https://newbusinessethiopia.com/economic-integration-reduces-multidimensional-poverty-in-africa/

Economic development is a qualitative process, which involves the development of an economy’s economic and social infrastructure that often stems from higher levels of economic growth. Economic growth plays an important role in reducing poverty and improving the quality of life (HDI).

Thus, higher living standards is one of the advantages seen in free trade agreement. As prices are lowered, production of goods and services increase as well as an increase in consumer choices, countries are able to access goods that a lack of natural resources domestically may otherwise prevent. Economic growth is able to develop circles of prosperity and opportunity such as, incentives for parents to invest into their children’s education leading to an emergence of a strong group of entrepreneurs that should be able to generate pressure of improved governance. Hence, strong economic growth improves economic development which in turn continues to generate a promising increase in economic growth.

Hence, through free trade agreements government can expose import-sensitive sectors to greater competition and ultimately build a domestic consensus for boarder trade liberalisation, which promotes closer economic integration. This can be seen in the recent adoption of the African Continental Free Trade (AfCTA) in March 2018 of among 49 out of 55 African Union Nations, commencing in the 2018 African Economic Conference (AEC). This improves international competitiveness as government will encourage domestic businesses to improve productivity and efficiency in order to compete against foreign producers. Hence, it was noted during the discussion that AfCTA’s framework would “develop a greater level of economic integration that could help African countries make their voices heard on the global stage”, as well as levelling the balance of powers during negotiations between regional trading blocs.

Though regional business cycles differ from patterns in on a global level, where some region may perform stronger than others, they are a part of the phenomenon of globalisation due to the result of increasing cross-boarder integration. Hence this would result in a movement towards higher rates of economic growth that would improve economic development. Thus, the Director of Economic Commission of Africa (ECA) Macroeconomics and Governance Division Adam Elhiraika, called on African countries to meet their commitments on AfCTA signing and ratification as “we all know the benefits of facilitating free movement of goods, service and people when we open our borders,” including a forecast of Africa’s GDP increase of 6% every year. Hence, AfCTA indicates the flow on effects of cross-boarder economic integration foreseeing multi barriers of economic development being broken down (poverty), as the globalisation movement continues. Indicating that economic growth is essential if governments are going to be able to help assist public services which directly benefit the poor.  Even though aid might provide initial support, governments must collect greater tax revenues in order to increase public expenditure and the only way this can be achieved in the long-term is through a strong sustained growth.