Welcome to the Middle East Today

The Middle East has traditionally been important for the world economy. The Middle East situation today has an impact on all aspects of life in America and much of the world.

Only by understanding the motivations of the various factions in the Middle East can we hope to understand how to promote peace and national security for Middle Eastern nations, Europe, and the United States.

Dec 26, 2010

Arab League Unimplemented Proposals

The Arab League released a report in which it reveals that the agreement that was made at the January 2009 economic conference of Arab heads of states in Kuwait has not yet been implemented. This should not come as a surprise to the Arab public. The Arab League and the political leadership of the Arab world voted to create an Arab economic market in 1947. More than sixty years have passed and the Arab population is still waiting for that resolution to be implemented. It is really a big joke and a deceptive policy to mislead the Arab public. Regardless, the Arab League as well as the Arab political leadership lost their credibility a long time ago.

Several things need to happen under the terms of the agreement. First, raising financial resources is required to support the development of small and midsize private businesses in the Arab world. 11 Arab states committed to the project to raise one billion and eighty dollars. Promises were made but the funds have not been raised yet.

Second, creating a national electrical power network to connect all Arab states is required. Studies of the various state electrical networks have not yet been completed in order to connect with the national power network. Some states don’t have enough financial resources to complete the task.

Third, creating a national railway system to connect all Arab states is necessary. This will enhance the economic development and facilitate transportation in the region. The proposed project requires financial support to plan and implement it. Each state has its own priority. The responsibility for the support and planning of the project was given to the Arab Development Fund. However, those in charge of the fund have not made the blueprint needed for the implementation of the proposed project.

Fourth, the Arab food security project has not been implemented due to the lack of financial resources needed. However, recently a plan was proposed to raise the funds needed for the proposed project.

Fifth, the first stage of the water management planning has been completed. The second step is to call on Arab governments and financial institutions to raise the needed funds for its implementation.

In the next meeting, the director of the Arab League will propose the increase of private sector participation in the development of the proposed project. Since the private sector now produces more than 60% of the gross national domestic production of the Arab economy. There are now Arab international companies who are playing important roles inside and outside the region in various economic areas. All of the above mentioned proposals are vital for the economic growth, development and security of the Arab world. During the past few decades, the world witnessed the creation of regional economic markets while the Arab world is still in the planning stage.

It has been reported that the Arab world still depends heavily on foreign imports. During 2009 foreign imports were estimated at one trillion dollars.While the internal trades between Arab states were around seventy billion dollars. Nearly 70-75% of Arab exports tend to be fossil energy “oil and gas”.

It is a big mistake for Arab financial institutions to invest heavily in Western countries instead of their own region. Arab press revealed that Arab oil-producing countries’ foreign investments have been estimated to be 45% of the income of sales from oil and gas. (www.shorouknews.com, 12/19/2010)

The investment in the Arab world will create more jobs for the tens of thousands of unemployed young people and for the millions entering the labor force each year. Unemployment creates poverty, which will be a dangerous destabilizing force in the region. The World Bank issued a report more than a year ago that calls for the creation of 100 million jobs during the next 15-20 years to meet the pressing needs for employment in the Arab world.

No comments:

Post a Comment