Post by Lara Mahdjidi on Jan 23, 2009 2:22:09 GMT 4
Arab World Seeks Common Market by 2020
Published on 01-22-2009
Source: News Blaze
Leaders of the Arab world on Tuesday approved a declaration calling to accelerate a pan-Arab economic integration. The declaration included a call to launch a customs union by 2015 as a prelude to establishing an Arab common market in 2020.
Participants in the two-day economic summit in Kuwait gave much attention to the Gaza crisis, deciding to donate $2 billion for reconstruction of the war-torn area.
During meetings at the regional conference, the following decisions were also made, according to the Saudi-based daily ArabNews:
* To adopt "monetary and fiscal policies to enable Arab nations to face the consequences of the global financial crisis." According to estimates that followed the collapse of financial markets in the Middle East, the total losses incurred in the region surpassed $2.5 trillion.
* To establish an Arab Development Fund with capital of $2 billion to provide loans and assistance for small and medium enterprises
* To set up a pan-Arab power grid and a rail network project
* To halve the regional unemployment within the next decade
* To implement a program to reduce poverty
"Despite progress made by some Arab nations, the Arab world is still facing many challenges. especially poverty, unemployment, poor inter-Arab trade, migration of Arab capital and brain-drain," the closing declaration stated.
An attempt to establish a Pan-Arab Free Trade Area three years ago failed to achieve a significant increase in commerce among member states.
Meanwhile, sub-regional efforts to advance economic integration are also running into obstacles. Negotiations toward finalizing a unification of currencies among the six countries of the Gulf Cooperation Council (GCC) were supposed to end by 2010, but experts now believe the talks will probably exceed this time frame.
"The current currency project has not failed, but obviously it's not going to be possible to launch it for 2010 as was originally envisaged. Five of the GCC countries [excluding Oman] have a monetary union; they coordinate their monetary policies and have set up a central bank - so all of that is in motion," Prof. Rodney Wilson, an expert on Middle East economy and a visiting professor in Qatar, told The Media Line.
"However, I am a little bit skeptical about the wider Arab world having a customs union. In a customs union you see free movement of goods within the union, and the issue would be how many countries would agree to that.
"A common market by the year 2020 is also somewhat far fetched," said Wilson.
"We already have more or less a common market in the GCC, but a common market implies free mobility of labor and capital. You can imagine that many people would be looking to come and work in the GCC and that might impose demographic challenges."
Published on 01-22-2009
Source: News Blaze
Leaders of the Arab world on Tuesday approved a declaration calling to accelerate a pan-Arab economic integration. The declaration included a call to launch a customs union by 2015 as a prelude to establishing an Arab common market in 2020.
Participants in the two-day economic summit in Kuwait gave much attention to the Gaza crisis, deciding to donate $2 billion for reconstruction of the war-torn area.
During meetings at the regional conference, the following decisions were also made, according to the Saudi-based daily ArabNews:
* To adopt "monetary and fiscal policies to enable Arab nations to face the consequences of the global financial crisis." According to estimates that followed the collapse of financial markets in the Middle East, the total losses incurred in the region surpassed $2.5 trillion.
* To establish an Arab Development Fund with capital of $2 billion to provide loans and assistance for small and medium enterprises
* To set up a pan-Arab power grid and a rail network project
* To halve the regional unemployment within the next decade
* To implement a program to reduce poverty
"Despite progress made by some Arab nations, the Arab world is still facing many challenges. especially poverty, unemployment, poor inter-Arab trade, migration of Arab capital and brain-drain," the closing declaration stated.
An attempt to establish a Pan-Arab Free Trade Area three years ago failed to achieve a significant increase in commerce among member states.
Meanwhile, sub-regional efforts to advance economic integration are also running into obstacles. Negotiations toward finalizing a unification of currencies among the six countries of the Gulf Cooperation Council (GCC) were supposed to end by 2010, but experts now believe the talks will probably exceed this time frame.
"The current currency project has not failed, but obviously it's not going to be possible to launch it for 2010 as was originally envisaged. Five of the GCC countries [excluding Oman] have a monetary union; they coordinate their monetary policies and have set up a central bank - so all of that is in motion," Prof. Rodney Wilson, an expert on Middle East economy and a visiting professor in Qatar, told The Media Line.
"However, I am a little bit skeptical about the wider Arab world having a customs union. In a customs union you see free movement of goods within the union, and the issue would be how many countries would agree to that.
"A common market by the year 2020 is also somewhat far fetched," said Wilson.
"We already have more or less a common market in the GCC, but a common market implies free mobility of labor and capital. You can imagine that many people would be looking to come and work in the GCC and that might impose demographic challenges."