New Economic Development and Their Impact on Arab Economies


Author:	Ahmed Al-Kawaz (Editor)
Series:
Price:	$0.00 (KD0.000)
ISBN Number:	0444502335
Language:	English
Publisher:	Arab Planning Institute - Kuwait
Description:	Arab countries are facing, as most other developing countries, a number of economic challenges inherited from the 12th century and which may be exacerbated in the 21st century. Among these challenges are globalisation, water crises and sustainable development, technological change, and economic consequences of the peace process. Globalisation, as a growing international integration of markets for goods, services and capital, can be driven by vaious forces. First is the unprecedented increase in the international trade flow of about fifteen-fold during the last four decades (as opposed to a six-fold increase of the worldâ??s population). Developing countries increased their share of global trade to 30 percent in 1995, compared with 24 percent in 1985. One of the important features of global trade is the increasing share of intra-firm trade, encouraged by foreign direct investment (FDI). Multinational world trade amounted to US$5.3 trillion in 1992, compared to world exports of US$4.6 trillion (UNCTAD, 1998). Second is the force of liberalising financial markets and the gradual integration of those markets in developing countries with a global financial system. This force has accelerated after many developing countries agreed to remove restrictions on payments for account transactions, and abandoned control on cross-border financial flow in general, and foreign inflow in particular. This has been reflected in an increases in the number of developing countries trading under current-account convertibility to 70 percent in 1997, compared with 37 percent in 1985. Third, the role of private FDI has been mounting and now outweighs that of official FDI. FDI plays an effective role in the diffusion of know-how and capital, and in the redefinition of the labour division on a global scale. Private capital flow, raised to almost 2 percent in developing countries, is still modest. Although this share has increased to 38 percent of the worldâ??s total, two-thirds of these flows went to just eight countries (World Bank, 1996). Fourth, technological advances in general, and in information technology in particular, have been contributing enormously to integrae markets all over the world. Electronic commerce has been deepening economic interdependence. Goods and raw materials are no longer the only objects of trade. Crossing borders, among others, services, culture, media, entertainment, as well as electronic commerce has granted a new reality, which hardly can be resisted. Globalisation cannot be halted, and the economic reach of nation-states is being challenged. Governments have little choice but to accept the very fact that they must coordinate their efforts as never before. Technology and interdependence are making the distinction between industrial and domestic policies irrelevant. Last, but not least, globalisation is influenced as well by the projected increase in the international trade flow, 6 percent per annum, due to multilateral trade agreements, e.g., the Uruguay Round, and other regional trade arrangements. The Uruguay Round enhanced globalisation by liberalising trade in goods and services. Liberalisation is ensured by means of a number of multilateral agreements, such as those on tariffs and trade, agriculture, textiles and clothing, rules of origin, trade-related aspects of intellectual property rights, trade in services, etc. The members of the World Trade Organization (WTO), which was initiated by the Uruguay Round, numbered 134 on 10 February, 1999, of which nine are Arab countries. The second challenge facing Arab countries is the water crisis and sustainable development. The population of the Arab region is about 3 percent of the worldâ??s total, whereas its share of the renewable water resources is only 1 percent (Rogers and Lydon, 1994). Per capita water reached 3300 m3 in 1960, declined to 1250 m3 in 1995, and is expected to decline further to 667 m3 in 2025 (World Bank, 1993). The water crisis in Arab countries is caused mainly by mismanagement. For instance, the intensive natural water used for irrigation in the Nile, Euphrates and Tigris river valleys will deteriorate the quality of water. Moreover, the water wasted in the agricultural sector in most Arab countries is a phenomena. Whereas this sector consumes about 88 percent of the water used in the Arab world, the percentage wasted is about 66 percent. This is mainly due to the use of traditional irrigation methods. The other uses of water, 7 percent, is for domestic purposes, for which the waste reaches 40-60 percent of the distributed water (Bel Haj, 1998).

