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Good news about Africa always seems to travel slowly. The East African Community has successfully been pushing for regional economic integration in East Africa, but not everyone has gotten wind of it. ISS researchers Peter van Bergeijk and Binyam Demena in their recently published book called ‘Trade and Investment in East Africa’ show how the EAC’s many successes and failures can provide several opportunities – and lessons – for the Netherlands and other countries seeking to further strengthen regional economic integration.
For the past few years, the seven member states of the East African Community (EAC) – the Democratic Republic of the Congo (DRC), Burundi, Kenya, Rwanda, South Sudan, Uganda, and Tanzania – have been working hard on furthering regional economic integration. The group of countries recognize the importance of foreign trade and investment (FTI) for their economic development and have started to reap the benefits: Kenya and Tanzania have already been reclassified as Middle Income Countries (MICs) by the World Bank.
Yet not much is known about these efforts in the Netherlands. Our recently published book, Trade and Investment in East Africa, is an attempt to showcase the EAC’s efforts by analysing these developments, identifying possible bottlenecks, and thereby also outlining perspectives that are important for the Dutch trade and development policy. We summarise some of book’s the key takeaways below to show why countries seeking to improve their regional economic integration should take note of the book.
Increased trade bring benefits, but it’s no free lunch
Economically, the EAC is a remarkable success. Africa is a patchwork of overlapping regional organizations that are all working towards economic integration, which is somewhat inevitable (just as the Netherlands is a member both of the EU and the Benelux). This leads to inconsistency and inefficiency in trade between countries but, as one of the studies in the book shows, the EAC suffers relatively little from this.
One possible reason for its success could be its sectoral productivity. In the book chapter, the authors using microdata on firms show that sectoral productivity patterns differ between EAC members: the countries differ in their strengths and weaknesses (what economists call their comparative advantage). Because of the different comparative advantages, it pays to specialize in what you are good at, also to increase intra-regional trade. Uganda can specialize in food where it has a comparative advantage and in the same vein we find different candidates for different countries: Kenya can specialize in furniture, Rwanda in non-metallic manufacturing, and Tanzania in printing and publishing.
That fertile base for specialization and increased trade is good news because the export premium (the higher productivity of internationally operating firms) is substantial for EAC member states and greater than the average for sub-Saharan countries. Higher productivity can be translated into higher per capita income, which is considered necessary for economic growth. Incidentally, this is not a free lunch and requires related policies (training, income support), because amongst the high-productivity winners there are also clear losers in low-productivity sectors.
More investment, less bureaucratic red tape needed
Beyond dealing with those sectors that are lagging, the area faces several policy challenges. The book contains some five case studies[1] that reveal some of the main challenges, which include a lack of institutional support and private sector investments. Many sectors, such as rice farming, seaweed fishing and leather production, lack investments by firms that can help these countries position themselves higher up in international value chains. State institutions on the other hand are important both for ensuring the quality of export products and for funding research and development into product-specific improvements.
Another challenge relates to a lack of investment by firms in primary sectors. For example, while Tanzania is one of the largest regional exporters of live cattle, its lack of formal slaughterhouses and leather processing facilities prevents it from expanding its leather production sector. As a result, it needs to import shoes and other simple leather products, and the upscaling of the sector is hardly possible.
When it comes to trade with the EAC region, the main bottlenecks are related to difficulties getting import and export products across borders without delay. One study contained in the book reveals bottlenecks that impede trade both within and outside of the EAC. The challenges include inadequate (air)port management and excessive bureaucratic red tape, which are compounded by the lack of a one-stop-shop approach; in principle, these are factors that could be resolved without having to make major financial investments but require a change in practices and training to implement newly developed systems.
Offering aid in addition to trade
The Dutch Ministry of Foreign Trade and Development Cooperation can learn several things from the EAC in doing trade and investment better. One important finding that can be considered in the Netherlands is that trade cannot work without a certain amount of aid. An empirical study by Sylvanus Afesorgbor of European trade with the African, Caribbean and Pacific countries with which Europe has a special development aid relationship shows that trade promotion appears to lead to economic development only if it is complemented by development aid. One reason is that additional policies are necessary to help individuals that work in sectors with low productivity that lose due to international specialization.
