Mogadishu (PP News Desk) — As Somalia prepares to join the East African Community, a paper by a Somali economist discusses the pros and cons of Somalia joining the East African Community, recommends a staged process rather than rushing into membership, and highlights Institutional disadvantages that predispose Somalia to become a “rule-taker” member state if its application to join EAC get aprroved.
“Somalia is not ready for deep integration into the EAC Community. Still, after reforming its national institutions, a variable geometry of incremental approach to EAC membership could usher in new fast-tracked reforms for Somalia regarding financial regulations, healthcare modernization, and small industry development” writes Hirad.
Hirad urges Somalia’s negotiators to familiarise themselves with integration models to prevent Somalia from becoming a dumping ground for goods from other member states of the East African Community. Lack of a harmonised national tax regime and political instability put Somalia in a weaker position as shown by East African Community member states’ economic indicators.
“With the right reforms that the EAC wants Somalia to implement, a variable geometry integration will be prudent. FGS’ special envoy and the technical experts working with him, should become familiar with the different applications of variable geometry that are used around the world and not rush into free trade and customs union integration which will not benefit Somalia” argued Hirad.
© Puntland Post, 2023
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