ABSTRACT
This chapter focuses on the developmental implications of regional aspects of Arab development in the new millennium. It deals with the issue of building up a viable Arab regional integration, the impact of the introduction of the euro on Arab countries, and assesses the benefits of the Euro-Med Association Agreements, recently initiated by the European Union (EU). The changing boundaries of the Arab world have to be taken into consideration in explaining attitudes. An overly economic approach by Lebanon and some other countries led to the Arab world breaking into two groups, one for unity and another for limited cooperation. The geographic expansion of the EU will pose further challenges both to Europe and other parties, including the Arab region. The importance of the euro to Arab countries arises from the fact that there exists a special relationship between the two groups, though largely asymmetrical, and differing in nature and depth from one Arab country to the other.
