices which are extremely overshadowed world market prices. Most governments, especially those of Sub-Saharan Africa do still have marketing boards in their systems under the light that they improve production. That is not correct. The negative effect that they are posing on both the economy of the countries and the peasant farmers is more poverty and lack of economic growth.

Strategies

There should be a new system that must replace agricultural marketing boards which will aim at putting farmers at the forefront of international trade in food production. It may come in the form of a programme in which farmers become members of a bigger company which majors in exporting their produce. Of course this has to come in the context of the afore-mentioned measures. This also brings employment and generates skilled people without neglecting the fact that they gain some economic skills;

  • Promoting standardization and improving quality of processing, packaging, preparation and preservation of food;
  • Improving rural infrastructure network such as roads to flock the market to the less developed parts of our countries;
  • Encouraging commercial farmers and subsistence farmers to work hand-in-hand to share knowledge and skills through ways such as, meetings and national agricultural shows;
  • Breaking tariff walls in trade, with respect to agricultural produce. among member states. This enhances more food security as there would always be enough food for everybody;
  • Encouraging a spirit of innovation in agricultural production among the Member States. A situation whereby South Africa would be producing sugar while Mozambique and Namibia are major sugar producers would not be healthy for the region. Therefore we should aim at having one country producing a different food product from another so that all share well. This does not mean that countries have to neglect their local demands. The citizens come first;
  • Promoting entrepreneurship development in rural areas;
  • Encouraging public and private investments in agriculture;
  • Improving rural infrastructure for industries including provision of electricity, water and banking services.

Gender Inequality

It is a fact that a large proportion of women in Southern Africa contribute a very big share of income to their homes. Improved educational and income earning opportunities for women reduce infant mortality. Research shows that these women usually have fewer children who are likely to attend school normally and perform well. Therefore gender equality alleviates poverty and improves the lives of many people, not only women.
But this is only research. The extent of the inequalities that exist between men and women in the SADC region is high. Women are hardest hit and contribute the highest percentage of poor people in the region due to the fact that they are not as privileged as their male counterparts. They have limited access to productive resources such as land and modern technology. They also have limited access to health services, education and formal employment. They are over represented in the informal sector where they make very little money. The governments of Member States also put pressure on women by harbouring laws that restrict them from legal matters that affect them. As such they have a direct negative impact on their income earning capacities. These gender gaps undermine the contribution of women who should instead be seen as powerful resources for development. SADC's policies and strategies should therefore address these gender gaps in order to achieve its poverty reduction and eradication objectives.  
Measures
All forms of violence against women and children should be eradicated by enforcing practical laws that will protect women;

  • Women should be incorporated into the development of our countries by accepting their economic empowerment policies. This will clear out the disproportionate gap between men and women;
  • Development and strengthening of national gender policies and institutional frameworks so as to cater for their needs as well;
  • Women should be given equal access as men in the areas of political and decision making
  • positions;                                                                                .
  • Gender equality should be observed and harmonised by all at national, regional and global levels in order to make women feel welcome on this world;
  • Men and women should collectively work together in making SADC a better place rather than increasing the divide between them.

Strategies

In order to achieve the above, this is what needs too be put in place:

The United Nations should create an international agency to advocate for the rights of women, similar to UNICEF.
Children should be brought up in such a way that conforms to the ethics of socialization. They should be taught to respect each other as well as take care of one another as well. This would groom them to be good adults who think rationally and are morally responsible;
The governments should increase expenditures on social programmes

Overlapping economic regional and international organizations lead to contradictions in policy objectives and goals. The SADC Trade protocol clearly states that bilateral trade agreements are legal, and once in place, they may remain so unless the FT A offers more advantageous agreements. In this case the objectives and the implementation of the FT A are not fully accomplished. For example, South Korea is looking to boost economic ties by signing a FTA agreement with South Africa, Botswana, Lesotho, Namibia and Swaziland. It aims at increasing cooperation with these SACU members in an effort to participate in a number of natural resource and infrastructure development projects in Africa. Let us pause and think about this for a moment.

The very countries which are involved in the SADC FT A are involved in negotiations for a FT A with a foreign country . Yes, there is a temptation here but what does this spell about the SADC region? Lack of cooperation. Also South Africa is involved in the EU/SA Trade Agreement. This clearly shows that the region is united to stand apart.
Measures and Strategies
A strategic plan must be drawn up that would govern the region's states to become one solid regional organization;
What this paper argues is that first; let us have our regional trade negotiations and preparations taken care of.
Secondly, that is where international trade comes in. Let us have things done in a procedural manner. This is the main working area.

