A peek into the Eurozone does not bring a smile on an onlooker\u2019s face. Despite its third bailout in five years, Greece\u2019s economic problems remain largely prevalent. Within that period, its economy has shrunk by a quarter<\/a>, and its unemployment rate currently sits above 25%<\/a>. The problem, however, spans throughout the region. At present, 18 million people across the Eurozone are unemployed. This equates to 11.1% of the workforce<\/a>. Additionally, government debt burdens are fairly high<\/a>: 130% of GDP in Italy and Portugal, and above 100% in Belgium and Cyprus. To compound their misery, most of the European economies are predicted to grow by less than 2%<\/a> for the coming year (IMF forecast). The Eurozone is in a crisis. The ongoing troubles in Europe point to the difficulty in creating and more importantly sustaining a common monetary union, and a common policy to adhere to the needs of individual countries (unless you are Germany). The failure of the Euro to live on its promise of a successful monetary union has threatened the implementation of monetary alignment in regions across the globe.<\/p>\n

Despite the above warnings, South of Europe, the East African Community (EAC) is working towards a common monetary union with the notion of introducing a common currency for the entire region. While the challenges of macroeconomic convergence and loss of national sovereignty, not forgetting the failure of Euro, act as barriers, the EAC has taken positive steps towards this ambitious goal. While continuing to work towards fiscal convergence, the EAC has made progress through harmonization of financial, social and institutional laws and regulations. Although a monetary union is a work in process, the member states can definitely rejoice over the advantages that such a union will bring to the region in the future. With increased stability and investment being the primary positive outcomes. \u201cYes, the risks are evident, but the progress and benefits are even more apparent. The EAC\u2019s decision to introduce the East African Monetary Union (EAMU) is certainly bound to be a successful endeavor,\u201d Mr. Wayne Sandolhtz, Professor of International Relations, USC.<\/p>\n

<\/a><\/p>\n

The Community\u2019s Work<\/strong><\/p>\n

The EAC is a regional intergovernmental organization of five East African countries. Initiated in 1999 by Kenya, Tanzania and Uganda, the community welcomed two new members in 2007: Burundi and Rwanda. \u201cThe community was established with the intention of encouraging strong economic and political relationships within the economies in the region,\u201d Mr. Sandolhtz. Since its induction, the EAC has worked towards this goal. Introduction of the Customs Union (2005) mitigated tariff and non-tariff barriers to trade, promoting intra-regional trade, and harmonizing standards for goods produced in East Africa. Moving a step further, the EAC initiated the Common Market (2010) to encourage free movement of capital and labor across the region. As a result, the region profited from economical development<\/a> through increased investments, cross listing of stocks and joint infrastructure development projects, most notably the Arusha-Namanga-Athi River Road, which covers Tanzania, Kenya and Uganda. The countries have also joined hands to move towards social alignment<\/a>. Standardization of university fees for citizens, implementation of cross-border disease control programs, and harmonization of procedures for granting work permits have encouraged movement of people to achieve labor efficiency in the region. Additionally, the countries share criminal intelligence and surveillance to combat cross-border crime.<\/p>\n

<\/a><\/p>\n

The EAC functions as a community to work towards collective social and political progress. But more importantly, it is an economic union. In addition, the EAC hosts four of the emerging economies of Africa: Rwanda, Kenya, Uganda and Tanzania. Hence there is a collective need to work towards economic growth through regional integration and implementation of a common currency. Therefore, on November of 2013, the EAC announced its decision to introduce EAMU and the East African Shilling by the year 2024. \u201cEast African community is now fully embarked on enormous, ambitious and transformational initiatives for our people,\u201d Uhuru Kenyatta, Kenya\u2019s president.<\/p>\n