Co-chairs of the World Economic Forum agreed that government bureaucracy, education, and the food and energy crises are the main elements that will shape the agenda of the Middle East for 2008 and beyond, in the session entitled “The Future of the Middle East on Sunday.
Despite the challenges facing the Middle East and the urgency to address them, world leaders, businessmen and thinkers are optimistic that changes can be achieved.
Providing over 19 million job opportunities in the Middle East within the coming years is an example of a challenge the region is facing.
Mohammed Alshaya, executive chairman of Kuwaiti Alshaya Group, believes “we can do it, with the will of leaders to change and reform. He believes that the retail and tourism sectors – that employ the highest number of people and return the highest revenues – have to be developed in the Middle East to achieve the challenging employment targets.
To further ensure that this problem is addressed, partnerships between the government and the private sector must be created, as well as sufficient conditions where private enterprise can provide job opportunities, Prince Andrew, the Duke of York and UK Special Representative for International Trade and Investment said.
The next step that will help businesses grow in the Middle East is “world class education that starts from the primary phase, Prince Andrew said. The young generation should not only depend on what they learn, but change the way they think and “learn how to be skilled beyond education, he said.
To create a harmonically-integrated business environment that is able to meet challenges, businesses need to be aware of government problems, such as the increase in oil prices. “We can not avoid political uncertainties, problems in food production and water scarcity must be addressed, we have to sustain the development of current resources to provide food for the population, Prince Andrew said.
Again, the solution to these dire issues is partnerships between the private sector and the government to achieve more growth. Also, the importance of dialogue must not be undermined, especially in the constructive notion of reducing specific security risks that are hindering economic growth.
Despite the negatives, areas like Asia have expressed interest in investing in the Middle East. “Many Asian companies are interested in enlarging their investment in this region, said Yuriko Koike, member of the House of Representatives and National Diet of Japan.
Asia has also been of benefit to the Middle East by helping oil producing companies in the Gulf to develop renewable energy methods, despite their abundant resources. “Since oil resources [will deplete at some point] we should all learn to utilize this precious natural resource wisely and effectively [and search for alternatives for it], she said.
While natural resources might be hindering factors not controlled by world leaders, bureaucracy is a factor that is. “Governments must decrease bureaucracy to survive, the only way to go forward is for leaders to listen to the people coming up, said Khalid Abdulla-Janahi, Chairman of Ithmaar Bank of Bahrain.
With all the benefits of globalization, the downfalls are also immense. “The gap between rich and poor has widened and the middle class has diminished, Janahi said. He cited Turkey as a success story that was able to defeat this challenge. “Turkey was able to enable the rich to become richer, the poor and the middle class to rise, he said. Being a mostly Muslim community, Turkey has proven that Islam does not hinder economic progress.
The impact of the internet and technology has helped solve some of the negative image problems faced by the Middle East. “We now have broader cyber participation from different people around the world, Jimmy Wales, founder and chair of Emeritus, Wikia, USA said. Previously only conflicts in the Middle East were covered by the media, now the internet allows all news to be published and known to the world.
“Globalization has led to the increase of economic growth as a result of the increase in trade flows, but vast sectors are left behind causing poverty,
Paul Rice, president and CEO of TransFair and a social entrepreneur. “We[social entrepreneurs] are asking for a sustainable market approach that is profitable and socially responsible at the same time.
With the increase in Foreign Direct Investment in the Middle East we must invest in infrastructure and education. “We have to give something away for a better future for our children, Janahi said.