However, the similarities have been somewhat overlooked. From this perspective alone, it is unfortunate that the Dutch Ministry of Foreign Trade and Development Cooperation’s new strategic policy paper, ‘Doen waar Nederland goed is in’ (‘Do what the Netherlands does best’), does not consider the EAC as an economic community of nations. While some individual EAC countries are mentioned, the emphasis is on the Netherlands’ long-standing foreign policy strategy focused on the Horn of Africa.
This leaves the opportunities that lie in the EAC out of the policy picture. For example, the Netherlands can play an important role in helping the EAC address the logistical challenges hampering trade, in particular with regard to (air)port management. It also has much to offer African policy makers through its own regional economic integration experiences, from Benelux to the EU. Moreover, several large Dutch companies also have a foothold in Tanzania, which illustrates that this is already recognized as an interesting market.
Our book brings together economists from the Global South that provide a relevant multidimensional analysis of how sensible policies can be designed that move trade and development in the same direction.
[1] The case studies are a comparative analysis of the leather industry by Fauzul Muna, a survey of common bean smallholder farmers in Arusha by Eliaza Mkuna, an econometric analysis of Tanzanian horticultural export by William Georde, a survey of the seaweed sector in Zanzibar by Wahida Makame, and a structured review of cross-border cooperatives in the EAC by Gerard Dushimimana.
Opinions expressed in Bliss posts reflect solely the views of the author of the post in question.
About the authors:
Peter van Bergeijk is Professor of International Economic Relations and Macroeconomics at the Hague-based Institute of Social Studies at Erasmus University (ISS); one of the leading educational and research institutes in the field of development cooperation in Europe.
Binyam Afewerk Demena is an empirical economist with expertise across economic disciplines focusing on the area of development, environment, and health. He is an Assistant professor the Hague-based Institute of Social Studies at Erasmus University (ISS).
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By Umar Kabanda
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At a workshop in Bulange, Uganda, held in August 2021 the focus was on how to engage youth in protecting, preserving, and promoting World Heritage. The goal was to sensitise youth about heritage through learning from past legacies, understanding what elders live with today, and what they will pass on to the future generations. With a focus on the UNESCO World Heritage Kasubi Tombs site (No.1022), this workshop was important because cultural and natural heritage are both invaluable sources for life and inspiration, that require actionable innovations to transmit heritage knowledge, create heritage-related employment, and preserve the moral development of societies, while promoting young people’s cultural and intellectual development in a globalised world. In this blog, I make the case for increasing grassroots funding for youth-led activities to protect and preserve heritage, as well as to integrate information computing technology (ICT) to help disseminate heritage knowledge globally in a variety of digital formats.
World heritage includes places as diverse and unique as the Pyramids of Egypt, the Galápagos Islands in Ecuador, the Taj Mahal in India, the Great Barrier Reef in Australia, the Grand Canyon in the USA, or the Kasubi Tombs in Uganda.[i] They are designated as places that are of outstanding universal value to humanity, and as such have been inscribed in the World Heritage List. Nevertheless, these sites face major problems, such as pollution, earthquakes, and other natural disasters, poaching, armed conflict and war, uncontrolled urbanisation, and unchecked tourist development. Young people, as the future generation, still lack knowledge to contribute to the sustainability of heritage in all forms. But they are the ones who can innovate, through local activities, that can offer potential solutions to protect, preserve, and promote Heritage around them. Moreover, they are also skilled at using new digital communications tools, which, if used effectively, can help in implementing concrete solutions to protect these sites.
As a UNESCO initiative, developed in 1998, the World Heritage in Young Hands Educational Resource Kit, for secondary school teachers, advances heritage sensitisation in schools as one approach towards raising awareness among youth.[ii] This has contributed to the transnational conception of heritage protection, preservation, and promotion. While providing a global tool for schools, those not enrolled are, however, excluded from various forms of engagement in preserving local, national, and world heritage. It is important to equally involve out-of-school youth in the protection of our common cultural as well as natural heritage through increasing youth-led initiatives to protect, preserve, and promote heritage.
