THE FUTURE OF THE EAST AFRICAN COMMUNITY
The East African Community (EAC) is a trading block in East Africa with five member countries: Republic of Kenya, Uganda, the United Republic of Tanzania, Republic of Rwanda and Republic of Burundi. It was established on November 30, 1999 with its headquarters in Arusha, Tanzania. The EAC is established to deepen economic, political and social co-operation for the mutual benefit of all member states. In 2005, the EAC established the customs union, in 2010 a Common Market is established and by 2012 a Monetary Union will be created.
The five member states have a combined population of 125 million over a 1.82 million sq. kilometer and a GDP combined of US billion dollars (est. 2009) and 80 million people. The strategic relevance of the block is that member countries share a common history and speak the same language, the Kiswahili. All countries have a vast amount of natural resources, such as minerals, water, energy, forestry and life resources, agricultural, livestock and tourism. This brought the EAC as one large community with strategic and geopolitical importance. By pooling in their resources and by opening their economies for trade liberalization within the block the EAC is hoped to become a leading entity in East Africa. (Africa Business Pages, n.d., CICC, n.d.)
While the EAC is promoted as geo-political and economic strategy by the government, we ask, “How do the ordinary citizen perceive the EAC?” For ordinary citizens, the EAC offers freedom of movement from one country to the other with fewer documents, ability to work and own lands on partner states, business opportunities, easier access of goods within the 5-member countries, better infrastructures such as the road systems, reduced tariffs and reduced taxation. These are the positive advantages of the new economic block as observed by those who frequently travel around the 5-countries. Members of the population in the informal-economy sector also observe an easier and less-restrictive business at the borders. A psychological benefit of the East African economic block is that it is perceived to improve a sense of belonging “being African” among the constituents of the 5 countries. But while the positive benefits are identified some of the members of the population in the EAC do not know the member countries. This is a gap that has to be addressed by the EAC by constant and continuous education and information communication.
One of the most talk-about issues regarding the establishment of the East Asian Community is the budgetary restraints. The five member countries are each saddled with their own economic woes unique to their country. This is addressed by budget transparency and accountability as a requirement for all member countries. Transparency and accountability can be learned through training staff and officials. In Tanzania for instance, the issue on over-reliance on foreign loans, grants and aids to finance budget deficit cropped up. To improve transparency, it is suggested that donors have a role in providing transparency by harnessing the website technology where their budget books are posted for access to the public. (Daily News Tanzania, 2011) Each of the members of the East African Community are required a partnership contribution. Its proposed budget for the financial year 2011/2011 amounted to ,967,160 which is 24% higher than the approved budget of ,664,143 for the same financial year. This means that each partner country is required a 39% increase in contribution which is 29% higher than the council directive which allows for not more than 10% increase in their contribution. This has put more pressure on the budgetary constraints of the five countries that have already finished and completed their independent budget for the financial year 2011/2012. (Muwanga, 2011)
Recently talks on a single currency and an establishment of a single central bank resumes. The East African Monetary Union (EAMU) requires the states to transfer their monetary sovereignty to the EAC which also necessitates the council to establish a permanent framework for a centralized decision-making of all EAMU matters and the single currency. (Talemwa, 2011)
The dream of a complete political federation by 2015, will make the 5 states a single political unit, with a single currency and a single head of state. This integration may still be a far-fetched reality in 2015 as some member countries are receiving the idea coldly. The other problem of the integration is that some countries have a relatively lower level of employment skills. In Rwanda for instance, much of their labor is unskilled. With integration, it is likely that Rwandan people are marginalized as some of the member-countries require highly skilled and specialized professions. (Ashmwe, 2009)
The complete political federation of the EAC will be the first of its kind in the world if it pushes. There are however a significant number of obstacles such as the reconciliation and integration of their budgets, a solution on their skilled and unskilled labor discrepancy as well as the integration of their independent laws and regulations into one. I think, EAC has a longer road to take to realize a complete political federation.
REFERENCES
Ashmwe, A., 2009. East Africa: Hurdles Ahead for EAC Political Federation. Available at:< http://allafrica.com/stories/200907310052.html> [Accessed 29 May 2011].
Coalition for the International Criminal Court. The East African Community. [online] Available at:<http://www.iccnow.org/?mod=eac> [Accessed 28 May 2011].
Daily News Tanzania, 2011. Budget to be Read on June 8. [online] Available at:< http://www.africanfinancialmarkets.com/front-news-detail.php?NewsID=134823> [Accessed 28 May 2011].
East African Community. [online] Available at:<http://www.eac.int/about-eac.html> [Accessed 28 May 2011].
Mwatha Karega, RG., 2009. Benefits Experienced by Ordinary Citizens from East African Community (EAC) Regional Integration. Pdf. [online] Available at:<htt[:// news.eac.int/index.php?option=com_docman&task=doc...gid... > [Accessed 28 May 2011].
Muwanga, D., 2011. States Financial Constraints Hurt EAC Budget. [online] Available at:< http://www.busiweek.com/11/eac-issues/95-eac-news/947-states-financial-constraints-hurt-eac-budget> [Accessed 29 May 2011].
Shikwati, J., 2006. The Benefits of the East Africa Federation to the Youth. Speech. [online] Available at:<http://www.africanexecutive.com/modules/magazine/articles.php?article=751> [Accessed 28 May 2011].
Talemwa, M., 2011. East Africa Single Currency Talks Resume. [online] Available at:< http://www.observer.ug/index.php?option=com_content&task=view&id=11808&Itemid=68> [Accessed 28 May 2011].
The African Business Pages, n.d. The East African Community. [online] Available at:<http://www.africa-business.com/features/eac.html> [Accessed 28 May 2011].
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