ECONOMICS A LEVEL(FORM SIX) NOTES – ECONOMIC INTEGRATION AND COOPERATION

ECONOMIC INTEGRATION AND COOPERATION

CONCEPT OF ECONOMIC INTEGRATION:

• Economic integration is the union of countries that have common objectives and agree to cooperate in order to create collective bargaining to enjoy social, political, and economic advantages.
• Economic integration is the union of countries or groups of countries that work together voluntarily to meet their common economic, social, and cultural needs through jointly owned and democratically controlled enterprises and individual activities.

Examples of economic integration are East African Community (EAC), European Union (EU), Southern African Development Cooperation (SADC), etc.

FORMS OR TYPES OF ECONOMIC INTEGRATION

Economic integration passes through different stages of development before reaching the highest or final stage as follows:

1. Preferential Trade Area (PTA)
2. Free Trade Area / Free Trade
3. Customs Union
4. Common Market
5. Economic Union

PREFERENTIAL TRADE AREA (PTA)

This refers to the initial stage of economic integration whereby member countries agree to make gradual reductions of trade barriers (tariffs) among member countries as a way of reducing international cost of trading and enjoying international benefits. Example: PTA of COMESA.

FREE TRADE

This is the second stage of economic integration whereby member countries agree to eliminate all trade barriers against movement of goods and services from one country to another. In the free trade area, member countries agree to create free movement of goods and services from one country to another but each country forms its own barriers and tariffs against non-members.

CUSTOMS UNION

This stage of economic integration involves elimination of trade barriers within a region to create free movement of goods and services (free trade) and member countries form common tariffs to non-members.

COMMON MARKET

This is the stage of common integration whereby member countries agree to create free movement of goods and services (free trade), form common trade barriers against non-members, and allow free movement of factors of production such as labour, capital, and entrepreneurs within the region. Under a common market, people are free to work, invest, and own land within member countries. Example: East African Common Market.

ECONOMIC UNION

This is the highest form of economic integration whereby member countries agree to create free movement of goods and services, free movement of factors of production such as land, labour, capital, and entrepreneurs, formation of common tariffs against non-members. Furthermore, countries agree to create common policies such as fiscal policies, monetary policy, trade policy, and other economic policies within a region. Well-developed economic unions use the same currency in transactions. Example: European Union which uses the euro currency.

THE CONDITIONS NECESSARY FOR SUCCESSFUL ECONOMIC INTEGRATION

Successful economic integration is one which achieves predetermined objectives within a specified period of time or given desired resources (cost). The following are necessary factors for successful formation of economic integration:

1. Countries should be geographically close. This will facilitate transactions and reduce the cost of transaction and interaction/meeting.
2. Production of different commodities facilitates people to sell what they produce and buy what they fail to produce and gain from trade.
3. The use of different currencies with low variations in terms of value or similar currency. This will encourage trade and gain in international trade.
4. Political stability among members. This will encourage production activities and international transactions among member countries.
5. Countries should have equal levels of development. Economic integration of developing countries should be formed by countries with equal levels of development (developing countries), while developed countries should create integration of developed countries but not a mixture of developed and developing countries. This will create equal trade and equal gain.
6. Countries should have similar goals and determination. This will facilitate member countries to form common strategies and policies for achieving objectives.
7. Availability of improved economic infrastructure, i.e., transport and communication systems, because improved infrastructure facilitates movement of commodities and people from one country to another.
8. Similar political and economic ideology, i.e., countries should be in the same economic system that uses common policies and strategies for achieving regional objectives.

GENERAL ADVANTAGES / IMPORTANCE OF ECONOMIC INTEGRATION

All economic integrations may have the following benefits in general:

