notably the completion of the common market phase and the move towards a monetary union with a single currency; compatibility between membership in the EAC and SADC; and most important of all, how to ensure that Tanzania derives comparable gains to those of its partners from its membership in these two regional groupings. cxxii. There is no doubt that Tanzania needs regional integration for its own political stability and prosperity. In addressing the issue of regional integration, Tanzania must keep in mind that partial and limited progress towards an economic union is inherently unstable and poses a number of challenges. The inherent logic is that, once a process of economic integration has been launched, and even when it is at the initial stages of a free trade area, preserving progress and gains requires more integration. cxxiii. The debate on the readiness, willingness, and advisability of Tanzania’s support for accelerated and higher levels of integration within the EAC has barely started. Government and non-government stakeholders alike need to thoroughly address these questions. Whether the region is truly ready for an advanced stage of economic integration, the degree to which the present level of economic integration is stable and sustainable, and what needs to be done to ensure a more equitable distribution of benefits, are important questions for which answers must be found. All dimensions of these questions must be thoroughly explored so that Tanzania moves forward with a broad national consensus and a very clear idea of what the future holds, the challenges ahead, and potential costs and benefits likely to result from this endeavor. cxxiv. The costs and benefits to Tanzania from EAC and SADC membership are issues that have and will continue to play a prominent role in this reflection. The problem of the distribution of benefits is always a central feature in all efforts at economic cooperation and integration. It played an important role in the collapse of the first EAC in the seventies and is still of central concern today. In Tanzania, there is a widespread view that Tanzania is not gaining as much from its membership in the new and enlarged EAC and SADC when compared to its partners. The key measure of this has been trade imbalances and private foreign direct investment flows to the manufacturing sector, especially. cxxv. However, this concern should not be taken too far. Calculations of gains and losses should be based not entirely on the short-term, but also on the medium and long-term. Secondly, the question must be whether the country would have been better off outside the regional organisation, even if other countries stand to gain more. Finally, calculations should not be limited to economic gains, but also to political, strategic, and diplomatic gains as these may be different from, and compensate for, purely economic calculations. In that case, a country may well be willing to make economic sacrifices to achieve other core values and interests. Indeed, this has been a key characteristic of successful regional integration schemes. g. Low Levels of Educational Quality cxxvi. The Country Review Mission’s findings revealed low levels of educational quality in Tanzania. Primary school candidates’ performance in basic skills acquisition - a good measure of quality education - has been deteriorating since 2005. Pass rates dropped from 70.5 per cent in 2006 to 54.2 per cent in 2007, and the downward trend continued from 52.7 per cent in 2008 to 49.4 per cent in 2009. These poor pass rates have, in turn, caused the transition rate from Standard (STD) VII to secondary school to decline. It fell, for example, from 56.7 per cent in 2007 to 50 per cent in 2009. Generally, boys tend to perform better than girls, with a pass rate of 59 per cent for boys compared to 48 per cent for girls in 2010, thus reducing opportunities for girls’ selection into secondary education. cxxvii. These inter-related issues have culminated in generating a poorly functioning educational system, producing graduates without sufficient requisite capacity, skills and ability to meet the demands of Tanzanian society. This situation prevents Tanzania from reaping the benefits of good quality education and has serious present and future consequences on all aspects of societal development. Quality education provides a foundation for development and the groundwork on which much of economic and social well-being is built. It increases the overall productivity and the intellectual flexibility of the labour force. Therefore, it is the key to increasing economic efficiency and social productivity. cxxviii. Apart from truancy among pupils and massive increases in school enrolments under the Primary Education Development Programme (PEDP) and the Secondary Education Development Programme (SEDP), other factors account for this state of affairs in education. Some teachers have openly complained that they lack the requisite 17