BANGLADESH INSTITUTE OF INTERNATIONAL AND STRATEGIC STUDIES

THE ECONOMIC PERFORMANCE OF THE OIC COUNTRIES IN THE NINETIES AND POLICY OPTIONS

Author: M. Kabir Hassan

DOI Link: https://www.doi.org/10.56888/BIISSj2000v21n3a1

ABSTRACT

This paper examines the macroeconomic performance of the member countries of the Organization of Islamic Conference(OIC) in the decade of nineties with a focus on how they compare with other developing and developed nations. In general, we find that the OIC countries as a group are behind the developing countries, and there exists a wide disparity among the OIC member countries in terms of GDP, debt and FDI flows. The richer OIC member countries should consider setting up industries in the poorer OIC countries in order to take advantage of their locational and relative comparative advantages. Intra-OIC trade can be improved substantially by private sector investment initiatives. Regional cooperation in terms of project-oriented arrangements should pave the way to the eventual OIC common market. OIC countries should emphasize backward and forward linkages in production and investment to reap the economies of scale, to increase the size of domestic and regional markets and to deal effectively with the EC, NAFTA and APEC.