ABSTRACT
Recent developments in the Middle East have led many to argue that economic necessities underlie many of the hopes of a stable and peaceful region. Clawson (1995:317) argues rightfully that ‘economic cooperation is a field that attracts optimists, not to say dreamers’. Although it is clear that a close relationship exists between the economic and political aspects of long-standing conflicts in the region, it is not clear how-in precise terms-to characterise the nature of the region’s economy in comparative terms within the international system. More specifically, the connection between economic structure and protracted conflict in the region needs to be clarified in order to grasp both the nature of difficulties as well as opportunities in regional cooperation, and also the potential for settlement of conflicts.
