Arab World: The World Economic Forum releases report on Arab World competitiveness

The 400-page Report analyses why the Arab World had difficulties to capture a greater proportion of international trade.

Over the past ten years, the region has had an average annual economic growth rate of less than 1 percent. With the exception of Egypt, Syria, Tunisia, and Oman economic growth has even been negative. Meanwhile, the population has grown with an average rate of 3.5 percent. This discrepancy between economic and population growth poses a huge challenge for policy-makers. The Report sees the poor economic performance of the Arab World as, among other things, the result of a one-dimensional growth strategy. This strategy is based on mere capital accumulation where countries rely either on their absolute advantage in petroleum products, as in the case of Kuwait and Qatar, or on their comparative advantage in labour-intensive production methods as in the case of Morocco and Tunisia.

Finally, the Report mentions ongoing Middle East tensions as a major hindrance to economic reform in that part of the region.

Many of the Report findings echo problems already pointed to by the Arab Human Development Report released this summer by the United Nations Development Programme (UNDP). This UNDP report called for improved access to information and education in the region, less corruption and empowerment of women.

Click here for more information on the Arab World Competitiveness Report and Meeting.