Examining the Contribution of the East African Integration towards Economic Development of Member States: A Case Study of the Ugandan Economy.

Abstract

MUSISI SARAH (2008-M023-10007) Examining the Contribution of the East African Integration towards Economic Development of Member States: A Case Study of the Ugandan Economy. Over the past decades, there has been a significant increase in efforts of developing countries to achieve regional economic integration despite the fact that people‟s welfare has remained low in partner states. One wonders whether regional integration has led to economic development of the member states. Consequently, this study sought to examine the contribution of the EAC to the economic development of the people in Uganda. Specifically, the study examined the quantitative and qualitative benefits of the EAC to Ugandans as well as the problems that hinder the EAC from delivering tangible benefits to its people. A cross-sectional survey design was adapted with a total sample of 66 respondents. The primary data were collected using questionnaires, key informant interviews and observation. Consequently, both qualitative and quantitative data were collected. Research findings revealed various quantitative benefits of the EAC to Ugandans like increased cross-border trade, freedom of movement of Ugandans to partner states, increased employment opportunities and growth in transport infrastructure in the region. The qualitative benefits included success in establishing the organs of the community as stated in the EAC treaty, establishment of the EAC Customs Union, strengthening of an East African identity, attempt to harmonise the monetary and fiscal policies, increased tourism, ability to travel with minimum documentation, acceleration of industrial growth and promotion of peace and security between Uganda and other partner states among others. However, the problems that hindered the EAC from delivering tangible benefits to its people included: poor road network, corruption by officials, non-tariff barriers to trade and lack of a single currency for use in East Africa, restrictions on importation and/or exportation of foods and language barrier. In order to enable Ugandans benefit from the EAC, the study recommended abolishing of non-tariff-barriers, ensuring free movement of persons and labour, involving the private sector in the identification, formulation, and implementation of integration policies and programmes. The development strategy should be changed from producing raw materials and being passive consumers of manufactured goods to dynamic, industrial and diversified economies. Adherence to good governance and implementation of market-driven economic policies were also recommended by the study. Key Words: East African Integration, Economic Development, Member States.