At the conclusion of its deliberations in Kuala Lumpur on Monday, the newly organised World Islamic Economic Forum (WIEF) called for the establishment of an Islamic common market. It decided to undertake measures that would facilitate easy movement of business people and investments, as well as trade flows among OIC member nations.
It also came up with a proposal, to be considered later, for establishment of an Islamic Free Trade Agreement (FTA) through regional and sub-regional FTAs in a step-by-step approach with the ultimate objective of setting up an Islamic Common Market.
The whole idea, in fact, is not very different from the organisation's original vision for development.
Its stated aim was to encourage and expedite intra-OIC trade, collaborative economic ventures as well as co-operation in the field of science and technology. An institutional support base was to be provided by bodies such as Islamic Chamber of Commerce and Industry, Islamic Development Bank and Islamic News Agency.
The enthusiasm for closer economic co-operation was so great among OIC's initial members that they even resolved to introduce common currency also at an appropriate stage. But that resolve did not go very far.
Years later, intra-OIC trade and commerce activities remain a tiny fraction of the member nations' trade with their regional and international partners. And the institutions that were put in place in support of the economic co-operation plan have all but disappeared.
Except for Saudi Arabia, none of the other member states fulfilled their financial obligations towards these institutions. So why should the results be any better this time around?
There are, however, at least two important reasons that present an optimistic prognosis for the idea of an Islamic common market now. One is the changed international environment in which all Muslim countries, from the rich and traditionally pro-West Arab Sheikdoms to middle-of-the-road developing nations, find themselves the target of western criticism for their alleged crimes of omission or commission with regard to the spread of extremism.
Hence at the last OIC summit, held in Kuala Lumpur exactly two years ago, the member nations decided to reform the organisation so as to make it capable of meeting political as well as economic challenges facing the 'Ummah'. WIEF's decisions are part of a follow-up action of that reform plan, and, therefore, can be expected to make meaningful progress.
The other reason that creates the hope that this latest initiative towards closer intra-OIC economic co-operation would not fall through somewhere down the road is that it seeks to create co-operative structures not only at the governmental level but also in the form of private partnerships.
WIEF has talked about the importance of the role of governments in economic development as well as supportive and proactive roles of the private sector as partners in development.
Notably, it wants entrepreneurs from OIC and Muslim communities in non-OIC countries to establish a private sector sponsored World Islamic Economic Development Corporation to identify and promote investments and infrastructure development projects in OIC member countries and Muslims communities world-wide with a special emphasis on less developed countries and communities elsewhere.
Public-private partnerships thus created are expected to work effectively in removing obstacles in the way of viable economic co-operation between countries. Conscious of the role business leaders can play in this regard, the WIEF meeting further decided that the different task forces that have been established to develop specific practical implementation plans be headed by prominent business leaders.
These leaders are to submit their plans to an International Advisory Panel within a 'reasonable' timeframe. Thus it can be hoped that the involvement of business leaders would allow for proper identification of measures that may be necessary to promote economic collaboration in a particular field. At the same time, it would keep pressure on the policy makers not to lose interest half way along the process, like in the past.