13 - Africa, The Middle East and the New International Economic Order

Abstract

This chapter discusses the various economic aspects related to Africa and the Middle East. Incipient industrialization tends to emphasize competitiveness among African states and reinforces dependency ties with the developed countries that rarely provide ad hoc technology for the local requirements. Low liquidity provisions for African countries arise because of the small quotas. The consequence is that African countries with greater adjustment vulnerability because of the inflexibility of their economies are accorded less liquidity. The emergence of floating exchange rates has increased the uncertainty of the African countries about real export earnings, import prices, and foreign exchange values. The chapter also discusses the obstacles to the establishment of the New International Economic Order in the Arab countries. The cost of technology patents, licenses, trademarks, and management fees are increasingly absorbing a bigger share of the Arab countries' income. A central point in trade relations is the arms trade. Regional conflicts, especially between the Arab countries and Israel, plus internal unrest in some of these countries have led to massive arms purchases.