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Abstract

Using the SADC economies as a proxy of the Southern African ACP States, this paper expounds the EU-ACP co-operation in a broad context. Besides a brief review of the history of the relations between the SADC region and the EU the paper introduces the LC as the institutional base of EU-SADC co-operation. To underline the impact of EU-SADC co-operation, merits of the LC are contrasted with factors that hinder the operational efficiency of the arrangement. Evidence for the merits of the LC is found in its development policy pertinence, geopolitical significance, economic performance impulse and the political inspiration. At the same time, several intrinsic deficits of the LC overcast the EU-SADC co-operation. Especially, the preference system shows redundancies and, overall, hampers economic efficiency and development. Further limits are embodied in the peculiarities of the arrangement which widely complicate its management. These weaknesses are exacerbated by an adverse internal environment including structural obstacles in investment and production, wrong macro-economic policies, infrastructural constraints, backwardness in technology and in the development of human resources, and, finally, by adverse social conditions including the immaturity and instabilities of the political order.

Despite its importance for global strategic and developmental politics, the LC could not prevent the global marginalisation and the continuos deterioration of the economic prospects of most ACP States. The overall benefits have remained rather limited in scope. On the whole, reforms will be unavoidable to enhance EU-SADC co-operation efficiency and competitiveness in the Region. Such reforms will stimulate liberalisation both in the SADC countries and of the LC. In order for the internal efforts of the SADC economics to benefit from external impulses, conventional (EU) assistance should be extended by intensified and more dynamic economic co-operation. Altogether, the long-term goal of the reforms should be to mobilize internal potentials by supporting efforts to establish a Customs Union in Southern Africa (with an option for deeper co-operation in future). This Customs Union should later serve as a base for a Free Trade Area between Southern Africa and the EU. To smooth this process, there should be a transitional phase based on relative reciprocity preceding the establishment of a free trade arrangement. The envisioned relative reciprocity programme between the EU and the RSA could, in this context, serve as a role model for future EU-ACP-co-operation.

The willingness of both the SADC countries and the LC to reform, as well as the prospects for a positive development of the global environment will determine whether the EU and its SADC partners will be able to mould an appropriate framework for mutually beneficial trade and overall economic links between them in order to survive the turbulences of global economic dynamism

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Acronyms

AASM

Association of African States and Madagascar: successor arrangement of the Lomé Convention

ACP

Africa, Caribbean and Pacific States: associated with the EU through the LC

AWEPAA

Association of West European Parliamentarians Against Apartheid

CARIFTA

Caribbean Free Trade Association

CARICOM

Caribbean Common Market. Also referred to as Caribbean Community

COMPEX

System for the Stabilisation of Export Earnings (for LLDCs which are not members of the LC)

DOTS

Direction of Trade Statistics

ECDPM

European Centre for Development Policy Management

ECOWAS

Economic Community of West African States

ECU

European Currency Unit

EDF

European Development Fund

EEC

European Economic Community (predecessor organisation of the EU). Also referred to as the European Community (EC)

EG

Europäische Gemeinschaften (i.e., European Communities)

EIB

European Investment Bank

EU

European Union: successor organisation of the EEC

EUROSTAT

Statistical Office of the European Commission (responsible for the publication of the European Statistics Series)

FES

Friedrich-Ebert-Stiftung (i.e., Friedrich Ebert Foundation)

FDI

Foreign Direct Investments

FTA

Free Trade Agreement; Free Trade Area

GATT

General Agreements on Tariffs and Trade

GDP

Gross Domestic Product

GSP

Generalised System of Preferences

IBRD

International Bank for Reconstruction and Development; commonly referred to as the World Bank

IMF

International Monetary Fund

LC

Lomé Convention

LDC

Less Developed Country

LLDC

Least Developed Country

MFA

Multi Fibre Agreement

MFN

Most Favoured Nation

MNC

Multinational Company (or Multinational Corporation); interchangeably used with TCC and TNC

NGO

Non Governmental Organisation

OCTs

Overseas Countries and Territories

Region

Refers to the Southern African region which is interchangeably used with the SADC region, unless otherwise specified

RSA

Republic of South Africa

SACU

Southern African Customs Union

SADC

Southern African Development Community: successor organisation of the SADCC

SADCC

Southern African Development Co-ordination Conference; predecessor organisation of the SADC

SGSP

Super Generalised System of Preferences

SITC

Standard International Trade Classification

STABEX

System for the Stabilisation of Export Earnings (under the LC)

SYSMIN

System for Stabilising Minerals (under the LC)

TCC

Transcontinental Corporation; interchangeably used with MNC and TNC

TNC

Transnational Corporation; interchangeably used with MNC and TCC

UK

United Kingdom

UNCTAD

United Nations Conference on Trade and Development

UNIDO

United Nations Development Organisation

UNIDP

United Nations Development Programme

UNO

United Nations Organisation

WTO

World Trade Organisation (successor of GATT)


© Friedrich Ebert Stiftung | technical support | net edition fes-library | April 2002

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