1. To increase the volume/extent of market and volume of trade. Economic integration provides a chance for countries to exchange within and outside country boundaries; this will increase gain in trade.
2. Increase in collective bargaining and rise in price of exported commodities. Before economic integration, each country bargains individually, but after formation of economic integration, countries will bargain together for their benefit against non-members.
3. Improvement in social and economic infrastructure. Economic integration tends to create common policies for improving social and economic infrastructures such as roads, railways, schools, hospitals, and airways.
4. Improvement of technology within member countries. Economic integration allows free interaction and movement of people and goods from one country to another; also, they formulate common strategies for technological development, hence all this helps to transfer and develop technology.
5. Increase in level of employment. Since economic integration allows free movement from one country to another, free investment in any country, and freedom to work anywhere within a region, this will increase employment of factors of production such as land, labor, and capital.
6. Maintenance of peace and security (political stability) within a region. This occurs because member countries agree and formulate common strategies and policies for maintaining peace and security within member countries.
7. Increase in supply and production of goods and services within member countries due to investment and free movement of goods and services; this will increase consumer utility and choice.
8. Trade creation. This is the process of purchasing commodities at low price within a region compared to the cost of purchasing from non-members.
9. Economic integration stimulates competition among firms of member countries. Competition increases due to free interaction among people and commodities, leading to increased efficiency and quality of commodities exchanged.
10. Economic integration promotes social, political, and economic cooperation; this will increase benefits to member countries.

DISADVANTAGES OF ECONOMIC INTEGRATION

Most economic integrations formed by developed countries have the following disadvantages in general:

1. Increase in imports which lead to unfavorable balance of payments; this occurs in countries with weak economic bases which increase demand for imports.
2. Excessive competition among countries that leads to the decline of infant domestic industries and unemployment problems in affected countries.
3. Loss or decline in government revenue since economic integration involves reduction and elimination of tariffs (tax), therefore it reduces government revenue collected from tax.
4. Increase in importation of low-quality and harmful products; this causes the country to become a dumping area.
5. Economic integration may cause occurrence of imported inflation; this inflation may occur due to importation of commodities from countries already affected by inflation.
6. Economic integration may cause unequal gain; this occurs due to unequal industrial development and business in one direction.
7. Economic integration may cause cultural destruction. This occurs due to interactions of people of different cultures from different countries.
8. Trade diversion. This is the situation which occurs when people or countries purchase commodities at higher cost or price within member countries due to geographical and organizational barriers compared to the cost of purchasing commodities from non-members.

GENERAL PROBLEMS FACING MOST ECONOMIC INTEGRATIONS FORMED BY LDCs

Most economic integrations in developing countries like EAC, SADC, and ECOWAS face the following problems:

1. Shortage of funds for running economic integration and economic activities within the region such as investment; this causes failure of most economic integrations to achieve predetermined goals.
2. Political instability. Political conflicts which arise within the region or outside the region or neighboring countries affect social and economic activities of economic integration.
3. Low development of technology. This hinders industrial development and limits efficiency in investment and production activities within the region.
4. Low development of economic infrastructure. In most developing countries, there are poor roads, railways, and communication networks which limit production and movement of people, goods, and services from one place to another.
5. Lack of political commitment and bad leadership. Most countries which form economic integration in LDCs have bad governance and are not committed to the development of integration but are committed to individual country’s benefits; this limits achievement of common objectives.
6. Low level of education and skills among people. Most people in developing countries are not educated and skilled enough to conduct social and economic activities; this limits investment and other economic activities.
7. The storage of market and price fluctuation in the market since most countries produce agricultural products of similar type; this limits availability of market because every country produces such commodities and price of agricultural products fluctuates more, causing loss.
8. Rapid population growth; this increases pressure on resource utilization, occurrence of environmental problems, communicable diseases, labor unemployment, and other social and economic effects.

REGIONAL ECONOMIC INTEGRATION (INTEGRATION BLOCKS)

Most states worldwide have decided to establish and join economic groupings for the purpose of enhancing economic cooperation among member countries. Some groupings have risen and fallen while a number of them survive.

The regional economic integrations discussed in these subtopics are:

1. East African Community (EAC)
2. Southern African Development Community (SADC)
3. The Common Market for Eastern and Central Africa (COMESA)
4. European Economic Community (EEC/EU)
5. Economic Community of West African States (ECOWAS)

EAST AFRICAN COMMUNITY (EAC)

This is the cooperation or union of East African countries which have common objectives and self-commitment to increase or deepen cooperation among members of integration so as to enjoy mutual advantages socially, politically, and economically.

East African Community is the regional intergovernmental organization of Kenya, Tanzania, Uganda, Rwanda, and Burundi.

East African Community, just like other economic integrations, aims at increasing collective bargaining in economic, social, and political issues and formation of common strategies and policies for achieving common objectives and benefits.

