On July 21st the United Nations Development Program released the 5th volume of the Arab Human Development Report (AHDR) series in Beirut. Launching this report from Lebanon- a volatile country that recently witnessed free, democratic elections- may have signaled a bit of wishful thinking that reform is possible, despite the abysmal governance record in the Arab world. The Arab Human Development Reports, written by over 100 independent Arab intellectuals and scholars, are known to be harsh in their criticism, but this volume seems to be particularly strident given that in the 4 years since the last report was published, little progress has been made. In fact, the democratic- albeit marginal- space that flourished in the “Arab Spring” of 2005 has been brutally suppressed and environmental, social, and economic challenges have become all the more acute with demographic pressures.
Despite the bleak outlook, The Economist, which published a special report on the Arab World this week in light of the AHDR release, notes that, “Behind the stagnation of its formal politics, it [today’s Arab world] is engaged in a fierce and potentially history-altering battle of ideas.” The Economist points specifically to the private sector as the “green shoots of change,” arguing that “the expanding role of business means that the circle of consultation and decision-making has grown beyond the coterie that used to call the shots.” In this same article, CIPE partner, Abdel Monem Said Aly, director of the Al Ahram Centre in Cairo, states that by employing more people and investing more in the economy than the government, the private sector is changing the way Egypt is governed.
One of the major challenges in the Arab world will be enacting economic reforms to absorb the influx of youth entering the labor market. The report estimates that 51 million new jobs must be created by 2020, which can only be accomplished by moving away from a dependence on oil exports to a more diversified, knowledge-based economy that provides employment opportunities. The importance of private-sector led growth is further highlighted on the Newsweek blog where the work of CIPE partner, Injaz, on youth entrepreneurship in Egypt is described as “a breath of fresh air” and a way to inject optimism and productivity into the region.
The UNDP should be commended for presenting the challenges facing this region in a meticulous and thorough manner. While not everyone will agree with its policy prescriptions, above all the AHDR is supposed to provide a platform for dialogue. The role of the business community in tackling these intractable issues should factor significantly into any discussion about human development.
Published Date: July 31, 2009