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Exploring Islamic Common Market

The document discusses the proposal of establishing an Islamic Common Market (ICM) among Organization of Islamic Cooperation (OIC) member states. It was first proposed in 1974 but faced challenges. Some OIC countries oppose it while others passively support it. Supporters argue increasing economic cooperation between members is key. While political and economic differences pose difficulties, progress has been made through OIC plans and institutions like the Islamic Development Bank to boost trade. An ICM could help address the economic challenges facing the Muslim world by promoting integration and free trade agreements.

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Hussain Mohi-ud-Din Qadri
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74 views3 pages

Exploring Islamic Common Market

The document discusses the proposal of establishing an Islamic Common Market (ICM) among Organization of Islamic Cooperation (OIC) member states. It was first proposed in 1974 but faced challenges. Some OIC countries oppose it while others passively support it. Supporters argue increasing economic cooperation between members is key. While political and economic differences pose difficulties, progress has been made through OIC plans and institutions like the Islamic Development Bank to boost trade. An ICM could help address the economic challenges facing the Muslim world by promoting integration and free trade agreements.

Uploaded by

Hussain Mohi-ud-Din Qadri
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Exploring Islamic Common Market

Hussain Mohi-ud-Din Qadri


The economic imperatives have shaped the New World Order, which came
into being following the demise of Communism when the uni-polar system
of international relations was established under the leadership of United
States. The pursuit of political agenda and advancement of foreign policy
objectives has become subservient to economic interests of the countries.
China appears to be the best example in this regard. In the same way,
the phenomena of regional economic groupings and Free Trade
Agreements (FTAs) have added a new dimension to the international
system. In a world dictated by the forces of globalization marked by new
rules of the game, achieving the goal of economic integration acquires all
the more urgency so far as the Muslim Ummah is concerned.
The oft-suggested idea of setting up an Islamic Common Market (ICM)
was first mooted at the second Islamic Summit Conference in Lahore in
1974. It was agreed that the establishment of such a market could be at
best a long-term objective and the proposal needed careful and deep
consideration. During this period, some progress has been made towards
greater cooperation among the OIC member countries. A number of
economic cooperation arrangements made between member states could
be the basis for a future ICM.
By definition a common market is a scheme of economic integration
where the members agree to abolish all the tariffs on each other’s
exports, follow a common tariff policy towards their imports from the rest
of the world and allow a free flow of commodities as well as productive
factors (capital, labour, entrepreneurs and technology) within the member
states. In case the Muslim countries are part of some regional integration
schemes, even these have not taken any substantial steps to achieve
advanced forms of economic integration. There are three viewpoints so
far as the idea of Islamic Common Market is concerned.
Firstly, some states simply oppose such a market and prefer simple
bilateral trade between the members. Secondly, another group supports
the idea of an ICM but rather passively and unenthusiastically. Thirdly,
this group actively promotes the establishment of at least a basic
structure which would later be developed into a full fledged common
market.
The later group stresses that a vital prerequisite for this is increasing
economic, industrial and commercial cooperation and development of all
Muslim states. This would largely depend on the exchange of information,
development of communications, increase in relations between private
sectors, promotions of trade fairs and exhibitions for the products and
services of the Muslim states, common educational programmes and
scientific exchange and research between member countries.
There are those who emphasize that in view of the prevailing political
climate in various Muslim countries, it would be difficult to unify the
diverse economic structures. Political and ideological differences between
some of the member states will further hinder the process of economic
integration among OIC countries. This process, however, could be given a
stimulus if member states established economic and industrial
cooperation on a regional basis to start with. Others still say that the
greatest barrier to the establishment of greater economic cooperation
between Muslim states is the lack of political will.
Despite that, the most significant progress towards both increased intra-
trade and as ICM has come within the framework of OIC’s “Plan of Action
to Strengthen Economic Cooperation among the Member States”, which
was adopted by the Third Islamic Summit Conference in Taif, Saudi
Arabia, and within the extensive follow-up action of the Standing
Committee on Economic and Commercial Cooperation (COMECEC), which
became operational in 1984 after the fourth Summit in Casablanca and in
its meeting in March 1987 in Istanbul, Turkey. The Plan of Action specifies
the targets to be achieved in ten major areas of cooperation i.e. food and
agriculture, trade, industry, transport, communication and tourism,
population and health and technical cooperation.
The COMECEC established “The Longer Term Trade Financing Scheme”
which is being run by the 44-member Islamic Development Bank (IDB) as
a fund. The $600 million fund, the first ever of its kind to be launched by
IDB, became operational after the Fifth Summit Conference in Kuwait.
The objective the Scheme is to increase trade among the OIC member
countries in non-traditional items with emphasis on exports. It will
provide partial funding for periods ranging from eighteen months to five
years. Another scheme launched by the IDB is the Islamic Corporation for
the Insurance of Investment and Export Credit (ICIEC). The
establishment of a Trade Information Network and a Trade Preferential
System are some steps which hopefully would lead to greater cooperation
among the OIC countries, which is a pre-requisite for ultimate integration
of OIC member states.
The joint declaration adopted at the extraordinary meeting of OIC heads
of states held in Makkah in 2005 identified the economic challenge as the
cornerstone to be able to address the political issues facing the Muslim
world. It is no doubt a very formidable task capable of testing our
collective grit and determination. Any step towards restoring the lost glory
of the Muslim Ummah should start with efforts for economic progress and
the best course to achieve this is to form common Islamic Market (i.e.
economic integration and FTAs). Let the coming generations not say that
we did not prove equal to the task.

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