4.3. THE THEORY OF ECONOMIC INTEGRATION
The systematic involvement of firms, organizations, and cooperation’s among nations and countries; in multilateralism, regionalism and amalgam of economies states by removing trade barriers of economic cooperation(Kaiser, Byrka, ; Hartig, 2010). The governmental system of KSA needs to establish a joint autonomy negotiation of the foreign investment capacity building to integrate the economic ties with Europe, Asia, and Africa by the principle of noodle bowl syndrome used in the regionalism of Asia Pacific (Wesley M. Cohen ; Daniel A. Levinthal, 2001). In the envisage of the word “integration” denotes the bringing together of parts into a whole. In the economic literature, the term “economic integration” does not have such a clear-cut meaning. Many researchers in the field of social integration concept, narrow it to international cooperation under this discussion been advanced that the existence and relations between independent nation and economies are a sign of integration. According to Bela Belasa (1961) defines economic integration as a process and as a state of affairs, of encompasses measures designed to abolish discrimination between economic units belonging to different national states; viewed as a state of affairs, it can be represented by the absence of different form of discriminations between national economies (Balassa, 1961).
Economic integration, the explanation comes in the different form taken several forms that represent varying degrees of integration. These are a free-trade area, a customs union, a common market, an economic union, and complete economic integration. In the free-trade area, tariffs (and quantitative restrictions) between the participating countries, states and nations are abolished, but each country retains its own tariffs against nonmembers. Establishments of customs union involve, besides the suppression of discrimination in the field of commodity movements within the union, the equalization of tariffs in trade with non-member countries. A better inflow of the economic integration is attainable in the common market, where not only trade restrictions but also restrictions on factor movements are abolished (Balassa, 1961). An economic union, as distinct from a common market, combines the suppression of restrictions on commodity and factor policies, in order to remove discrimination that was due to disparities in these policies. The total economic integration in the Kingdom of Saudi Arabia presupposes the unification of monetary, fiscal, social, and countercyclical policies and requires the setting-up of a supra-national authority whose decisions are binding all institutions, organizations and cooperation of the members and the states as a whole (Balassa, 1961).
4.4. WHAT IS FUNCTIONALISM?
Functionalism in the psychological sciences refers to the states that mental instinct (beliefs, desires, being in pain,) constituting the personal views and thinking capability in relations to other mental states, numerous sensory inputs, and human behaviors. Functionalism emerged from the identification theory of mind and behaviorism. The theory of functionalism between the physical and non-physical is a microcosm of the behaviors. Many psychological advocates of mental studies, is only concerned with the effective functions of the brain, through its organization or its “software programs”. Since most mental instincts are identified by a functional role of behaviors, they are said to be realized on multiple levels. While computers are physical devices with an electronic substrate that perform on inputs to give outputs, so brains are physical devices with a neural substrate that perform computations on inputs which produce behaviors (Negahban ; Chung, 2014).
Functionalism is one of the major proposals offered as solutions to the mind/body problem. Resolving questions like; what is the ultimate nature of thinking? At the most general level, what makes a mental state mental? Specifically, what do thoughts have in common, in virtue of which they are thoughts? That is, what makes a thought a vision? What makes a vision a reality? Cartesian In this phenomenon, the functionalism will be anticipated on the citizenry behavior in relation to the kingdom thoughtful vision 2030. The positivity and negativity, shortcomings in realizing the ambitious state of the national transformational plans processes. The study, therefore, compares all the three core pillars stated in the introduction through the analytical hierarchy process integrated with economics discriminations across Europe, Asia, and Africa.
2. THEORETICAL FRAMEWORK OF THE STUDY
An AHP hierarchy is a structural modeling in the decision-making at the top level of political and highest. It consists of an overall goal, a group of options or alternatives for reaching the goal, and a group of factors or criteria that relate the alternatives to the goal (Engineering et al., 1995). The criteria can be further broken down into sub-criteria, sub-sub-criteria, and many levels, as the problem requires or may arise. A criterion may not apply uniformly, but may have graded differences like a little sweetness is enjoyable but too much sweetness can be harmful. In the instance economic integration theory couple with the AHP model criterion is divided into indicating values of different intensities of the criterion, like: little, medium, high and these intensities are prioritized through comparisons under the current dispensations sweetness (Alexander, 2012).
In a recent KSA, use of economic integration model proposals concerning the means and ‘objectives of integration. Contrast the factor of liberalist and a dirigist solution. The father of economic liberalism regards regional integration as a return to the free-trade ideals of the first World War period. In addition, anticipate the relegation of national economic policy to its pre-1914 dimensions, the approach integration simply means the abolition of impediments to commodity movements. At the other extreme, integration could also be achieved through state trading and through the coordination of national economic plans without doing away with trade barriers. This alternative discards the use of market methodology and relies solely on administrative, nonmarket means. It can be found in the integration projects of Soviet-type economies; the operation of the Council of Mutual Economic Assistance, comprising the Kingdom of Saudi Arabia and their European satellites, based on coordinated long-range plans both bilateral and multilateral trade agreements (Balassa, 1961).
