A common currency for the East African community? Lessons from the introduction of the euro
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RIS BIB ENDNOTEPublication date: 12.2018
International Business and Global Economy, 2018, Volume 37, pp. 215 - 230
https://doi.org/10.4467/23539496IB.18.015.9388Authors
The paper analyses the feasibility of a common currency for the East African Community (EAC), which comprises Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda. The paper discusses theoretical insights on the benefits and costs of a common currency. It then uses the introduction of the common European currency, the euro, as a potential yardstick to assess the feasibility of a common currency in East Africa. The paper analyses the readiness of the EAC’s economies for a common currency as measured by relevant indicators. It concludes that some caveats are in order with regard to the feasibility of a common East African currency at the present point in time. It also warns that expectations of the development impact of a common currency should not be too high, as the example of the euro shows that the real outcome in terms of trade facilitation and consumer welfare is much lower than expected.
Wspólna waluta dla wspólnoty Afryki Wschodniej? Lekcje płynące z wprowadzenia euro
W niniejszym artykule analizuje się ideę wprowadzenia wspólnej waluty dla Wspólnoty Wschodnioafrykańskiej, w skład której wchodzą Burundi, Kenia, Rwanda, Sudan Południowy, Tanzania i Uganda. Omawia się w nim korzyści i koszty wynikające z wprowadzenia wspólnej waluty, traktując doświadczenia z wprowadzenia euro jako punkt odniesienia przy ocenie wykonalności takiego zamierzenia w Afryce. Ponadto poprzez analizę odpowiednich wskaŹników przeprowadza się ocenę gotowości gospodarek wschodnioafrykańskich do wprowadzenia wspólnej waluty. Z przeprowadzonej analizy wynika, że istnieją powody, by do idei tej podchodzić bardzo ostrożnie. Równocześnie ostrzega się, by oczekiwania dotyczące wpływu wspólnej waluty na rozwój społeczno-ekonomiczny nie były zbyt wygórowane, gdyż – jak pokazuje wprowadzenie euro – rzeczywiste efekty w obszarze wymiany handlowej i korzyści konsumenckich były mniej znaczące od oczekiwanych.
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Information: International Business and Global Economy, 2018, Volume 37, pp. 215 - 230
Article type: Original article
Titles:
Bremen University of Applied Sciences
University of Sarajevo, Sarajevo, Bosnia and Hercegovina
Educons University, Sremska Kamenica, Serbia
University of Stellenbosch University of Dar es Salaam, Tanzania
Published at: 12.2018
Article status: Open
Licence: None
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