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Propelled by the oil boom of the mid-1970s the Middle East emerged as the world's fastest growing region. Hopes and expectations were high for Arab political consolidation, economic advancement, and cultural efflorescence. With falling oil prices and a devastating war between Iran and Iraq, these hopes had dimmed somewhat by the early 1980s. In 1985, however, the spectacular image of an Arab great power was still tantalizing. A Pan-Arab state, wrote two experts on the region, would include a total area of 13.7 million square kilometers, second only to the Soviet Union and considerably larger than Europe, Canada, China, or the United States. … By 2000 it would have more people than either of the two superpowers. This state would contain almost two-thirds of the world's proven oil reserves. It would also have enough capital to finance its own economic and social development. Conceivably, it could feed itself.… Access to a huge market could stimulate rapid industrial growth. Present regional inequalities could ultimately be lessened and the mismatch between labor-surplus and labor-short areas corrected. The aggregate military strength and political influence of this strategically located state would be formidable.… It is easy to comprehend why this dream has long intoxicated Arab nationalists.
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