Jordan Times
Friday, May 20, 2005
Forum to explore reform, job
creation in Arab world
Without reform, the Arab world faces the prospect of failing
to develop the true potential of its young and growing population
AMMAN (AFP) — Drastic economic reforms that enhance competitiveness, lead to
sustainable growth and create jobs needed for millions of Arab youngsters will
take up a major part of the World Economic Forum (WEF) meeting that opens on
Friday.
Held on the shores of the Dead Sea under the theme “Seizing the Moment,” the
three-day event will look at the vital role that the private sector can play to
spur economic development and reduce dependence on natural resources.
The forum, a regional event modelled on the WEF's annual meeting at the Swiss
Alpine resort of Davos, is the third to be held in Jordan since June 2003.
Issues such as regulatory reform, project financing and integration of capital
markets with a special focus on banking, infrastructure, tourism, energy and
growing links with Asia will be tackled, organisers said.
Almost half of the 50 sessions of the forum are devoted to economic issues,
focusing on the need for a broad spectrum of reforms to achieve greater
transparency and the need to create 80 million jobs by 2020.
“Reforms in the Middle East is not an option, it is a necessity,” stressed Klaus
Schwab, WEF founder and executive chairman.
“Without such reform, the Arab world faces the prospect of not only missing out
the advantages of playing a full role in a vibrant world economy but also
failing to develop the true potential of its young and growing population,” he
said.
Hundreds of business leaders, bankers and academics will discuss aspects of the
Arab economy, mainly oil wealth, developing infrastructure and luring foreign
investment, in addition to quizzing the second Arab World Competitiveness
report.
The report, released last month, said Arab countries must significantly raise
their competitiveness if they are to remain viable in the global economy in
areas other than the energy sector.
In particular, they must improve macroeconomic management and institute reforms
to enhance the efficiency of public sector institutions and, more generally, the
quality of governance, and to facilitate the absorption of new technologies.
The slow pace of economic reforms and a climate seen as not being attractive to
investment explain the private sector's disappointing contribution to
productivity and investment, the report said.
Experts will discuss how global investors view the business environment in the
Middle East in a bid to project strategic decisions that Arab countries must
take to best use their assets and attract international companies.
They will also review risks on the region's financial sector in a globalised
economy and if the present response of regional financial institutions is
sufficient to ensure their survival in the face of an aggressive marketing
policy by world banks.
Participants will make “concrete policy proposals” aimed at paving the way for a
major advance in economic reform in the Arab world by 2010, which will cover
trade, labour markets and private sector development.
President of OPEC and Kuwait's Energy Minister Ahmad Fahd Al Sabah will deliver
a keynote address on the future policies of the oil-producing group.