Thursday, July 5, 2007

Keep the people in bondage, but free the trade

"Implicit in this is a transition—from an old model of economic organization and activity to
a new one. The old model—driven by the public sector, supported by oil, aid, and workers’
remittances—cannot any longer generate faster growth or jobs, as the performance of the
past two decades attests. A new model, which is much more reliant on trade and private
investment, promises to support faster growth and jobs needed in the region.

Many countries are seeking to strengthen their trade partnerships with Europe, their largest
trading partner, through the Euro-Med trade agreements, while intraregional trade is being
promoted through the Pan Arab Free Trade Area (PAFTA) and the newly established Gulf
Cooperation Council (GCC) customs union. Several other smaller regional trade groupings
also have been established. A number of countries are seeking membership in the World
Trade Organization (WTO). Jordan and the United States have signed a free trade
agreement, and more such agreements may be forthcoming.
Yet, the results on the ground remain disappointing. The 1990s were marked by stagnant
or declining trade and private investment—MENA was the only region in the world to
experience a reversal. There is strong pressure to produce better results."

Interesting document in World Bank promotes a more radical approach to trade liberalization and a fuller adoption of the neo-lib package for the Middle East.

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