By Nemat Shafik
(Version in عربي)
The uprisings that spread across the Middle East and North Africa in 2011 taught us that even rapid economic growth cannot be maintained unless it is inclusive, creates enough jobs for the growing labor force, and is accompanied by policies that protect the most vulnerable. And the absence of transparent and fair rules of the game will inevitably undermine the development process.
Hopes after the revolutions are high and so are people’s expectations. Hence, there is a need to pay more attention to socioeconomic issues in making policy decisions. In my speech today at the Arab Economic Forum in Beirut, I argued that we need an “Economic Spring” to complement what has become known as the “Arab Spring.”
Gloomy picture needs attention
At over 25 percent, the youth unemployment rate in the region’s oil-importing countries exceeds that of any other region in the world—a rate that reaches up to 30 percent in Tunisia and 32 percent in Morocco. Ironically, education in the region is not a guarantee against unemployment. In fact, unemployment tends to increase with schooling, exceeding 15 percent for those with tertiary education in Egypt, Jordan, and Tunisia.
Filed under: Economic Crisis, Economic outlook, Emerging Markets, Employment, Finance, growth, IMF, Inequality, International Monetary Fund, Middle East, Public debt | Tagged: Arab, ARABSAT, baladi bread, black market, capacity building, Egypt, jobs, Jordan, Labor, Lebanon, Mideast, Morocco, Nemat Shafik, policy, politics, Precautionary and Liquidity Line, Rapid Financing Instrument, smuggling, subsidies, Tunisia, UNDP. World Bank, youth unemployment | 2 Comments »