ABSTRACT
This chapter offers a definition of the characteristics of Arab economic cooperation, a diagnosis of its problems, and the identification of its interrelations with national economies. It looks at some basic dimensions of a regional strategy for development and forecasts a development pattern which secures the objectives and balances of the proposed strategy. The chapter examines some organizational aspects of the Arab economy. Labor and financial outflows contributed to an unprecedented organic linkage of the Arab economy. While some of the Arab oil surpluses went to non-oil Arab countries, the great bulk of these surpluses were invested in international financial markets and in the Western economy at large. National Arab economic problems, their causes, remedies and future trends, vary according to the country's development phase and economic resources. The components of the Arab regional strategy are therefore determined by the objectives of overall Arab economic balance and development, and the means whereby these objectives can be achieved.
