The article, titled “Globalization challenges and new Arab regionalism: Towards a new deal of South-South integration” written by Mohieddine Hadhri, brings forth the challenges being faced by the Arab world due to globalization. It is a review of the efforts made towards the regional and economic integration of the Arab world. Considering the great potentials within the Arab world, there is a need to establish cooperation to expedite the region’s progress. Each one of the Arab countries has its positive aspects, and if the integration of these countries is successful, the region will become one of the most powerful economic forces in the world.
The report covers the previous efforts made towards regional integration and their outcomes. The report suggests the necessity of regional economic integration to counter global economic challenges. The impacts of the non-existence of such integration are also discussed. The progress made so far towards the integration process and the required strategy to expedite the process are also outlined.
The purpose of this report was to understand various aspects of regional economic integration. Such aspects could be known by referring to authentic sources of information. The author used a quantitative research methodology to gather information. Various information sources were used, such as scholarly articles, official reports, proceeding of conferences, books, news, authentic surveys, and official documents.
After going through the report, the reader has an idea of the new regionalism theories and their significance to the Arab world in today’s globalization scenario. To facilitate a better understanding of the issue, the report includes a brief background of the initiatives that have been made so far. The reader is also informed about the efforts being made by various Arab nations towards regional economic integration.
The formation of The Arab Maghreb Union (AMU) and the Gulf Cooperation Council (GCC) was a significant move. The report discusses the benefits of the formation of such groups; a significant development in this direction is the introduction of a unified currency among the member nations. The report discusses the Greater Arab Free Trade Area (GAFTA) in detail and brings forth the weaknesses and obstacles being faced by GAFTA. A comparison of the performance of various trading blocs suggests that GAFTA is far behind other global trading blocs in terms of the share in world trade. The main problem cited by the author is the lack of cooperation among the Arab nations. Over the years, the escalation in the price of hydrocarbons has further necessitated cooperation among the Arab nation so that the benefits might be shared.
The author suggests that economic integration is indispensable for the economic growth of the Arab world. Increase in inter-Arab trade is an essential component of economic growth of the region. The Economic and Social Council of the Arab League can play a major role in the integration process.
Having a common currency among the Arab nations can further harmonize the economic system and its benefits. To facilitate the transportation of goods between the member nations, there is a need to have better roads and communication system. The Arab Maghreb Union should interfere and help in resolving the Western Sahara dispute to achieve better economic performance for the Maghreb region. There is an urgent need for the Arab Mediterranean countries to unite for a common economic cause, i.e., to avoid competition among them as far as trade with the European countries is concerned. Finally, the eradication of poverty in various Arab nations can help in decreasing the political turmoil and extremism prevailing in the region. The reader needs to understand the importance of the regional economic integration of the Arab world.