ARAB ECONOMIC INTEGRATION: AN AWAKENING TO REMOVE BARRIERS TO PROSPERITY

kindly provided hard to find data and statistics, and Zeina Zein El-Abidine for efficient research assistance. The analysis, views and opinions expressed are those of the author and should not be interpreted or construed to represent any official policies or views. External challenges frequently offer an impetus for internal unification. The challenges emerging post September 11, the war in Afghanistan and Iraq, and the declared war on terrorism, are strategic opportunities that the Arab countries should grasp to create a turning point in the history of the region. This paper calls for an Arab awakening- a renaissance embodied in a strategy of regional economic integration. Witnessing an increase in intra-regional tourism, capital, and direct investment flows, the business sector has already taken up the challenge; while the corporate sector and the new generation of entrepreneurs aspiring to enjoy the benefits of regional economic integration, face barriers. The paper reviews the empirical evidence and analysis relative to trade, investment, labour, and capital market integration. The Arab countries are less integrated than countries with similar levels of development and per capita income. Major impediments to integration and prosperity include economic policy and administrative obstacles that impede trade liberalization and economi