Arab Common Market

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Arab common market: The possibility of realization, Part 1
Regional, Analysis, 5/10/1999
The starting point of an Arab market ought to proceed from launching and expanding programs of structural reform inside each Arab state in a way that makes available all the conditions needed for such programs to be accomplished with high efficiency, brings about real changes in the nature of the relationship between public authorities and economy, and defines the role of the state generally so that care can be accorded in particular to liberalizing the exchange rate, the interest rate, pricing of commodities and services, openness in trade through decreasing customs and administrative barriers to imports and exports, and at the same time cutting down subsidies and consumption, rationalizing government spending and really reforming the monetary and taxation systems.

In agriculture it was found out that it is highly significant to see misconduct abandoned, which is the result of the state's intervention in the agricultural production relations, that the state's role should be confined to improving legislation pertaining to the agricultural sector to suit the economic changes affecting the other sectors, developing agricultural resources through programs of land reclamation and building dams, giving up the policy of intervening in determining the prices of agricultural products and recognizing the freedom of market mechanism to strike balance in the economy.

In terms of privatization, the state organizations of this sector can be on the market, buying or selling to achieve a stable income for the farmers and reduce the differences in price fluctuation affecting crops, which goes in line with the nature of agricultural activity, characterized by a distance from the centralized economy, considering certain characteristics of this sector such as private ownership, numerous production farms and their geographical distribution.

The next step should be liberalizing...
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