This week, the IMF held a joint event with the AMF on “Institutions and Economic Growth in the Arab Countries.” In his opening remarks, Takatoshi Kato, Deputy Managing Director of the IMF, notes that
[t]he most pressing development challenge facing the MENA region today is employment creation. The labor force in the region is growing rapidly and is projected to reach 185 million in 2020, almost 80 percent higher than in 2000. This means, according to a recent World Bank report, that about 80 million new jobs are needed over the first two decades of the 21st century just to keep pace with new labor force entrants.
Another interesting fact is that
[a]ccording to a 2005 World Bank report, Finland, with a population of about 5 million, has more non-oil exports than the entire MENA region, with a population of more than 300 million people.
What is to be done? As Mr. Kato notes, efforts are needed to improve the business climate in the region, so that economies can attract investment and entrepreneurs can thrive. I wonder if presentations from this two-day event will be made available to the public in the near future.
I would also note that while holding such events is important to generate discussion on the higher level of government, there also needs to be a push to integrate the private sector, especially SMEs, in the process of devising solutions. Because, if they are the ones to generate growth and create jobs, they should have a seat at the table as well.
Published Date: December 21, 2006