The Upcoming Arab Economic Summit
Samih Massoud Al-Hayat - 27/07/07//
Given the importance of the economic, development and social aspects of the concept of comprehensive Arab security, the Riyadh Arab Summit agreed to hold an Arab summit "dedicated solely to economic and development matters, the formulation of practical programs and mechanisms, and the enhancement and activation of comprehensive, agreed development strategies". On this basis, the Arab League Economic and Social Council and Secretariat were tasked with preparing for this summit in coordination with Arab organizations and specialized ministerial councils, the Union of Arab Chambers of Commerce and businesses.
In its resolution, the Riyadh Arab Summit said basic components need to be taken into account, for example means of encouraging the Arab private sector, given that it is a main pillar of joint economic and development activity; selectively choosing economic and social projects that promote economic integration and assimilation in the Arab world; giving precedence to infrastructure projects such as road, aviation, and electrical grid and communications networks; as well as focusing on the activation of bilateral and regional agreements that would ultimately serve the interests of Arab action.
Note that the first Arab economic summit was held in Amman in 1980 with the aim of surmounting the shortcomings in joint Arab economic activity by: approving important documents such as the strategy for joint Arab economic action, with its goals, priorities, programs and mechanisms, as well as the convention on joint Arab economic action through which the Arab states agreed to link security and economic development with national security; embracing the principle of long-range national planning as a technique to direct, organize and develop joint Arab economic action; and adopting Arab economic citizenship, national solidarity and other issues. The summit did not abide by these resolutions.
The reason Arab countries did not abide by the implementation of the agreements and decisions taken in the framework of joint economic action was because Arab economic action was not kept neutral and detached from political bickering. It was always susceptible to the suspicions of inter-Arab intentions, a captive to their differences and suspicions. In addition, many resolutions and agreements were just not realistic. The venues chosen for joint Arab economic action lacked the qualifications needed for implementation and success.
The Riyadh Arab Summit did not ignore this situation but diagnosed it. It called for an end to Arab fragmentation and considered this, as per the Riyadh Declaration, a "moment for self reflection and contemplation". What was fresh in the Riyadh summit declaration was that it was based on four basic elements for convening the new economic summit.
First, make the Union of Arab Chambers of Commerce and the businesses stakeholders in the preparations for the forthcoming economic summit. This is a significant and positive addition because joint Arab economic action and its development call for new blood and a pragmatic approach that can transform thoughts and visions into reality. Second, consider the Arab private sector one of the main pillars of joint economic and development action and work to attract it. This would be an important positive addition because the private sector is known for its aptitude for making initiatives, development, and activation of the endeavor.
This tendency is in line with the initiative of the majority of Arab states to implement economic reform programs since the mid-80's. It sought to give the private sector a more significant role, considering it a developmental necessity that is undeniably important in light of the relative benefits of goods and services and the disparity of competitive abilities between nations. Third, give priority to infrastructure projects such as road, aviation, and electrical grid and communications networks. This, too, is an important positive addition because these projects can create joint economic interests between the Arab states. Fourth, call for the activation of bilateral and regional agreements that would ultimately serve the interests of joint Arab economic action. This entails refraining from drawing up new agreements that would be added to the heap of old ones. It means seriously endeavoring to activate solely those agreements already in place. There are, as you know, many fundamental gaps related to important agreements and projects underway in the framework of Arab economic action. What is required from the upcoming economic summit is to afford the political determination needed to remove the obstacles facing it.
Resolving these impediments is of grave importance because the Greater Arab Free Trade Area (GAFTA) is considered a progressive step on the road to Arab economic cooperation that would help provide the right environment for inter-Arab trade that would help take advantage of the trade opportunities available in inter-Arab markets. It is also the precursor to an Arab Customs Union, expected in 2015, that would be the launching pad to reaching an Arab Common Market in 2020.
Above all, the steps taken by the upcoming economic summit need to be realistic. They need to imbue joint Arab economic action with a new, constructive spirit and practical ideas that would peel away the effects of all the obstacles and the absence of political commitment to its implementation. This is the only way to transform the face of Arab economic and social life and propel joint Arab economic action forward for the better.
*Economic expert at the Canadian Centre for Middle East Studies.
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