Arab Spring Revives Maghreb Integration
- LAHCEN ACHY
- 03/07/12
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The past few weeks have witnessed intense diplomatic activity among the five Arab Maghreb countries—Morocco, Algeria, Tunisia, Mauritania, and Libya. With the Arab Spring and widespread economic malaise due to both domestic and external factors, these countries are revisiting the long-dormant Arab Maghreb Union (AMU) agreement in the hopes of jointly overcoming the challenges they face.
Attempts to achieve political integration in the Maghreb have been made since the AMU’s inception in 1989. A comprehensive strategy adopted in the town of Ras Lanuf, Libya, in 1991 planned for a transition to a free trade zone then to a customs union followed by the establishment of a common market by 2006. This plan failed miserably due to political tensions between member states and resistance to trade liberalization. The last AMU heads of state summit—the union’s decisionmaking body—was held in 1994.
Since then, the Maghreb countries individually signed free trade agreements with the European Union as well as the Arab world as part of the Greater Arab Free Trade Agreement and the Agadir Agreement, which includes Egypt and Jordan in addition to Morocco and Tunisia. The Arab Spring’s winds of change, the economic challenges faced by the Maghreb governments and the stifling economic crisis in Europe—the Maghreb countries’ main partner—have brought the largely inactive AMU back to the forefront.
Currently, intraregional trade in the AMU does not exceed 3 percent of the region’s total trade, which is the lowest rate worldwide. Intraregional trade accounts for 60 percent of the trade within the European Union, 22 percent within the Association of Southeast Asian Nations, and 20 percent among the Mercosur countries. The weak integration in the Maghreb is also obvious when compared to that of other economic communities in Africa. Intraregional trade among the Southern African Development Community represents 30 percent of member states’ total trade. Likewise, intraregional trade within the Economic Community of West African States accounts for 20 percent those states’ total trade.
The Maghreb countries share a common historical and cultural heritage. The success of any economic integration project, however, requires a strong political will to overcome existing differences and build on mutual strategic interests to face various economic and security challenges. Today, some of the AMU’s leaders perceive regional integration as a strong response to the challenges facing the region, be it job creation or balanced regional development in the Maghreb countries.
Maghreb countries, currently, are relatively small and segmented markets. The establishment of a free trade zone or common market, with more than 80 million consumers, would create economies of scale and turn the region into an attractive investment hub. The United States and the European Union will seek to strengthen their economic and strategic relations with the Maghreb in the event of such integration.
The creation of a free trade zone among the Maghreb countries could increase intraregional trade by five times the prevailing figures. Economic complementarity already exists among Maghreb countries. Algeria and Libya, for instance, produce some of the largest amounts of oil and gas in Africa. Morocco and Tunisia, meanwhile, have diversified agricultural and manufacturing sectors. International experience reveals economic integration itself creates new opportunities for more complementarity based on the comparative advantages of each country.
Policymakers in the Maghreb must emphasize efficiency in the process of integration and take concrete and realistic measures that, if implemented, would generate short-term tangible results. They must also focus on specific sectors to serve as catalysts for the integration project. The most important steps of an efficient integration process can be summarized as follows:
First, dismantle tariff barriers that hinder the free flow of goods and that reduce trade and economic activity among the Maghreb countries.
Second, reopen roads and railways between Algeria and Morocco and work toward reducing shipping costs between the Maghreb countries. Shipping costs in the Maghreb are currently twice their average level in industrialized countries and exceed by 25 percent their average in developing countries. Intraregional trade in the Maghreb often passes through European ports before it reaches its final destination.
Third, remove administrative and technical barriers that impede fluid trade flows among Maghreb countries. Policymakers should pay attention to those arbitrary and unpredictable barriers imposed at borders with no legal basis.
Fourth, restore the credibility of the integration project by implementing transparent mechanisms to monitor, assess and settle trade disputes between companies operating across the Maghreb.
Fifth, upgrade the investment climate and improve economic governance. Policymakers should not limit integration in the Maghreb to trade policy reform. Existing administrative barriers and regulatory burdens increase transaction costs and have harmful effects on trade and investment.
Finally, Maghreb leaders should pursue regional integration as a complement to and not a substitute for multilateral relations within the World Trade Organization and free trade agreements with Turkey, Europe, the United States, and other regions. Regional integration can help the countries of the Maghreb overcome rising instability and become competitive in this era of change.
Author: Lahcen Achy is a resident scholar at the Carnegie Middle East Center . He is an economist with expertise in development and institutional economics, as well as trade and labor, with a focus on the Middle East and North Africa.
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Comments (16)
It does not make sense to have any sort of integration between North African countries when the sole goal of the Algerians is to defeat Morocco and become the only power in North Africa.
We have to call a spade a spade, the union will not benefit from Tunisia, Morocco and Mauritania. Algeria and Libya are both oil producing countries and I do not see what they can get in return from this union and that is the reason why Algeria is in no hurry to open any borders. If they do, Eastern Morocco will benefit the most, what is Algeria going to gain in return? Nada , Zilch
Mauritania is a mess, they have more coups d'etats than I can ever count.
