The East African community: its collapse and possibilities for its revival

Abstract

It is widely believed that the integration of markets of different countries will lead to an accelerated economic development of the countries concerned · in view of the resulting, better resource utilization and the economics of scale. Bela Basal, a proponent of this idea, defines economic integration as the continuous process of removing discrimination among st economies. The objective of this paper is to analyze the causes of the collapse of the East African Community and the possibilities for its revival. In the course of the study it was found out that inequitable distribution of gains, benefits and costs between Kenya on the one hand and Uganda and Tanzania on the other was one of the major reasons for the collapse of the EAC It is contended in this study that economic integration in spite of the experience of the East African Community can be of great benefit to small countries of Africa and especially East Africa. The EAC cannot be revived as it used to be that is, with the same composition. It will have to be integrated in the Preferential Trade Area where its experiences could be most useful in drawing up a fair compensation scheme, common industrial planning and a common agricultural policy.