Growth and development are often used synonymously with many not realizing the different economic implications and associations involved. Growth implies developing, expanding or changing a given situation. Acquiring a plot of land and preparing it for investment is an effort toward growth but this is not economic development in the broader sense. Take for example projects along the beaches of such cities as Jeddah and Dammam on which the government has spent millions of riyals. These were originally intended to serve the public but have instead become examples of bad development. The income generated from such activities is insignificant in terms of GDP. What the municipalities did was replace the open beaches of clean fresh sand and a beautiful view with concrete cages. “Jeddah has turned its back on the sea”, said one businessman describing the situation. The city may have witnessed some growth with services made available for those who can afford to pay, but the object should be to enable all to enjoy the fruits of development.
Development needs a vision and the mechanism that turns this vision into the reality of increased wealth. It is important that all parties know their responsibilities, obligations and rights. There also has to be accountability and transparency. Development first needs an integrated and comprehensive system of laws and regulations. These should be simple, unambiguous and resilient. Every one should know that laws are to be respected without interference or unnecessary delays. Development projects, big or small, should be treated equally with the exception of those requiring special government licensing. Foreign capital should be allowed free movement with no need for special laws governing non-Saudi investors. This is particularly important at a time when the country has launched a new economic drive designed to attract more investments and open up to the world through WTO membership. Local chambers of commerce, according to one writer, have a more important role to play than merely receiving and entertaining trade delegations. They must sit down with their members — who have long been sidelined — and listen to what the members say about economic difficulties. Chambers should also help by preparing strategic plans of real essence and benefit from the many untapped opportunities offered by government development initiatives.
Economic freedom does not mean neutralizing the state or keeping it out of economic activity. The role of the state is not confined to issuing laws or serving as an arbitrator resolving differences between people. Many projects of strategic importance, including natural resources, call for involving the state, which at the same time must open its door to private investments. The private sector could run these projects, on behalf of the state and under its supervision, to ensure efficiency and profitability. Another important element for development could be found in activities basically intended to benefit parties other than the owners. This kind of investment is known in Islam as Waqf (endowment) where an person donates cash or property to benefit the public after his or her death. The money is used for building hospitals, schools and other institutions, sponsoring poor families or securing employment for others. If properly run and equipped with the correct tools, it addresses contemporary needs.
It is a noble effort reflecting a true spirit of compassion and love, and could serve as a powerful tool for economic and social development. Building an integral economic system requires businessmen to join hands, whether through merger or other forms of action, and the government to fulfill its part by providing necessary services, ensuring the strict enforcement of the law and honoring its timetables and schedules. The privatization drive may have met with some hitches but we could still arrive at our goal much faster if we adopted a straightforward approach: what is strategic is government and the rest is private. Lastly, it is time that non-profit charitable organizations free themselves from unnecessary, old-fashioned restraints and apply modern development techniques that open the way for more creative and profitable activities. The nation’s real strength lies in its economic prosperity. The entire process depends on intertwined circles supporting each other, with a division between ruling and owning.