BACKGROUND / HISTORY OF EAST AFRICAN COMMUNITY

The East African Community (EAC) has a long history. The genesis of the East African Community can be traced back to 1923 when the East African Governors’ Conference was formed. On 1st January 1948, the East African High Commission replaced the East African Governors’ Conference. After Tanganyika’s independence on 9th December 1961, the East African Service Organization (EACSO) was established. These created a foundation for the former and current/new East African Community.

FORMER EAST AFRICAN COMMUNITY

This was economic cooperation of East African countries namely Tanzania, Kenya, and Uganda. The establishment of the former East African Community was signed by presidents of the three East African countries on 6th June 1967 in Kampala, Uganda. The community came into existence effectively on 1st December 1967 as a replacement of the Eastern African Service Organization and effective formation of East African Common Market (EACM). From that day, most functions performed by EACSO and employees were taken by EAC. Also, Arusha became the headquarters of the EAC.

The former East African Community aimed at promoting free trade of commodities, providing common services, creating free movement of people, increasing extent of market to deepen cooperation, and making common research and development.

FACTORS / REASONS FOR DECLINE OF FORMER EAST AFRICAN COMMUNITY

The collapse of the former East African Community is due to the following reasons:

1. Difference in political and economic ideologies among member countries; for example, Tanzania was a socialist country while Kenya was a capitalist country.
2. Political misunderstanding or conflict between Tanzania and Uganda; this caused late Mwalimu J.K. Nyerere and Idi Amin not to meet when East African Community met.
3. Failure of East African Development Bank to meet expected objectives.
4. Donor influence and the problem of neo-colonialism. Some member countries served colonial interests that went against the interests of East African Community.
5. Lack of clear and agreed pattern of industrial specification; each country worked for its own goals and plans, causing unequal gain in East African Community.

THE NEW EAST AFRICAN COMMUNITY

The new East African Community is the economic integration of East African countries aimed at creating deep cooperation among East African countries economically, socially, and politically. The formation of the new East African Community started in the early 1980s when members of the former East African Community met for division of assets and liabilities of the former East African Community. The treaty for establishing East African Community was signed on 30th November 1999, but the new East African Community started to work effectively on 1st July 2000.

East African Community has five member countries namely Tanzania, Kenya, Uganda, Burundi, and Rwanda. Its headquarters is in Arusha, Tanzania.

OBJECTIVES OF NEW EAST AFRICAN COMMUNITY

The currently formed East African Community has the following objectives:

1. To create free movement of goods and factors of production within member states by making gradual reduction of tariffs and other forms of barriers (common market).
2. To strengthen and develop policies and programs aimed at widening and deepening cooperation among partners in political, economic, and social matters.
3. To promote gender equality and enhance the role of women in economic, social, political, and technological development.
4. To promote sustainable utilization of resources and balanced growth in development of partner states.
5. To enhance and promote equitable economic development within partner states and raise the standard of living and quality of life of people in member countries, i.e., people-centered development.
6. To promote peace, security, and stability within and good neighborhood among member countries.
7. To enhance and strengthen partnership with the private sector and civil societies in order to achieve socio-economic development.

THE AREAS OF COOPERATION IN THE NEW EAST AFRICAN COMMUNITY

The currently formed East African Community cooperation covers integration and cooperation in the following areas:

1. Cooperation in trade and development.

East African Community agreed to create trade liberalization whereby member countries should reduce up to elimination of trade barriers to the customs union and common market in order to create free movement of goods and factors of production.

2. Cooperation in social and economic infrastructure.

They agreed to harmonize and adopt policies and laws for improving social and economic infrastructure and joint use of facilities in transport and communication for joint development.

3. Monetary and fiscal cooperation (financial cooperation).

Member countries agreed to establish monetary and fiscal union, meaning economic policies and elimination of obstacles against financial investment within member states like banking and convertibility of currencies and other strategies of achieving monetary union, i.e., the use of one East African currency.

4. Cooperation in human resources, science, and technological advancement.

Under this union, member countries create union and cooperation in education, training, and jointly establish common policies and strategies of human resources mobilization, science, and technology development.

5. Cooperation in agriculture and food security.

With the aim of adopting schemes of rationalization of agricultural production in order to promote complementarity and specialization to increase food supply and have surplus food for security against food shortage.

