Cicero
JF-Expert Member
- Jan 20, 2016
- 2,924
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- Thread starter
- #21
The federation should have revenue sources for it to share revenues (vertical apportionment of revenues from the federal government to the state governments). I cannot imagine what the federal government's sources of revenue will be. Maybe they will borrow from the Tanzanian union? Time will tell.We need the monetary union to facilitate free trade but if we only have a monetary union and not a political union the problems Europe is facing will dawn on EAC and we will have another collapse. A monetary union alone according to one don (and I will lift that report here), has the effect of market fundamentalism of transferring wealth from small economies to bigger economies. A good political federation will be the one now too ensure that benefits of the Union are shared out equitably in the federation like through a revenue sharing formular.
Britain's main problem like you have listed there is that it does not have a constitution that limited the powers of a foreign body like EU. That is why the public felt that things that should be left alone for Britain to determine were being determined in Brussels and not in London. They could not go to the same European court and seek to take their country back so they chose a referendum.
Another approach could also be horizontal apportionment between the member states themselves. I find this option much harder to achieve. Imagine one state GIVING scarce money to another!
Someone proposed that instead we should split the states into 'EAC regions' and then share revenues in that manner. Like they do in the EU. Instead of saying country A is poorer than country B (which could hurt the recipient country's ego and inflate that of the donor country), we should say region A is poorer than region B.