Steps towards an Islamic common market

Press, 11 February 1981, Page 18

Steps towards an Islamic common market

By

JAMAL RASHID

in Taif, Saudi Arabia

7. The third Islamic summit “dealt not only with the sensitiye political issues that divide the Islamic world but also tried to put together a comprehensive economic plan which could see the emergence of an Islamic common market. The single most‘important aspect of the Ankara Plan, as it was called in Taif, is the total Islamic boycott of Israel, which extends the Arab boycott to 38 countries stretching from West Africa “'lndonesia. More United States-based companies are

expected to be hit than European firms. Implementation of the Ankara Plan, first submitted to the conference of the Islamic , Economic Co-operation in Ankara last year, will be assured by a $3-billion fund to be handled by the Islamic Development Bank (1.D.8.). The Saudis have already promised $1 billion to the fund. Hiehliehts cf the Ankara pianSS, ™ . . be put , into effect by all Is-

lamic countries. A new Islamic Centre for Development of Trade will be set up and broader powers given to the Islamic Chamber of Commerce. Tariffs pre to be slowly reduced and eventually abolished between member countries. Joint venture projects and favourable treatment for the products of less developed countries will be encouraged. An Islamic shipping .line, to carry all goods between Islamic countries, is also to be set up. Agriculture: The plan calls for “food security in the Islamic world and creation of regional food reserves.” The 1.D.8. will finance agricul-

tural-related industries such as fertiliser and tractor production. Famine and drought aid will also be given. Industry: The development of industry is seen “as an indispensable element and a dynamic instrument of selfsustained growth.” Industrial co-operation between member countries and the prevention of duplication of industries in one zone is a priority. Both the 1.D.8. and the Islamic Chamber of Commerce also plan to encourage joint-venture projects between rich and poor countries. Money and finance: The plan calls for the strength-

ening of direct co-operation between central banks and financial institutions in member countries. Full assessments of national capital markets are planned and investments in poor countries encouraged. Greater research facilities are envisaged for both the energy and science sectors, together with the creation of an Islamic foundation for advanced science and technology. The Ankara Plan also calls for a study of manpower potential among member States and the creation o f skilled manpower pools. Efforts will also be made to stem the brain-drain

to the West which has slowed the development of many poorer countries. The economists in. Taif have resisted a request from the poorer countries for a two-tiered oil pricing system, one for the richer countries and one for the less fortunate. The Ankara Plan, nevertheless, could prove an important landmark for the lesser-developed African and Asian Islamic States. The oil-rich countries have agreed to use their wealth to help fellow Muslims, with the Saudis prepared to give as much as 7 per cent of their national income. — Copyright, London Observer Service.