Economic Integration in East African Countries: The Grand Ethiopian Renaissance Dam as an Opportunity

Abstract

The concept and theory of economic integration has evolved as sub stem of international trade theory, reinforced by globalization that encompasses socio-political, economic and spatial dimension or location theory. Many years ago, worldwide a number of integration arrangements have initiated and practiced to achieve the goal of socio-economic development for the betterment of the integrating countries, where they share both wonders and blenders. In this aspect international waters like Abay/Nile have both integrating and conflicting characters. The integrating nature of international waters is that, through cooperation and agreements, water resources in the form of hydro-electric power have the potential to integrate those countries who are sharing the water resources. The negative impact of that water is the conflicting situation which arises from unfair use of the water resources. Today, Abay/Nile and the GERD have showed such conflicting situation for many years among Egypt, Ethiopia and the Sudan. The positive side of such grand project may be taken as an opportunity to integrate the Abay/Nile sharing riparian countries, if common understanding, collaboration and cooperation are in place. Grand projects such as the GERD can connect East African countries, particularly, the Abay/Nile sharing countries through electrification and water basin managements. This paper analyzed regional economic integration in East African countries arising from the use of the Abay/Nile River, giving special attention to the Grand Ethiopian Renaissance Dam that imposes on regional economic integration. Historical method was used to assess the qualitative and quantitative data obtained from several desktop reviews. From the reviewed literatures and both the qualitative and quantitative analysis, the results revealed that the Abay/Nile has been showed more conflicting situation for many years and continued during the construction of the GERD. But the cooperative agreements on the Abay/Nile are expected to lead to economic integration.