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    UMVERSITY OF BRISTOL

    THE BARCELONA DECLARATION:TOWARDS MODERNIZATION OR BVCREASEDDEPENDENCY EVALGERIA AND MOROCCO?

    Jos-Mara Taberna Abad

    Dissertation submitted in partial ftilfilmentof the requirements for the degree of Master of Science in

    Comparative and International Policy Studies:Development Administration and Planning

    November 1996

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    Declaration

    Except where otherwise acknowledged in the text, this study is entirely my own workand has not been submitted for any academic award in this or any other university orinstitution.

    Signed:

    Jos-Mara Taberne AbadNovember 1996

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    CONTENTS

    Declaration 3Acknowledgements 4Abbreviatons 5Chapter 1: Introduction

    Methodology 11Aims of the Study 12

    Chapter 2: Theoretical ElementsModernization and Dependency 13Eeonomic Reform and Liberal ization 15Globalisation and Integration 17Free Trade 21Islamism 23

    Chapter 3: The Northern PartnerThe European Model of Development 25The Common Agricultura! Policy 30EU's Mediterranean Policy 31The Barcelona Declaration 35SMEs and TNCs 39

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    Chapter 4: Ascent of Dependency in the MaghrebThe Colonial Structure 42

    Independence and War: the 1960s 44The 1970s Development Strategies:National ism vs. Free Trade 48The 1980s:Bourgeois National ism and Liberal ization 50The Arab Maghreb Union AM U

    The 1990s and Beyond:towards neodependence

    53

    54

    CONCLUSIN 57

    Annex

    Endnotes

    Bibliography

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    ACNOWLEDGEMENTS

    I am thankful for the enlighment and friendship I enjoyed in Bristol, especially frommy colleagues on the MSc, and from the lecturers and staff at the School for PolicyStudies. To Peter, Sid, Hisham, Asther and Mara, for their giving me the chance tomeet them. To the late Paul Richardson, who mus be in heaven by now after ashorter than usual a time in Purgatory. Thanks to Sally Fry for her hospitality andnice library. My thanks go to Zaheeda Anwar, for her kindness and eontinuoussuppor, to Pervaiz Nazir, for his advice, and to Richard Hodder-Williams, for hisguidance and encouragement. To the staff of the University Libraries. I am alsograteful to the Bristolian beer lovers, Bristol City Rovers and St. Michael's (up)HillRoad for helping me keep in good shape. And to the University of Bristol, for thegenerous bursary it has granted me.

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    Glossarv of AbbreviationsACP African, Caribbean and Pacific (countries)AMU Arab Maghieb UnionCAP Common Agricultura! PolicyCEECs Central and Eastern European Countries ^CSCE Conference on Securiy and Cooperarion in EuropeCSCM Conference on Security and Cooperaton in the Mediterranean and the Middle EastCFSP Common Foreign and Securiy PliceDMEs Developed Market EconomiesEBRD European Bank for Reconstruction and DevelopmentECU European Currency UniEEA European Economic reaEC European CommunityEEC European Economic CommunityEFTA European Free Trade AssociationEIB European Investmen BankEMP EU'sEuro-Meditenanean PartnershipEM Economic and Monetary UnionEPC European Political CooperationEC European CommunityEEC European Economic CommunityEP European ParliamentESC EU'sEconomic and Social CommitteeEU European UnionFIS Islamic Salvation ArmyFAO Food and Agricultura! Organisation (UN)GATT General Agreement on Tariffs and TradeGCC Gulf Cooperation CouncilGMP Global Mediterranean PolicyHDI Human Development IndexHDR UNDP Human Development ReportIFls International Financial InstitutionsILO UN International Labour OrganizationIMF International Monetary FundMFN Most-Favoured NationMNMC Mediterranean Non-EU Member CounryMP EEC's Mediterranean PolicyNAFTA North American Free Trade AgreementNATO North Atlantic Treaty OrganizationNGO Non-Govemmental OrganisationNICs Newly-industrialising CountriesNTB Non-Tariff BarriereOAU Organisation of African UniyOECD Organisation for Economic Co-operation and DevelopmentODA Official Development AssistancePOLISARIO Sagua-el-Hamra and Ro del Oro Liberation FrontRMP EC'sRenewed Mediterranean PolicySADR Sanaran Arab Demoeratic RepublicUN United NationsUNDP United Nations Development ProgrammeVER Voluntary Export RestrictionsWEU West European UnionWTO World Trade Organisation