6. Cooperation in tourism and wildlife management.

Member countries agreed to have common, collective, and coordinated policies and approaches for promoting and marketing quality tourism, conservation, and utilization of wildlife and tourist centers.

1. Cooperation in environment and natural resources management.
2. Cooperation in investment and industrial development; other areas are legal and justice, role of women, political matters, and private sector.

Note: The merits, demerits, and problems facing East African Community are similar to those discussed in general in the previous page.

THE SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC)

The Southern African Development Community (SADC) is an association of Southern, Central, and some Eastern African countries agreed to deepen cooperation in all matters relating to development.

SADC was formed from the experience of political cooperation gained by frontline states such as Angola, Botswana, Lesotho, Mozambique, Tanzania, Zambia, and Zimbabwe in supporting independence movements. SADC was formed to replace the former Southern African Coordination Conference (SACC) formed in 1980, which aimed at helping Southern African countries to become developed, self-reliant, and reduce dependence on South Africa and other strong nations.

SADC came into existence in August 1992 with eleven member countries namely Angola, Botswana, Lesotho, Zambia, and the United Republic of South Africa.

OBJECTIVES OF SADC

1. To achieve genuine and equitable economic growth and development, alleviate poverty, enhance standard of living, and quality of people’s life of member states.
2. To evolve common political values, systems, and institutions.
3. To promote and defend peace and security in order to maintain political stability within the region.
4. To promote and maximize productive employment and utilization of resources and effective environmental protection.
5. To promote international cooperation and achieve complementarity between national and regional strategies, policies, and programs.

The ultimate objective of SADC is to build regional cooperation in which there will be a high degree of harmonization and rationalization to enable the pooling of resources to achieve collective self-reliance in order to improve the living standards of the people of the region.

PROBLEMS FACING SADC

However, under new restructuring exercises, it has become clear that there are a number of problems that inhibit the effectiveness and performance of the current structure, including:

1. Inadequate provision of resources and staffing by member states which has led to inadequate distribution of responsibility and obligations.
2. Different management and administrative procedures and rules, varying standard qualifications, and performance criteria for staff involved in the management of the regional program.
3. Rapid increase of sectors, creating problems of priorities and activities dependent on limited resources, which has led to increased association costs.
4. Under the current structure and circumstances, the secretariat has been unable to execute its mandate as provided for in the treaty, especially that of undertaking strategic planning and management.
5. Lack of an institutional framework in which ministers responsible for foreign affairs in the SADC region could discuss and adopt common positions on matters pertaining to the organization in various international forums.
6. Difference in level of development reduces cooperation, equal development in trade, and leads to unequal gain.
7. SADC members give priority to their own national interests compared to regional interests.
8. Political instabilities existing within member countries like Zimbabwe and Congo.

THE COMMON MARKET FOR EASTERN AND SOUTHERN AFRICA (COMESA)

COMESA is the Southern and Eastern African Common Market formed by countries from Southern and Eastern parts of Africa with the aim of creating free movement of goods, services, and factors of production from one country to another.

COMESA started to work in December 1994 as a replacement of the former PTA. COMESA has the following members: Angola, Tanzania, Malawi, Lesotho, Mozambique, Zambia, Mauritius, Kenya, Sudan, Comoros, Ethiopia, etc.

THE GENESIS / ORIGIN OF COMESA

The history of COMESA started on 21st December 1981 when the treaty establishing the Preferential Trade Area (PTA) was signed to form an organization of free independent sovereign states which agreed to cooperate in developing their natural and human resources for the good of all people in member states. Then on 6th November 1993, members of COMESA signed the treaty establishing COMESA which then started to work in 1994.

COMESA’S ECONOMIC HISTORY AND BACKGROUND

Its main focus is on the formation of a large economic and trading unit capable of overcoming some of the barriers faced by individual member states.

COMESA’s current strategy can be summed up as economic prosperity through integration with 21 member states.

The COMESA states, in implementing a free trade area, are well on their way to achieving their goal of removing all internal and external barriers and trade tariffs, an exercise which was to be completed by the year 2000. Within 4 years after that, COMESA will have all third-party trade and will have considerably simplified all procedures.

