In-depth analysis of the obstacles to Arab economic integration and mechanisms for its activation in the 21st century

Abstract

Joint Arab economic action is a fundamental pillar of the League of Arab States, aiming to achieve comprehensive economic development. However, despite a long history of agreements, commencing with the Alexandria Protocol in 1944, the path to Arab economic integration has been slow, yielding modest and limited results. This study conducts an in-depth analysis of the factors hindering this process, recognizing that recent global economic shifts necessitate a unified Arab response. The paper diagnoses the core impediments, which include the historical economic dependence on advanced external economies, the disparity and instability of political systems, the resemblance and resulting competitiveness of Arab economies rather than complementarity, and significant deficiencies in transport and communication infrastructure. To overcome these challenges and activate integration in the 21st century, the research proposes a pragmatic program of action. Key solutions involve achieving macroeconomic stability, developing financial markets, prioritizing investment in education and human capital, strategically restructuring the Arab economic base from competitive to complementary, formulating a collective Arab agricultural policy, and creating an attractive investment climate to repatriate Arab funds currently held abroad.