Table of contents

PREFACE v

ACKNOWLEDGEMENT vii

LIST OF CONTRIBUTORS ix

CHAPTER 1 INTRODUCTION 1
Ahmed Al-Kawaz

PART I : GLOBALIZATION AND PARTNERSHIP 3

CHAPTER 2 GLOBALIZATION, REGIONALIZATION, AND RECENT TRADE 15
AGREEMENTS: IMPACT ON ARAB ECONOMIES â??RAPID
EXOGENOUS CHANGE -- SLOW ENDOGENOUS RESPONSE!â?‌:
A KEYNOTE ADDRESS
ISMAIL SIRAGELDIN
INTRODUCTION 15
1. THE CONTEXT 17
1.1 Critical Issues 17
1.2 The Arab Region Dilemma 18
1.3 Recent Socioeconomic Trends 20
1.4 Impacts of Openness 22
2. GLOBALIZATION AND REGIONALISM: A VIABLE MIX? 25
2.1 On the System of Globalization 25
2.2 Globalization and Interdependence 26
2.3 The Quantification Problem 31
2.4 Globalization and Regionalism: Are They Compatible? 32

3. TRADE AGREEMENTS: ITS EFFECTS ON ARAB ECONOMIES 34
4. INTERNAL-ORIENTED SUSTAINABLE REFORM (IOSR) AS A 36
BASE FOR OOR/EOI
4.1 Why IOSR First? 36
4.1.1 Human Resource Development 36
4.1.2 Fertility and Population Growth in a Global Environment 37
4.1.3 Education and Human Capital Formation 39
4.1.4 Labor Mobility and Capital Movement in a 39
Global Environment
4.2 Transparency in Government and Equal Opportunity 42
5. LESSONS FROM SOUTHEAST ASIA 44
6. SUMMARY AND CONCLUSIONS 46
REFERENCES 48

CHAPTER 3 ECONOMIC INTEGRATION IN THE MIDDLE EAST AND 57
NORTH AFRICA: FACTORS EXPLAINING READINESS FOR
AND FAILURE OF REGIONALINTEGRATION
HAICO EBBERS
INTRODUCTION 57
1. THEORETICAL CONSIDERATIONS 60
2. REGIONAL INTEGRATION IN THE ARAB REGION 65
3. DYNAMIC EFFECTS AND DISTRIBUTION PROBLEMS 70
4. READINESS INDICATORS 74
5. CONCLUDING REMARKS 76
REFERENCES 78
CHAPTER 4 EUROPEAN ENLARGEMENT TO THE EAST AND ITS 81
IMPLICATIONS FOR THE MENA REGION
ALI H. BAYAR
INTRODUCTION 82
1. AN OVERVIEW OF THE MODEL 86
2. POLICY EXPERIMENTS AND SIMULATION RESULTS 88
3. CONCLUSION 94
REFERENCES 95

CHAPTER 5 TRADE INTEGRATION WITH EUROPE, EXPORT DIVERSIFICATION 97
AND ECONOMIC GROWTH IN EGYPT
Sأ?BASTIEN DESSUS
AKIKO SUWA-EISENMANN
INTRODUCTION 97
1. CURRENT EEGYPTIAN TRADE STRUCTURE AND THE EEPA 100
1.1 Geographical Patterns of Trade and Protection 102
1.2 The EEPA 104
2. THE MODEL 107
2.1 Production 108
2.2 Income and Absorption 108
2.3 International Trade 110
2.4 Model Closure and Dynamics 110
3. SIMULATIONS 111
3.1 General Hypothesis for Exogenous Variables 111
3.2 The Different Policy Scenarios 113
3.3 Adding an Export-led Externality to Account for Dynamic 115
Productivity Gains
3.4 General Results 116
3.5 Geographical Results 121
4. CONCLUSION 123
REFERENCES 126

Appendix 1: The Dimensions of the Model 130
Appendix 2: Upgrading of the Social Accounting Matrix 130
Appendix 3: Sensitivity Analysis 133

PART II : WTO AND THE ARAB WORLD 135

CHAPTER 6 DEVELOPING COUNTRIES AND THE WORLD TRADE 137
ORGANIZATION: WHAT HAS CHANGED?
EDWINI KWAME KESSIE
INTRODUCTION 137
1. DEVELOPING COUNTRIES AND THE GATT (1947-1986) 140
1.1 Background 140
1.2 The Concept of Special and Differential Treatment 143
1.2.1 Article XVIII of the GATT 143
1.2.2 Part IV of the GATT 146
1.2.3 Decision on Differential and More Favourable 149
Treatment, Reciprocity and Fuller Participation
of Developing Countries (â??Enabling Clauseâ?‌)
1.3 Analysis of the Concept of Special and Differential Treatment 151
1.3.1 Negative Aspects of the Concept of Special and 152
Differential Treatment
1.3.2 Positive Aspects of the Concept of Special and 154
Differential Treatment
2. DEVELOPING COUNTRIES AND THE URUGUAY ROUND 157
NEGOTIATIONS
2.1 Results of the Uruguay Round Negotiations 161
2.1.1 Market-Access Commitments 161
2.1.2 Institutional and Legal Framework 163
2.1.3 Special and Differential Provisions in the 165
Multilateral Trade Agreements
2.2 Developing Countries and the post-Uruguay Round 169
Multilateral Trading System
2.2.1 Measures Intended to Increase the Participation of 170
Developing Countries in the Multilateral Trading
System and the WTO
3. CONCLUSION 177
REFERENCES 183

