DECLARATION I declare that this dissertation is my own, unaided work, except where otherwise stated. It is being submitted in partial fulfilment of the requirements for the degree of Master of Arts in International Relations to the University of the Witwatersrand, Johannesburg. It has not been submitted before for any degree or examination in any other university. S. K. Leke day of, 2012. i
ABSTRACT Since the attainment of political independence on January 1, 1960, the Republic of Cameroon, like other African countries has pursued integration as a means of achieving short and long-term political and socio-economic development. Regional economic integration and governance are subjects which have been researched in the International Relations and Political Science fields for a very long time, however, very little has been done to dissect the relationship between these two concepts especially within an African context. What then are the missing links between regional economic integration and indicators of governance such as control of corruption, political stability and the rule of law? Is there any significant influence by such regional economically integrated bodies to the internal governance of its member states? This study uses an integrated model of qualitative and quantitative research methods to investigate the linkages between membership of regional economically integrated bodies and internal governance by assessing the impact of the Communauté Économique et Monétaire de l Afrique Centrale (CEMAC) as an economically integrated body on the governance of its most dominant member, Cameroon. The research uses existing literature and a case study to argue that by allowing the law of direct applicability, member states have given the CEMAC institution a significant amount of power to influence their internal governance and economic policies. The study also concludes that although CEMAC does have a significant influence on the implementation of economic and monetary policies, and rule of law in Cameroon, this influence is experienced to a lesser extent on the country s control of corruption and political stability. As such, more stringent clauses and compliance laws can be created within the CEMAC mandate in order to ensure a diffusion of various forms of good governance practices in Cameroon and in the region at large. ii
DEDICATION This work is dedicated to the under mentioned for their special roles in my life: My beloved father, Leke B. Casimir, who has not only supported my academic journey both financially and emotionally, but has also taught me the importance of hard work and inspired me to aim at being the very best in life. My dear mother, Leke Agatha Fonkeng née Nchangeh whose sacrifices, emotional support, encouragement and constant prayers have made it possible for me to dream big and achieve my goals. And above all, to the glory of God Almighty, for being my guide and guard throughout my many journeys thus far. iii
ACKNOWLEDGEMENTS First of all, I would like to express my gratitude to the Almighty God. I would also like to thank my supervisor, Dr. Lord Mawuko-Yevugah for being so supportive and dependable. The paper dramatically improved because of his time, inputs, suggestions and guidance. I am especially appreciative of the assistance of my dad Mr. Leke Betechuoh Casimir who helped me in gathering and translating information, and proofreading my work. I would also like to extend my sincere gratitude and appreciation to Percy whose unconditional support and endless encouragement gave me the strength to carry on in spite of all the challenges I faced throughout the year. Last but not least, I am happy to thank my family who have all been generous in their support and in giving words of encouragement. iv
TABLE OF CONTENTS DECLARATION i ABSTRACT ii DEDICATION... iii ACKNOWLEDGMENTS... iv TABLE OF CONTENTS... v LIST OF FIGURES.... viii LIST OF TABLES ix ACRONYMS. x CHAPTER 1: INTRODUCTION..... 1 1.1 Background..... 2 1.2 Purpose of the study........ 8 1.2.1 Rationale of the study.......... 8 1.2.2 Aim/Objective of the study..... 9 1.3 Brief literature review....... 11 1.4 Methodology... 13 1.5 Significance of the study... 14 1.6 Limitations. 15 1.7 Organisation of the study... 16 CHAPTER 2: CAMROON: A HISTORICAL BACKGROUND....... 19 2.1 A background of Cameroon....... 20 2.1.1 Political profile....... 23 2.1.2 Socio-cultural profile.. 24 2.1.3 Economic profile 26 v
2.2 Conclusion... 32 CHAPTER 3: LITERATURE REVIEW... 34 3.1 Conceptual Framework...... 35 3.1.1 Governance...... 36 3.1.2 Economic Integration..... 42 3.2 Theories of Economic Integration...... 45 3.2.1 Viner s Customs Union Theory..... 45 3.2.2 Optimal Currency Area Theory. 51 3.3 Economic Integration and the African context..... 53 3.3.1 Effects of economic integration on member states.... 53 3.3.2 The African context 55 3.3.3 Impact of economic integration on governance. 59 3.3.3.1 Challenges facing African regional economic communities.. 60 3.4 Conclusion.. 62 CHAPTER 4: THE HISTORY AND STRUCTURE OF CEMAC... 63 4.1 A historical background of the CEMAC sub-region......... 64 4.1.1 The CEMAC sub-region... 64 4.1.2 The CFA Franc Zone.. 68 4.2 Communauté Économique de L Afrique Centrale (CEMAC)........... 73 4.2.1 The rationale behind a Central African Economic Integration.. 73 4.2.2 The formation of CEMAC....... 74 4.2.2.1 The objectives of CEMAC. 77 4.2.2.2 The organisational framework of CEMAC... 78 4.2.3 The economic climate of CEMAC..... 82 vi
