East African Regional Integration: Challenges in Meeting the Convergence Criteria for Monetary Union: A Survey

East African Regional Integration: Challenges in Meeting the Convergence Criteria for Monetary Union: A Survey
The realisation of a successful monetary union among EAC partner states depends upon a sufficient degree of convergence of partners' economies to established criteria. This work integrates and synthesises various findings of literature with the aim of providing a general perspective on the performance of partner states in meeting the macroeconomic convergence criteria and considers whether they have met the preconditions for ascending the union. Findings reveal that there has been very limited convergence and in general, countries remain behind the staged indicators. Progress to the monetary union is challenged by the highly demanding criteria, lack of exchange rate mechanism, obstacles to the common market and multiple memberships, among other factors. Efforts to strengthen national economic growth, build regional capacities, harmonise 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: 2012-06-01
Author: Annette Kuteesa
File Name: East African Regional Integration - Challenges in Meeting the Convergence Criteria for Monetary Union - RS 92.pdf
File Size: 1.69 MB
File Type: application/pdf
Created Date: 06-01-2012
RSS Feed