Inequality in income distribution and Wealth

What needs to be comprehended and perhaps where answers should be found, through critical analysis is that, poverty is primarily brought about by inequality in income distribution and that of wealth. The region has a huge potential for development but the pervasive state of differences between the poor and the rich only serve to increase the problem. It must be noted that the complexity of this matter is brought about by the lack of economic cooperation in the monetary areas as well as intra-regional cooperation among countries.

Also, the isolation of countries from others has played a significant role in encouraging this.

Divided, countries cannot be competitive solely due to their self-oriented policies which do not meet up to the demands of international trade hence they put pressure on the neighbouring countries. Even if they do, their longevity is not worthwhile, hence the need for cooperation as the fundamental measure to analyse and structuralise.

Measures and Strategies

Encouraging comparative advantage and economies of scale;
Equalise distribution of benefits so as to veer from the more affluent minority being the main beneficiaries of income that flows into the countries;

There should be an outward-oriented strategy of export led growth based on:
Labor intensive manufacturing; Agricultural and rural development; Encouragement of new technologies; and Investment in physical infrastructure and human capital.

IV.WHAT GOVERNMENTS AND NON-STATE ACTORS AT NATIONAL AND REGIONAL LEVELS OUGHT DO

States should first and foremost make a solid commitment to integration and principally construct a foundation for cooperation. This would greatly help member states weave together towards implementing policies which are of a compensatory and competitive nature. According to Article 6 of the Cotonou Agreement, non-state actors include:

  • All the parameters of civil society according to national characteristics;
  • Economic and social partners, and
  • The private sector.

In this part of this essay, the government and the non-state actors will be discussed as the critical signposts in the development of the SADC FT A.
Government policy intervention
The very Less developed countries of SADC need to be actively involved in matters concerning them and big organizations such as the International Monetary Fund. Failure to do this as states, guarantees that the Southern African countries will get poorer and poorer, adding to the impending problem of poverty.

It must also be noted that strengthening economic and technical cooperation would implicitly deliver the FT A well into the mindsets of people. This may come in the form of cooperation in the fields of finance and monetary relations as well as accordance in specific areas such as industry, transport and agriculture.

Nationalism

Nationalism is another key aspect towards promoting economic independence. The Member States need to exercise heavily their part on advocating for sovereignty over their natural resources and especially their right to govern their exploitation. If not, we might as well be saying that we want "re-colonization".
Health care services should be provided, education and improvement of cultural standards insisting mainly on the well-being of children and the involvement of women in development, thus empowering the very less privileged.
Non-State Actors should:

  • Assist the poor, often focusing on the needs of women,
  • Provide fundamental food/nutrition;
  • Improve health care;
  • Contribute to skill development;
  • Advocate for family planning and education and
  • Economically empower citizens.

Other measures are:

Development of indicators for monitoring and evaluation of regional integration;
Enhancing SADC competitiveness in industries and mining and other productive activities for effective participation in the global economy;
Increase awareness in the HIV and AIDS pandemic issue among young people and enhancing ways in which contraceptives are made available.
Food for work programme
This is whereby people working on agriculture-supporting infrastructure, primarily irrigation, drainage and embarkment work are payed with food. This is significantly helpful to the poor. One of its advantages is that it does not subsidise everyone or disproportionately favour the more affluent ones as has been portrayed by the previous poverty alleviation programmes or strategies in Southern Africa. This also benefits rural development as well as avoiding the lessening of the incentive to work created by some welfare programmes. As a way to make it worthwhile in the long run, the government and other NGOs should join forces to make it productive.

V. CONCRETE AND WORKABLE MEASURES TO BE USED IN THE IMPLEMENTATION OF THE SADC FTA
The implementation of the SADC FT A is a diverse and complex matter. Therefore this section will simplify what non-state actors and government should do with respect to the political, social and economic measures that need to underpin this milestone (SADC FTA). These will be placed in the context of ensuring the participation of the people of SADC and ensuring the success of the FTA.
Political measures
Countries should be politically committed to the formation of the ongoing SADC economic integration;
The crisis in Zimbabwe may be a drawback if the FTA does not address it, and so the need for a strong political cohesion is important;
There should be cooperation of an intermediary manner so as to facilitate thickly-woven policies which cater for the hardest hit (by poverty) amongst us. For the SADC FTA to be concentrating only on economic development would mean that while regional problems are pulling one way, adversities impend more and more on the region;
Bilateral trade agreements only serve the purpose of confusing policies and so, they should be dealt away with because of the political disparities they bring and harbour in the region.

Social measures
Gender equality should be strengthened;
Good food should be given free of charge to the hungry and necessary health care provided on a routine basis;

 


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