COMMON EAST AFRICAN CURRENCY, WHAT ARE THE MISCONCEPTIONS AND WHAT’S OPPORTUNE?

It’s not the first time for many to hear resounding ideas of trading blocks; this is a new and potentially myriadic concept unraveling in our face. Does the concept spell doom or a whole bed of roses for much of our peoples?

The grain of truth is that all this technical jargoning like common markets, tariffs, and currency ought to have not found themselves scribbled on most of the economics pages of newest publishers around if it was not for the economic block creation.

You remember the proverbial Dinosaurs; this time around common markets seek to create economic dinosaurs in form of companies and that comes with many complexities in cross investments for such monoliths.

Truly the opponents of the common business block have advanced their arguments basing on nationalistic than established facts and this seems to have appealed to many east African citizens.
The real view however which much of the ordinary citizens don’t know which they could advanced as an argument against the block creation.

The trouble is that even established blocks that have stood a test of time are entangled in much the same problems and that’s threat enough to scare off aspirants who are our people. In face of all this we have been discussing our countries are committing 0.3% of their GDP to the block and are not interested to up that is a foreseeable future, much of the decision people believe ought to be done at the national level just like the European Union members.

This can create free riding and as such hamper monetary convergence and this in turn could jeopardize their ultimate fiscal policies of individual nations and the block as a whole once they join together.
What if the resultant member policies are fiscally and monetarily hostile to block’s master plan?

This problem can be solved by threatening to slap punishments on all those infringing on the Pact
to maintain stability in line with others in case of uncontrolled deficits etc.
Troubling questions arise however, what’s the way around the problem if such threats were actually faced with superb performance like rapid growth which brings with it inflation yet the inflationary level have to be dictated.

The country with such immense growth would not endeavor to increase interest rates to curb inflation as it would shrink the capability to spend and as such increase unemployment of its people.
In this case a country’s people should not have to ride on block’s fiddle but rather do it their way which would antagonize the rest; they will have to rely on member’s free will to install fiscal and monetary policies in line with block’s pact trend.

Normally there might be parts of the block that have not grown fast enough like others to swallow up all the labor force and as such the workers will have to migrate and therefore should be a sort of subsidies to maintain those where they are not to move and that means the well off regions use their deep pockets to finance the badly off. I don’t think we could have such money to do that.

So does it make sense to join a block that is much less flexible or should all partners just put a minimum degree of integration monetarily and would such integration make a mark? Would there be any remedies any way am listening to whoever reads this.