In interview with Mohamed Sabreen, , founder and executive chairman of the World Economic Forum, discusses the regional and national challenges and opportunities ahead in the Arab world You are coming to Egypt for a meeting of the World Economic Forum (WEF) in Sharm El-Sheikh. Its theme is "the promise of a new generation." What promise do you think the next generation holds; how can this promise be fulfilled? In what ways can the WEF be a positive force in this regard? The emergence of a new generation of leaders and citizens holds tremendous promise for the future of the region and the world. Empowered by education, leadership and entrepreneurial skills, this new generation of leaders will hold the key to realising the region's extraordinary development potential. The challenge, however, lies in how to meet the needs and expectations of the new generation. The World Economic Forum on the Middle East held in Sharm El-Sheikh will shape the regional agenda towards bold decisions that will provide hope and opportunity for young people. How do you see the situation in Egypt? Are Arab leaders reluctant to implement reform following the recent economic boom? What key areas of change will the meeting focus on, and how will the meeting address relations between the United States and the Middle East, and also the region's ties with India and China? There is a growing acceptance among prominent leaders, both in Egypt and in the Arab world, that only comprehensive economic reform will enable the region to broaden its sources of growth and propel its development agenda forward. But what should be the priorities for leaders as they embark on a process of reform? Job creation must be at the heart of the region's future, and the business agenda and labour market issues will form the core of a stimulating and comprehensive programme in Sharm El-Sheikh. Other sub-themes will cover the rule of law, peace, security and international relations, and issues of youth, culture and identity. The meeting will also address issues surrounding the relations between the region and the United States. The issue of gender equality is on the agenda. What do you hope can be achieved in this regard during the meeting? Gender issues form an integral part of the agenda. This meeting will focus on strengthening institutions for women in the region. Discussions will be centred on women's empowerment and the role of business and governments. My hope is that the workshops and sessions will later lead to actions and policies that will promote women's leadership and the fulfilment of their untapped potential. According to the Arab World Competitiveness Report, the Middle East is at a crossroads. What is at stake? That the region will likely have the fastest labour force expansion in the world over the next 15 years is both an opportunity and a challenge. Social and political stability is at stake, as well as the ability of the countries to respond and adapt to a rapidly changing global economic landscape. The region needs a growth strategy that is aimed at increasing the region's competitiveness. Failure to act now to address this demographic trajectory could have disastrous economic and political consequences. There is a burgeoning unemployment problem in the region that needs to be urgently addressed. How can it be addressed? The labour force in the Middle East and North Africa region is projected to rise to close to 200 million within the next 20 years. Even to maintain unemployment rates at present levels, tens of millions of jobs will need to be created. Of course, to actually bring unemployment rates down to more sustainable levels, job creation will have to be more ambitious, in excess of a 100 million new jobs between 2020-25. This is a huge challenge for policymakers and the business community. Far-reaching reforms are required, including diversifying and injecting dynamism into markets through greater participation by the private sector. Job creation must remain at the top of the reform agenda. Entrepreneurship must be promoted and barriers to new business creation must be minimised. The quality of the national business environment -- especially the investment climate -- must be enhanced. Finally, and most importantly, it is imperative to invest in people, especially in their education and skills training and re- training. Civil society in most parts of the world -- and Arab countries are no exception -- has much higher expectations today with regard to governments and their ability to deliver services, job opportunities and to be competent in macroeconomic management. What specifically should top the Arab economic reform agenda? Despite the need for extensive reforms, we must not overlook that some governments in the region have already taken significant initiatives and measures to improve governance. Still, much remains to be done ranging from increasing accountability, broadening political participation, improving allocation of public resources and enhancing delivery of government services to the public. Why are inflows of foreign direct investment to the region often five times smaller than the levels seen in other emerging markets? Inflows of foreign direct investment to the region have historically been low relative to other emerging markets, reflecting the extent and nature of the region's integration in the global economy. But it is noteworthy that structural reforms recently undertaken by several economies augur very well for the prospects of increased investment in the region. The types of reforms that have been instituted to improve the investment climate include enhanced fiscal incentives, relaxation of foreign ownership limits, privatisation and capital markets reform. Are governments using the unexpected budgetary resources following the oil driven boom to push forward reforms, or are tough decisions now on hold? Despite the danger that commitment to reform may wane in light of the windfall from oil prices, leaders in the region are becoming more cognizant of the urgency for reform, realising the dangers and costs of inaction. It is encouraging that some governments are taking significant strides towards economic diversification and the promotion of international trade and investment. Clearly, much more needs to be done, but the reform process has notably and certainly gained momentum. How can the private sector and civil society maintain pressure on governments to plan for the long term, taking into account the needs of the region's youth? The private sector and civil society must work in partnership with governments to plan for the long term. The new generation has the greatest stake in the future and the young leaders that represent it should be involved in the deliberations. These leaders have much to contribute, especially in crafting bold and creative strategies to address persistent problems in the region. The WEF's Gender Gap Report found that women in Egypt are furthest behind men in terms of economic equality, with four Islamic countries ranked at the bottom of the survey. What does this imply for economic prosperity in the Arab world, and what can be done? Women constitute the greatest untapped asset in the region. As such, the region's future economic prosperity rests on its ability to realise the potential of its women. Much can be done towards women's empowerment, including greater investments in education and skills training, as well as fostering entrepreneurship. Institutions need to be strengthened to integrate women more fully into all areas of human endeavour, from economy and politics, to the arts and culture.
