With investments in infrastructure and efforts to improve the business climate, Algeria is focused on creating the conditions for more robust and inclusive growth.
Private Sector Development
In a country like Egypt which faces a host of political and economic challenges, innovative solutions are very much in demand. The good news is that there is a wave of innovation and entrepreneurship spreading across the Arab world. The bad news is that micro and small enterprises -- mostly working in low-tech industries -- in Egypt are not getting the support they need to be part of this wave.
Since when do the hard-nosed folks who work at the World Bank on boosting private sector performance in the Middle East and North Africa go off to conferences to discuss ANGELS? Well, that’s just what we did last month when a team from the finance and private sector unit went to San Francisco to attend the Angel Capital Association (ACA).
Daunting challenges lie before the Arab-speaking workforce today. Forty million jobs must be created in the next decade to employ the region, home to the highest rate of youth unemployment – not to mention that many countries are still undergoing a period of political transition. The fundamental question about job creation now is where these countries should be headed and how they are getting there.
Microwork presents a unique opportunity for jobs and income for sections of Palestinian society that face high levels of unemployment, such as youth and women. It is a new phenomenon in the digital economy: anyone anywhere can work through an online platform equipped with just a computer and internet access.
A forthcoming World Bank report entitled “Building Effective Employment Services for Unemployed Youth in the Middle East and North Africa”, concludes that in order to help unemployed workers in the region obtain the skills required for the available jobs, there is an urgent need to reform existing employment programs.
This month marks the midpoint of the transition process in Yemen. As agreed upon in the peace initiative in November 2011, the transition will include a national dialogue that brings together a broad geographic and political cross section of the country, the drafting of a new constitution, and concluding with new parliamentary and presidential elections.
With the limited prospects of a formal job, a growing number of young people, especially the less educated ones, are attracted to the prospects of self-employment. It is seen as a way out of inactivity, low pay, long working hours, and the hazardous work conditions often associated with the informal sector. But their lack of access to business training and finance constitute major barriers towards setting up viable micro-enterprises.
When the Arab Spring broke out and regimes began to fall under the pressure of their own citizens, a revolution on social media also took hold. During this critical period, the use of Facebook and Twitter was ubiquitous, especially in Egypt and Tunisia. Social networks and cell phones played an important role.
In light of recent political and social unrest in the region, foreign investors are taking a “wait-and-see” attitude to projects in the Middle East and North Africa. For the region’s investment promoters, this demands better, more proactive performance than in the past. Fortunately, although much remains to be done, the investment agencies of the 19 MENA governments are, as a group, off to a good start.