Pakistan Today

Redefining the future of the Arab world through economic integration

With the regional dynamics of the Middle East all too often interpreted, distilled and conveyed through a western prism, the need to cultivate authentic indigenous perspectives has become ever more urgent. One such articulate voice is that of the Ambassador of the Kingdom of Saudi Arabia to Lebanon, Ali Saeed Awadh Asseri.

After consolidating his reputation in Pakistan as a leader in diplomacy, conflict resolution, regional security and counter-terrorism strategies, Asseri has distinguished himself as a key player in promoting unity and stability amid Lebanon’s multifaceted political landscape.

In his recently published doctoral thesis, he has elucidated a plan for the future of the Middle East focusing on achieving regional economic integration. Outlining proposals for reform, Asseri emphasises the importance of stimulating intra-regional trade between Arab nations by building on existing structures such as the GCC (Gulf Cooperation Council) to transform the region into a formidable trading bloc.

Interestingly, the objective for Arab economic integration preceded the creation of the European Common Market in 1957: the Arab League was created in 1945 for political coordination and the member states had also signed a treaty for joint defense and economic cooperation. However, in spite of this pioneering vision, little development has been made on achieving this goal.

While think tanks and multilaterals have insisted on democratic reform as a necessary precursor to achieving economic integration, Asseri argues that greater union can be achieved while working with the current political structures.

The ‘Arab Spring’ unleashed a new era of political complexity across the Middle East. Asseri examines the way forward from this chaotic and dislocating period, highlighting how regional integration has become an urgent economic imperative for the future of the Arab world.

He discusses the region’s significant young population and the need to meet the demands of this increasingly educated, sophisticated and politically engaged demographic.

Almost 50% of the population in Saudi Arabia and Egypt ranges between the ages of 15-25. With youth unemployment in the Arab world at a staggering 26% ­– among the highest in the world ­– Asseri analyses how economic development has not kept pace with social transformation. Over the years, excessive reliance on resource–led exports have continuously thwarted economic diversification initiatives resulting in a lack of employment opportunities for an increasingly frustrated youth who have come to symbolize an accumulation of unfulfilled expectations.

“The youth bulge can either turn into a demographic dividend, a key source of socio-political stability in the region. Or, it can lead to demographic explosion, producing even more Arab Springs,” he explains. He elaborates on how policies must be developed to address the concerns of the youth and encourage greater participation of this overlooked population segment.

This makes the need to achieve regional economic integration ever more pressing. “For countries like Egypt and Tunisia, bilateral assistance, IMF loans, remittances and revenue from tourism are not enough to bridge the gap between demographic growth and economic opportunity,” cautions Asseri.

He states that in spite of persistent conflict and the rapidly changing political  configurations across the Middle East, Arab countries must galvanise around their common interests such as countering the threat posed by Daesh, devising a collective approach in response to increasing Iranian influence in the wake of the recently concluded deal with the United States. Additionally, a shared language, cultural affinity and a rich resource base must act as rallying points to bring the region together.

He identifies five critical strategies: the development of inclusive economies through private sector expansion and economic diversification; expanding the regional scope of the GCC; extending the role of Saudi Arabia as a regional stabiliser to spearhead meaningful economic integration, revitalising existing regional initiatives such as the Greater Arab Free Trade Area (GAFTA), the Agadir Agreement and the Arab Maghreb Union; and expanding the Arab world’s links to the emerging Asian economies.

With the Middle East currently inflamed in conflict, Asseri’s illuminating research highlights how economic integration is no longer a choice but a necessity to ensure stability and peace in a time of ongoing geopolitical upheaval.

The relevance of Asseri’s insights resonates well beyond the Arab world providing an important template for all regional blocs.  His analysis particularly serves as a sharp lesson to South Asia where unceasing hostility over Kashmir has not only resulted in irreparable loss of life but has also preempted any meaningful economic and trade development in South Asia – a move which would bring unprecedented prosperity to the people of region.

Rich in historical and political analysis, Asseri’s study represents an inspiring call for action with a roadmap outlining clearly defined targets, holding the potential to bring transformational change to the region.

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