Economic Integration and Third World Development

By Pradip K. Ghosh; Gamani Corea | Go to book overview

Viable Integration and the Economic Co-operation Problems of the Developing World

GERMANICO SALGADO PENAHERRERA

It is paradoxical that at a time when co-operation among developing countries, which will be the subject of a forthcoming United Nations conference, appears to be most necessary, most of the integration arrangements in the so-called third world are in a state of crisis, or indeed in disarray. Such arrangements are not, of course, the only forms of co-operation, but they are the most advanced and ambitious ones. It seems useful, therefore, to try to analyse the reasons for such a widespread foundering of those co-operative projects in which the peoples of the developing countries have placed their highest hopes. This analysis is intended to make it possible to understand the difficulties involved not only in economic integration but also in other forms of co-operation among developing countries, thereby leading perhaps to more realistic action aimed at ensuring the viability of the co-operation machinery that is clearly essential in the economic and political circumstances of the modern world.

This study will begin with an overview of the current status of the major integration groupings among developing countries. It will deal exclusively with formal efforts to integrate markets, i.e., to create a broader framework for economic activities in general; it will not deal with co-operative efforts that merely provide for joint action in specific activities or regions, such as watershed development, joint service enterprises and others. In this paper, the former, more binding type of co-operation will be referred to as formal integration, or simply integration; arrangements of the latter type, referred to simply as co-operation, are beyond the scope of this study.

After describing--with the inevitable simplification of a study of this nature--the present status of the integration schemes, we shall attempt to infer from the difficulties they have encountered so far the underlying causes of their evolution.

From JOURNAL OF DEVELOPMENT PLANNING, No. 13, 1978, (73-122), reprinted by permission of the publisher.

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