Chapter 3 - Pearson Learning Solutions

100 PART 2 • THE GLOBAL MARKETING ENVIRONMENTTABLE 3-13 ECOWAS Income and Population2006 GNI(in millions)2006 Population(in thousands)2006 GNIper CapitaBenin $4,665 8,760 $530Burkina Faso 6,249 14,359 440Cape Verde 1,105 519 2,130Côte d’Ivoire 16,578 18,914 880The Gambia 488 1,663 290Ghana 11,778 23,008 510Guinea 3,713 9,181 400Guinea-Bissau 307 1,646 190Liberia 469 3,579 130Mali 5,546 11,968 460Mauritania 2,325 3,044 760Niger 3,665 13,737 270Nigeria 90,025 144,720 620Senegal 9,117 12,072 760Sierra Leone 1,353 5,743 240Togo 2,265 6,410 350Total/Mean GNI per capita $159,648 279,323 $572**Indicates meanSource: Reprinted by permission of Warren Keegan Associates, Inc.loss of revenue resulting from the liberalization of inter-community trade. In June 1990, ECOWASadopted measures that would create a single monetary zone in the region by 1994. Despite suchachievements, economic development has occurred unevenly in the region. In recent years, theeconomies of Benin, Côte d’Ivoire, and Ghana have performed impressively, while Liberia andSierra Leone are still experiencing political conflict and economic decline.East African CooperationIn 1996, the presidents of Kenya, Uganda, and Tanzania established a formal mechanism topromote free trade and economic integration. Tariff issues will be resolved and prospects for acustoms union are being explored. Efforts are also underway to develop regional ties in tourismand coordinate energy projects. Although Kenya is the most developed of the three nations,Francis Muthaura, the executive secretary of the secretariat of the Commission of East AfricanCooperation, expressed optimism that all three will benefit: “A free market is going to generatecompetition and already we are seeing a lot of cross-border investment. If you have free movementof capital and goods and labor, imbalances will be sorted out in the long term.” 22Southern African Development Community (SADC)In 1992, the South African Development Community (SADC) superseded the South AfricanDevelopment Coordination Council as a mechanism by which the region’s black-ruled states couldpromote trade, cooperation, and economic integration. The members are Angola, Botswana,Democratic Republic of Congo (formerly Zaire), Lesotho, Malawi, Mauritius, Mozambique,Namibia, South Africa, Seychelles, Swaziland, Tanzania, Zambia, and Zimbabwe (see Figure 3-9and Table 3-14). South Africa joined the community in 1994; it represents about 75 percent of theincome in the region and 86 percent of intra-regional exports. The SADC’s ultimate goal is a fullydeveloped customs union; in 2000, an 11-nation free trade area was finally established (Angola, the22 Michael Holman, “Learning from the Past,” Financial Times Survey (November 5, 1996), p. 1.000200010270740623Global Marketing, Sixth Edition, by Warren J. Keegan and Mark C. Green. Copyright © 2011 by Warren J. Keegan. Published by Prentice Hall.