The D8 group is fostering more cooperation to meet mutual challenges, writes Sherine Nasr At a time when oil prices are recording unpredictable hikes and the future of supply and energy security is questionable, the role of regional organisations in promoting economic cooperation becomes invaluable. Last week , Cairo hosted the fourth Developing Eight Countries Organisation for Economic Cooperation's (D8) Working Group on Energy. Although D8 delegates convening in Cairo were challenged by the uncertainty prevailing over the international oil market, the friendly atmosphere which prevailed during the two-day meeting made it clear that D8 member states are determined to face these challenges collectively rather than individually. As an economic development alliance, the D8 is not only concerned with coordinating collective policies in the field of energy alone. As an economic umbrella embracing Egypt, Turkey, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Bangladesh, the D8 aims at enabling these developing countries to have a better share of the world's economy, to encourage inter-trade among member states and to provide better living standards for their populations. The negative impact of rising oil prices on the economies of the D8 was predicted at the D8's summit in Bali, Indonesia in 2006. "To address the problem of the looming energy crisis, we instruct the commission to study its implications for D8 member countries and develop long-term strategies, including the development of alternative and renewable energy resources, promotion of energy efficiency and sustainability of supplies," the summit concluded. Two years later, predictions have become a reality, yet no concrete measures have been taken by the D8 which includes among its member countries Iran, a major oil export country. This, despite energetic D8 Secretary-General Dipo Alam convening with the ministers of petroleum of major D8 countries, including Egypt, Turkey and Indonesia. Alam, who is also former deputy to Indonesia's minister of planning, is focussing on how best to apply strategies which would mitigate the negative impact on oil prices, and promote more integration among member states. Egypt hopes that these efforts will bear fruit soon, with Cairo playing a major role. Delegates at last week's gathering arrived at some positive results, including the creation of a centre of strategic studies on energy policies to be located and chaired by Egypt. "This is one mechanism by which we can face the uncertainty of oil prices and their negative implications on D8 economies," revealed Alam in an exclusive interview with Al-Ahram Weekly. According to Ahmed El-Ashmawi, head of the minister of petroleum's technical office, one of the objectives of the centre is to provide early warnings through conducting studies and reviewing strategies. "The centre will also be entrusted with the task of coordinating energy policies among D8 member states," stated El-Ashmawi. Minister of Petroleum and Mineral Resources Sameh Fahmi noted that spiking oil prices and growing demand on energy have been coupled with several challenges. "Limited refining and storage capacities worldwide, inaccuracy of future supply and demand dates, as well as under- investment in oil and gas projects, are but a few," stated Fahmi in his address to the inaugural session which was read by El-Ashmawi. It was agreed last week that Egypt will facilitate the Working Group on Energy with a Secretariat, which main task will be "to monitor, evaluate and analyse some programmes for cooperation, exchange information and coordinate policies among member states," explained Alam. In the meantime, a business energy forum will be established to invite other major oil consuming and technology-providing countries to exchange knowledge and expertise in the best interest of both sides. According to El-Ashmawi, these countries have yet been shortlisted, although Japan, Korea and China "are the most likely candidates to participate in this business forum." Working together to best invest a wealth of mineral and mining resources, the D8 will establish a Working Group on Mining and Minerals, with Indonesia soon to host the first meeting. It appears that Egypt will also be able to play a leading role in this field within the D8, as a result of its long experience in the field of mining. According to Fikri Youssef, general manager of mining agreements at the Ministry of Petroleum, Egypt has taken strikes in overhauling its mining legislative and regulatory framework. "Major reforms were recently introduced to upgrade the mining sector," pointed out Youssef. "These include the development of the key principles of the mining policy, changing the once unfavourable mining act and encouraging commercial joint venture projects." According to Alam, these most recent recommendations by the Working Group on Energy will be submitted to the sixth D8 Summit, scheduled to convene on 7-8 July in Kuala Lumpur, Malaysia, for endorsement.
