NRM has played a great role in revival of East African Community

By Irene Birungi Mugisha

The revival of East African Community 15 years ago during the NRM rule has placed the region in the metropolis on the global map increased market size of the region, led to high economic growth among benefits that comes with integration.

Regional economic integration is one way countries achieve national interests only in concert with others. It expands national markets to the region. Like globalization, it can be thought of as an alternative to international embeddedness or how one or countries relates to the rest of the world.

Learning from international experience and reorganizing the importance of regional integration, the establishment of the Permanent Tripartite Commission for East African Co-operation, was signed by President Yoweri Museveni of Uganda, Daniel Arap Moi of Kenya and Benjamin Mkapa of Tanzania.  

Revival of East African community 30 November, 1993 - permanent tripartite commission for East African co-operation established. On March 14, 1996 - the co-operation secretariat was launched in Arusha as the executive arm of the tripartite commission. On November 30, 1999 - the treaty establishing the east African community is signed. On July 7, 2000 -the treaty entry into force of the treaty and coming into being of the new EAC was realized and was launched on January 15, 2001 by the three heads of state.  

President Museveni has been at the fore front that East African economies should develop through regional integration over the last 15 years the EAC regional integration has proven itself on the international stage and has placed EA Region the metropolis on the global map.

Globalization and integration has similarities, but unlike globalization, regional integration is geographical, and in some cases political. It is stronger institutionally than globalization, as rules tend to be tighter and peer pressure can be more intense.  Expanding markets and input sources beyond national boundaries is one of the most compelling arguments for integration and so far the East African benefited from integration that was revived over a decade ago.

Currently EAC with an expanded market for goods and services, for output and inputs, higher economic growth and improved welfare is somewhat has become real. Integration helps more efficient resource allocation across the region (or globally) in line with the principle of comparative advantage. As a result of integration, productivity growth has been enhanced; regional integration has accelerated economic growth and increase employment.

Key achievements are, the joint patrols, sharing of criminal intelligence, capital markets development and cross listing of stocks, harmonization of the EAC Axle load limit, free movement of stocks, abolition of student visas for East Africans, implementation of cross border disease control programs (EAIDs), and operationalization of the East African passport.

Growing production networks also strengthens intra-regional trade in East Africa. While the region continues to rely on the global market, the shift reflects a trend of growing regional integration, a process that accelerated since the commencement of East African Customs Union in January 2005. Other factors have certainly played important roles, but the trend of increased integration and the continued strength of production networks clearly show how the region can maintain market expansion and better resource allocation across the region.

The objectives of the EAC Customs Union are; to further liberalize intra-regional trade in goods on the basis of mutually beneficial trade arrangements, to promote efficiency in production, to enhance domestic, cross-border and foreign investment and to promote economic development and diversification in industrialization all within the Community.

The affected trade regimes in the three countries are increased tariffs for Uganda and Tanzania; reduced tariffs for Kenya and has led to an increase in tariff dispersions from one product to another, across products within sectors, and across stages of production.

Economic effect of the customs unions shows that there has been an increase in revenue despite initial fears. The main factors for this were, improvements in economic performance, improvement in tax administration (for example, simplification of tax laws and regulations, improvement in staff competencies,) and Growth in trading activities;

At the time of reviving the east African community it comprised of the republics of Kenya, Uganda and Tanzania total combined area 1.8 million square kilometers with a combined population approximately 83 million. Today due to integration in place the size and the population of East African region has expanded this follows the coming on board of Rwanda and Burundi into the community in 2007 with the population of 145+ million persons in 2014 compared to an estimated 141.8 million persons in 2013, representing a 2.6 percent growth rate.

The evolution of the regional integration saw the Protocol on the Establishment of the East African Community (EAC) Common Market entered into force on 1 July 2010, following ratification by all the five Partner States: Burundi, Kenya, Rwanda, Tanzania and Uganda, signed by the Heads of States on 20 November 2009 during the 10th Anniversary celebrations of the revived Community.

The EAC Common Market is in line with the provisions of the EAC Treaty. It provides for "Four Freedoms", the free movement of goods, labour, services, and capital, to significantly boost trade and investments, make the region more productive and prosperous and the Protocol is significant steps towards the achievement of the next milestones in the integration process namely the Monetary Union and the EAC Political Federation.

The region's population density grew modestly from 83.6 in 2013 to 84.7 in 2014 as a consequence of the growth in population. Life expectancy in EAC Partners States in 2014 ranged between 50 and 65 years with Rwanda having the highest life expectancy at 65 years while Uganda has the lowest at 50 years.

The economic development in the region as a result of integration shows that GDP at market prices at current prices in US Dollar has been as follows since 2007 $72.316 billion, 2008 $86.589b, 2009, $93.635b, 2010 100.790b, 2011 $112.518b, 2012 $130.565b, 2013 $142.730b 2014 $147.491b.

The writer is the head print and broadcast in the Office of the National Chairman of the National Resistance Movement Party.