On 25 February 2014, UN Undersecretary General and ESCWA Executive Secretary Rima Khalaf launched from Tunis a remarkable report entitled “Arab Integration: A 21st Century Development Imperative” with the participation of Tunisian President Moncef Marzouki, former Lebanese Prime Minister Najib Mikati and a crowd of political, economic, intellectual and public figures. Media representatives who took part in the ceremony received a press kit, which we will re-publish over five parts, in view of the importance of the issues the Report addresses.
Beirut, 5 March 2014 (Communication and Information Unit)-- The Arab region abounds with opportunities for development, if only it could confront the challenges before it as a united bloc.
The Arab Integration: A 21st Century Development Imperative report argues that the model of the European Union and other economic blocs around the world holds enormous potential for the Arab countries.
Drawing on the knowledge and expertise of a group of Arab intellectuals from various disciplines, professional backgrounds and countries, the report analyses the reasons why past attempts at Arab integration have fallen short. It proceeds to set out the potential benefits of a broad economic integration that would liberalize the movement of goods, labour and services.
The report makes use of several studies and sophisticated economic models to present estimates of the effects of deepening Arab economic integration, compared to the maintenance of the status quo. It also sets out potential scenarios related to the completion of the Greater Arab Free Trade Area (GAFTA) and the establishment of an Arab customs union.
According to the report, establishing the customs union by 2015 would represent an important step towards broader integration but would not benefit all Arab countries, necessitating mechanisms to distribute revenue from tariffs among Arab countries and compensate those countries that benefit less from the union, as well as assisting particular sectors of the economy.
Further underscoring the importance of broadening economic integration, the report presents another scenario that would gradually reduce transport costs for Arab trade and replace a section of the future migrant labour force with Arab workers. Implementing those two procedures alongside the establishment of the customs union would guarantee an increase of 3 per cent in Arab gross domestic product by 2020 and would reduce unemployment by over 4 per cent. This additional growth would generate an extra US$760 billion in Arab revenue, equivalent to more than the total revenue of Arab countries in North Africa in 2013. Unemployment rates would drop as a result of 6 million new job opportunities, contributing to higher levels of wealth for all Arabs and combating poverty and unemployment across the region, thus responding directly to two of the central causes of the Arab uprisings that erupted in 2011.
This broader form of economic integration, the report asserts, would offer significant benefits to all Arab countries, whether rich or poor, refuting the popular belief that less developed countries would benefit at the expense of their wealthier neighbours.
It goes on to identify a number of potential strategies for promoting free trade in services, free movement of capital and workers and the development of regional production chains.
These conditions, the report’s authors contend, are among the prerequisites for a comprehensive road map that would deepen Arab economic integration in the medium and long terms.
The report calls on the Arab countries to cultivate a dynamic economic environment by taking concerted action towards inclusive economic integration. This would guarantee economic and social gains and ensure their place among the regional blocs that govern the global economy and contribute to shaping international structures and institutions. The report argues that these goals are within reach, so long as the political will exists to pursue economic integration as a path towards genuine sustainable development.
Will Arab States be able to manifest this will and move forward with integration? This and other pressing questions raised by the new report deserve a well-considered response.