4.2.3.1 The fiscal policies in the CEMAC zone..... 86 4.2.4 The political climate of CEMAC... 88 4.3 Applying economic integration theories to CEMAC. 90 4.4 Major challenges and opportunities facing CEMAC. 92 4.5 Conclusion.. 97 CHAPTER 5: REGIONAL ECONOMIC INTEGRATION AND GOOD GOVERNANCE IN CAMEROON 98 5.1 Good Governance in Cameroon......... 99 5.2 Effect of economic integration on governance........ 107 5.2.1 Control of corruption... 111 5.2.2 Rule of Law.. 114 5.2.3 Political stability... 119 5.3 Conclusion 121 CHAPTER 6: CONCLUSIONS AND RECOMMENDATIONS.. 123 BIBLIOGRAPHY.. 129 vii
LIST OF FIGURES Figure 2.1: A Detailed Map of Cameroon 21 Figure 2.2: Oil Production, 2002-2010 (in million barrels)... 28 Figure 2.3: 2009 GDP breakdown 28 Table 2.2: Key Development Indicators in Cameroon... 29 Figure 3.1: A Framework of the Relationship between Economic Integration and Governance. 60 Figure 4.1: Map of Central Africa highlighting CEMAC member states 65 Figure 4.2: 2011 Organisational Structure of the CEMAC Commission. 81 Figure 4.3: Mundell s Incompatibility Triangle... 92 Figure 5.1: Relationship between Economic Integration and Control of Corruption 113 Figure 5.2: Relationship between Economic Integration and Rule of Law... 115 Figure 5.3: Relationship between Economic Integration and Political Stability... 120 viii
LIST OF TABLES Table 2.1: General Characteristics of Cameroon, 2011 22 Table 3.1: Major Regional Economic Communities.... 58 Table 4.1: CEMAC: General Characteristics of Member States, 2011 68 Table 4.2: The Population Size of CEMAC in 2010 68 Table 4.3: CEMAC: Economic Characteristics of Member States, 2010 82 Table 4.4: Percentage of CEMAC trade with the world, 2000-2005... 85 Table 4.5: Percentage of Intra-African trade, 2009.. 85 Table 4.6: Governance Indicators in CEMAC. 88 Table 4.7: Foreign Direct Investments to the CEMAC sub-region (in US$ millions). 93 Table 4.8: Influence of Oil on CEMAC Economies.... 94 Table 4.9: Inflation Rates in CEMAC.. 95 Table 5.1: Governance Indicators in Cameroon... 101 ix
ACRONYMS AfDB AEC AEF AOF AU BCEAC BCEAO BEAC CACM CAR CARICOM CEEAC CEMAC CENSAD CET CFA CIA CIMA COBAC COMESA CONAC COPAX CPDM EAC ECA ECCAS ECOWAS EEC African Development Bank African Economic Community Afrique Équatoriale Française Afrique Occidentale Française African Union Banque Centrale des Etats de l Afrique Centrale et du Cameroun Banque Centrale des Etats de l Afrique de l Ouest Banque Économique de l Afrique Centrale Central American Common Market Central African Republic Caribbean Community and Common Market Communauté Économique des Etats de l Afrique Centrale Communauté Économique et Monétaire de l Afrique Centrale (Economic and Monetary Community of Central Africa) Community of Sahel-Saharan States Common External Tariff Communauté Financière Africaine Central Intelligent Agency Conférence Internationale des Marchés d Assurances (Community Code of the International Conference on Insurance Markets) Commission Bancaire de l Afrique Centrale (Central African Banking Commission) Common Market for Eastern and Southern Africa National Anti-Corruption Commission Council for Peace and Security in Central Africa Cameroon People's Democratic Movement East African Community Economic Commission for Africa Economic Community of Central African States Economic Community of West African States European Economic Community x
EFTA ELECAM EU FDI FCFA FTA GDP HDI HIPC IGAD IMF LAIA MINEPAT MDG MP NAFTA NEPAD NGO OAU OCA OHADA UEAC UMAC REC REI SACU SADC SDF SEC SOE SSA European Free Trade Area Elections Cameroon European Union Foreign Direct Investment Franc CFA Free Trade Areas Gross Domestic Product Human Development Index Heavily Indebted Poor Country Inter- Governmental Authority on Development International Monetary Fund Latin American Association Ministere de Developpement Economique et d Amenagement du Territoire. Millennium Development Goal Mouvement Progressive (Progressive Movement) North American Free Trade Area New Partnership for African Development Non-Governmental Organisation Organization of African Unity Optimal Currency Area Organisation for the Harmonization of Business Law in Africa l Union Economique de L Afrique Centrale l Union Monetairé de l Afrique Centrale Regional Economic Community Regional Economic Integration Southern African Custom Unions Southern African Development Community Social Democratic Front Sub-regional Economic Community State-Owned Enterprise Sub-Saharan Africa xi
TI UDC UDE UDEAC UEMOA UMA UNCTAD UNECA UNDP UNDP UK US USA VAT WAEMU WBI WTO XAF Transparency International Union Democratic du Cameroun (the Democratic Union of Cameroon) Union Douanière Équatoriale (Equatorial Customs Union) Union Douanière et Économique de l Afrique Centrale Union Économique et Monetairé de L Afrique de L Ouest Arab Maghreb Union United Nations Conference on Trade and Development United Nations Economic Commission for Africa United Nations Development Programme Union Nationale de Democracie et Progrès (National Union for Democracy and Progress) United Kingdom United States United States of Africa Value Added Tax West African Economic and Monetary Union World Bank Institute World Trade Organization Central African CFA Franc xii