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Jul 06
2008
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Tanzania Jittery about East Africa Common MarketPosted by Ritch in Untagged |
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I read this article in The Guardian newspaper (a Tanzanian daily) on July the 5th, 2008.
MP raises fears over EA market
2008-07-05 10:11:54
By Hannah Mwandoloma
The government has been urged to take national interests at heart before making a final endorsement of the East African common market protocol.
Presenting views of the parliamentary opposition on the 2008/2009 budget estimates of the East African Co-operation ministry yesterday, shadow minister Abubakar Bakary said there were a number of things that the government needed to consider before adopting the proposed code of regional trade.
Bakary said Kenya`s economy was much more advanced, especially in the area of industrial development, compared to Tanzania`s.
``Our worry is that Tanzania will turn into a dumping ground for Kenyan goods. We want to know how far we are prepared to deal with that kind of situation,`` he said.
He said the grace period that newly admitted member countries of Rwanda and Burundi had been given for preparing their economies was far too short.
Bakary added that Tanzania had enormous land resources, unlike its neighbours.
He cautioned that the opening up of borders could lead the country into a land crisis.
On employment, Bakary said with the common market protocol and free movement of labour, many Tanzanians risked losing jobs to highly educated and competitive Kenyans.
``It is true that most of Tanzanian youths are not fluent in English compared to Kenyans and Ugandans. Our young people will always be getting lower posts in their own country. Is this what we want?`` queried Bakary.
Vita Kawawa (Namtumbo, CCM), who presented an assessment of the budget by the Parliamentary Committee on Foreign Affairs, Security and Defence, said the government should draft a law protecting citizens from foreign land owners.
Earlier, tabling his ministry?s 2008/09 budget estimates, Dr Diodorus Kamala, the minister for East African Co-operation, told the House that East African leaders had agreed that discussions on the common market among member countries had to commence in July 2006 and be finalised by December this year.
``I expect the House to ratify the East African Common Market protocol by June, next year and the implementation will start in early 2010,`` said Kamala.
Dr Kamala told the House that the government would take into account all recommendations concerning the Common Market.
He asked the House to endorse 10,941,750,000/- annual estimates for his ministry, 10,359,750,000/- for recurrent and 582,000,000/- for development expenditure.
The stats are unanimous about two things the positive selection of talent into migration and the positive sorting of migrants across destinations on account of optimal returns.
The more educated parts of a population are more likely to emigrate; and more-educated migrants are more likely to settle in destination countries with higher rewards for the skilled.
In our selection regression, we find that migrants for a source-destination pair are more educated relative to non-migrants, the larger is the skill-related difference in earnings between the destination country and the source. That is, positive selectivity is stronger where the reward to skill in the destination is relatively large. This result obtains for wage differences expressed in levels, but not in logs........Positive sorting is a general prediction of income maximization. In our sorting regression, the relative stock of more-educated migrants in a destination is increasing in the level earnings difference between high and low-skilled workers. This correlation is stronger when wage differences are adjusted for taxes, implying that migrants weigh post-tax earnings when choosing a destination.
Now with special regard to Richard's blog,
Our analysis also shows that language, history, and policy affect migration. English-speaking destinations draw higher-skilled immigrants than other destinations, whereas former colonial powers draw lower-skilled immigrants from their former colonies than from other source countries. Destinations with liberal refugee and asylum policies draw relatively low-skilled immigrants, all else equal.
This also touches on the Wanyama Waweru debate here about government spending.

