ABSTRACT
The United States and the European Union have an extensive set of economic instruments to help reform the economic institutions of North African countries. These are allegedly motivated by security concerns. In theory a more liberal and integrated economic framework will allow for greater development, cohesion and stability. This is based on a general consensus that economic stagnation is a major cause of extremism in the region. The economic dimension of US diplomacy involves an essentially bilateral push for free trade agreements and several aid instruments. EU policies have a similar thrust but its deeper interdependence with North Africa leads to a more holistic approach. These different emphases relate to the complex dynamics of competition and cooperation evident in US–EU relations more generally. Although an alliance, the US–EU partnership involves competition for structural power in the global political economy. Does the element of competition significantly affect the overall unity of their approach to the region? Empirical study bears out the hypothesis of competition for structural power but there are striking commonalities in their globalising and liberalising agendas. There are also substantial similarities in another sense; self-interest considerations distort the reform and development project. In relation to the broader strategic role of both actors it is concluded that the limited element of competition does not amount to geo-political rivalry at this stage. All of this implies that neither actor is likely to have a transformative impact on the institutions of the region. Their main focus is in limited commercial reforms which regime elites will be able to control and manipulate.
