The weak tendency of the Arab members of the group to trade among themselves indicates that it was not the state of hostilities between most of them and Israel that hindered intra-regional trade. Their relatively high tendency to trade with a country outside the group, Turkey, also suggests that the low level of intra-regional trade cannot be attributed to poor trade policies. The markets for Middle-East exports lie outside the region. But because the distances between them are negligible, the triad Israel Jordan Palestinian Territories has, nevertheless, the potential of developing considerable border-type trade, as well as various types of joint ventures. This article was prepared during the first coauthor visit to Lebanon.
All errors remain the authors' responsibility.
Since their introduction in 1993, the securities issued by the Lebanese Treasury have had considerable success despite the country's strife. But with returns often approaching 40 percent, a considerable strain is being placed on Lebanon s fragile economy as the internal debt hits record levels. In response, there is a concern that the Central Bank is playing conflicting roles in conducting and overseeing the auction. A successful privatization effort has heralded Morocco's formal break with the dirigiste economic policies of the past in favor of the disengagement of the state from certain social and economic obligations. It remains to be seen whether the government's objectives and its overall program of financial and economic liberalization can be implemented in the face of entrenched resistance within its own rent-seeking bureaucracy.