An Economic Integration Zone for the East African Community : Exploiting Regional Potential and Addressing Commitment Challenges

Integration in the East African Community offers significant opportunities not only to expand trade among member states, but more importantly to scale up regional production to take advantage of much larger global market opportunities. Special economic zones are a potentially valuable instrument to facilitate the integration of regional value chains in support of this scaling up. They also have the potential to deliver powerful demonstration effects on the benefits of integration and to help entrench the integration process. This paper discusses the proposal for developing an "economic integration zone" in the East African Community. The benefits of such a zone could be substantial, as would be the practical challenges to implementation -- in particular the political economy challenges. However, a number of institutional and commercial solutions exist to address these challenges.

Bibliographic Details

Main Authors:	Dobronogov, Anton, Farole, Thomas
Language:	English
Published:	2012-02-01
Subjects:	APPROPRIATIONS, ARBITRATION, AUTONOMY, BANKING STABILITY, BARRIERS TO INVESTMENT, BENEFICIARIES, CAPITAL MOBILITY, CAPITAL OUTFLOWS, CASH FLOW, COLLECTIVE ACTION, COMMON MARKET, COMPARATIVE ADVANTAGES, COMPARATIVE ANALYSIS, COMPETITIVE ADVANTAGE, COMPETITIVE INVESTMENT, COMPETITIVENESS, CORPORATE TAX, CORPORATE TAXES, CREDIBILITY, CUSTOMS UNION, DECISION MAKING, DEMOCRACY, DEMONSTRATION EFFECTS, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPMENT ASSISTANCE, DEVELOPMENT BANK, DEVELOPMENT POLICY, DEVOLUTION, DISPUTE RESOLUTION, DIVESTMENT, DOMESTIC ECONOMY, DOMESTIC MARKET, EAST AFRICAN DEVELOPMENT BANK, ECONOMIC CRISIS, ECONOMIC DEVELOPMENT, ECONOMIC EFFICIENCY, ECONOMIC GEOGRAPHY, ECONOMIC GROWTH, ECONOMIC INTEGRATION, ECONOMIC PERFORMANCE, ECONOMIC REFORM, ECONOMIC REFORMS, EMERGING ECONOMIES, EMPLOYMENT, ENFORCEMENT MECHANISMS, EXCISE TAXES, EXPENDITURE, EXPORT GROWTH, EXPORT PROCESSING ZONES, EXPROPRIATION, EXTERNALITIES, FINANCIAL INCENTIVES, FINANCIAL SYSTEM, FISCAL DISCIPLINE, FIXED COSTS, FOREIGN CURRENCY, FOREIGN DIRECT INVESTMENT, FOREIGN DIRECT INVESTOR, FOREIGN INVESTMENT, FOREIGN INVESTORS, FOREIGN TRADE, GAME THEORY, GDP, GLOBAL EXPORTS, GLOBAL MARKET, GLOBAL MARKETS, GOOD GOVERNANCE, GOVERNMENT POLICIES, GOVERNMENT POLICY, GROWTH POTENTIAL, HOLDING, HOME COUNTRY, HOST COUNTRIES, HOST COUNTRY, HOST GOVERNMENT, HOST GOVERNMENTS, HOUSING, INCOME LEVELS, INCOME TAX, INCOME TAXES, INCOMES, INDIVIDUAL FIRMS, INDIVIDUAL INVESTORS, INDUSTRIALIZATION, INFRASTRUCTURE DEVELOPMENT, INFRASTRUCTURE INVESTMENT, INFRASTRUCTURE INVESTMENTS, INFRASTRUCTURE REQUIREMENTS, INSTITUTIONAL ENVIRONMENT, INSTITUTIONAL MODELS, INSTRUMENT, INSURANCE, INTERNATIONAL BANK, INTERNATIONAL BEST PRACTICE, INTERNATIONAL INVESTMENTS, INTERNATIONAL INVESTORS, INTERNATIONAL LAW, INTERNATIONAL MARKETS, INTERNATIONAL STANDARDS, INTERNATIONAL TRADE, INVESTMENT ACTIVITY, INVESTMENT CLIMATE, INVESTMENT RISK, JOB CREATION, JOINT VENTURE, JUDICIAL SYSTEM, JURISDICTION, LABOR MARKET, LABOR MARKETS, LAND PRICES, LAND VALUE, LAND VALUES, LAWS, LEGAL AUTHORITY, LEGAL CONSTRAINTS, LEGAL FRAMEWORK, LEGISLATION, LEVIES, LEVY, LICENSES, LOCAL ADMINISTRATION, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, LOCAL TAXES, MARKET ECONOMIES, MARKET ECONOMY, MARKET INTEGRATION, MARKET REGULATION, MUNICIPAL GOVERNMENT, MUNICIPAL GOVERNMENTS, NATIONAL ECONOMY, NATIONAL GOVERNMENTS, NATURAL RESOURCE, NATURAL RESOURCES, OPPORTUNITY COSTS, PERSONAL INCOME, PERSONAL INCOME TAXES, POLITICAL CONSIDERATIONS, POLITICAL ECONOMY, POLITICAL REGIMES, POLITICAL RISK, POLITICAL RISK INSURANCE, POLITICAL RISKS, POTENTIAL INVESTORS, PRIVATE INVESTOR, PRIVATE MARKETS, PRIVATE PARTIES, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PROPERTY RIGHTS, PROVINCIAL GOVERNMENTS, PROVISIONS, PUBLIC, PUBLIC GOOD, PUBLIC GOODS, PUBLIC SERVICE, REAL ESTATE, RED TAPE, REFERENDUM, REGIONAL INTEGRATION, REGIONAL TRADE, REGULATOR, REGULATORY AUTHORITY, REGULATORY BODIES, REMITTANCES, REMOTE REGIONS, REPUTATION, RETURN, RETURNS, REVENUE COLLECTION, REVENUE SHARING, RISK PREMIUM, RISK PREMIUMS, ROADS, RULE OF LAW, SALES TAXES, SETTLEMENT, SHAREHOLDERS, SINGLE MARKET, STATE OWNED ENTERPRISES, STRUCTURAL CHANGE, STRUCTURE OF GOVERNANCE, SUNK COSTS, SURCHARGES, TARIFF BARRIERS, TAX, TAX REGIME, TAX REGIMES, TAX REVENUE, TAX REVENUES, TELECOMMUNICATIONS, TRACK RECORD, TRADE BARRIERS, TRADE FLOWS, TRADE POLICIES, TRANCHE, TRANSACTIONS COSTS, TRANSPORT, TREATIES, TREATY, WORLD ECONOMY, WORLD MARKET,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120213133305 https://hdl.handle.net/10986/3253
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