Increasing terrorist activity has led the Maghreb countries—Morocco, Algeria, Tunisia, Mauritania, and Libya—to focus on antiterrorism efforts, unintentionally at the expense of full-fledged economic reform. These countries have tightened their border restrictions on the flow of people and goods, reducing commerce and depressing economic activity. In fact, Maghreb has one of the lowest rates of intra-regional trade in the world; other factors like rigid economic structures, slow productivity growth, and modest investment levels continue to stymie progress toward economic integration. Do these countries' diverse circumstances symbolize insurmountable obstacles in achieving economic cooperation and an improved standard of living for citizens? How can the United States and European Union facilitate economic progress? Maghreb Regional and Global Integration: A Dream to Be Fulfilled utilizes two distinct econometric tools to assess four key sectors—energy, banking and insurance, transport, and agribusiness—and outlines achievable sector-specific recommendations. This book not only assesses the gains from economic integration among the Maghreb countries, but also focuses on the tangible benefits from enhanced economic ties between the region and the world economy. With this critical analysis, the authors provide an in-depth look at practical measures such as bilateral trade and investment agreements, regional arrangements, and financial assistance that can significantly boost short-term success and ensure long-term gains through integration in an unstable region.

Working toward political stability by combating increased levels of terrorist activity, the Maghreb countries have shifted efforts away from executing full-fledged economic reform. At the same time, recently implemented economic reforms fall short of bolstering lackluster performance and easing political tension among neighbors. In fact, Maghreb has one of the lowest rates of intra-regional trade in the world; other factors like rigid economic structures, slow productivity growth, and modest investment levels continue to stymie progress toward economic integration. Do these countries' diverse circumstances symbolize insurmountable obstacles in achieving economic cooperation and an improved standard of living for citizens? How can the US and EU facilitate economic progress? This book not only assesses the gains from economic integration among the Maghreb countries, but also focuses on the benefits from enhanced economic ties between the region and the world economy.

Individual countries of the Maghreb have achieved substantial progress on trade, but, as a region they remain the least integrated in the world. The share of intraregional trade is less than 5 percent of their total trade, substantially lower than in all other regional trading blocs around the world. Geopolitical considerations and restrictive economic policies have stifled regional integration. Economic policies have been guided by country-level considerations, with little attention to the region, and are not coordinated. Restrictions on trade and capital flows remain substantial and constrain regional integration for the private sector.

This book summarizes the constraints to and opportunities for deepening economic integration within the MENA region and beyond. Trade and investment reform are discussed together with physical connectivity, cross-border trade facilitation, infrastructure networks, and the vital role of logistics.

L’ambizione di questo volume è presentare nuovi paradigmi di analisi del processo di integrazione regionale nel 17 Maghreb, da un punto di vista politico, economico e della gestione della sicurezza. Frequentemente trascurata nell’ambito degli “studi comparativi regionali”, il regionalismo maghrebino rappresenta un fenomeno complesso, che può fornire interessanti informazioni sulle “intersezioni dei fattori domestici e internazionali che danno forma alle fortune economiche, agli interessi nell’ambito della sicurezza, e sulle attività culturali degli attori politici” (Katzenstein 1996, 5). Frequently neglected in the field of “comparative regionalist studies”, Maghrebi regionalism represents a complex phenomenon, which could provide interesting information concerning the “intersection of the international and domestic factors that shape the economic fortunes, security interests, and cultural activities of political actors” (Katzenstein 1996, 5).

The economy of the Mediterranean region countries - which in the present study include Algeria, Egypt, Jordan, Lebanon, Morocco, Syria, Tunisia, as well as Israel and Turkey - experienced a period of strong and dynamic economic development in the late 1970s and early 1980s. But since the 1980s these economies have experienced a much less dynamic evolution and tended toward stagnation. This paper by Oleh Havrylyshyn, presents an assessment of the experience of these economies in a framework of a broad trade strategy perspective for Mediterranean countries, and examines prospects for the future.