World Bank's MENA expert offers explanation for decline of Arab economies
Shantayanan Devarajan is the World Bank's chief economist for the Middle East and North Africa region. (Screenshot from YouTube)
An international economist said Tuesday weak institutions, unemployment and lavish spending were main reasons behind decline of most of Arab economies, and called for providing equal opportunities for all.
Shantayanan Devarajan, World Bank's Middle East and North Africa Region's chief economist, Arab governments were providing jobs in public sector, in addition to offering free education, subsidizing health care, fuel and food "which makes the burden on this sector very huge." Devarajan, speaking at an economic seminar, said the Arab governments should boost competitiveness of public sector as well as fully implementing governance principles.
He called for paving way for private sector to provide public services and sustainable development, and that citizens should be involved in economic and production development.
Devarajan said complete dependence on public sector over past years contributed to decline in poverty in most of the Arab countries, specifically in the Gulf nations, and improving living conditions, and indicators of education and health.
However, he added, this trend has turned out to be useless because of the decline in income resources and decrease in public services quality.
Therefore, said Devarajan, new methods should be explored to achieve economic development through involvement of private sector in offering public services.
- Al Tayer bucks the US department store trend with Bloomingdale's Kuwait opening
- Gulf Islamic banks set to outperform conventional banks for second year: Moody's
- Jordan secures EU finance for socioeconomic and environmental programs
- Same-day service deliveries in GCC an untapped market: Wing CEO
- Will terror attacks damper Arabs' appetite for European holidays?
- Bahrain set to host most important regional investor summit as expert hails economy
- Corruption in Gulf declines, but threat to economy still high
- Expert on recent economic development in the GCC: Oil income, stocks performance and banking sector
- Two years on, Arab Spring economies continue to hurt following revolutions
- What does 2012 hold for the economies of the Arab World?