CHAPTER 7 ARAB ECONOMIC INTEGRATION: REQUIREMENTS AND 185
IMPLICATIONS UNDER GLOBAL CHANGES
THOUKA M.S. AL-KHALIDI
INTRODUCTION 185
1. THE WTO AND REGIONAL BLOCS: A SHORTOR A 188
LONG-TERM CO-EXISTENCE?
1.1 Is There any Theoretical Backing to the Coexistence 189
of a Multilateral Trading System
1.2 The Concept of Special and Differential Treatment 195
1.2.1 Article XXIV of the GATT 1994 197
1.2.1.1 Adoption of Substantially the Same Duties 198
and Other of Regulations of Commerce
1.2.1.2 General Incidence of Duties and Other 198
Regulations of Commerce Should not be
More Restrictive
1.2.1.3 The Substantial All Trade Requirements 199
1.2.1.4 Interim Agreements for the Formation of 199
Customs Unions and Free Trade Areas
1.2.1.5 Procedural-Notification Requirements 200
1.2.2 Agreement Notified under the Enabling Clauses 200
1.2.3 Agreement Notified under Article XXV (Waivers) 201
1.2.4 Agreement Notified under Article V of the GATS 202
1.2.4.1 Rights of Non-member Countries 202
1.2.4.2 Substantial Sectoral Coverage 203
1.2.4.3 Procedural-Notification Requriements 204
1.2.4.4 Interim Arrangements for the Formation of 204
Economic Integration Agreements
1.3 Regional Integration Agreements and the WTO: 205
Complementary or in Competition?
1.3.1 Tariffs 205
1.3.2 Nontariff Measures 205
1.3.3 Subsidies 205
1.3.4 Liberalisation of Policies Affecting Agricultural Products 206
1.3.5 Government Procedures 206
1.3.6 Domestic Policies 206
1.3.7 Services 207
1.3.8 Intellectual Property Protection 207
1.3.9 Dispute Settlement and the Monitoring of trade Policies 208
2. CURRENT ARAB ECONOMIC BLOCS: DO THEY COMPLY WITH 208
THE PROVISIONS ON CUSTOMS UNION AND FREE TRADE AREA?
2.1 Development of Arab Economic Blocs 208
2.2 Compatibility of the Current Arab Integration Arrangements 211
with Article XXIV of GATT 1994 and Articles V of GATS
2.2.1 The GCC Unified Economic Agreement 212
2.2.2 The Executive Programme of the Larger Arab Free 214
Trade Area
3. THE NECESSITY FOR AND THE REQUIREMENT OF AN ARAB 216
ECONOMIC BLOC UNDER GLOBAL CHANGES
4. CONCLUSIONS 221
REFERENCES 222

CHAPTER 8 THE IMPACT OF GATT ON ARAB OIL REVENUES 225
HUSSEIN ABDALLAH
1. OIL PRICE AND GATT 1947 225
2. WORLD DEPENDENCE ON ARAB OIL 231
3. OIL PRICES AND THE GATT 1994 238
4. ARAB COORDINATED POLICIES 246
REFERENCES 253