Tunisia is probably the most educated entity of north Africa but they do not have any resources other than tourism and med schools.
Do I have to say that Morocco is composed of a population that is 50% illiterate and 80% poor, and the elites took over the entire country with nothing to show for?
Algeria could be the Saudi Arabia of North Africa they are debt free and over a quarter of a trillion in their coffers, unfortunately the Algerian people see none of that, you guessed it, old hawks spending money on Russian migs and tanks than on their own people.
Let's not hold our breath, if anything positive will happen in North Africa, it will certainly take place when we are dead.
Btw, the in and out that you have seen lately that's a bunch of BS, check out the Algerian News press and see for yourself. The majority is not in favor of AMU, I don't blame them. The reason that Medelci hosted Othmani is Hillary Cliton pressuring the dictators next door. As soon as Othmani got back to Morocco, every Algerian news media led by Algerian Press Service (APS) went after him.
Asking Morocco and Algeria to unit is like asking Iran and Israel to do the same. it ain't going to happen my friends, our leaders hate each other.
There is a talk that an AMU meeting between the leaders of North Africa will take place in Tunisia this year, I can guarantee you that M6 will skip it in the last minute and will send Omrani instead. Done that before again and again and that really pisses off the Algerians, I don't see how this bad habit from Hassan II can ever change.
There is no Maghreb Union (Please don't call it ARAB Maghreb!) as long as Algeria is still hosting and supporting the Polisario.
It is not a matter of having oil or not. It is a matter of having serious and competent leaders who can mobilize the masses behind them. At the moment, there is no hope. Algeria and Morocco are heading toward toward to worst crisis. They are trying to delay the break out of violence using very superficial reforms. The young generations of citizens are not well prepared to take care of themselves and this is combined with a huge frustration. Wait and see
Morocco will never ever give up the Sahara to the Polisario
Algeria will never ever cease supporting the Polisario.
I think everyone agree with the above right?
Some of you may ask, How do we break the stalemate between Algeria and Morocco?
The answer is very simple. We can't.
Why?
Morocco and Algeria invested too much for too long for any of them to budge.
The only way that can be changed is the change of the leadership in both countries.
Some of you may ask, How do we change the leadership then?
The answer is very simple. We can't.
We basically need a miracle and as you all know miracles don't come by very often. The bouazizi miracle in Tunisia will not take place in Morocco or Algeria.
Some of you may ask, why not?
The answer is very simple: The opposition is too weak and non existent in both countries, we have a king who can amend a constitution to fit his agenda and we have an Algerian president backed by the butchers of North Africa and no one can come even close to shake them from the reign. Bouteflika backed by the butchers who slaughtered a quarter million Algerian amended the constitution to give himself a right to presidency for life. Our king, did not fare any better with the cosmetic changes that he implemented in 2 weeks time and asking Moroccan to vote YES on his constitution. Of course the illiterate 50% will vote yes and the rest will not bother to vote.
Sounds good to me, Algeria can have its AMU but it won't because ALgeria knows that they have nothing to gain from AMU. Morocco will only benefit in an AMU with Algeria. Eastern morocco would love to get those tourists to spend some cash.
The reality right now is we are not ready for unions and what have you. We need some major house cleaning first. The everyday Moroccan and Algerian will not benefit from these unions, it will only make the Algerian generals and the Moroccan elites thrive in narcobusiness,u nder the table oil trade, ...etc.
We are not Europe, we have much to do before we can even speak of uniting. 37 years of cold war between Algeria and Morocco will not just go away in a fake union.
It may take a bit longer for us in Maghreb Al Arabi for obvious reasons such as our leaders not knowing how to move forward from here, but it will remain the goal of the populations of these countries for eternity, the desire for unity in the Maghreb is driven by the people, where as in the EU it was driven by the governments
I think the will of the people is stronger as we want unity because we have love for each other regardless of the stances of our current leaders
no need to try and drive a wedge between us here morcelli
I once held a private party for 4 of my closest neighbors. We all lived, and still do live in this naturally beautiful, tree-lined street right by the beach. We were surrounded by water, fertile ground and plenty of natural resources. Surprisingly enough, my neighbors were from Algeria, Tunisia, Mauritania & Libya. What a coincidence you might ask? :-))
Anyhow, the neighbors came, ate, drank, listen to live music (Abdelwahab Doukali of course) – and they all seemed to have had a good time. Silly me thought I now have good friends, I now have friends I can build alliances with and become relevant again (like if we ever were)…. Then it dawned to me that not all friends (read – countries) are destined to be civilized, advanced or even relevant.
So, Mr. Lahcen, I command you for your well articulated piece – your suggestions on how this AMU could be formed are certainly attainable – But just like the Bible said:
Peter 1:7 “Thou shalt bestow sanity on Morcelli”
Paul 7:2 “men en blanc, comes as a friend, whilst betraying thee”
Mary 3:4 “Ye ask of Marghreb? Thou wilt you be no mo”
I would say, good effort from your part -- but there ain’t no hope….
