current events: summary 1

In East Africa, many things are going on in the world of economic policies.
Uganda, Kenya, and Tanzania have agreed to implement a trade pact on january 1, that includes "The Common External Tariffs" and is supposed to help boost trade. Their goal is to eventually establish a common market, allow goods to pass between the three countries tax-free, lead to a common currency, and eventually a political confederation. The three countries' farm-based economiesare considered stable compared to their war-devasated countries, and Kenya is considered to have a more developed industrial base, so to compensate for this, according to the East Africa Community Customs Union, Kenya will pay duty on its goods entering Tanzania and Uganda for 5 years. The Customs union will also enable businessmen to freely access an enlarged market of more people and more money.
Joining the East African Community are the countries of Rwanda and Burundi, and their membership will take effect from July first. Consultations on forming a political union are also under way.
There is no duty on goods exchanged between countries in the E.A.C., making the movement of goods across the region cheaper. Kenya, Tanzania, and Uganda have all reported increased revenues since the launching of the customs union, so it seems to be working.
Plans for further integration are being made, including an East African common market, a single currency, and a federal president and government.
Kenya, Uganda, and Tanzania have also unveiled budgets that will hopefully keep hefty deficits in check and reduce their reliance on aid. In Kenya, the public deficit has risen since lasy year. The three countries hope to raise taxes and boost tourism in order to help narrow the budget gaps. Unfortunately, joining the Customs Union, which will mean the abolition of customs duties, an important source of revenue for the countries, could cause difficulties in the short term.
Kenya, Tanzania, and many other African countries rely heavily on tourism as a source of revenue, but with the recent terror attacks, tourism is declining because tourists do not feel safe traveling there. Afican countries are attending the World Tourism Conference, along with their other attempts to encourage western tourists to return.
In East Africa, many countries are suffering from declining tourism. Some have widening public deficits, or are having trouble trading with each other because of duties, uncommon currencies, ect. Some efforts to boost the economy include making budgets and forming the East African Community.

- info. from BBC News (online)



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