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Economic Co-operation in East Africa
Published online by Cambridge University Press: 11 November 2008
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This article explores the prospects for co-ordinated co-operative economic advance in East Africa. Its frame of reference reaches wider than simply an analysis of the 1967 Treaty.1 This broader viewpoint is important for two major reasons. In the first place, there are a number of aspects of economic interdependence which are not covered at all in the Treaty; the implication is that these will be of no direct concern to the institutions of the new East African Community (Kenya, Uganda, Tanzania). For example, the level of the external tariffs of the three countries is obviously crucial to the operation of the Common Market; among other reasons, this is because the maximum permissible transfer tax is defined in terms of the external tariff. Yet the committee responsible for setting external tariffs is not linked in any direct way with the institutional set-up in Arusha; it seems likely that decisions of the tariff committee will not be subject to discussion or appeal through these community institutions.
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References
Page 277 note 1 Treaty for East African Cooperation (Nairobi, 1967).Google Scholar The literature on the East African common market is immense. We would single out the following as being particularly informative: The East African Economic Review (Nairobi), III (New Series), 2 12 1967,Google Scholar particularly articles by Helleiner, G. K. and Hazlewood, A., pp. 53–80;Google ScholarLeys, C. T. and Robson, P. (eds.), Federation in East Africa: opportunities and problems (Nairobi, 1965).Google Scholar For a factual summary and interpretation of the Treaty, see Green, R. H., The Journal of Modern African Studies (Cambridge), v, 3, 11 1967, pp. 414–19.Google Scholar
Page 279 note 1 The reference is to the railway link which Tanzania is building with Zambia—not yet a partner in the Community.
Page 280 note 1 Newlyn, W. T., Finance for Development (Nairobi, 1968), pp. 31–7.Google Scholar
Page 281 note 1 The transfer tax is a tariff on intra-union trade, which can be imposed under carefully defined conditions, at levels up to 50 per cent of the external tariff rate. The following are among the most important conditions: (a) the imposing country must have a bilateral deficit in the trade of manufactured goods with the country against whose goods the tax is levied; (b) the imposing country must have substantial (carefully defined) productive capacity at home for the goods in question; (c) each transfer tax expires eight years after its imposition.
Page 286 note 1 African Research Bulletin, Economic, Financial and TechnicalSeries (Exeter), V, II, 31 12 1968, p. 1193.Google Scholar For a geographer's analysis of the potential benefits of an expanded East African Community, see O'Connor, A. M., ‘A Wider Eastern African Economic Union ?—some geographical aspects’, in The Journal of Modern African Studies, VI, 4, 12 1968, pp. 485–93.CrossRefGoogle Scholar
Page 287 note 1 Ndegwa, P., The Common Market and Development in East Africa (Nairobi, 1965).Google Scholar