During her recent visit to Cairo, the World Bank's Vice President for the Middle East and North Africa Region Inger Andersen reiterated the Bank's support for an inclusive economy in Egypt that enables all citizens to take part in shaping their future.
Egyptian policymakers are facing a significant challenge: how to address acute economic challenges while managing ongoing political and social transitions. Output in major sectors of the economy (construction, trade, and tourism) remain weak while foreign direct investment (FDI), once a core tenant of Egyptian growth, reached nearly zero in the second quarter of this year. The Egyptian unemployment rate, which traditionally hovered around 9.5 percent in the years preceding the revolution, has increased to 13.2 percent in the first quarter of 2013.
Following the ousting of Hosni Mubarak in 2011, many Egyptian expatriates turned towards their home country with a renewed sense of hope and desire to participate in the change process. As the political and economic transition is underway, many Egyptians abroad are looking for ways to engage in the transition period, and donors and development agencies are trying to effectively channel their efforts to contribute to development outcomes.
Will a return to political stability solve the economic problems in the Middle East and North Africa?
In the three years since the Arab Awakening of late 2010, the Middle East and North Africa (MENA) has seen an increase in conflict and political instability, on the one hand, and a deteriorating economic situation, on the other. Given the vicious cycle between economic hardship and conflict, it is natural to ask whether a return to political stability will restore prosperity in the region.
Whether constructing a new bridge or buying textbooks for a public school, governments around the world constantly purchase a wide variety of goods and services. In the countries of the Middle East and North Africa, these types of public contracts represent between 15 percent and 20 percent of GDP each year, an annual amount equal to tens of billions of US dollars.
“I never thought that a poor family could benefit so much by me giving just a small amount of money,” the old man said with an intrigued yet hopeful expression on his face. We were sitting in a small classroom in Aqaba, Jordan, chosen as part of a behavioral experiment on Social Safety Nets. Although I have worked on social issues for many years, this statement was eye-opening to me.
It was my first week in Algeria, and I found myself racing through the capital in a motorcade. This was far from my usual form of transportation, but rather the result of a fortunate coincidence. My preparations for taking up office as Resident Representative of the World Bank for Algeria happen to overlap with an official visit by our Vice President for Middle East and North Africa, Inger Andersen.
For its level of per-capita income (around $1,500), the Palestinian territories have among the best social indicators in the world. These achievements are all the more remarkable given the difficult economic circumstances facing the Palestinian territories. In contrast to other countries such as India, Indonesia or Peru, teachers in the Palestinian territories do teach and clinics are staffed with health workers.
I am a business woman, an entrepreneur from the Middle East and North Africa (MENA) region. I managed to start and grow two companies and a nonprofit in my lifetime. Does this show gender equality? I was neither welcome nor unwelcome by men into this field of work but I believed in something and made it happen. Can such an attitude contribute to changing the reality for women?