ECONOMIC GROWTH AND POLITICAL STABILITY IN EAST AFRICAN COUNTRIES. THEORETICAL PERSPECTIVE

Abstract

EAC bloc comprises of a six-state regional bloc made up of Rwanda, Kenya, Uganda, Tanzania, Burundi, and later the Republic of South Sudan which joined, in line with the 6th pillar of Rwanda’s Vision 2020, which focused on regional and economic integration to promote an open and liberal trade regime, as well as promoting foreign direct investments and competitive enterprises. The partner states have also intensified the crucial processes of harmonization of monetary and exchange rate policies, payment and settlement systems, financial sector supervision, fiscal policies, coordination and harmonization of statistics, and regionalization of the financial sector in order to create a single financial market. An economic arrangement between different regions marked by the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. The aim of economic integration is to reduce costs for both consumers and producers, as well as to increase trade between the countries taking part in the agreement. Key Words: Economic Growth, East Africa Integration CITATION: Rwigema, P. C. (2020). Economic growth and political stability in East African countries. Theoretical perspective. T he Strategic Journal of Business & Change Management , 7(1), 977 – 988.