IGAD - Macroeconomic Policy Convergence

The 1996 Agreement Establishing IGAD stipulates that member States agree to develop and expand cooperation to gradually harmonize their fiscal and monetary policies.[1] The IGAD Strategy adopted in 2003, states that economic cooperation is one of three priority sectors for IGAD. Macroeconomic policy convergence, however, is vaguely covered in the Strategy.[2] One of the major issues is that there is no specific timeline set for member States’ gradual harmonization of fiscal and monetary policies. Consequently, making the implementation process under the IGAD constellation, uncertain.

[1] IGAD, Agreement Establishing the Inter-Governmental Authority on Development (Nairobi, Kenya, 1996). Available from http://igad.int/etc/agreement_establishing_igad.pdf.