ISLAMIC COMMON MARKET: A STEP FORWARD IN ECDC

This analytical study examines the proposal for an Islamic Common Market as a mechanism for enhancing Economic Cooperation among Developing Countries (ECDC) within the Muslim world during the early 1980s. The article explores the conceptual foundations of the Islamic Common Market idea and analyzes its potential for promoting trade, investment, and economic integration among OIC member states. The research investigates the economic complementarities among Muslim countries and assesses how a common market could leverage these for mutual development benefits. The study examines the institutional requirements for establishing an Islamic Common Market, including trade liberalization mechanisms, payment arrangements, investment protocols, and dispute resolution systems. The article assesses the political challenges in realizing the common market vision, including sovereignty concerns, economic disparities, and external economic relations considerations. The research also evaluates alternative approaches to economic cooperation and identifies gradual steps toward deeper economic integration. Furthermore, the analysis considers the Islamic Common Market's potential contribution to broader South-South cooperation and global economic reform objectives.

The proposal for an Islamic Common Market represented an ambitious vision for economic cooperation among Muslim countries, with this article providing a comprehensive analysis of its potential and challenges during the early 1980s. The research begins by examining the theoretical foundations of the common market concept, analyzing how customs unions, free trade areas, and common markets could be adapted to the specific context of OIC member states. The analysis explores the economic rationale for an Islamic Common Market, assessing complementarities in resource endowments, production structures, and market sizes that could facilitate mutually beneficial economic integration. The article investigates the institutional framework required for a common market, examining needs for trade liberalization schedules, rules of origin, technical standards harmonization, and customs cooperation mechanisms. The study examines financial and monetary dimensions, analyzing proposals for an Islamic payments union, investment guarantee schemes, and eventually monetary coordination among member states. The research assesses the political economy challenges, including resistance from protected industries, disparities in economic development levels, and concerns about loss of policy autonomy among member states. Based on the comprehensive assessment, the article develops a phased approach to economic integration that could gradually build toward a common market while addressing immediate cooperation priorities. The findings provide valuable insights into the potential for religion-based economic cooperation and contribute to understanding how developing countries can enhance collective self-reliance through regional economic integration.