Background

For over a decade, Arab states have become increasingly enthusiastic about the benefits of greater economic integration across the region. The experiences of  neighbouring countries indicate that building a shared economic space can reap various socio-economic advantages.

These regional integration frameworks remove tariffs imposed on imported goods and services, provide for fluid trade in services, and allow both capital and citizens to move freely. Under these conditions, state economies can grow stronger by building expanded, regional markets for goods and services, while also promoting development and fairer wealth distribution.

As far back as 1957, the LAS concluded an agreement to provide for an integrated regional economy, largely mirroring the European Union’s current arrangement. Today, however, the Arab world remains far from achieving this objective. Arab countries have maintained most tariffs on goods from other LAS member states, regional trade accounts for a fraction of overall commerce, and labour mobility between Arab countries is still very low.

Several LAS member states have accepted the need to adopt extensive trade policy reforms to create a common market. Modern free trade agreements approach economic integration holistically, looking beyond tariffs to overall supply chain barriers to trade, such as high taxation on manufacturing. By contrast most Arab states remain stuck with the decades-old, goods-focused GATT principles.

When crafting regional trade policy, gender sensitivity stands out as a salient issue due to current labour market conditions. In the Arab World, gender inequalities in access to productive assets such as land and credit, or storage and transport facilities, tend to constrain women’s benefits from trade policies.

The imperative for improved economic growth has become especially urgent in the Arab world. Limited integration of Arab economies in the global value chain (measured mainly by trade in intermediate goods) and the relative absence of an Arab regional value chain should signal the need for a new setup in light of the disruption that happened to global value chains due to the COVID-19 pandemic.

Triangle’s Assessment

Triangle is assessing the UNDP’s project performance and results following the OECD/DAC criteria to ensure accountability. Triangle will also analyze the UNDP project’s approach to addressing strategic bottlenecks, including institutional resistance to change. This research will aim to guide future policymaking priorities and strategies aimed at accelerating structural transformation in a sustainable and inclusive manner

UNDP’s project aims to tackle key policy and legal changes to improve entry points that could enhance gender mainstreaming in trade policies, and the promotion of women’s empowerment and gender equality will be analysed across the project.

Triangle will also identify and analyse the assessment findings to enable the incorporation of lessons learned and provide recommendations that can be useful for the future design of similar projects.