PART III : ARAB FREE TRADE AREA 255

CHAPTER 9 THE ARAB FREE TRADE AREA (AFTA): POTENTIALITIES 257
& EFFECTS
NATEK SEKOUTI
1. THE LEGAL & ORGANIZATIONAL FRAMEWORK OF AFTA 257
1.1 Historical Background 257
1.2 The Inter-Arab Trade Facilitation and Promotion Agreement 258
of 1981 (TFPA)
1.3 The Executive Program of the TFPA 259
1.4 The Organizational Structure of AFTA 261
2. AFTA TRADE AND INVESTMENT EFFECT 263
2.1 The AFTAâ??s Effect on Inter-Arab Trade 263
2.2 The AFTAâ??s Effects on Inter-Arab Direct Investment 265
3. MAJOR ISSUES 267
3.1 The Extent of Supportive Political Decisions 268
3.2 Nontariff Barriers 268
3.3 The Tariff on Agricultural Goods 269
3.4 Dispute Settlement System 270
3.5 Relationship with the GATT and WTO 271
3.6 Trade Diversion and Common External Tariff 272
3.7 Treatment of Least Developed Member States 272
3.8 Dumping and Subsidies 273
3.9 Lack of Data and Transparency 273
3.10 The Rules of Origin 274
3.11 Trade in Services 275
3.12 Treatment of Negative Effects of AFTA 276
3.13 The Role of the Private Sector 276
3.14 The Status of Arab Duty-Free Zones 278
REFERENCES 279

CHAPTER 10 INTER-ARAB TRADE AND THE POTENTIAL SUCCESS OF AFTA 283
IMED LIMAM AND ADIL ABDALLA
INTRODUCTION 283
1. CHARACTERISTICS OF ARAB COUNTRIESâ?? TRADE 286
2. MODELLING ARAB BILATERAL TRADE FLOWS 302
3. INTER-ARAB TRADE: LOOKING INTO THE FUTURE 315
4. CONCLUDING REMARKS 323
REFERENCES 328

CHAPTER 11 FREE ECONOMIC ZONES IN ARAB COUNTRIES IN THE CONTEXT 331
OF ARAB FREE TRADE AREAS AND WTO ARRANGEMENTS:
TRENDS AND FUTURE PROSPECTS
JAMIL TAHIR
INTRODUCTION 331
1. FEZs IN ARAB COUNTRIES: GENERAL TREND AND 334
MAIN FEATURES
1.1 Development of FEZs in Arab Countries: General Trend 335
1.2 Main Features : Incentives, Facilities and Administration 340
of Free Zones
1.2.1 Fiscal and Financial Incentives 343
1.2.2 Customs Exemptions: Import Duties 344
1.2.3 Local Sales and Purchases 345
1.2.4 Facilities and Administration 345
1.2.5 Administration of Free Zones in Arab Countries 348
2. PERFORMANCE OF FREE ECONOMIC ZONES IN 350
ARAB COUNTRIES: AN ANALYTICAL ASSESSMENT
2.1 Attracting Foreign Investment and Capital 352
2.2 Exports and Foreign Exchange Earnings 358
2.3 Employment Opportunities 365
2.4 Other Effects 368
2.5 Free Zones Obstacles and Problems : Reasons for Poor 374
Performance
2.5.1 The Macro Level 374
2.5.1.1 Administrative Obstacles 375
2.5.1.2 Marketing Obstacles 376
2.5.1.3 Infrastructure Obstacles 376
2.5.2 Sectoral and Micro Level 376
2.5.2.1 Nature and Industrial Activities 377
2.5.2.2 Technology Transfer 377
3. FEZs IN ARAB COUNTRIES AND RECENT ECONOMIC 378
DEVELOPMENTS: FREE TRADE AREA AND WTO ARRANGEMENTS
3.1 AFTA and WTO Arrangements 379
3.2 Future of Free Economic Zones within AFTA: Outlook and 385
Alternative Policies
4. CONCLUSION AND POLICY IMPLICATIONS 393
REFERENCES 400

PART IV : WATER CRISIS AND ENVIRONMENTAL ISSUES IN 405
ARAB COUNTRIES

CHAPTER 12 WATER CRISIS, THE ENVIRONMENT AND ARAB SUSTAINABLE 407
DEVELOPMENT?: A KEYNOTE ADDRESS
ATEF KUBURSI
INTRODUCTION 407
1. WATER CRISIS IN THE MIDDLE EAST: THE ISSUES 414
1.1 Israeli-Arab Water Conflict 417
1.2 The Turkish-Syrian-Iraqi Water Crisis 421
1.3 The Nile Waters 424
1.4 Other Arab Water Crisis 425
2. THE HARVARD WATER ALLOCATION SYSTEM (WAS): 426
SOLUTION OR PROBLEM?
2.1 Components of the WAS Model 428
2.2 The Mathematical Model Structure 430
2.2.1 Water Demand 430
2.3 Interpreting the Model Results: Efficient Allocation Rules 433
2.4 The Arab Disease 436
3. CONCLUSION 442
REFERENCES 443

