PATHS FOR ARAB COOPERATION
Well Mapped, Little Traveled

What is the balance sheet on cooperation among Arab countries to date, and what are the potential areas of future cooperation? These are among the key questions covered by the Arab human Development Report 2002, as summarized below. The Report was compiled by an independent team of Arab experts and published by the UNDP Regional Bureau for Arab States, with the Arab Fund for Economic and social Development as co-sponsor.

ARAB COUNTRIES have what it takes to attain adequate living standards for all their people, but they need to achieve economic integration and deepen inter-Arab trade to overcome dependency and vulnerability and make globalization work for Arab interests. According to the Arab Human Development Report 2002, the region needs greater regional cooperation because of the small size of most of its individual markets and the increased leverage that a united front can give in trade relations with other trade blocs such as the European Union. The report concludes that the Arab Free Trade Area is a step in the right direction, but adds the significant proviso "provided it lives up to its promise".

On paper, the Arab region is one of the most cooperative and integrated in the world in every sphere -defense, culture, economy, freedom of movement for capital goods and people. But not many of the agreements have been implemented or even ratified by the Arab countries.

The League of Arab States is one of the world's oldest regional bodies, and has many committees, conventions and agreements. So the areas for possible Arab cooperation are very well mapped, although not much traveled.

Despite all the agreements, inter-Arab trade accounts for no more than 7to 10 per cent of total Arab foreign trade, a figure that has not changed since the 1950s. Arab investment capital flows more to the industrial countries, rather than inter-Arab destinations.

Based on an analysis of the obstacles and the potential, the Report points to whole new areas for integration. For example:
¡öAlthough Arab countries share a common written language, countries apply different standards for computer software, for Internet connectivity, and for mobile telephones. If the countries of the region are to benefit from economies of scale necessary to counter competition from other regions, then they need to coordinate to ensure interconnectivity.
¡öThe region could also maximize its R&D investments by enabling different centers to specialize in areas of comparative advantage. Examples include water desalination in the Gulf states, computer programming in Egypt and Jordan, the phosphate industry in Morocco and Tunisia, or petrochemicals in Saudi Arabia.
¡öHigher education is an area where cooperation brings many advantages. Here, as in other fields of education, the common language permits collaborative work on, for example, curriculum development, textbook production, and teacher training.
¡öShared language can become a means for Arab countries to catch up with the information train Currently, the Arab world translates only about 330 books annually -one -fifth the number that Greece translates. Each year, Spain translates as many books as have been translated into Arabic in the last thousand years.

The Report also stresses the need for cooperation on the environment, to settle potential disputes among Arab countries over the shared use of these resources, and to strengthen the Arab voice in global discussions.

Some success stories show that cooperation is possible. Among them are the initiatives supported by the Arab Fund for Economic and Social Development, the Arab Monetary Fund, the Arab Foundation for the Insurance of Investments, and several joint Arab production, financial and banking companies.

The Arab Fund for Economic and social Development has funded electricity, road and communication networks. Connecting the electricity networks alone has reduced electricity sector investment requirements and increased usage and cut costs. Extending the network to all Arab States could create an Arab electricity market similar to those of Europe and North and South America. Similarly, connecting the roads and railways would increase the flow if goods among Arab countries.

Above all, concludes the Report, the dignity and freedom of the Arab people demand that countries join together to provide human services: health, education and training, particularly for girls and women and people living in rural areas, along with strong efforts to abolish illiteracy, especially in the less developed Arab countries.

Cooperation in financing and implementing such initiatives should be given priority in joint Arab action because they are at the heart of human development -and human development is at the heart of securing a freer, more secure and more fulfilled future for every citizen of all the Arab States.

The region covered by Arab Human Development Report 2002 consists of 22 Arab countries with a combined population of 280 million. The topics covered include health, habitat, education, the economy, employment, freedom, women's empowerment and governance.