THE IMPACT OF INTER-STATE RELATIONS ON THE USE OF THE PTA CLEARING HOUSE
Abstract
African integration systems are aimed at promoting economic development
through both political and economic means by bringing together of hitherto
autonomous regions or countries into an integrated whole. Usually such
systems are perceived purely in economic terms and therefore economic concepts are used to interpret and regulate interstate trends.
The reality, however, is that politics plays a bigger role in the
central mechanism, direct ion and existence of such economic integration
systems. This also is the case in the Preferential Trade Area for Eastern and
Southern African States (PTA) and particularly the creation, operation and
expansion of the Clearing House which is an integral part of the PTA.
This study looks at PTA with a central focus on the Clearing House,
which is viewed as the most important organ of the institution.
The development of the Clearing House is affected by monetary co-operation in the region.The increased or decrease use of the unit of account of the PTA, is vital variable that is discussed in the study.
The development of the clearing House is also affected by the rules of
origin and the common-list both of which were initially introduced with an aim to promote the region co-operation.
They, however, affect the institution negatively and have therefore
reduced the utilization of the Clearing House
Subject
THE PTA CLEARING HOUSETRADING THROUGH THE CLEARING HOUSE
ECONOMIC AND POLITICAL RECIPROCITY IN CLEARING HOUSES
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