EAC Integration series: Regional integration; an awakening long overdue

Andrew Othieno Rwigema Regionalism has gained strong momentum in sub-Saharan Africa. Statistics and trends have proven that regional groupings, not only provide opportunities for addressing common challenges, they also improve economic policy, increase market-size and competitiveness, attract foreign direct investment, and pool resources for investment towards common and mutual benefit. Regional integration is now a recurrent item and household theme in the development agenda of African policy makers. Most countries are members of regional economic communities whose long-term aim is the achievement of deep forms of integration such as currency and monetary unions. For a decade now, economic growth in sub-Saharan Africa has exceeded an annual 5 per cent, giving it a 4.1 per cent share of global trade. This is a meager increase from 3.4 per cent in 2000. On that note, the need for joint and long-term economic strategies (integration) has now come to be viewed as a necessary ‘problem’ that countries have to confront in their attempts to modernise, and achieve self-sufficiency. Countries are sometimes perceived as too small to provide significant domestic markets for both heavy and light industrial goods produced by techniques meant for larger scales of production. This forces them to abandon industrialisation or to adopt inefficient production techniques. These small countries are often competing with one another in international markets, significantly reducing their bargaining power in complex industrial markets. In addition, the fact that many African economies are dependent on a small number of similar primary products generally affects their participation in global trade. Although it is starting to grow, Africa’s participation in world trade has never been significant. Renowned authors and experts in this field, like Richard Mshomba and Ernest Aryeteey, have analysed and optimistically stated that increased trade within and among African nations could bring greater advantages to the nations involved, and help them cohesively mobilise resources by accessing markets for their goods. Therefore, economic co-operation and integration are not ends, but means towards sustainable economic development. African leaders have long recognised the significant opportunities presented by the regional approach to development and have supported regional efforts in a bid to sustain advances made in economic policy reform and democratic governance. Uganda’s President Yoweri Museveni, for instance, once rightfully declared: “Our states are too small, and that is why we cannot solve our problems. We have small markets that are not conducive to stimulate production. Africa should have concerted economic programmes for the benefit of all the countries on the continent.” Africa currently has four major integration movements that promote common goals of economic transformation and development, including eradication of poverty. These are the South African Development Co-operation (Sadc), the Economic Community of the West African States (Ecowas), and the Common Market for East and Southern Africa (Comesa), as well as the East African Community (EAC), which was “re-launched” on January 15, 2001 in Arusha, Tanzania after it had collapsed decades earlier. This cycle of articles will focus mainly on the EAC and bring insights into what led to the collapse of the Community in 1977, and if – bearing in mind progress thus far – it will survive this time, with its re-launching 24 years after demise. Or is the new EAC nothing more than a case of ‘history repeating itself’? Are we, East Africans, inadvertently shooting ourselves in the foot by steadfastly championing economic integration, and taking it even further by heading for monetary union? Could we not naively be “jumping from the frying pan into the fire”? This series will briefly analyse, from and contemporary perspective, the history of the EAC, and circumstances under which it was formed during the colonial era; factors that ultimately led to its disintegration, and the lessons learned from this collapse. The ensuing discussion delves broadly into fundamental factors that led to the EAC’s re-formation, and how this restoration process was initiated and conducted among the three countries (Kenya, Uganda and Tanzania). Additionally, a general analysis of the foundation upon which the EAC has been re-launched will also be carried out taking into consideration factors like intra-regional trade among partner states, and impediments that currently exist, in their different forms and perspectives, to hamper progress. Finally, success that has been achieved thus far will be explicated and analysed, to understand what today augurs for tomorrow. An understanding of the past will create unwavering ‘stability’ today, which will also create not only clearer purpose for tomorrow, but also guidance on how to get there. Ultimately, if Rwanda and all other partner states would like to make considerable economic gains from the opportunities offered by a regional initiative to which they belong, clear knowledge and understanding – down to the grassroots – of the different aspects of this regional arrangement’s past and present is of utmost importance. We all have high hopes in the EAC, but it is only fair to ask, the more reason we need to guard against retrogressive forces as far as integration initiatives are concerned. The writer is a business development expert Rwanda Association of Local Government Authorities’ (RALGA) Local Government Consultants. He is also a member of Rwanda’s National Trade Policy Forum andrewothienor@psf.org.rw

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EAC Integration series: Regional integration; an awakening long overdue