Unsourced material may be challenged and removed. Levels of economic integration pdf of the countries in the region have undertaken efforts to diversify their economies in recent years, however. Governments can create the climate for economic growth only the private sector can produce a peace that will endure. At this point, the regional economic process will be upgraded and the new reality, in which business precedes politics, will be instituted.
Ultimately, the Middle East will unite in a common market after we achieve peace. And the very existence of this common market will foster vital interests in maintaining peace over the long term. A prerequisite to economic integration is the establishment of peace. Israel and its Arab neighbors. MENA region, economic interactions have remained limited. In the 1990s, these flows have been subject to major restrictions and there has been recent substitution of Asian labour for Arab labour in both cases.
English and French are common supplementary languages. Established in 1964, with the ultimate goal of achieving complete economic unity among its member states. Building efficient and capable public institutions needs to be a priority. Raise competitiveness levels of these economies. This can be achieved through overhauling and aggressively investing in the region’s education system.
If the education policies of the region deliver unwanted skills to the market, international investors will not be keen to come in, especially in the services sector. This would enhance the free flow of ideas, information and harness the forces of entrepreneurship. New technologies spur innovation and increase productivity which investors seek. Linked to this is increasing the freedom of the press and media which provides checks and balances against governments and business.
New technology and freedom of the press would have a particular impact on youth and would encourage participation in the definition of future strategies at national and regional levels. Cooperation among Middle Eastern countries would be enhanced, advancing towards the knowledge economy. Increasing the use of new technologies would also reduce bureaucratic hurdles often cited by businesses as deterrents to investment. By Hassan Hakimian, Jeffrey B. This page was last edited on 16 August 2017, at 10:31.
This is meant in turn to lead to lower prices for distributors and consumers with the goal of increasing the level of welfare, while leading to an increase of economic productivity of the states. Free trade is treated as an idealistic option, and although realized within certain developed states, economic integration has been thought of as the “second best” option for global trade where barriers to full free trade exist. There are economic as well as political reasons why nations pursue economic integration. However the relative costs of producing those two goods are different in the two countries. In England it is very hard to produce wine, and only moderately difficult to produce cloth. In Portugal both are easy to produce.
Therefore, while it is cheaper to produce cloth in Portugal than England, it is cheaper still for Portugal to produce excess wine, and trade that for English cloth. Conversely England benefits from this trade because its cost for producing cloth has not changed but it can now get wine at a lower price, closer to the cost of cloth. The conclusion drawn is that each country can gain by specializing in the good where it has comparative advantage, and trading that good for the other. There are factors that cause a producer’s average cost per unit to fall as the scale of output is increased. Economies of scale is a long run concept and refers to reductions in unit cost as the size of a facility and the usage levels of other inputs increase. A lone car maker may be profitable, however, if they export cars to global markets in addition to selling to the local market. Besides these economic reasons, the primary reasons why economic integration has been pursued in practise are largely political.