Innovation, Entrepreneurs Vital For Regional Economic Growth
The Middle East and North Africa have abundant economic potential that can be harnessed through the power of the private sector.
Innovation and entrepreneurship are essential keys to growth. Beyond the "why" there is the "how," and the many ways available to create a buoyant economy by promoting the private sector. There is already a great deal being done, but not nearly enough.
We can view growth, competition and job creation as part of an interconnected series, at the center of which is innovation.
The Middle East and North Africa have one of the highest unemployment rates in the world, and more than half of the population is under 25. Such a large and largely idle labor force is often highlighted as an underlying reason for widespread protests and resultant instability in the region over the past two years. So youth joblessness represents a challenge, yet it also carries enormous potential. If these young men and women were to be employed in productive jobs, they could be a great boon to national economies and the region as a whole; they are, in fact, an untapped resource.
The private sector can provide these jobs. Historically, the public sector has been the main source of employment in the Middle East, but fiscal constraints — and the private sector’s track record in job creation — demand that the private sector take up the slack across the region. According to the World Bank and the International Monetary Fund, the Middle East and North Africa need to create 75 million new jobs by 2020 just to keep employment levels at the current rate, and an estimated 100 million to significantly bring down unemployment. This is where the innovation nexus comes in. Innovation and entrepreneurship are at the heart of increased productivity and competition in both developed and emerging economies.
