While world leaders have recognized the importance of economic integration as a basis for sustaining global economic growth, economic integration has still not been properly defined and implemented.
Various methods have been used to define and implement economic integration such as preferential trade agreements, trade facilitation agreements, free trade areas, customs unions, common markets as well as economic and monetary unions.
However, economic integration has been poorly realized. In Europe, for instance, the intra regional trade among nations amounts to 75% while in the ASEAN region the share of intra regional trade amounts to a mere 25%. Read more
The fact remains that as our economies become more and more interdependent, the ability to achieve real economic integration is challenged by various conditions that inhibit its realization.
While trade, fiscal and monetary policies are important, we must provide the required tools to the real economy participants in order to ease the way they conduct business with each other.