Getting The Region’s Economic Laggards To Catch Up

A range of issues related to Arab integration was discussed at the Arab Thought Foundation’s conference held in Abu Dhabi this week, in particular that related to economic integration and the success attained by the UAE and GCC models.

During a workshop discussing development and economic integration, several areas of cooperation were identified based on common Arab interests as well as obstacles, most notably the issue of a lack of ample job opportunities among the young. The number of job seekers in the Arab countries has been pegged at 5.1 million (35 per cent of Arab youth).

The conference also highlighted the importance of facilitating the movement of capital and benefiting from available capacities in all areas. Although the compendium of views serves Arab development aspirations, the events took place even as some Arab countries like Syria, Iraq, Libya and Yemen waste irreplaceable potential and create unprecedented divisions in any unified developmental agenda.

These repercussions need to be addressed as it would be difficult to achieve Arab integration without overcoming these implications. A key one relates to the reconstruction of conflict-ravaged countries. Many estimates indicate a reconstruction process will cost trillions of dollars given the four afflicted countries have lost considerable human resources with a million killed and more than eight million displaced.

Therefore, it is necessary to invest significantly in the development of human resources and education and these are to be linked to the needs of the labour market so as to compensate for the heavy losses. However, the realisation of Arab integration entails creating a proper infrastructure, after its devastation by many disasters that took place and which have hindered Arab integration.

In addition, the potential of these countries have been depleted, especially the private sector on which they are so dependent to advance development and job opportunities. Arab cooperation has become more complicated now and that can be best noticed from the sharp decline in inter-Arab investments, which is at 3 per cent of total Arab overseas investments.

It goes without saying that Arab economic integration would be difficult to achieve without restoring the stability of affected countries after more than six years of various calamities. This has created developmental disparities between Arab countries, especially in their legislative and legal systems and in infrastructure as well as within the private sector.

The first step towards that goal is to create a legislative foundation and necessary infrastructure in each country and integrate these with those in the other Arab countries. This would pave the way for the movement of investments and backed by guarantees required for capital movement.

Taking this step is the right direction and it will lead to a unification of the Arab world’s pull factors, interlock their interests and prompt them to take further steps towards integration.

Although many of the proposed issues were somehow emotional, others were rational, objective and suitable for the conditions prevailing in the region. They should be taken into consideration if Arab economic integration and its objectives are to be achieved.

For example, there are constant references to the success of the UAE and Gulf models and their experiments have been discussed in detail, which is a good thing. These economic growth models can benefit wider Arab integration.

Thanks to efficient organisation, distinguished guests and issues proposed, the Arab Though Foundation event discussed many considerable ideas and practical views that to build upon. This would a real gain for all Arab countries.

source : gulfnews