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Assessing the prospects of the New East African Community

Thesis (MBA)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: The three East African countries of Kenya, Tanzania and Uganda have a long
history of economic co-operation, which at one time amounted close to political
integration. Their present co-operation arrangement is known as the East African
Community (the new East African Community), but is one that remains
susceptible to failure if conscious and purposeful steps are not timely adopted to
facilitate their integration. A number of reasons have been attributed to the failure
and eventual demise of the old East African Community. These reasons include,
the unequal distribution of gains and costs amongst the partner states,
perceptions and impressions on reaching conclusions about the distribution of
those gains and costs, the heavy internal and external debt burdens that the
three countries experienced in different degrees, differing political ideologies
amongst the political leaderships of the three countries, unwillingness to cede
government authority to the Community, and the absence of sufficient
possibilities for cost reduction shifts in the industrial sector amongst the three
countries. The above meant that there was little chance for potential economies
of scale.
While the recognition of the value of past experiences forms an important aspect
of a future strategy for the Community, prevailing and anticipated circumstances
are more relevant. This study project seeks to establish the chances for the
success or failure of the new East African Community by means of an analysis of
the historical passage of East African co-operation, in particular the former official
arrangement of 1967-1977 and scrutiny of the system underlying the present
arrangement. The differences and similarities of the two systems are then
extrapolated and the likely effects that those differences and similarities will
impart upon the new East African Community are investigated. Finally, the ways and means identified as a possible easing of the shortcomings are advanced as
recommendations.
One outstanding development in the existence of the new East African
Community so far has been the pursuance to establish an East African
Federation in the shortest possible timeframe. In the new East African
Community's formative treaty the objective of achieving a political federation is
declared to be the ultimate objective. It would appear that the concept of
"shortest possible time" was partly interpreted by those mandated to explore the
possibilities as relating to the timeframe during which the existing political
leadership would still be functioning. The study has, however, concluded that the
fast tracking of the political federation is one of the possible serious threats to the
sustainability and longevity of the new East African Community. Likewise,
membership of other regional integration arrangements by the partner states of
the Community - without a concrete formally agreed common mechanism to deal
with the ensuing conflicts of interest - is considered to be a weakness. The study
recommends a number of preconditions necessary for the smooth transition to a
political federation that would not compromise the positive prospects of the
Community. / AFRIKAANSE OPSOMMING: Die drie Oos-Afrikalande Kenia, Tanzanië en Uganda het 'n lang geskiedenis van
ekonomiese samewerking wat op 'n stadium feitlik op politieke integrasie
neergekom het. Hulle huidige integrasiereëling staan as die Oos-
Afrikagemeenskap (die Gemeenskap) bekend, maar dit bly vatbaar vir mislukking
indien bewuste en doelgerigte stappe nie betyds gedoen word om hulle
integrasie te bevorder nie. 'n Aantal redes is aangevoer vir die mislukking en
uiteindelike verval van die ou Oos-Afrikagemeenskap. Hierdie redes sluit onder
andere in die oneweredige verspreiding van winste en kostes tussen die
vennootskapslande, persepsies en indrukke oor besluite rakende die verdeling
van genoemde winste en kostes, die kwaai binne- en buitelandse skuldlaste wat
die drie lande in wisselende mate ervaar het, verskillende politieke ideologieë
tussen die politieke leierskappe van die drie lande, 'n onwilligheid om
regeringsgesag na die Gemeenskap oor te dra en die afwesigheid van
genoegsame moontlikhede vir kosteverminderingstappe in d ie nywerheidsektor
tussen die drie lande. Die bovermelde het beteken dat daar min geleentheid vir
potensiële groot ekonomieë was.
Alhoewel die erkenning van die waarde van ervarings uit die verlede 'n
belangrike aspek van 'n toekomstige strategie vir die Gemeenskap uitmaak, is
heersende en verwagte omstandighede meer relevant. Hierdie studieprojek poog
om by wyse van 'n analise van die historiese verloop van samewerking in Oos-
Afrika en in die besonder van die vorige amptelike reëling tussen 1967 tot 1977
en 'n ondersoek van die stelsel wat die huidige reëling onderlê, vas te stel wat
die kanse is op die sukses of mislukking van die nuwe Oos-Afrikagemeenskap.
Die verskille en ooreenkomste tussen die twee stelsels word dan geëkstrapoleer en die verwagte gevolge wat daardie verskille en ooreenkomste op die nuwe
Oos-Afrikagemeenskap gaan uitoefen, word ondersoek. Laastens word die
middele wat geïdentifiseer is as 'n moontlike verligting van die tekortkominge, as
aanbevelings voorgehou.
Een van die opvallende ontwikkelings in die nuwe Oos-Afrikagemeenskap is die
nastrewing van die doel om 'n Oos-Afrikafederasie binne die kortste moontlike
tyd tot stand te bring. In die Gemeenskap se stigtingsooreenkoms is
gekonstateer dat die uiteindelike doelwit die bereiking van 'n politieke federasie
is. Dit wil voorkom asof die konsep "die kortste moontlike tyd" gedeeltelik só
geïnterpreteer is dat dit na die tydsraamwerk verwys waartydens die huidige
politieke leierskap steeds die leisels sou hou. Die studie het egter tot die
gevolgtrekking gekom dat die vinnige pas vir die totstandkoming van die politieke
federasie een van die moontlike ernstige bedreigings vir die volhoubaarheid en
langdurige voortbestaan van die nuwe Oos-Afrikagemeenskap is. Op soortgelyke
wyse word lidstate van die Gemeenskap se lidmaatskap van ander
streeksreëlings - sonder die bestaan van 'n konkrete formeelooreengekome
gesamentlike meganisme om aandag te skenk aan voortspruitende
belangekonflikte - as 'n swakheid beskou. Die studie beveel 'n aantal
voorwaardes aan wat noodsaaklik is vir die gladde oorgang na 'n politieke
federasie wat nie die positiewe vooruitsigte van die Gemeenskap in die gedrang
sal bring nie.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/50280
Date12 1900
CreatorsGurumo, Shabani Rajab
ContributorsBreytenbach, W. J ., Stellenbosch University. Faculty of Economic & Management Sciences. Graduate School of Business.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageUnknown
TypeThesis
Format73 p.
RightsStellenbosch University

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