The African Development Bank (AfDB) has launched a new policy paper, emphasizing that “trade integration is key to macroeconomic convergence” in Africa, PANA reports Tuesday.
In an AfDB statement, the bank said the new report carries the importance of trade integration to macroeconomic convergence.
The report, entitled: “Supporting Macroeconomic Convergence in African regional economic communities”, is said to have recommended linking ”the roadmap in the implementation of macroeconomic convergence to progress made in trade integration.”
The AfDB new report is said to have come with some revisions to the application of macroeconomic convergence, building on the lessons from the experience in implementing the concept in Europe and elsewhere.
“Indeed, the macroeconomic convergence achieves its highest relevance when it is mainstreamed into regional efforts towards development and poverty reduction,” remarked Jian Zhang, AfDB’s principal macroeconomist.
Meanwhile, the new policy document also highlights the important role of fiscal policy and fiscal convergence in facilitating macroeconomic convergence.
The report is said to be one of AfDB’s two first volumes of a series of publications dedicated to regional integration.
The bank’s “Regional Integration Policy Papers” series focus on topics relating to regional integration in the areas of infrastructure trade, investment, finance and regional public goods.
”This new knowledge dissemination series is inspired by requests received by the AfDB from some regional groupings for technical assistance in re-examining their macroeconomic convergence criteria towards making them more relevant to their objectives, level of financial development and macroeconomic management capacity,” the statement noted.