Paper short abstract:

The paper argues for industrialisation through sectoral integration and better governance of regional markets through creation of comparative advantage. On the example of the West African cocoa sector the feasibility of commodity-based industrialisation through sectoral integration is assessed.

Paper long abstract:

The paper uncovers extensive shortcomings of the current model of regional integration and, on the basis of this critique, highlights the need for a new paradigm of regionalism which emphasises industrialisation through sectoral integration/cooperation and a better governance of regional markets through the creation of comparative advantages. The focus is hence on capacity-building and sustainable development. This new paradigm is dubbed 'regional developmentalism'.

By taking the West African cocoa sector as an example, it is argued that, despite the various structural and institutional challenges faced by most economies in the region, commodity-based industrialisation can be achieved through sectoral integration. Towards this aim the reduction of tariffs and non-tariff barriers is insufficient. Rather, there is a need for suitable regional industrial policies, which could include sectoral integration schemes targeting industries with great potential and are geared towards capacity-building and the creation of forward and backward linkages.

The feasibility of such an approach is carefully assessed by analysing the legal and institutional conditions in West Africa and the political economy of regional cooperation and sectoral integration. Insights from the West African cocoa-chocolate sector case study are compared against ongoing cases of sectoral integration—cotton and leather industry in East Africa.