Abstract
The countries in the East African Community (EAC) are among the fastest growing economies in sub-Saharan Africa. The EAC countries are making significant progress toward financial integration, including harmonization of supervisory arrangements and practices and the modernization of monetary policy frameworks. This book focuses on regional integration in the EAC and argues that the establishment of a time table for the eliminating the sensitive-products list and establishing a supranational legal framework for resolving trade disputes are important reforms that should foster regional integration.
03/35: “A Currency Union for the Caribbean,”DeLisle Worrell
Monetary Union in West Africa (ECOWAS): Is it Desirable and How Could It Be Achieved?
Abstract
Under the Treaty for the Establishment of the East African Community (EAC), the signatory nations—Burundi, Kenya, Rwanda, Tanzania, and Uganda—have committed to regional integration across economic, social, and political spheres. The treaty explicitly emphasizes political federation as the ultimate goal underpinning regional integration efforts, which led to the ratification of the Customs Union Protocol in 2005 and the Common Market Protocol in 2010. Efforts toward a monetary union are well advanced and the member countries have adopted a Monetary Union Protocol.
Abstract
The authorities of the East African Community (EAC) countries envision strengthening and integrating the banking and financial systems in the hope that greater regional integration will increase the scale of financial operations and competition. This would reduce the cost of financial services, increase the efficiency of financial intermediation, and stimulate investment. International donors have been supportive.
Abstract
Well-functioning financial markets can accelerate economic growth and alleviate poverty. A large body of research has found a positive relationship between financial market development and economic growth, including in sub-Saharan Africa (Levine and Zervos, 1998; Adjasi and Biekpe, 2006a; Collins, 2004).1 Developed financial markets promote growth by mobilizing domestic savings and investments, efficiently allocating mobilized resources to local companies, and allowing diversification of risks. In addition, deep and liquid local financial markets can lessen an economy’s vulnerability to external shocks by reducing currency and duration mismatches in raising funds. Cross-country evidence shows that financial development can reduce income inequality by increasing the income of the poor (Making Finance Work for Africa, 2007).