An Analysis of South Africa’s Role in Regional Integration in Southern Africa: Prospects and Challenges by Sbusisiwe Philile Gwala 208505389 Supervisor: DR B.R Mngomezulu Submitted in fulfilment of the academic requirements for the degree of Master of Social Sciences, in the Graduate Programme in the School of Social Sciences. University of KwaZulu-Natal, Pietermaritzburg, South Africa. The financial assistance of the National Research Foundation (NRF) towards this research is hereby acknowledged. Opinions expressed and conclusions arrived at, are those of the author and are not necessarily to be attributed to the NRF July 2015 DECLARATION I Sbusisiwe Philile Gwala declare that: 1. The research reported in this thesis, except where otherwise indicated, is my original research. 2. This thesis has not been submitted for any degree or examination at any other university. 3. This thesis does not contain other persons’ data, pictures, graphs or other information, unless specifically acknowledged as being sourced from other persons. 4. This thesis does not contain other persons' writing, unless specifically acknowledged as being sourced from other researchers. Where other written sources have been quoted, then: a. Their words have been re-written but the general information attributed to them has been referenced b. Where their exact words have been used, then their writing has been placed in italics and inside quotation marks, and referenced. 5. This thesis does not contain text, graphics or tables copied and pasted from the Internet, unless specifically acknowledged, and the source being detailed in the thesis and in the References sections. __Gwala, S.P__ Student Name ___28/09/2015___ Date _Mngomezulu, BR_ Name of Supervisor ___________ Signature ii Dedication To my Mum and Dad, We did it! iii Acknowledgements First, I give thanks to God for His grace that has made possible the completion of this thesis. I am extremely grateful for the invaluable guidance, encouragement and patience of my supervisor, Dr Bheki Mngomezulu. I could not have finished this project without his supervision. I am deeply grateful for National Research Foundation (NRF) for funding this project, all financial concerns were relieved from me upon embarking on this journey. To my family oMphephethe, thank you for your love & support throughout the duration of this work. I would like to acknowledge Mr Kofi Otubuah Quartey and Kofi Gyan Quartey for their Academic support. I am also thankful for the support and the encouragements of my friends. iv Abstract Since the success of Regional Integration (RI) in Europe epitomized by the European Union (EU), the mutual potential benefits that could be attained from RI initiatives and agreements have attracted much attention to the topic of RI. In the African context, RI has been hailed as the mechanism that nurtures the development of economic income, trade and bargaining power. This has resulted in the establishment of a number of Regional Economic Communities (RECs) in different parts of Africa. Despite the prevalence of Regional Economic Agreements (REAs) across Africa, RI has been largely unsuccessful due to a confluence of factors. Having been disregarded as a legitimate state by the Southern African Development Community (SADC) region due to its apartheid regime prior to 1994, South Africa has since emerged as one of the well-developed countries in SSA. Having transitioned from the apartheid regime to a post-apartheid era, South Africa rose to become one of the dominant economic powerhouses in SSA, and a leader in the SADC region. The role of South Africa as a hegemon in SADC has been contested by some, citing the State’s inability to resolve some of its domestic problems to a satisfactory level. This research is an investigation or inquiry into the prospects of South Africa as the most qualified State to carry out the responsibility of spear-heading the RI process in the Southern African region. In the process of compiling this research secondary data obtained from books, journal articles, newspaper articles and existing theses dealing with RI in Europe, Africa, and Southern Africa were analysed. The results of this study portray South Africa as the most suitable candidate for leading RI in Southern Africa. This is primarily due to its advanced infrastructural development, superior economic strength and peace enforcement capabilities in conflict-ridden Africa. South Africa is also the largest capital contributor and the biggest investor in individual states in the SADC v region. Based on these results, one recommendation is that the African continent in general and the SADC region in particular has reasons to cooperate with South Africa in reviving the RI agenda that would benefit the entire African continent. South Africa can still play its role as the leading economic powerhouse while the presidency of SADC block of nations is rotated annually amongst the member countries as in the EU. South Africa will then not be viewed suspiciously as having usurped the hegemonic status within the region. Giant strides have already been made in the political and economic arena; South Africa can build on these successes. Key terms: RI (RIAs), Southern African Development Community (SADC), European Union (EU), African Union (AU), South Africa, Southern Africa, Hegemony. vi Abbreviations List AMU Arab Maghreb Union APEC Asia, Pacific, Economic Cooperation APRM African Peer Review Mechanism APSA African Peace and Security Architecture ARF African Renaissance Fund ASEAN Association of South East Asian Nations BRICS Brazil, Russia, India, China and South Africa CAADP Comprehensive Africa Agriculture Development Programme CEEAC-ECCAS Economic Community For Central African States CEN-SAD Community of Sahel Saharan States CM Common Market