MACROECONOMIC CONVERGENCE OR DIVERGENCE WITHIN SADC?

Abstract

It was at the Arusha summit in August 2004 that the SADC Macroeconomic Convergence Program was based on the measurement of four macroeconomic indicators set out in the Regional Indicative Strategic Development Plan (RISDP). The main objective of this paper is to highlight the issue of macroeconomic convergence criteria through the analysis of the SADC region and its drawbacks due to overlapping membership found in many African countries. This article provides information to policy makers with the same dilemma by explaining, first why multiple memberships is an obstacle to sustainable development and then criticizes the actual approach of regional economic community rationalization. The main findings show that despite the struggle of following different criteria many countries continue to be member of more than one Regional Economic Community.