Central Bank of Egypt governor stresses need for boosting domestic production to curb inflation    Egypt's Abdalla highlights domestic production, inflation control at Arab banks meeting    Egypt's PM says Gaza war dominating political scene, vows to continue economic reform    Cairo governor briefs PM on Khan el-Khalili, Rameses Square development    El Gouna Film Festival's 8th edition to coincide with UN's 80th anniversary    Cairo University, Roche Diagnostics inaugurate automated lab at Qasr El-Ainy    Egypt expands medical, humanitarian support for Gaza patients    Finance Ministry presents three new investor facilitation packages to PM to boost investment climate    Egypt condemns Israeli offensive in Gaza City, warns of grave regional consequences    Egypt investigates disappearance of ancient bracelet from Egyptian Museum in Tahrir    Egypt launches international architecture academy with UNESCO, European partners    Egypt's President, Pakistan's PM condemn Israeli attack on Qatar    Egypt signs MoUs with 3 European universities to advance architecture, urban studies    Madrid trade talks focus on TikTok as US and China seek agreement    Egypt's Sisi, Qatar's Emir condemn Israeli strikes, call for Gaza ceasefire    Egypt condemns terrorist attack in northwest Pakistan    Egyptian pound ends week lower against US dollar – CBE    Egypt hosts G20 meeting for 1st time outside member states    Egypt to tighten waste rules, cut rice straw fees to curb pollution    Egypt seeks Indian expertise to boost pharmaceutical industry    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







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Middle East: Change is never easy
Published in Daily News Egypt on 21 - 02 - 2011

As an active observer and a consistent visitor of the Middle East, one asks a simple question: Why does it have to be this way?
I am not talking about Shia/Sunni divides, the Palestinian/Israeli conflict or Iran's growing influence in the region, but persistent and unacceptable levels of poverty in a region blessed with nearly half of the world's oil and gas reserves.
First it was Tunisia, then Egypt, Yemen, Algeria, Libya and stretching into the Gulf with Bahrain. There are major historical and cultural differences of course and even vast differences in per capita income: Bahrain for example is high at $38,400, Yemen low at $2,500. But a few common threads can be found: the region's youth lack opportunities, power is concentrated at the top and the inner circle around them and most waited too long to embrace the winds of change brought on by globalization.
A small but influential group of business people from the region formed the Arab Business Council within the World Economic Forum in June 2003. I attended one of their first major meetings, ironically, in Manama, Bahrain in 2005 where the co-founders and architects of the initiative rang alarm bells about rapid birth rates and the need to create 100 million jobs by 2020. That number was not to lower unemployment but to only tread water in terms of double digit jobless rates amongst the region's youth.
During a series of panels and interviews and in our coverage on Marketplace Middle East, we consistently asked how it would be possible to create that many jobs in such a short span of time. In sum, the symptom was easy to identify, the remedy much more complex. The ABC talked of PPPs, public-private-partnerships, accelerating reforms and opening up governments — especially the monarchies in the Gulf States — to a wider swath of the population.
In fairness economic reforms have taken place. In Egypt, nearly $50 billion dollars flowed in as a result of lower taxes, labor reforms and the setting up of industrial zones and improved infrastructure. A visit to Bahrain would clearly lead one to believe it earned a reputation as the “Switzerland of the Middle East.” Tax rates are fair, the labor force educated and meetings start on time. No wonder both of these economies grew during the global downturn, whether it was Egypt with 80 million people or tiny Bahrain with about 800,000 nationals.
But it would also be fair to say that reforms were started too late and have certainly not benefited everyone equally. While Emirates, Qatar Airways and now Etihad have set up large fleets, fly into first class airport hubs for travelers between Europe and Asia and connect the Middle East to the world, the region until very recently was bypassed by foreign investors. China and India were beckoning as well as an ASEAN market of 600 million consumers in Southeast Asia. To be frank a potential market of 350 million consumers in the Middle East has not come together fast enough. Old rivalries amongst the region's royals still persist and until this social media revolution kicked off the power brokers of North Africa have been (and some still are) unwilling to open up their economies and their societies to change.
During a wide ranging interview with the Crown Prince of Bahrain two years ago, Sheikh Salman bin Hamad bin Isa Al Khalifa noted that change has to be managed.
In his words, “Change is never easy but I think it must be tackled with the right ambition, must be tackled with the right energy as well to achieve success.”
His answer pertained to a question on why some senior Sunni legislators were resisting efforts by the ruling Khalifa family to open up parliament to more of their Shiite counterparts.
The government — unusually for the region — has made efforts to put forth economic and political reforms, but in this new environment, with populations viewing their neighbors actions on-line and on their TV set top boxes the pace of the change in the recent past is proving too slow for a younger, educated generation which is not asking, but demanding more.
John Defterios is CNN's anchor for Marketplace Middle East. For more information go to www.cnn.com/mme.


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