Muslim Common Market Secretariat Established

Every so often an idea comes along that makes so much sense one is embarrassed for not having thought of it oneself. Such is the proposed Islamic Free Trade Zone. The World Islamic Economic Forum held under the auspices of the Organization of the Islamic Conference (OIC) wrapped up a three-day chin-wag with just that idea. In the immortal words of the shoe manufacturer, “Just Do It.”

This journal believes that free trade, implemented so as to keep the inherent disruptions to a minimum and phased in to ensure that no political faction loses out so badly as to become hard-core opposition, will make the world a better, richer, healthier place. As the old communist Deng Xioping said, “It is glorious to grow rich.” And in Muslim history, Islam was never a greater force for learning and civilization than when it was gloriously rich from trade.

However, colonialism and the decline of indigenous culture (a chicken and egg situation to be sure) have left the nations that adhere to the teachings of Mohammed, peace be unto him, with horribly statist economies. If the twentieth century taught humanity nothing else, it taught that governments shouldn’t be trusted with economies any more than they should be trusted with armies. The dismantling of these impediments to the commercial genius of the people of that part of the world can only be a driver of economic growth.

The statistics are telling. The 57 nations belonging to the OIC have 1.5 billion inhabitants, roughly 25% of the human race. Their combined GDP accounts for less than 5% of global GDP. Their trade between themselves is around $800 billion – less than 7% of global trade. Trade between poor nations doesn’t really do much, however. The biggest global trade flows are between North America and Europe -- haves trade more than have-nots because they have stuff to trade. Yet there are Muslim nations that have healthy developing, if not developed, economies: Malaysia and Indonesia are showing signs of “tigerish” economic behavior.

Malaysian Prime Minister Abdullah Ahmad Badawi said the Muslim nations needed to “explore and identify new and innovative means to strengthen our co-operation" and "break any deadlock caused by excessive bureaucracy.” One would feel more optimistic if the delegates had done more than merely establish a permanent secretariat in Kuala Lumpur and agree to meet annually. It’s starting to look like excessive bureaucracy without the new and innovative cooperation.


© Copyright 2005 by The Kensington Review, J. Myhre, Editor. No part of this publication may be reproduced without written consent.
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