East African Regional Integration: Challenges in meeting the convergence criteria for monetary union
The realization of a successful monetary union among EAC partner states depends upon a sufficient degree of convergence of partners economies to established criteria. Gathering but scattered research has begun assessing the various benchmarks for this characteristic. This work integrates and synthesizes the various findings of literature with the view of providing a general perspective on how far the partner states have reached in meeting the macroeconomic convergence criteria and whether they have met the precondition for ascending the union. The review is done with anticipation of uncovering the challenges countries are encountering in aligning the economies to set criteria and what possible policy strategies exist to overcome these problems. Findings reveal that there has been very limited convergence. Generally countries remain behind the staged indictors. Progress to the monetary union is challenged by the highly demanding criteria, lack of exchange rate mechanism, obstacles to the common market, multiple memberships and many more. While countries might have the option of revising the benchmarks, efforts to strengthen national economic growth, build regional capacities, harmonize policies related to the monetary union, and correct constraints in the common market will enhance deeper integration and contribute greatly to macro-economic convergence.
|Date of creation:||Jun 2012|
|Contact details of provider:|| Postal: 51 Pool Road, Makerere University Campus, P.O.Box 7841 Kampala|
Web page: http://www.eprc.or.ug
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ainembabazi, John Herbert, 2007. "Landlessness within the vicious cycle of poverty in Ugandan rural farm household: why and how it is born?," Research Series 150485, Economic Policy Research Centre (EPRC).
- Silvana Tenreyro & Robert J. Barro, 2003.
"Economic Effects of Currency Unions,"
NBER Working Papers
9435, National Bureau of Economic Research, Inc.
- Barro, Robert & Alesina, Alberto, 2002.
4551795, Harvard University Department of Economics.
- Kishor, N. Kundan & Ssozi, John, 2009. "Is the East African Community an Optimum Currency Area?," MPRA Paper 17645, University Library of Munich, Germany.
- Obwona, Marios & Ssewanyana, Sarah, 2007. "Development Impact of Higher Education in Africa: the case of Uganda," Policy Briefs 150535, Economic Policy Research Centre (EPRC).
When requesting a correction, please mention this item's handle: RePEc:ags:eprcrs:148956. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search)
If references are entirely missing, you can add them using this form.