Economic and Business News By Leo Odera Omolo In Kisumu City
The coming into effect of the East African Community Common Market Protocol on July 1st,2010 has made no significant change in the region’s trading pattern.
In fact, the common market protocol has been greeted with both applause and skepticism and both sides of the divide have some very valid points of argument.
The development of regional co-operation, however, is viewed as being in the best interests of all Eastern African people and their friends as well as the international partners.
Integration is also viewed by stakeholders as a key factor for the establishing of political stability, security and economic prosperity in the region.
A number of critical areas therefore need to be looked into quickly and carefully in order for the people of the region to reap maximum fruits of the co-operation. There are contentious issues such as trade, energy, communications technology, transport, security, justice, political system and governance.
Though regional cooperation, a business environment will be created that will provide for foreign and national direct investments creating of the much needed job opportunities and encourage individual initiatives and improve the living standards of the people, regional trade should therefore be treated as being particularly important in the region’s economic development and political stability.
Infrastructure development is of vital importance for developing the economies of East Africa for it is an initial and indispensable requirement for an increase in economic growth. Infrastructure must be perceived and conceived in a holistic manner. However, infrastructure development without the requisite reforms necessary to strengthen institutions that will provide sound development policies cannot provide economic growth by way of regional and cross-border integration.
Investors in the energy sector in the region too, must provide reforms to reduce cost of production and improve security of supply, while integrating the region into the common energy market. These are some of the bottlenecks which need to be ironed out as quickly as possible if at all genuine and meaningful regional integration is to be realized within the foreseeable future.
Another important area is the increased participation of the civil society organizations in the regional integration.
The quality of democratic system applied, political stability and regional socio-economic development. The involvement of civil societies into the regional integration and various reforms undertaken in the governance of respective countries will contribute to the quality of integration process as well as sustain public support for regional co-operation and integration.
It is indeed heartening that East African countries of Kenya, Uganda, Tanzania, Rwanda and Burundi have now realized that they have a responsibility towards each other, and that they have many challenges in common ,some of them are of cross-border nature.
These countries now see considerable benefits of the close regional cooperation, political understanding, economic and social prosperity. This new resolve to address issues of common relevance in a cooperative manner is reflected in concrete progress being made on the ground.
It is now up to their international trading partners in particular and the international community in general to show its political goodwill and provide these regional governments with the necessary logistics and financial assistance to enable them achieve their goals.
With the in5trnatinal nature of crime and terrorism, regional co-operation is instrumental in addressing the security challenges facing the region such as piracy against merchants ships in Indian Ocean ferrying commercial cargoes and goods to he region.C0mplex and urgent issues such as regional crime and corruption or integrated border management, and illegal migration can be effectively addressed only by a trans-border approach.
The EASTAFRICAN, a Kenyan weekly dedicated exclusively to the news and features coverage of EAC’s events said in its latest edition that a “concerted efforts and action here is indispensable, not just as an end in itself but also a signal to the rest of the wider region.”The rule of law is a key priority which needs to be addressed by the countries concerned.”
In areas of justice and home affairs the countries need to accelerate internal democratic reforms to enhance and strengthen regional co-operation to achieve results on the same level, “Screamed the EAST AFRICAN.
Observers and pundits maintains that political will and commitment by the countries of the region are key to promoting regional co-operation in its various forms, whether in the field of economic infrastructure or justice and home affairs. Other areas that require attention include public procurement and privatization, judiciary, financing of political systems and transparency in public administration and government.
Well drafted legislation and effective implementation are needed in areas such public public procurement, intellectual, property rights, financial control, audit and the fight against fraud.
Ends
leooderaomolo@yahoo.com