The UNESCO Convention concerning the protection of the World cultural and Natural Heritage[iii], describes heritage in varying forms – the cultural and natural heritage. These two, furthermore vary in the forms of tangible and intangible aspects. Tangible cultural heritage is movable and immovable. Immovables include archaeological sites, architectural works, historical centres, monuments, cultural landscapes, historical parks, and botanical gardens as well as sites of industrial archaeology. Movable tangible heritage on the other hand, includes museum collections, libraries, and archives. Examples of intangible cultural heritage include music, dance, literature, theatre, oral traditions, traditional performances, social practices, traditional know-how, crafts, cultural spaces, and religious ceremonies and for natural heritage. Examples of tangible and immovable heritage are natural and maritime parks of ecological interests, geological and physical formations, and landscapes of outstanding natural beauty.
In a UNESCO-funded workshop on “Empowering Ugandan Youth through Culture and Heritage” held in Bulange, Uganda, in August 2021, 35 cultural leaders discussed the role of youth in protecting, conserving, and promoting the Kasubi Tombs built in 1882 (UNESCO’s World Heritage Site No. 1022). Utilising the World Heritage in Young Hands Educational Resource Kit, they concluded that:
Workshop participants suggested that a regional transnational governance framework under UNESCO be supported, one that would be designed to promote a grassroots-based system driven by all categories of young people to enable them to act beyond awareness in support of promoting heritage. There could be a potential intra-regional role for the African Union in such an initiative.
While alternatives for young people to protect, preserve, and promote tangible heritage sites were made by speakers, it was also suggested that outreach initiatives such as using cartoons to mobilise youngsters in support of World Heritage protection and promotion be used. In addition, it was proposed that families engage young people in extra-curricular events such as excursions to nearby heritage places of interest, youth camps, cultural festivals, and exhibitions, as well as participate in role play activities to recreate traditional social events, such as processions, ceremonies, youth camps and festivals, using tradition to enable, integrate, and promote youth development for continued World Heritage preservation for future generations.
Participants recommended various ways to move from sensitisation to action to protect, preserve, and promote world heritage from the perspective of youth engagement. Firstly, nation states should give responsibility for overseeing the security needs of cultural sites to youth through integrating them more into heritage management. While teaching based on the World Heritage kit by practitioners should include more about the provision of security as an essential factor for youth to innovate in relation to heritage related projects, global leaders should also ensure adequate budgets for heritage funds for youth to tap into and protect world heritage.
Moreover, the UNESCO World Heritage Centre should support custodians of heritage sites in transforming the intangible value of heritage sites into written descriptions. In addition, youth learning centres, or interpretive centres, should be constructed by nation states at bigger sites to facilitate the preservation of heritage. Lastly, there is an urgent need for better use of ICT and social media by Ministries of Culture among member states of UNESCO. This will facilitate the digitalisation of knowledge dissemination on heritage across the world, along with inviting youth to engage in diverse and creative ways for promotion, protection, and preservation of world heritage for the future generations.
[i] Definition of World Heritage by UNESCO. (see https://whc.unesco.org/en/faq/19/ retrieved on 11 November 2021)
[ii] UNESCO, World Heritage in Young Hands Educational Resource Kit for secondary school teachers (1998). The resource kit complement other initiatives including World Heritage Youth Forums, World Heritage Adventures cartoon series, Training seminars for educators on the use of the resource Kit, On-site skills-development courses for young people, workshops & conferences, and the World Heritage Volunteers initiative.
[iii] Varying Forms of Heritage are described in the UNESCO Convention concerning the protection of the World cultural and Natural Heritage (1972) see https://whc.unesco.org/en/conventiontext/. Retrieved on 06/12.2021
Opinions expressed in Bliss posts reflect solely the views of the author of the post in question.
About the author:
Umar Kabanda holds a PhD and a master’s degree in Governance and Regional Integration, as well as a Post Graduate Diploma in Human Rights and a Bachelor’s degree in Psychology. Currently he is the Managing Director of Kalube consults limited and a Policy leader Fellow with the School of Transnational Governance in the European University Institute in Italy.
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