Solidarity through trade

With little fanfare, the Islamic Chamber of Commerce and Industry and private sector groups concluded their week-long meetings in Jakarta yesterday calling for greater trade among the 52 members of the Organization of Islamic Conference (OIC).

The call, stipulated in the Bandung Declaration, so called because the declaration was hammered out in the West Java city, brings home the sad truth that Islamic countries do not trade with one another as much as they could, and should.

The chamber, a private sector organization under the OIC, believes that through trade and investment facilitation, and even some measures of trade liberalization between the OIC countries, trade among Islamic countries in the world could truly blossom.

There is also an increasing realization among OIC governments -- apparent from addresses by Indonesian officials during the chamber's conference -- of the need to find trade allies in the face of increasing global economic competition. OIC could be one such forum to forge alliances. Liberalization, once considered a dirty word and a monopoly of the western world, is now an international catchphrase and a key to economic survival.

Some might dismiss the Bandung Declaration as ambitious. On the face of it, the 52 OIC economies appear to have little in common and most find it more beneficial to trade with the West and non-OIC countries. To date, economic interests have taken a backseat in the OIC's 25 years of existence. Although the OIC's raison d'etre was the promotion of Islamic solidarity, the organization has been more concerned with politics.

But anyone who suggests that trade and Islam don't mix is wrong. Prophet Muhammad grew up a successful trader before he took up the call of God when he turned 40 years old. Islam was brought to this part of the world by traders, who mixed commerce with religious propagation. Propagation through trade was very much the name of the game then. Today, we should revive that spirit of entrepreneurship among Islamic people, though the game should perhaps be more appropriately called solidarity and brotherhood through trade and economic cooperation.

This is because not only is there immense profit to gain from trading among Islamic countries, there is also the religious call to help less fortunate brethren, especially poor OIC countries in Africa. Among the 52 OIC countries are some of the richest and poorest nations in the world. This calls for solidarity. Among the OIC members are countries that have succeeded in their industrialization programs, like Malaysia and Indonesia. This shows growing potential for trade because they offer a greater range of tradable goods, than simply raw materials which restricted trade in the past.

While aid from wealthy petrodollar countries may be an attractive proposition to assist poor OIC members, it can never replace trade. Besides being longer lasting, trade relations are founded on the principles of mutual benefit and equal partnership. There are no donors and recipients in such relations. Few in the OIC are in the position to extend financial aid to fellow members; but given the chance, all OIC members can trade with one another, and benefit immensely from such relations.

There are of course many obstacles to overcome, but these are not grounds to dismiss the Bandung Declaration as ambitious. There is the problem of financing for intra-OIC trade, which so far has been provided only by the Islamic Development Bank. There is also the problem of transportation, as exemplified by the fact that many Indonesian products finding their way to Islamic countries are actually exported by Singapore.

These and all the other problems obstructing intra-OIC trade need to be addressed, not only by the Islamic chamber, but also by the OIC governments. The OIC ministerial meeting which Jakarta will host in December is a good opportunity for OIC governments to show goodwill by backing the chamber's call for more trade. The Bandung Declaration may be a small step, but it is a step in the right direction.