Building collaboration among Arab entrepreneurs
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Transcript of Building collaboration among Arab entrepreneurs
Building Collaboration Arab Entrepreneur Partnership
Forum
April 2-3, 2011
2
Normally I would have spoken about:
• Horizontal and vertical integration
• Networking
• Innovation and best practice
• Arab complementarities
• Competitiveness and regional clusters
• Corporate social responsibility (CSR)
…………………But I am sure you know about all that!So, instead let’s talk about
3
Amartya Sen & Sustainable Development
According to Sen, there are populations today that live in a state of 'unfreedom', unable to realize their capabilities.
Poverty is “a deprivation of basic capabilities, rather than merely low income"
Five freedoms: 1. Political freedoms2. Economic facilities3. Social opportunities4. Transparency guarantees5. Protective security
Population, Corruption and Freedom IndicatorsCountry Population
(Million)
Population
under 25
GDP per
capita, 000 at
PPP
Democracy Corruption Freedom Index of
100=most
unstable
Algeria 35.9 47.5 % 8.2 125 105 141 49.7
Bahrain 1.2 43.9 % 24 122 48 153 36.5
Egypt 84.6 52.3 % 5.9 138 98 130 65.7
Iraq 31.4 60.6 % 4 111 175 144 65.7
Jordan 6.4 54.3 % 5.2 117 50 140 48.7
Kuwait 3.5 37.7 % 40.6 114 54 115 21.7
Lebanon 4.3 42.7 % 13.4 86 127 115 30.7
Libya 6.5 47.4 % 18.7 158 146 192 71
Morocco 32.4 47.7 % 4.7 116 85 146 46.8
Oman 3.3 M 51.5% 23.3 143 41 153 58.4
Palestine 4.1 64.4 % 2.9 93 NA 181 NA
Qatar 1.7 33.8 % 66.9 137 19 146 20.7
Saudi
Arabia 27.1 50.8 % 22.9 160 50 178 52.5
Sudan 43.2 59 % 2.3 151 172 165 NA
Syria 22.5 55.3 % 4.7 152 127 178 67.3
Tunisia 10.4 42.1 % 8.6 144 59 186 49.4
UAE 6.7 31 % 27.2 148 28 153 24.3
Yemen 24.3 65.4 % 2.9 146 146 173 86.6
The Economist
Ranking of democracy
( out of 167 countries )
Ranking of corruption
( out of 178 countries )
Ranking of press
freedoms
( out of 196 countries )
5
Democracy and GDP per capita in MENA
Income is positively related to Democracy
GDP per Capita (PPP, 1000s)
Source: IMF
Oil/gas Revenues
Economies are dependent on hydrocarbon revenues
Source: IMF
Military Expenditures as % of GDP
Foreign Direct Investment as % of GDP, 2009
% of Population Under the Age of 30
Quality of Education Index
Unemployment Rates (%)
Youth Employment Rates (%)
Youth Unemployment (%) vs. Political Stability
% of Population Below the Poverty Line
Development
Equitable Growth
Accountability
Transparency
Freedom of Speech
Democracy
A Thesis…
Collaboration?
But…
Agreement Date Signed Members
Pan-Arab Free Trade
Area (10 yr transition
period)
January 1, 1998. All Arab states
Agadir Agreement February 25 2003 Egypt, Morocco, Tunisia and
Jordan
Unified Economic
Agreement
Signed 1981 and
adapted December
2001
Gulf Cooperation
Council (GCC)
Arab countries resorted to intergovernmental approaches to integration due to reluctance of Arab leaders to transfer sovereignty to supranational bodies
Areas of Possible Cooperation:
• Evidence shows there is little gain from cooperating in manufacturing (goods): lack of competitiveness, low value added, little intra industry trade
• Integration in Services, Labor, FDI flows (Capital) have high potential gains from integration.
• Newly democratizing economies will most likely see greater economic integration with each other; the trend may spread throughout region.
Thank You