CHAPTER 13 CRISIS RESPONSE BY WATER SECTOR MANAGEMENT 445
Rأ?MY L. DE JONG
INTRODUCTION 445
1. A WATER CRISIS 450
2. WATER RESOURCES MANAGEMENT 453
2.1 Water Supply Management 453
2.2 Water Demand Management 454
2.3 Water Relocation 455
3. WATER SECTOR MANAGEMENT 456
3.1 The Legal Framework 457
3.2 The Institutional Framework 458
4. LESSONS LEARNED 459
4.1 The Comprehensive Approach 459
4.2 Theory and Practise 460
4.3 Overlapping Tasks 461
4.4 Conflicting Responsibilities 461
4.5 Conflicts of Interest 462
4.6 Inadequate Powers 463
4.7 Inflexible Policies 464
4.8 The Principle of the User/Polluter Pays 464
5. RECOMMENDATIONS 466
REFERENCES 467

CHAPTER 14 WATER CHALLENGE IN THE ARAB WORLD: EFFICIENCY OF 469
MANAGEMENT AND OPPORTUNITIES FOR CHOICE
AHMED BEL HAJ FREJ
INTRODUCTION 469
1. WATER RESOURCES IN THE ARAB WORLD 471
1.1 Renewable Water Resources 473
1.2 Non-Conventional Water Resources 478
1.2.1 Non-Renewable Water Resources 479
1.2.2 The Desalination of Water 480
1.2.3 Reusing Water Drained by Agriculture 481
1.2.4 Reusing Treated Sewage Water 482
2. WATER USES IN THE ARAB WORLD 483
2.1 Agricultural Use 483
2.2 Domestic Usage 485
2.3 Industrial Uses 487
3. AGRICULTURE AT THE CENTER OF WATER CRISIS IN THE 487
ARAB WORLD
3.1 Water Balance 1996-2030 490
4. WATER CHALLENGES AND OPPORTUNITIES OF CHOICE 494
4.1 Raising the Efficiency of Agriculture 495
4.2 Water Policies 497
4.3 Water Pricing 498
4.4 Realizing the Maximum of Water Benefits and Food Security 500
4.5 Trans-boundary Water 504
4.6 Water Quality 505
4.7 Integrated Water Management 506
4.8 The Re-Use of Treated Wastewater 507
4.9 Desalination of Brackish and Sea-water 508
4.10 Reduction of the Missing Water Volumes 509
4.11 Water Supply of Rural Populations 510
4.12 Private Sector and Financing Water Projects 511
REFERENCES 512
Appendix 1: Rainfall in the Arab World 514
Appendix 2: Major Surface Flows and Nubian Sandstone: Aquifers 515
in the Arab World
Appendix 3: Table 3.1: Distribution of Water Uses in the Arab World 516
Appendix 4: Table 4.1: Access to Water Supply and Sanitation in 517
the Arab World
Appendix 5: Table 5.1: Non conventional Water Resources 518
in the Arab World (million m3)
Appendix 6: Table 6.1: Water Demand in the Arab World 518
Appendix 7: Table 7.1: Water Resources in the Arab World 519
Appendix 8: Table 8.1: Water Balance in the Arab World 520
(1996-2030) (million m3)

CHAPTER 15 RURAL DEVELOPMENT IN MOROCCO: ALTERNATIVE 521
SCENARIOS TO THE YEAR 2000
HANS Lأ?FGREN, RACHID DOUKKALI
HASSAN SERGHINI, AND SHERMAN ROBINSON
INTRODUCTION 522
1. MODEL STRUCTURE AND DATA SOURCES 523
1.1 Factors 523
1.2 Activities and Commodities 525
1.3 Producer Behavior and Technology 526
1.4 Institutions 528
1.5 Data Sources and Approach to Model Solution 530
2. SIMULATIONS 532
2.1 Base 532
2.2 Water: Tariffs and Sales to Urban Area 536
2.3 Irrigation Expansion 542
2.4 Accelerated Productivity Growth 548
2.5 Win-Win Scenarios for Rural Development 556
3. CONCLUSIONS 561
REFERENCES 566
Appendix A: Supplementary Simulation and Model Data 570
Appendix B: A Note on Moroccon Agriculture Data Sources 587
Disaggregated by Farm
B.1: Accessible Data 587
B.1.1: Surveys Conducted at the National Level 587
B.1.2: Surveys with Smaller Domains (Not National) 588
B.2: Data Not Easily Accessible 588
B.2.1: The Cost of Production Survey (DPAE/MAMVA) 588
B.2.2: Farms Budget and Households Living Standard 589
(DPAE/MAMVA)
REFERENCES FOR MICRO-LEVEL FARM STUDIES 589

