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Mr. Emre Alper, Ms. Wenjie Chen, Mr. Jemma Dridi, Mr. Herve Joly, and Mr. Fan Yang
This paper assesses the extent of economic and financial integration among the East African Community (EAC) along a number of dimensions and, where possible, whether integration has increased in the wake of the major regional integration policy milestones.
C. Emre Alper, Ms. Wenjie Chen, Mr. Jemma Dridi, Hervé Joly, and Mr. Fan Yang

. Article 10 also reflects partner states’ binding commitment to create an environment that allows EAC citizens to move between different national labor markets for the purposes of providing services. However, the framework for implementation of Article 10 in Annex II of the CM protocol ( EAC Secretariat, 2009b ) is more restrictive. The schedule for the free movement of workers under Annex II clearly states the free movement of highly skilled workers, 1 for which partner states committed to remove barriers by end-2015. 2 Semi-skilled and unskilled workers and

Mr. Emre Alper, Ms. Wenjie Chen, Mr. Jemma Dridi, Mr. Herve Joly, and Mr. Fan Yang

.3 percent in 2013, well below the world average migration rate of 3.5 percent. This ratio, however, is much higher for the small landlocked countries in the EAC (Burundi and Rwanda) than the other ones. Immigrants to the EAC number about twice as many as EAC citizens living abroad. The latter are about 800,000, a number that has remained relatively stable between 2000 and 2013, while the numbers of immigrants to the EAC has increased by about 40 percent during that period. 8 The rate of skilled emigration is the ratio of tertiary-educated emigrants to the

International Monetary Fund

guaranteed by the common market protocol. To foster the free movement of EAC citizens, various initiatives are in the final design or early implementation stage: these seek to permit travel with national identity cards, reduce work permit fees, and introduce single tourist visas. National Implementation Committees, comprising concerned ministries and stakeholders, have been established in every partner state to expedite the implementation process. The deepening of the integration process by the single currency is expected to result in a larger regional market with