OBJECTIVES OF COMESA

• Trade liberalization and customs cooperation including the introduction of unified computerized customs networks across the region.
• Improving administration of transport and communication to ease movements of goods, services, and people between the countries.
• Creating an enabling environment and legal framework which will encourage the growth of private sectors, the establishment of secure investment environments, and adopting common sets of standards.
• The harmonization of macroeconomic and monetary policies throughout the region.
• To increase agricultural development/productivity and food security.
• Greater industrial productivity and competitiveness among member states.
• To stimulate a strong economic base for members as steps toward independence of the region.

TANZANIA’S WITHDRAWAL FROM COMESA

Tanzania officially pulled out of COMESA in September 2000, where Tanzania’s decision was made known to all other members and stakeholders that Tanzania is no longer a trade member of COMESA.

However, according to URT, Tanzania would continue retaining its position in two regional blocks namely PTA Bank and Reinsurance Company (ZEP-RE) simply because these institutions cover even non-COMESA members.

The reasons for Tanzania’s withdrawal from COMESA are as follows:

• Failure to realize its goals, that is strengthening, developing, and positively maintaining socio-economic relationships.
• Lack of seriousness among members in implementing goals.
• Continuous reduction of tariffs which reduce government revenue.
• Protection of infant domestic production industries and anti-dumping due to free entrance of cheap and harmful products.
• The problem of membership with other unions, i.e., SADC, EAC.

THE EUROPEAN ECONOMIC COMMUNITY / EUROPEAN UNION

European Economic Community / European Union is an economic integration formed by European countries that agreed to make gradual reduction of tariffs and other barriers and adopting common policies of increasing economic, social, and political benefits to member countries.

The European Union was established in 1957 when six European countries signed the Rome Treaty. This formed the European Economic Community (EEC), popularly known as the European Common Market. The six countries that signed the treaty include France, Italy, Belgium, the Federal Republic of Germany, Holland, and Luxemburg. It actually came into existence effectively in January 1958.

From the date of establishment, this integration started to expand and cooperation has gradually been expanded. Tariffs and other barriers are gradually reduced and eliminated, new policies and strategies formulated while it adapted to new challenges according to what the majority of Europeans agreed. Currently, the European Union has fifteen member states namely France, Italy, Holland, Belgium, West Germany, Luxemburg, England, Greece, Portugal, Spain, Ireland, Denmark, Austria, Sweden, and Finland.

Although the European Economic Community started as an economic zone or community of European countries (common market), it adopted gradual improvement up to the European Union currently and is regarded as a unique organization. More than any other international organization, it has many committed members and is characterized by democratic decision-making that helps to reach the highest level of economic integration known as economic union by passing through common market, customs union, and monetary union, whereby member countries agreed to use European currency as a medium of exchange. They also formulated common agricultural policies (CAP), European Development Bank, and other economic and social development policies.

OBJECTIVES OF THE EUROPEAN UNION (EU)

1. To harmonize the common policies for improving the living standard of the people in member countries.
2. To encourage and ensure coordination and cooperation in trade and other economic activities.
3. To increase industrial and agricultural development and increase agricultural output by establishing common agricultural and industrial development policies.
4. To facilitate free flow of manpower within member states.
5. To ensure national business policies do not harm other members, such as tariffs and other barriers to trade.
6. To foster development of infrastructures by establishing common policies for improving transport and communication systems such as roads and inland water transport.

TANZANIA AND EUROPEAN UNION / COMMON LINK BETWEEN EUROPEAN UNION AND DEVELOPING COUNTRIES (LOME CONVENTION)

Tanzania and some developing countries have a close relation with the European Union through the Lome Convention.

The Lome Convention is a series of agreements in trade and economic cooperation between the European Union and countries from Africa, Pacific, and Caribbean (ACP). The Lome Convention came into existence in 1975 when the EU and 46 ACP countries met and signed the first contract of the Lome Convention, effective in 1979, with emphasis on agricultural, energy, and other natural resources development. The 3rd agreement was signed on 1st April 1985 with emphasis on the former agreement.

The 4th Lome Convention was signed in 1990 in Kampala, Uganda, with emphasis on increased cooperation between the EU and ACP in trade, industries, and agriculture.

Also, the fourth Lome Convention emphasized fighting against HIV/AIDS. However, countries are still rigid to allow free trade especially in textiles. The Lome Convention made ACP countries have the right of association status as indirect members of the EU. Through cooperation, the ACP states benefited in finance, trade, and industries.

