In Theory: GCC cooperation reaches a crucial juncture

Late next month the annual ordinary session of the Gulf Co-operation Council will be held once again in Kuwait six years after it was held there for the last time. Five sessions were held consecutively in the other five GCC member states during the last few years.

In fact, the last summit held in Kuwait adopted a significant resolution allowing GCC national banks to open branches in the other member states. According to the data available from central banks and monetary agencies in the GCC states, many national banks submitted applications five years ago to obtain licences for opening branches in several Gulf countries.

Banking licences

Last year and this year a limited number of GCC national banks received licences to carry out banking business after a lengthy and unjustified waiting period, while most of these applications are still shelved in the offices of central banks and monetary authorities. It should be noted that this particular decision was adopted at the highest levels of GCC leadership.

Focusing on the reasons preventing the implementation of ordinary resolutions of summit meetings held over the last 20 years, the question to be asked as we approach a new session of the GCC summit is whether this is due to red tape or complacent civil servants.

Or is there some drawback in follow up by the authorities concerned in the GCC General Secretariat and in government departments and ministries in the GCC states?

Certainly there are reasons allowing some of them to stop the implementation of decisions adopted by the supreme authorities that have made efforts to promote Gulf co-operation and integration and to open the doors for implementing such resolutions.

Perhaps all these reasons combined have prevented the implementation of this decision and other resolutions that have been kept pending for a long time, especially obstructing the implementation of the GCC Customs Tariff Regulation, adopting a unified currency, citizenship, retirement and social insurance regulations, among others.

The lack of bodies monitoring the implementation of resolutions constitutes one of the main drawbacks affecting joint Gulf action. The forthcoming session in Kuwait can contribute towards introducing a mechanism for following up the implementation of resolutions and referring recommendations and views to the following session.

In this process, it should outline the facilities that contribute to implementing certain recommendations, difficulties and obstacles that were faced in implementing the other resolutions and the solutions and proposals that must be adopted to carry out the issues that were kept on hold since the earlier sessions.

Adopting such a mechanism requires a great deal of transparency and candidness. The European Union that has realised unprecedented historic achievements makes sure that its statements contain specific dates for implementing its decisions and recommendations.

In addition, such statements contain reference to the difficulties and factors obstructing the implementation of what has already been agreed upon.

Alternatives

Also suggestions and alternatives are put forward for removing the impediments facing joint European action even if the process calls for providing assistance or compensation to the parties suffering damages from the joint decisions. All this is considered quite natural in all economic blocks throughout the world.

Very shortly the GCC will mark its 25th anniversary which means that a whole generation has been brought up in the presence of the GCC. However, this generation does not feel or reap the benefits from Gulf economic co-operation.

The next GCC summit to be held in Kuwait will take place against a background of very tense regional and international conditions which calls for a new beginning for activating joint Gulf action and enhancing cohesion among the GCC states.

It is evident that the regime change in Iraq has not brought about stability in the Gulf region as was expected, as it seems that the agenda of Gulf and Middle East topics include more serious issues and more radical changes. Thus, it is difficult to forecast the extent of the forthcoming developments.

Nevertheless, underestimating such developments is possible through forging closer co-operation and integration and putting into effect the collective programmes and resolutions adopted and introducing the necessary mechanisms for implementation.

The writer is a UAE economic expert.