The Potential Impact of Islamic Economic Co-operation on the World Economy

Abstract

The world today is confronted with the challenging problem of how to initiate and sustain a global non-inflationary economic recovery. In this task, the need for structural transformation in the developing countries, promotion of international trade while dismantling trade protectionism, and stepping up of resource flows from the North to the South are critical factors. The developing countries have become convinced that they should not wait for initiatives from the North; rather they should mobilise their own potentials and resources for development by an intensified co-operation among themselves. The various programmes for a closer South—South co-operation should also help to increase the economic independence from the economic situation and policies of the North in order to prevent or at least limit an import of recession from there into the South.