Arab World urgently needs reform: Report

Last Updated: Sat, May 25, 2013 14:31 hrs

Dead Sea, Jordan, May 25 (IBNS) The Arab world must improve its economic competitiveness if the region is to solve its biggest economic challenge of creating enough jobs for its youthful and growing population, according to the Arab World Competitiveness Report 2013 launched on Saturday.

Published by the World Economic Forum in collaboration with the European Bank for Reconstruction and Development (EBRD), the report identifies a number of areas where regional leaders could prioritize reform in order to unlock barriers to job creation and private sector expansion.

These barriers differ across the region: with weak institutions and labour markets singled out as the most significant areas for improvement in North Africa; weak infrastructure and institutions in the Levant; and a pervasive education and innovation gap in countries in the Gulf.

The report also finds that leaders in the Arab world who embrace the challenge of lifting competitiveness and enabling private sector growth could look forward to a "win-win" scenario, characterized by higher employment and greater social stability.

Borge Brende, Managing Director of the World Economic Forum, said: "Strong leadership based on a shared vision of the future political and economic system will be necessary to navigate the countries of the region through the turbulent times. The findings of this report are crucial for informing the discussions at the World Economic Forum on the Middle East and North Africa."

Erik Berglof, Chief Economist of the EBRD, said: "Arab world leaders must prioritize developing market institutions and structures, which can enhance the regulatory and business environment and ultimately attract more capital into the region. Sustainable growth and job creation can only come through the unleashing of the private sector. "

More from Sify: