The basic economic motivation for the economic integration efforts of developing countries is industrialization. All those countries recognize how important the expansion of trade that can follow on the opening up of markets could be for their development, but the main reason for agreeing to the partial relinquishment of sovereignty, seemingly inherent in any attempt to achieve integration, is the hope of turning to account the economies of scale offered by the new economic region for the purpose of establishing industries with greater vertical integration and modern technology. Underlying economic co-operation there is thus the hope of crossing a new economic and technological frontier, which would generate a far-reaching transformation in the economic structure.
The author of the present paper is convinced that economic integration, as an element of development policy, is justified by its over-all effect on economic activity and that this effect extends far beyond industrialization. Economic integration not only helps in overcoming the restrictions imposed by market size and in promoting efficiency through specialization; it also encourages a more rational formulation of economic policy, makes a decisive contribution to the initiation of joint action vis-a-vis the rest of the world, which reflects the new negotiating power of the group, and, generally speaking, fosters the hope that new trade horizons will be opened up, a hope which should not be underestimated considering the psychological climate of narrowness____________________