Revitalizing the OIC: Reform and Vision from the Banjul Summit

Friday 10 May 2024 - 09:00

The recent summit of the Organization of Islamic Cooperation (OIC) in Banjul, The Gambia, has sparked calls for a comprehensive revitalization of the organization's programs and operational strategies. Amidst discussions on pressing issues like the Palestinian cause and economic cooperation, a resounding message emerged: the OIC must undergo a profound reassessment to better serve its member countries, especially the Least Developed Countries (LDCs) and Palestine.

Since its establishment in Rabat 55 years ago, the OIC has faced persistent calls for reform. Despite various attempts, including organizational audits and Charter revisions, comprehensive change has often been thwarted by piecemeal approaches and procedural hurdles.

However, the Banjul Summit brought a new sense of urgency for reform. Leaders from across the organization's diverse membership voiced support for a holistic overhaul. Prince Faisal bin Farhan Al-Saud, Saudi Arabia's Minister of Foreign Affairs, underscored his country's commitment to elevating the OIC to a more prominent position on the global stage, with the potential to become the second-largest international organization.

A key aspect of this transformative vision is the need for concrete projects and initiatives that deliver tangible benefits to member states. This is particularly critical for the OIC's Least Developed Countries, which constitute approximately 40% of its membership and a significant portion of the African Union.

To achieve this ambitious goal, a multifaceted approach is required. Restructuring operational institutions while preserving the overarching decision-making structure is essential, as is establishing specialized entities and streamlining the current four-tier system. Additionally, finalizing the organizational framework by establishing an "International Islamic Court of Justice" is a critical step.

Addressing duplication and improving coordination among OIC institutions is another key priority. Decentralization and rationalization, by transferring competencies and oversight from the General Secretariat to relevant standing committees and specialized institutions, could lead to more efficient and effective operations.

In the area of economic cooperation, the OIC has lagged behind other initiatives, like the African Free Trade Area. The Trade Preferential Scheme of the OIC, which covers only 7% of tariff lines, has not significantly expanded intra-trade. To address this, new negotiations must be launched to broaden product coverage and reduce tariffs, potentially leveraging the TPS OIC's fast-track mode for voluntary negotiations.

Moreover, efforts must be made to encourage key players, such as Indonesia, the largest OIC member by population, and West African and Central Asian countries to accede to the TPS OIC Agreement. This could catalyze much-needed economic integration and cooperation within the organization.

Recapitalizing the Islamic Development Bank Group (IsDB) to facilitate fundraising for major projects, along with voluntary contributions to the financial arms of the Standing Committees, is also crucial. Establishing an OIC equivalent of the United Nations Development Programme (UNDP) could alleviate pressure on national budgets and effectively address funding gaps.

These measures align with the evolving pattern of OIC economic cooperation, which increasingly emphasizes regional initiatives and projects, like those championed by Morocco for the benefit of African countries.

Crucially, any reform efforts must address the limited ownership of projects by beneficiary countries, a longstanding obstacle hindering the effectiveness of OIC agency programs. To bolster engagement, member countries should be encouraged to make financial contributions and integrate OIC projects into national and regional development agendas.

As the OIC reform brainstorming phase concludes, a coalition of key leading countries representing the organization's three regions must design a strategic document as a basis for negotiations within its decision-making bodies. This macro focus group, comprising the host country, the Troika, and countries hosting standing committees, is essential for crafting a consensus-driven reform document.

The Banjul Summit has set the stage for a pivotal moment in the OIC's history. As calls for revitalization resonate throughout the organization, the time is ripe for a renewed vision, one that prioritizes tangible progress, fosters economic integration, and empowers member states to chart a course toward a more prosperous and unified future.