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Working Paper 156 - Macroeconomic Shock Synchronization in the East African Community
Interest in regional integration in Africa has accelerated recently, reflecting a renewed political will and increased resource flows for regional projects under the Extended Integrated Framework and Aid-for-Trade initiatives. Integration measures in the East African Economic Community (EAC) regained momentum in 2005, after some stagnation.2 Over the years, the members have established closer economic links through a Free Trade Area (2001), a Customs Union (2005), and a Common Market (2010). These efforts have paid off: a deeper regional integration and trade within the EAC than in other African sub-regions have contributed to East Africa’s resilience during the global financial crisis (GFC) in 2009 and 2010 and to overall fast growth (Brixiova and Ndikumana, 2011; Guerguil et al., 2011, and Winston and Castellanos, 2011).