An Arab bank for development: Arguments for the establishment of an Arab bank for development

Guecioueur, Adda (1978) An Arab bank for development: Arguments for the establishment of an Arab bank for development. PhD thesis, University of Glasgow.

Abstract

This work comprises five chapters. The aim of the first chapter, the resources of the Arab World, is to introduce the region to the reader. The economic and social needs of the population can be perceived through the levels of education, public health and unemployment. These problems are exacerbated by a high growth rate and a geographical mis-distribution of the population. In the second part of the chapter we consider the existing mineral resources that have to be used to satisfy the above requirements. These resources are manifold but we shall focus our attention on crude oil and, more precisely, on the structural and conjunctural economic and non-economic causes that led to the quadrupling of oil prices during the last Quarter of 1973 and early 1974. This phenomenon will be referred to as the "oil crisis''. These causes will be at play for several years to come. Consequently, Arab countries, at least until oil runs out, are assured of a steady flow of revenues. The logical question is, what are Arab countries doing with theire oil revenues. However, given the current international financial, economic and trade setting, Arab countries' ways of using their resources are closely related to the question of how oil-importing countries are paying for their oil bills. This problem is treated in the second chapter. The reshuffling of Arab dollar's through international official and private financial institutions is considered in the third chapter. Amongst the official institutions we single out the case of The International monetary Fund. Arab investmente in real assets are also dealt with at this stage. The conclusion to be drawn from this chapter is that Arab oil revenues have been mainly channeled to the major O.E.C.D. countries (United States, Japan, West Germany, United Kingdom, Italy and France). The working of these channels is treated in the fourth chapter. As for the Arab countries themselves, their case is treated in the fifth chapter. In the Arab World the present realities can be summed up as follows: On top of their geographical unity, individual Arab countries are characterized by a common history, language and religion. However, this is not enough in our current world. Nonetheless, these common features could play a strengthening role if Arab countries were to bank on their complementarities in the fields of agriculture, industry, labour force, markets and capital. In the past these economic and non-economic advantages have not been fully exploited. The reason put forward has always been that Arab countries lacked capital that is essential to any economic achievement. Now they have it. Finally, one should mention that there ventures that no single Arab county can undertake by its own means; especially Research and Development if it has to lead to a technology more suitable to domestic economic and social conditions. To fulfil this purpose we suggest the establishment of an Arab Bank for Development. This institution has to be specifically designed for the Arab World and include poor and rich countries alike. Of course we do not suggest just another bank because we have stated that there are already too many. Our specific suggestion is to merge the existing funds and banks whose aim is to promote development within and between Arab countries. If this merging proves to be impossible our second best proposal would be to restructure the Arab Fund for Economic and Social Development (A.F.E.S.D.) more in line with the region's needs and financial abilities. The second proposal is loss efficient because its working will be impeded by the existence of the funds and banks which have not been merged into the Arab Aid Fund. This Arab Bank for Development should have more than the classical functions normally known to regional development banks and should have to pool existing Arab banking and investment expertise as well as tap other sources of capital. The impact and contribution of the bank we have in mind world be greatly enhanced if the Arab World had at its disposal an "inward-looking" financial market and a single Arab currency. (Abstract shortened by ProQuest.).

• Item Type: Thesis (PhD)
• Qualification Level: Doctoral
• Additional Information: Adviser: L Sirc
• Keywords: Banking, Middle Eastern studies, Economics
• Date of Award: 1978
• Depositing User: Enlighten Team
• Unique ID: glathesis:1978-72095
• Copyright: Copyright of this thesis is held by the author.
• Date Deposited: 17 May 2019 13:02
• Last Modified: 17 May 2019 13:02
• URI: https://theses.gla.ac.uk/id/eprint/72095