The Brexit Has Exposed the Deficiencies of Regional
Integration And Globalization
- · Uganda Has Not Built Enough Production Capacity To Satisfy The EAC Market
- · The EAC May Not Be As Viable As President Museveni Is Making Us To Believe
A lot has already been said and written about last Thursday’s
famous referendum that culminated into the exit of United Kingdom from the European
Union.
The high and mighty powers in British circles seem NOT to have
anticipated that the referendum would result into the exit of the English from
the continental body.
But my view is that the outcome of the referendum (LEAVE) was
long overdue.
Any country that seeks to integrate with other countries needs
to first do three things;
1; To first build enough production capacity to satisfy the local
market (36m people) before it embarks on the regional market (170m people)
2; First build concrete internal infrastructure (power ,
roads and railway transport)
2; To periodically consult its citizens (through referendum)
about the viability of integration with
other countries
THE REALITY IN UGANDA
In Uganda our president, Yoweri Museveni has been a lone
voice in propagating the voice of the east African integration. His argument is
that our market is too small to accommodate our products.
He therefore argues
that we need to integrate our 38 million Ugandans together with the 45 million Kenyans,
50 million Tanzanians, 11 million southern Sudanese, 11 million Burundians, 12
million Rwandese to widen our marker base for our products.
The amazing thing is that no single Ugandan has ever challenged
president Museveni on whether we have built enough capacity to produce for the
regional market of 145 million people.
THE DEMERITS OF
REGIONAL INTEGRATION
For very many years we have not asked ourselves what happened
to regional bodies like ECOWAS, SADC, COMESA, PTA, and IGAD etc
Yet the truth is that all these blocs failed to work due to
various reasons.
The Brexit has therefore
been an eye opener on the demerits of regional integration in particular and globalization
in general.
When you observe critically, you will realize that the two
concepts; globalization and regional integration actually mean the same thing.
This is because while regional integration is the
harmonization of working relationships between countries with the objective of enabling
free movement of goods and services together with the nationals of their nationals.
On the other hand globalization envisages a free movement of
capital, ideas and technological innovations between the citizens of the globe.
The difference between the two is that while integration is institutionalized
by promulgating laws, globalization operates spontaneously. In other words globalization is not regulated by
legislation but integration is institutionalized through legislations and memorandum
of understanding between countries with an objective of achieving a common
good.
Regional integration is almost similar to cooperatives where
a group of people who agree to join together as a group with an objective of achieving
a common goal.
So while our president has been pushing us to integrate our
country with the brothers in the region, I think he needed to first seek the permission
of the citizens.
The question we needed to pose to president Museveni and
other proponents of the EAC should be as follows;.
WHAT IS UGANDA’S
PRODUCTIVITY
While president Museveni makes a very attractive argument
about marketing Ugandan products in the region, we need to know whether Uganda has
built enough capacity to produce for the east African market as a whole.
For instance can Uganda produce enough milk and meat products
for the entire region?
Can we manage to satiate the market demands for agricultural
products?
The truth is the Uganda as a country has not built enough capacity
to fulfill the market demands of the east African market.
What we have actually been experiencing has been that
whenever Ugandans have found market for their products outside Uganda, there
has developed an immediate deficit in supply of those particular goods within
the country.
For instance when president Museveni got investors in the
fishing industry, leading to the emergence of very many fish processing industries,
the local citizens have been starved of fish.
During the 2016 state of the nation address, President Museveni
himself admitted that most of the fish processing industries had closed because
there was not enough fish to meet the market demands of the industries.
He went on to blame the illegal fishermen for depleting all
the fish from Lake Victoria by use of wrong fishing methods.
But the reality is that the fish reserves had been
overwhelmed by the huge demand.
Now president Museveni has embarked on instituting very
tough laws on fishing on al lakes of Uganda.
But he has forgotten the market is too big for the Ugandan fish
reserves.
THE SOUTH SUDAN
MARKET EXPERIENCE
Another interesting experience has been the perplexing story
of southern Sudan.
When southern Sudan got independence and opened its borders
for the Ugandan traders, all goods were sold to juba.
And consequence was that Uganda suffered an immediate
shortage of foodstuffs like bananas, pineapples, oranges, mangoes and cassava.
In 2011, the Ugandan production potential was stretched to
the limit to an extent that the country ran out of sugar leading to intolerable
inflation levels.
The Ugandan opposition leader Col Kiiza Besigye exploited
that inflation and shortage of sugar and staged walk to work demonstrations
that almost brought down the NRM government.
Yet the truth of it all was that our country’s production potential
had been stretched beyond its means by the market demands of southern Sudan.
At that moment the solution was to adopt protectionist policies
that restricted the movement of sugar from Uganda with the objective of meeting
the demands of the Ugandan market.
Many times traders have bought cassava for the southern Sudan
market when it’s still in the gardens!
This is a clear manifestation of our lack of capacity to
produce for the regional market.
Therefore as president Museveni crusades for the east African
community, we need to task him for the viability of the concept of regional
integration.
In fact when war broke out between president salvar kiir and his deputy Dr Riek Machar in southern Sudan it was a blessing
in disguise for the Ugandan economy, as inflation went down because traders
were no longer exporting goods to the Sudan market.
Once southern Sudan stabilizes and begins taking our goods
we shall suffer from terrible inflation.
Therefore the Brexit is
one good illustration of the demerits of regional integration.
While many of you may appreciate it from the perspective of
facilitating free movement of people across national borders , you don’t take
time to look at the consequences of the free movement of goods that you don’t produce
in enough quantities.
Therefore, I think , when subjected to scrutiny , the east African
integration may not be as rosy as president Museveni is making us to believe.
The author Fred Daka
Kamwada is a journalist, researcher and blogger
You can reach him on kamwadafred@gmail.com or 0782480121
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