The two-day Arab Economic, Social and Development summit is underway in Kuwait to improve trade links among 22 Arab League nations. The summit that has been envisioned during the annual Arab Summit in Riyadh in March 2007 is particularly designed to focus on socio-economic integration of the Arab world. Nevertheless, it has come in a time when the region has reportedly lost about $2.5 trillion in a period of four months owing to slump in oil prices and grave differences among the nations regarding Israeli offensive.
UAE Minister of Higher Education and Scientific Research Sheikh Nahyan bin Mubarak Al Nahyan observed the primary objective of the summit would be to bring about economic reforms that would help to expedite trade among the member states. The first ever economic summit is expected to facilitate significant resolutions in the area of development of education, improvements in health care system, alleviation of unemployment and eradication of poverty. Nahyan in a press meet had earlier stated that the summit would be a turning point in the history of the region.
Defence and security allocation of Arab League countries is estimated at an average of 28 percent of the current expenditure over the past eight years. On the other hand, budget for economic affairs never exceeded 8 percent. The Arab League states are planning to substantially increase their expenditure for social and economic causes through this summit.
Analysts predict the short duration of the summit is likely to avoid any detailed discussion on the Palestinian issue lest it would divert the focus from the summit’s purpose. However, the likely presence of UN secretary general Ban Ki-moon, who is in the region to deal with the Israeli aggression on Gaza in the summit, may cause the venue turning out to be a place to vent their anger against Israel.
It has been learnt that Arab leaders are likely to approve the launch of Arab Customs Union by 2010 and to be completed by 2015 as the first step to a common access market. The nod for power grid and a railway network across the region is expected to boost trade and projected to create eight million jobs by 2020. Even though, a Pan-Arab Free Trade is in force for the past three years, the inter-Arab trade is estimated less than 15 percent. The summit intends to be non-political, however the time allotted for economic affairs will decide whether the summit will be able to fulfil its complete purpose.
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