Fortunate circumstances enabled me to have a discussion on the future of our economy with Prince Faisal ibn Saud. The prince is always preoccupied with creative business thinking, and proactive solutions to help the market grow, projects to attract businessmen and efforts targeted toward benefits to the economy. Prince Faisal expected me to contribute. I humbly stated that “I am helpless” in this regard. However, targets are clear, but need ways and means to reach them especially when the spirit is high but the flame is weak.
The rapid evolutionary changes in our society over the past 40 years have adversely influenced our expectations with regards to living, consumption and even the concept of reward and obligation. Expanded desires push some to spend more than they earn even to the point of failing to honor financial obligations.
Eventually this divides the nation more into rich and poor. The key to successful economic growth depends on the spread of knowledge, fair benefit-sharing of resources and opportunities within our values and culture. Liberalizing our economy at our own will and toil, without external interference, will enable the economy to produce and export according to our comparative advantage. We should play active roles in the international commercial and financial institutions that contribute to our economic development and enforce the integration with the Arabic, Islamic regions and the world at large. Regional trade may improve the current low trade between the 22 Arab states, currently at only 6 percent of total foreign trade.
The improvement of the national economy requires basic revision and updating of most regulations. Lack of opportunities and adverse local investment climate drove investments overseas. It is time to tempt them back by obstacle-removals and encourage inward foreign investment with workable regulations.
An integrated modern approach to social and economic reform is needed. Most current reforms are predominantly designed by government departments, who are strong on good intentions, but short on free market day-to-day know-how and technical expertise. Recent example is the health insurance. The body behind the health regulations thinks that serving the consumer interest only is the sole consideration for success. Rather, it should work together with insurance and Shariah specialists, who have the expertise plus the vision to design and develop an appropriate form of efficient health insurance with full regard to efficiency, faith and profitability.
Liberalization of trade and openness of the economy requires creative solutions. It should provide knowledge, encourage individual initiatives, the right of women to work, protection of patent, competition and create sound means to enable the average citizen to improve his income. Interference by government departments does not serve successful business. It may create obstacles to real economic growth. There are many investment opportunities in the government sector that can be exploited for the benefit of the national economy such as telecom, water, sewage, Civil Aviation etc. through transparent privatization. It is also important that financial and monetary policies contribute to the overall performance of national growth.
It is worth quoting Professor Dr. Louis Hubaigah of the American University in Beirut. “What we request is very simple — the challenge should not be made more complicated because that hinders our progress. We request realistic solutions, taking into consideration international experiences. So we do not waste our time or destroy the future of our youngsters.”