CHAPTER 16 TRANSBOUNDARY WATER ALLOCATION BETWEEN ISRAEL 599
AND GAZA STRIP
UJJAYANT CHAKRAVORTY
INTRODUCTION 599
1. TECHNICAL APPROACH 602
2. DESCRIPTION OF THE OPTIMAL SOLUTION 605
3. NON-COOPERATIVE SOLUTION 607
4. AN APPLICATION TO THE ISRAELI-PALESTINIAN PARADIGM 609
4.1 Simulation Results 612
4.2 An Application of a Non-Cooperative Solution 615
5. CONCLUDING REMARKS 617
REFERENCES 619
Appendix A: The Optimal Control Solution 621
Appendix B: Reaction Function of the Urban Sector 624
Appendix C: Reaction Function of the Agriculture Sector 625

CHAPTER 17 ENERGY CONSUMPTION AND ECONOMIC DEVELOPMENT 627
IN THE MIDDLE EAST: IMPLICATIONS FOR ENVIRONMENTALLY
SUSTAINABLE DEVELOPMENT
BEN C. ARIMAH
INTRODUCTION 627
1. ENERGY CONSUMPTION, ECONOMIC DEVELOPMENT AND 633
SUSTAINABILITY
2. PATTERN OF ENERGY CONSUMPTION IN THE MIDDLE EAST 636
3. A MODEL OF ENERGY CONSUMPTION IN THE MIDDLE EAST 640
3.1 Specifications of Variables 641
4. EMPIRICAL ANALYSIS AND DISCUSSION OF RESULTS 645
4.1 Statistical Analysis 645
4.2 The Impact of Economic Development and Other Factors 647
of Energy Consumption
5. PATTERN OF GREENHOUSE EMISSION IN THE MIDDLE EAST 654
6. IMPACT OF ENERGY CONSUMPTION ON THE EMISSION OF 658
GREENHOUSE GASES
6.1 Impact of Energy Consumption on Carbon Dioxide Emissions 660
6.2 Impact of Energy Consumption on Methane Emissions 662
7. IMPLICATIONS OF ENERGY CONSUMPTION FOR AN 664
ENVIRONMENTALLY SUSTAINABLE DEVELOPMENT
8. CONCLUDING REMARKS 668
REFERENCES 671
Appendix 1: Table A1: Estimated multiple regressions for carbon 676
dioxide emissions (total) in the Middle East

PART V : TECHNOLOGICAL CHANGE AND INFORMATION REVOLUTION 677

CHAPTER 18 INDUSTRIAL COMPETITIVENESS AND GENERIC TECHNOLOGY 679
IN A GLOBALIZING WORLD ECONOMY: SOME IMPLICATIONS
FOR THE ARAB ECONOMIES: A KEYNOTE ADDRESS
CHARLES COOPER
REFERENCES 693

CHAPTER 19 BRAVING PRODUCTS UNDER WTO: IMPLICATIONS AND 695
STRATEGIES FOR ARAB PHARMACEUTICAL INDUSTRY
MONA MOURSHED
INTRODUCTION 695
1. WHAT ARE WTO AND TRIPS, AND WHAT DO THEY MEAN FOR 697
DEVELOPING COUNTRIES?
1.1 WTO and TRIPs 697
1.2 Consequences for Developing Countries: Focus on 700
Pharmaceuticals
2. BREAKING DOWN THE ISSUES 704
2.1 Foreign Direct Investment and Technology Transfer 705
2.2 Drug Price Escalation 708
2.3 Domestic Industry Structure 719
2.4 Local Research and Development Efforts 725
3. STRATEGY MATTERS: HOW TO AVOID BEING TIPPED BY TRIPS 730
3.1 The Indian Agenda 730
3.1.1 R&D Strategies 730
3.1.2 Growth Strategies: Exports and Contract Manufacturing 734
3.2 Egyptâ??s View: Problem and Proposals 738
3.2.1 Increase Exports 739
3.2.2 Increase Resource for Local R&D 741
3.2.3 Improve Local Competitiveness 743
3.3 What Egypt Can Learn From India 746
4. CONCLUSION 750
REFERENCES 754