The study intends to employ the frames from the AHP with the concept of economic integration and functionalism, all together will give a good effect on the study vision of 2030. This is because the analytical hierarchy process will ensure good decision among the policymakers and with good economic integration network ties with other countries for good outcome of functionalism. These entire processes will endure regional cooperation among states and nations.
2.1. Analytic hierarchy process (AHP)
In the analytical hierarchy, the process is connected with the third form of functionalism concerned with the meanings of theory in the study of the vision 2030. This is viewed against the backdrop closely associated with David Lewis’s often referred to as analytic functionalism or conceptual functionalism. The basic idea of analytic functionalism is that theoretical terms are implicitly defined by the theories in whose formulation they occur and not by intrinsic properties of the phonemes, emerged. In the case of policymaking such as “belief”, “desire”, or “hunger”, the idea is that such terms get their meanings from our common-sense “folk psychological” theories about them, but that such conceptualizations are not sufficient to withstand the rigor imposed by materialistic theories of reality and causality. Such terms are subject to conceptual analyses, which take longer periods to be realized in normal terms. Hence, its proponents are known as analytic or conceptual functionalists. The essential difference between analytic and psycho-functionalism is that the latter emphasizes the importance of laboratory observation and experimentation in the determination of which mental state terms and concepts are genuine and which functional identifications may be considered to be genuinely contingent and a posteriori identities. The former, on the other hand, claims that such identities are necessary and not subject to empirical scientific investigation.
The Analytic Hierarchy Process is an international decision-making technique or process aimed at a decisive choice. It is intended to help people or organizations make the right choice in complex decisions. A concrete choice can be made using a prescribed calculation and based on seemingly abstract decision-making criteria. A value is assigned to the criteria relevant to making the right choice, after which possible solutions are mathematically calculated and determined. Analytic Hierarchy Process is therefore both a psychological and mathematical method. Therefore, the human functionalism couple with the economic integration amalgamated to form a crucial theory to realize the vision of the KSA 2030. The government system considering the various outlined agenda; the heart of the Arab world, thriving investment and geographical location of the KSA all serve in the good light of achievement.
2.2. Economic integration and functionalism
The ultimate aim and objective of economic system analysis is an increase of wealth and cash flow into a state. Thus, in the assessment of the desirability of economic integration, its contribution to welfare needs against models for productivity. In the case of integration, economic welfare will be affected by (a) a change in the number of commodities produced, (b) a change in the degree of discrimination between domestic and foreign goods, (c) a redistribution of income between the nationals of different countries, and (d) income. Redistribution within individual countries. Accordingly. the distinction is made between a real-income component and a distributional component of economic welfare. While individuals working on straightforward decisions can use it, the Analytic Hierarchy Process (AHP) is most useful where teams of people are working on complex problems, especially those with high stakes, involving human perceptions and judgments, whose resolutions have long-term repercussions. It has unique advantages when important elements of the decision are difficult to quantify or compare, or where their different specializations, terminologies, or perspectives impede communication among team members.
Decision situations in the analytical hierarchy process (AHP);
1. Choice – The selection of one priority alternative from a given set of alternatives, usually where there are multiple decision criteria involved. Situations values of preferences account for analysis in the process
2. Ranking – Putting a set of alternatives in order from highest to the least desirable, depending on the countries value chain outcome.
3. Prioritization – Determining the relative merit of citizens set of alternatives, as opposed to selecting a single one or merely ranking them.
4. Resource allocation – Apportioning resources among a set of alternatives, accordance with countries wealth availability.
5. Benchmarking – Comparing and contrasting the processes in an organization or institutions to the other with those of other best-of-breed organizations.
6. Quality management – Dealing with the multidimensional aspects of quality and quality improvement, based on the countries choice.
7. Conflict resolution – Settling disputes between parties with apparently incompatible goals or positions to ensure fair playing grounds for all organizations.
The applications of AHP to complex decision situations have numbered in the thousands and have produced extensive results in problems involving planning, resource allocation, priority setting, and selection among alternatives (Alexander, 2012). Other areas have included forecasting, total quality management, business process re-engineering, quality function deployment, and the balanced scorecard. Many AHP applications are never reported to the world at large because they take place at high levels government and organizations where security and privacy considerations prohibit their disclosure (Spina, 2016).
This research intends to look at the various programmes of the Kingdom of Saudi Arabia vision 2030, on the face of the analytical hierarchy process AHP based on the decision that could give value for money from the government perspective. Most than not, the government is usually making research into economic integration with the sovereign state to help in achieving the golden dream of vision 2030. The modalities put in place by the government requires all hands on deck from institutions, citizens, and well-meaning ‘saurians’ in the kingdom. This study, therefore, blends the AHP together with economic integration theory for the functionality of the vision.