The Arab countries face a number of serious challenges with the consolidation of a new world economic order. The paper discusses some of these challenges: the absence of national science and technology systems (S&T-Systems, the engines through which science and technology is acquired and applied); the absence of self-reliant technology policies; the unsustainable sectoral distribution of labor ; and the poor utilisation of available technical and professional manpower. Arab resources in science and technology show strength in the abundance of professional scientific manpower; and weakness in the rudimentary state of their national S&T-Systems. Because they lack such systems, Arab GNP has remained nearly constant, for the past 17 years. A number of measures may be adopted by Arab countries to move forward. These include: adopting outsourcing policies for their major industrial firms, promoting export-oriented subcontracting, internalising the totality of the Arab construction industry, the rapidly modernising agriculture, rationalising engineering industries; and optimising all sectors of the economy. The paper discusses pro-active science policies with a view to accelerating the processes of adjustment, rationalistion and development.
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