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    CHAPTER1

    1NTRODUCTION

    We live in 'the age of integration'. If integration is taken to denote a state of affairs or aprocess involving attempts to combine seprate national economies into larger economicregions, the appearance of the world economy today confirms the aptness of thischaracterisation'. One of the most important issues at the end of the twentieth century is howgovernments will respond to the challenges and opportunities of a rapidly changing globaleconomy that shows growing disregard for the interests of nation-states as individualeconomic units2.

    The European Union (EU) sits ai the centre of a web of relations, in principie of freetrade, one or both ways, embracing the whole of Europe and virtually all the Mediterraneanbasin, 31 countries in all; this even extends to a further 68 African, Caribbean an d Pacific(ACP) countries through the Lom Convention. The Mediterranean regin shares a commonhistory an d destiny, bu t differs greatly in economic, social and ecological terms. Therecoexist different religions and cultures; heterogeneous political regimes (parliamentarydemocracies, military dictatorships, non-recognised states, quasi-feudal monarchies);persisten! conflicts among some of he region's members (Greece-Turkey, Israel-Arab states,Cyprus, former Yugoslavia, and the Western Sahara); and geographical spread over threecontinents, so that virtually no institution treats the Mediterranean countries as a collectiveregin in statistical terms. It is argued that the EU has long remained unable3 to follow acoherent policy vis-a-vis the Mediterranean rea, a group of countries which nowadays arethe Union's third-largest customer and its fourth-largest supplief: commercial exchangesbetween the EU and the Mediterranean basin Non-Member Countries (MNMCs) amount to

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    ECU 78,000 million per year, with ECU 7,000 million surplus for the EU5.

    As Engels suggesed, 'there is a contradiction in a thing remaining the same and yetconstantly changing'. After a series of bilateral, case-by-case agreements, the GlobalMediterranean Policy (GMP) has been the cornerstone of the Union's relations with theMNMCs since its adoption at the EC's 1972 Paris summit. The chief stimulus to the debateon international aid and trade policy in the last decades were he demands of developingcounries for a 'new international economic order' (NIEO), spelt ou by the 1973 AlgiersConference of Non-Aligned Countries, among which several MNMCs held a relevanposition; it was to involve a fundamental restructuring of the international economy for thebenefit of he nations of the 'South'6. Disregarding this approach o internaional economicintegration, he 1992 Renewed Mediterranean Policy (RMP) was launched, explicitlyintroducing Structural Adjustement and GATT components. The Barcelona Declarationfollowed suit after the Euro-Mediterranean Conference (EMC) of November 1995 -announcing the new Euro-Mediterranean Partnership (EMP)- is he latest sep in his series,following EU's June 1995 Cannes summit approval of ECU 4,685 million -less han oneyear's EU surplus- in financial assisance for 12 Mediterranean associaed counries for he1996-99 period7. The pars in the EMC hereby

    establish a comprehensive partnership -theEuro-Mediterranean Partnership-through strengthened political dialogue on a regular basis, the developmentof economic and financial cooperaran and greater emphasis on the social,cultural and human dimensin.

    l is widely accepted that the strongest hrea lo poliical and social insability in the reginsems from rapid populaion growth. Over the last decade, the EU has supported an economicresrucluring which has avoided tackling long-standing disribuive imbalances wihin he

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    MNMCs domestic economas in favour of adressing macroeconomic concerns8. The concerns