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Key points:  

- The integration process of the East African Community does have potential to improve the prospects for poverty-reducing economic growth.

- The potential is greatest in two areas: cooperation in infrastructure and other public-goods provision, and growth-enhancing institutional change.

- Progress on institutions will happen if business pressure groups and other stakeholders interested in rule-governed policies participate strongly in the upcoming negotiations on the formation of an East African common market

- This could result in institutions favouring investment getting ‘locked in’ by regional agreements, so that political favouritism and protection become progressively less significant factors in the development of the member states.