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It’s the region, stupid

The Middle East suffers from a whole range of problems. War and conflict are besetting wide parts of the region and have caused massive destruction as well as displacement in several countries, including Syria and Yemen. Climate change has brought about enormous environmental degradation such as desertification and water scarcity. At the same time, stressed domestic economies are increasingly unable to provide job opportunities for the region’s disenchanted youth. The Middle East faces enormous challenges that transcend borders and hence require answers that narrow-minded national policy making is no longer able to provide. Indeed, the region is today in dire need of regional responses.

On March 7, the Middle East Institute presented a roadmap of how future cooperation should look like in the Middle East. Resulting from Track 1.5 initiative involving current and former officials and senior experts from across the Middle East as well as from China, Europe, Russia, and the United States, the so-called Baghdad Declaration outlines 12 good neighborhood principles for the region. The discussion featured three major participants in the Middle East Dialogue. Naufel al-Hassan, deputy chief of staff to Prime Minister Haider al Abadi of Iraq, Abdullah al-Dardari, who serves as a senior advisor on reconstruction at The World Bank, and MEI’s senior vice president for policy research and programs Paul Salem provided their perspective on the Baghdad Declaration and the Middle East’s future. A full recording of the event is here:

Regional integration is already prevalent in the Middle East. Abdullah al-Dardari stresses that, excluding oil and gas, intraregional trade accounts for some 40% of total trade in the Middle East; taking the informal economy into consideration, this figure might even reach 60%. Moreover, the Middle East has the world’s highest level of intraregional level of remittances. Paul Salem underlines this observation and adds that only because of the high level of existing regional interdependence and interaction conflicts were able to spread that easily across the Middle East. However, the integration of today is neither well-structured nor reflected in the political relationships between Middle Eastern states.

The region is still in dire need of better cooperation among its members. Al-Dardari argues that the model of country-based economic growth has reached its apex in the Middle East. Self-sustained economic development is no longer possible as national labor markets, productive bases, and consumption levels have become too narrow. Instead, only regional economic integration and the resulting creation of an open regional market can attract extensive investment and the money needed to rebuild war-ravaged countries: an estimated one trillion dollar of assets has been destroyed since 2011. Naufel al-Hassan also points out that political and environmental challenges such as transnational terrorist networks and water scarcity go beyond the problem-solving capacities of single states and require common answers. In the same vein, the region’s governments can only bring back hope to the Middle East’s youth when they collaborate on providing decent job opportunities. A new regional framework is hence not an option, but a necessity.

Although the contemporary conflicts in the Middle East seem to make increased regional cooperation almost impossible to achieve, change is possible. Salem stresses that other regions of the world were able to transition from a conflict system to a stable order. Not even a century ago, Europe suffered from two wars which much exceeded the level violence that has beset the contemporary Middle East. Yet Europe has been able to overcome its international divisions and conflicts and has established a strong system of cooperation, the European Union. At the same time, the Middle East has proven to be able to move beyond regional standoffs, as the surmounting of rivalry between Egypt and Saudi Arabia of the 1950s has demonstrated. We can thus be hopeful whereby al-Hassan emphasizes that a new stage of integration has already begun. To defeat ISIS, the region has displayed a new level of cooperation, which can serve as a blueprint for future efforts to unite in face of political, economic, and environmental challenges.

A better future is hence possible for the Middle East. The Baghdad Declaration offers a distinct vision that can show the path towards deeper integration in the region. When this transition will materialize will however depend on the readiness of the region’s current leadership to cease hostilities and acknowledge that small-minded national agendas cannot act as a remedy. For the sake of the Middle East and its people, this change of mentality and political outlook should occur soon.