Abstract
M.Com. (Economics)
The main purpose of the study was to investigate the role of economic integration in the economic development of the member states of an envisaged economically integrated Southern African bloc, that would include South Africa. The study contends that economic development will be aided, if economic integration were implemented correctly.
Economic integration will influence both the allocation and distribution elements of the involved countries' wealth. Since economic development is inextricably entwined with the distribution of wealth, economic integration would have to give special attention to its effect on the distribution of wealth between countries. The mainstream theory of
economic integration, however, places much more emphasis on the allocation
aspect of integration than the distribution aspect. This imbalance means that economic integration, implemented according to the guidelines of the mainstream theory, will be detrimental to the economic development of especially the less developed countries.
The orthodox approach to economic integration should therefore be adapted to the circumstances of developing countries. A suitable economic integration approach should comprise two steps. The first step involves the identification of areas for profitable specialisation, and the second the formulation of an economic integration strategy within the framework of a dirigiste approach to economic development.
Porter's theory of the competitive advantage of nations served as the foundation for the formulation of the approaches to both economic development and economic integration in Southern Africa. Industry segments in which profitable specialisation could take place, were identified for South Africa, Malawi, Zambia and Zimbabwe by means of
Porter's statistical method, and afterwards classified in clusters. The development and integration approaches will be centred around the various identified clusters with competitive advantage.