CHAPTER 20 CYBERPOWER FOR ECONOMIC AND SOCIAL DEVELOPMENT 757
IN THE MIDDLE EAST
SAIF ALZAHIR
INTRODUCTION 759
1. IT OF THE 21ST CENTURY 759
1.1 Satellite, Terrestrial, and Wireless Technologies 759
1.2 Digital Content 761
1.3 Hardware 762
1.4 People-Ware 763
1.5 The Next Generation of the Internet (Ipv6) 764
2. EXISTING TELECOMMUNICATIONS AND INFORMATION 765
NETWORKS IN THE ARAB STATES
2.1 Telecommunications Services 766
2.1.1 Availability 766
2.1.2 Broadwork Network 767
2.1.3 Profitability 768
2.2 Arabian Content 768
2.3 Internet Services in the Arab States 769
3. THE IMPACT OF THE INFORMATION TECHNOLOGY ON SOCIAL 772
AND ECONOMIC DEVELOPMENT IN THE MIDDLE EAST
3.1 Economic Sectors 772
3.2 Social Sectors 774
3.2.1 Education 774
3.2.2 Health 774
3.2.3 Rural Migration 774
3.2.4 Unemployment and Training 774
3.3 Social Structure 775
3.3.1 Class Structure (Equality) 775
3.3.2 Privacy 776
3.3.3 Cyberporn 776
4. A PLAN FOR DIGITIZING THE ARABIC CONTENT 777
5. CONCLUSIONS AND RECOMMENDATIONS 778
REFERENCES 779

CHAPTER 21 TECHNOLOGICAL CHALLENGE OF EXPORT-LED STRATEGY IN 781
THE ARAB WORLD
STEVE ONYEIWU
INTRODUCTION 781
1. THE NEED FOR AN EXPORT-LED INDUSTRIALIZATION STRATEGY 783
2. TECHNOLOGICAL IMPLICATIONS OF AN EXPORT-LED STRATEGY 785
3. TECHNOLOGICAL CHALLENGES OF THE 21ST CENTURY 788
4. S&T POLICY IN THE ARAB WORLD 792
5. COPING WITH NEW TECHNOLOGIES: WHAT THE ARAB WORLD 798
MUST DO
5.1 Excessive Focus on R&D 799
5.2 State Monopolization of R&D 800
6. CONCLUDING REMARKS 804
REFERENCES 806

PART VI : ECONOMIC CONSEQUENCES OF THE PEACE PROCESS 809
IN THE MIDDLE EAST

CHAPTER 22 THE IMPACT OF PEACE PROCESS ON THE DEVELOPMENT 811
OF THE PALESTINIAN ECONOMY: A KEYNOTE ADDRESS
SAMIR ABDULLAH
INTRODUCTION 812
1. ISRAELâ??S PEACE POLITICS 814
2. PALESTINIAN-ISRAELI ECONOMIC NEGOTIATIONS 816
2.1 Objectives of the Negotiating Parties on Economic Issues 818
2.2 The Economic Agreement Between the PLO and Israel 818
3. THE IMPACT OF THE AGREEMENTS ON PALESTINIAN ECONOMY 820
3.1 Changes on Development Environment 820
3.2 The Performance of the Palestinian Economy After 824
Oslo Agreement
3.2.1 Economic Changes 824
3.2.2 Economic Relations with Israel 826
3.2.3 Economic Relations with the Rest of the World 828
4. CONCLUSION 829
REFERENCES 831

CHAPTER 23 THE POLITICAL ECONOMY OF THE MIDDLE EAST 833
PEACE SETTLEMENT
TAHA ABDEL-ALIM
INTRODUCTION 833
1. DLE EASTERNISM IN THE ECONOMIC LITERATURE 838
2. ARAB ECONOMIST DEBATE OVER MIDDLE EASTERNISM 847
3. MIDDLE EASTERNISM IN PEACE ACCORDS AND TREATIES 853
4. THE ARAB COUNTRIES AND ISRAEL ECONOMIC MOTIVES 859
FOR PEACE
5. REGIONAL ECONOMIC DEVELOPMENT IN THE 868
IN THE MULTILATERAL TALKS
6. MIDDLE EAST AND NORTH AFRICA (MENA) ECONOMIC 877
CONFERENCES
7. CONCLUSION 886
REFERENCES 893



Date:	1999

Number of Pages:	892

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