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The integration of the economy of the North and East with the rest of the country is taking place since the lifting of economic sanctions and the produce of the province being marketed in the rest of the country, according to a report by the International Centre for Ethnic Studies.

Paddy, cash crops such as chillies, onions and tobacco and fish are some of the produce from the North and East which are increasingly being marketed to the rest of the country. A flood of consumer goods have also started to make their presence in the two provinces especially after the reopening of the A9 highway for vehicular traffic. The report states that there are positive and negative outcomes of this gradual integration of the North and East economy with the national economy. The sale of local produce in the rest of the country has improved the livelihood of producers due to higher selling prices, but the local consumers are worse off because of rising prices for locally produced agricultural and allied produce including fish.

In the absence of greater job opportunities and higher income levels, the rise in price levels of local produce has further marginalised the majority of the population, the consumers.

Likewise, the flood of consumer goods into the North and East also has positive and negative impacts on the regional economy. On the positive side, lifting of economic sanctions and the opening of the A9 highway have reduced transportation costs and hence, the price of such goods brought into the region, adds the report. Local agricultural producers have also benefited a great deal due to lower production costs as the price of fuel, fertiliser and pesticides have decreased due to the free flow of such items into the provinces.

The negative impact of such free flow of goods from the rest of the country to the area is that local manufacturers and service providers of substitute products and services are adversely affected because of competition from brought in goods. This competition has resulted in many local producers and service providers going out of business.

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