Presentation on economic

integration
Presented by
Kewal K Vernekar
Azhar iqbal merchant
Meaning:-
• Economic integration refers to trade
unification between different states by the
partial or full abolishing of customs tariffs on
trade taking place within the borders of each
state.
• This is meant in turn to lead to lower prices for
distributors and consumers (as no customs
duties are paid within the integrated area) and
the goal is to increase trade.
History:-
• Economist Fritz Machlup traces the origin of
the term 'economic integration' to a group of
five economists writing in the 1940s, including
Wilhelm Röpke, Ludwig von Mises and
Friedrich von Hayek. Economic integration
was a foundational plank of US foreign policy
after World War II.
Cont..
• The experience of economic integration, as currently
understood, starts with the creation of the Union of
South Africa (1910), which was further implemented
in the Belgium-Luxemburg economic union, Benelux
(1944), and the European Coal and Steel Community
(1951).
• Probably one of the most integrated economies today,
between independent nations, is the European Union
and its euro zone.
Cooperation Council for the Arab States of the
Gulf (CCASG)
• The Cooperation Council for the Arab
States of the Gulf (CCASG), also known as
the Gulf Cooperation Council (GCC) is a
political and economic union involving the six
Arab states of the Persian Gulf with many
economic and social objectives.
Member countries.

• Kuwait.
 Bahrain.
 Saudi Arabia.
 Qatar.
 United Arab Emirates.
 Oman.
• Oman and the UAE opted out of the monetary union,
in 2007 and 2009 respectively, but are still members
in the GCC.
History.

• Created on May 25, 1981, it is made of 630-million-

acre land mass (2,500,000 km) .
• Council comprises the Persian Gulf states of Bahrain,
Kuwait, Oman, Qatar, Saudi Arabia and the United
Arab Emirates.
• The unified economic agreement between the
countries of the Gulf Cooperation Council was signed
on November 11, 1981 in Riyadh. These countries are
often referred to as The GCC States.
Cont..
• A GCC common market
was launched on January
1, 2008. The common
market grants national
treatment to all GCC firms
and citizens in any other
GCC country, and in doing
so removes all barriers to
cross country investment
and services trade.
Cont..
• Kuwait, Saudi Arabia, Bahrain and Qatar on
December 15, 2009 announced the creation of
a Monetary Council, a step toward establishing
a shared currency. The board of the council,
which will set a timetable for establishing a
joint central bank and choose a currency
regime, will meet for the first time on March
30, 2010.
Main objectives.
• Formulating similar regulations in various fields such as
economy, finance, trade, customs, tourism, legislation, and
administration.
• Fostering scientific and technical progress in industry, mining,
agriculture, water and animal resources.
• Establishing scientific research centres.
• Setting up joint ventures.
• Unified military presence The Peninsula Shield
• Encouraging cooperation of the private sector.
• Strengthening ties between their peoples.
• Establishing a common currency by 2010.
Cont..
• However, Oman had announced in December
2006 it will not be able to meet the target date and
the UAE have announced their withdrawal from
the monetary union project in May 2009. This
happened immediately after it was announced that
the central bank for the monetary union would be
located in Riyadh and not in the UAE.
• The name Khaleeji has been proposed as a name
for this currency.
 Secretaries-General.

• Abdullah Bishara, Kuwait, 26 May 1981 — April

1993
• Fahim bin Sultan al-Qasimi, United Arab Emirates,
April 1993 — April 1996
• Jamil ibn Ibrahim al-Hujailan, Saudi Arabia, April
1996 — 31 March 2002
• Abdul Rahman ibn Hamad al-Attiyah, Qatar, 1
April 2002 to date
Thank You.