BASIC PROVISIONS OF THE LOME CONVENTION

The Lome Convention involves agreement and cooperation in the following areas:

1. Trade cooperation and development.
2. Protection of ACP industries.
3. Stabilization of export earnings (STABEX).
4. ACP countries have more control over the EU development fund than formerly.
5. A free decision of ACP countries when they need to pull out of the Lome Convention if the agreement is no longer satisfactory.

ADVANTAGES OF THE LOME CONVENTION

The ACP countries including Tanzania may enjoy the following advantages:

1. The ACP states can earn more stable income from their export of raw materials. They are now less affected by price fluctuations, i.e., stabilization of export earnings.
2. Increase in assistance/access to grants and aids from the European Union, i.e., EU development banks and funds.
3. It does not promote new colonialism because one of the agreements and promises of the EU is to fight against new colonialism.
4. Improvement of ACP industries. The Lome Convention assists development of ACP industries due to the promise of imposing tariffs against EU products and getting technical assistance from the EU.

PROBLEMS / CHALLENGES FACING EUROPEAN UNION

The problems facing the European Union include:

1. The problem of labor supply due to aging population in some countries as a result of strict population control policies.
2. Economic disparity among countries; thus limiting decision power and gain in international trade.
3. Disagreement among member countries of the EU on some common policies and implementation of policies; for example, some countries like Britain and Portugal refuse to use the euro currency while some resist implementation of agricultural and other policies.
4. The world economic crises impose problems or challenges in fighting the results of recession or depression and other countries fail to finance their requirements.
5. The problem of overproduction or oversupply which leads to shortage of markets in European countries.
6. Unemployment problem; despite efforts and different strategies, there is still unemployment.
7. Disunity among European countries limits the implementation of some policies.

Note: The regional economic integrations of developing countries like EAC, SADC, COMESA, and ECOWAS have similar advantages and disadvantages to member countries and they face similar challenges (problems) as discussed generally in the introduction part of this topic.

ECONOMIC COOPERATION

Economic cooperation is the intergovernmental organization which involves many nations that provide platforms to discuss ways of improving development and promote trade and investment opportunities together with the creation of socio-economic sustainability within member states.

Regional economic cooperation is an association of cooperation of countries with objectives of creating cooperation in different fields socially, economically, and politically. Most economic cooperation has no deep union and interaction compared to economic integration.

Regional or international institutions and bodies unite all or most countries in the world to fulfill various functions concerned with international economic relations. These functions may include coordinating common economic policies or maintaining some international economic links.

International economic cooperation does not presuppose deep economic and political relationships between countries and their national economies. International organizations characterized by international economic cooperation include UN’s specialized agencies and forms such as WTO, UNCTAD, IBRD, IMF, and so on.

It follows therefore that international economic integration and international economic organization/cooperation are forms of cooperation; they share the same advantages that may be obtained through their forums.

However, international economic cooperation is a looser form of cooperation than international economic integration. It does not have the disadvantages of the latter such as the distribution of costs and benefits among member countries and some forms of political and economic sacrifice being necessary for integration but not necessary for cooperation.

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (IBRD) / WORLD BANK (WB)

The International Bank for Reconstruction and Development (IBRD) is an international financial institution which offers loans to middle-income developing countries, influencing economic activities and reducing poverty. IBRD provides commercial-grade or concessional finance to sovereign states to fund projects that seek to improve transportation and infrastructure, education, domestic policy, environmental consciousness, energy, investment, healthcare, access to food and potable water, and improved sanitation.

IBRD / WB was established in 1944 following the Bretton Woods conference but began to work effectively in 1946. IBRD has over 188 members currently. It is owned and governed by member states but has its own executive leadership and staff.

OBJECTIVES / FUNCTIONS OF IBRD / WB

1. To reduce poverty in middle-income and poor countries by promoting sustainable development through provision of loans.
2. To provide analytical and advisory services by providing experts for that purpose.
3. To promote transfer and development of technology especially from developed to developing countries.
4. To finance development projects such as infrastructure, water, agricultural projects, environmental protection, etc.
5. Provision of research consultancy and training, i.e., World Bank provides a platform for research, consultancy, and conducts training programs on development issues.
6. To support and initiate anti-corruption movements in order to eradicate or combat corruption.
7. To promote long-term balanced growth of internal trade and maintenance of equilibrium in the balance of payments.