I am sitting outside of the Police station because I am waiting to submit the archaic paperwork required to renew my Carte National. The Carte National process is easily one of the most psychotic procedures in the Makhzen maze. In order to get a Carte National, you must be humiliated by police, make use of someone you know or someone your family knows or open your wallet, and surrender your integrity by bribing someone. The reality is that people who the police have reason to fear never make their way to a police station, so the Police, in Morocco, though powerful and all powerful inside the confines of the police station do not exert the power they once did outside of the police station.
The reason they act with such impunity inside the police precinct is that they understand that if you have to come to them in person to process a carte national, that means that you are not a member of the corrupt Bougoius and/or you are poor, so basically, in a country ruled by an undemocratic, unaccountable quasi dictatorship, you do not matter.
Thus your work day has no value. Your time has no value and you must just sit and be patient and hope for the best. There is talk of the police station that is supposed to open up at 8:30 AM, and I have been siting here since 8 am wondering if in fact they will open at 8:30 AM. I got into an argument with the Police officer in Charge and then they are now coming out and they are speaking to everyone.
I am sitting here on the sidewalk waiting for them to speak to me.... more to follow
In a stunning development, the same officer that was incredibly rude earlier and told me that they would open the precinct when they were good and ready, had a big smile on his face and came outside to put everyone in order. He went to the women first and asked who was here to get a carte national for the first time. He ushered those people inside. He then asked the men the same thing, he ushered those in first as well The next thing that he did was get all of the men in one line behind a barricade and get the women in a separate line behind the barricade and then hand out numbers to everyone that was waiting. I was in absolute shock! There was order - not only that but the same police officer who was rude minutes earlier came to me and asked me if I had an envelope, it seems that you must provide your own large manila envolope when submitting your request for a Carte National replacement (my old one is expiring and I have a plane to catch literally later today and want to make sure that I submit the request for the Carte NAtional before I travel, as I will be gone on the road for the next two months more or less.
The rest of the procedure was non eventful, and essentially, the whole process took 2 hours from the time that I first stood on line outside, to the time I finally got my fingerprints taken and got out of the precinct.
There is room for improvement, but it is clear that the process has been improved a great deal over the past few years.
I think the biggest improvement that can be made is to just let everyone know as soon as they get there, what to expect, and approximately how long it will take to complete each step in the process. The thing I liked was that they asked the very elderly to cut to the very front of the line. I like the idea of the elderly going first, but I don't like the idea of anyone cutting the line, as it gets people to question the fairness of the process - so maybe just handling all Elderly separately might be a better idea, and maybe the elderly could be told to come at a certain "off peak" time and be dealt with exclusively.
My overall grade for the Carte National Process - D+ or C-
M6: What the F&#&#^#* am doing here? that little creep of Othmani should be here instead, I'll make sure to send him my attack dog el himma when I get back.
Bouteflika: Looks like everyone here is dreaming about the 200 billion in our coffers, These bunch of rookies don't know who they are dealing with. My stomach is growling from those rotten Tunisian dates that I had that airport and I just had my 10th surgery.
Moncef Marzouki: Will these sh-mugs ever leave power and let the new generation try its luck?
Mohamed Ould Abdel Aziz: there is a good chance a coup d'etat is happening in my country as we speak, let me kiss up to that young king to see if he can spare one of his Marrakesh villas. Hummmm Should I ask him now?
TNC's Mustafa Abdel Jalil: Man! these people are worse than Qaddadi. Look at the Algerian president, he looks sick, What the F^&@^&@ is he doing here? Probably the generals are forcing him to attend. He needs a doctor.
Aziz, Busted! you are fluent in the bible. You are christian spy!
If we would have a legitimate un corrupted judicial system, we would not have riots. People will know that no matter what happens justice will be served. The young king needs to understand that Morocco of today that he created is not Morocco of Hassan II. Hassan would never hesitate to shoot his own subjects, as in the case Bashar in Syria. I am not sure that M6 will be able to do that, he knows that killing his people means the end of the monarchy. Right now he rather have hos security forces die instead.
I am not sure that the security forces will continue to sacrifice their life for the king.
Before we talk about any union, some serious house cleaning needs to take place. The Algerians are already criticizing Morocco now that the negotiations with the polisario is taking place in NY. It would be mocking the intelligence of North African people to give the impression that all is fine and dandy when in fact 37 of cold war between Morocco and Algeria has changed even the way we think toward each other. The Algerian resent everything Morocco does, they even want to have a bigger minaret than the one in Hassan II mosque, what are they doing now? they are building a bigger mosque with a higher minaret when their young people are still jumping into the Mediterranean for a better life in Europe. Well they think, it would be a better life.
they can more than afford building the mosque not like hassan 2 who had built the thing by the sweat of his people's brows even though neither they nor he could afford it. He swindled the population for money, having newspapers publish daily front-page exhortations to the faithfuls to donate while denying his country basic services like health care and rural education. and for what reason, he wanted to make sure no one in morocco will never forget his name. reading your other comments i thought you were old enough to know how things works in morocco but apparently you hate to algeria blinds you.
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