Arab economic integration: Reaping benefits for all

Since the 1950s, various policies and arrangements have been adopted to improve Arab economic integration, with mixed economic and social results across the region. Results fell below expectations owing to shortcomings in the policies themselves or their implementation. This chapter looks first at the possible consequences of maintaining current integration policies, which focus exclusively on the liberalization of trade in goods through the elimination of customs tariffs. This neglects, other more important obstacles such as technical and non-tariff barriers and high transport costs. The chapter next examines the possible benefits of not limiting economic integration to the liberalization of trade in goods, emphasizing the importance of removing tariff restrictions on Arab intraregional trade towards a more comprehensive system encompassing labour markets, capital and production sectors in addition to goods and services. It then compares the impact of each option on a set of basic economic indicators.

Related Subject(s): Economic and Social Development