COMESA Common Market for Eastern and Southern Africa CU Customs Union DRC Democratic Republic of Congo EAC East African Community EAEC European Atomic Energy Community EC European Community ECCSA Economic Community of Central African States ECOSOCC Economic, Social, and Cultural Council ECOWAS Economic Community of West African States ECHR European Court of Human Rights ECSC European Coal and Steel Community EEC European Economic Community EFTA European Free Trade Association EU European Union FDI Foreign Direct Investment FIP Finance Investment Protocol FLS Front Line States FTA Free Trade Area FTAs Free Trade Areas vii GATT General Agreement on Tariffs and Trade GDP Gross Domestic Product GEAR Growth Employment and Redistribution GNP Gross National Product G8 The Group of eight HDI Human Development Index HS Hegemonic Stability IGAD Intergovernmental Authority on Government IMF International Monetary Fund KZN KwaZulu Natal MFN Most Favoured Nation MNC’s Multi-National Corporations NAFTA North American Free Trade Agreement NDP National Development Programme NEPAD New Economic Partnership For African Development OAU Organisation of African Unity OR Oliver Reginald PAP Pan-African Parliament PTAs Preferential Trade Arrangements REAs Regional Economic Agreements RECs Regional Economic Communities REI Regional Economic Integration RI Regional Integration RIAs RI Arrangements RISDP Regional Indicative Strategic Development Plan SACU South African Customs Union SADC Southern African Development Community SADCC Southern African Development Co-ordination Conference SADPA South African Development Partnership Agency SANDF South African National Defence Force SAPs Structural Adjustment Programmes viii SIPRI Stockholm International Peace Research Institute SSA Sub Saharan Africa TNCs Trans National Corporations TP Trade Protocol UNDP United Nations Development Program UNGA United Nations General Assembly UK United Kingdom UMOA Union Monétaire Ouest Africaine USA United States of America USD United States Dollars UN United Nations WTO World Trade Organisation ix Table of Content DECLARATION ...................................................................................................................... ii Dedication ........................................................................................................................... iii Acknowledgements ........................................................................................................... iv Abstract .................................................................................................................................. v Abbreviations List ........................................................................................................... vii Table of Content .................................................................................................................. x List of Tables & Figures ................................................................................................ xiii CHAPTER 1 - BACKGROUND & INTRODUCTION ....................................................... 1 1.0 Introduction .............................................................................................................. 1 1.1 Conceptualization of RI ......................................................................................... 2 1.2 Origins of RIAs .......................................................................................................... 3 1.3 RIAs in Europe .......................................................................................................... 3 1.4 RIA’s in Other Parts of the World ....................................................................... 5 1.5. RI in Africa ................................................................................................................ 6 1.6 Pan Africanism & RI................................................................................................ 7 1.7 African Renaissance ............................................................................................... 7 1.8 Challenges Facing RI in African .......................................................................... 9 1.9 The History of RI in Southern Africa............................................................. 10 1.10 Benefits of RI ....................................................................................................... 13 1.11 The importance of a hegemon in a Regional Bloc .................................. 14 1.12 SA to lead or Not to Lead SADC - The Debate............................................ 17 1.13 Theories used in the study ............................................................................. 18 1.13.1 Hegemonic Stability Theory ........................................................................... 19 1.13.2 RI Theory ............................................................................................................. 20 1.13.3 Research Methodology ..................................................................................... 20 1.13.4 Research aims and objectives ......................................................................... 21 1.14 Significance of the study .................................................................................. 22 1.15 Structure of dissertation ................................................................................. 22 1.16 Limitations of the Study .................................................................................. 24 1.17 Conclusion ............................................................................................................ 24 CHAPTER 2 - LITERATURE REVIEW .......................................................................... 26 x