The Arab world is estimated to hold over one trillion dollars in foreign markets, which may be heading back to the region in the aftermath of last year’s world events. If this newfound commitment to the region by Arab capital indeed materializes, it should be met by a corresponding government commitment to supporting the Arab world’s human capital base and creating a truly competitive and productive region, stated Mohamed Ali Alabbar, the director general of the Dubai Department of Economic Development (DED), who was speaking at the World Economic Forum’s Arab World Competitiveness Meet in Davos, Switzerland.
Pointing out that economic growth in the region over the past 20 years has averaged around two percent—significantly less that the average population growth of 3.5 percent—Alabbar said that this has created the problems of poverty, unemployment and reduced per capita income. “A little over 20 percent of the Arab population live on less than two dollars per day,” he said.
Touching on the growing problem of unemployment, Alabbar said that some 14 to 20 million Arabs are jobless in a total labor force of 100 million. “A rapidly growing and youthful population, according to the Arab League, means that Arab economies must be able to accommodate some three million new workers into the labor force every year. Unemployment could grow by at least one percent every year in the next decade and will cost the Arab states nearly $155 billion,” he said.
Citing the Arab Human Development Report published by the UNDP last July, Alabbar pointed out “the three main factors that have thwarted our progress, namely lack of freedom, under-investment in human capital and the lack of female empowerment.”
The Arab World must increase investment in human capital and female empowerment by prioritizing quality education systems as a national economic driver, urged Alabbar. “In my opinion, the most worrying area of neglect is in the field of our most valuable resource – our human asset base. Despite a historical reputation for innovation and invention, the Middle East has tended to create a commercial culture that imports, rather than generates, innovation and intellectual capital,” he added.
Focusing on education, Alabbar said: “It is not enough to simply increase the number of educational institutions. We must bring quality. Quality learning methodologies, quality teaching standards, quality testing and evaluation and above all, quality in creative thought and learning. Promoting innovation and free independent thought in our human resource base, will translate into innovation and competitive spirit in our economic base.”
Alabbar further said the educational gender gap must be closed. “Women must be encouraged into the labor force and the public sphere. Restricting or prohibiting female access to public professional space is effectively disabling 50 percent of our natural wealth.”
Speaking on the role of the private sector in making the Arab world more competitive, Alabbar called on regional governments to move ahead with reform and privatization, reduce the role of the state, liberalize across economic sectors, attract foreign capital and adopt a new approach to economic management.
Stressing the importance of a clear and strategic vision, Alabbar said: “We need a new found commitment that will be translated into real change on the ground. We must adopt policies of greater openness, accountability and transparency and fast track our drive to catch up with the institutional norms of the developed world.”
The Arab World Competitiveness Meeting brought together around 250 Arab business leaders, senior government officials and representatives of major multinational companies and international organizations that work closely with the Arab world. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
