To widen the gate of opportunity, the region requires entrepreneurs, innovators, educators and policy-makers to clear the path to 85 million new jobs that the region needs to create, the king said.
Alessandro Magnoli Bocchi, chief economist at KCIC, an Asia-focused investment company, said a large portion of those jobs could come from increased trade volumes by export-oriented businesses — exports to Asia to be exact.
Asia’s demand is the only clear “pulling factor” for global growth in the years to come, he added.
There is no reason why the Middle East North Africa (MENA), with its sun and wind endowments, cannot be the Silicon Valley for alternative technologies, and export ideas once again, he said.
Bocchi said sectors with a “comparative-advantage-in-learning” are renewable energy (think of solar power in the desert), water management and desalinization (i.e. Jordan’s efforts to face water scarcity can make it a world leader), and hub logistics — the region is in “the middle,” and should exploit its geographical advantage by building adequate infrastructure.
The recipe is clear-cut, said Bocchi.
“Each country, and MENA as a block, needs to attract capital, train labor and get at the frontier in technology. To attract capital, the region needs coordinated development plans, credible implementation, and instruments (e.g. structured funds),” he said.
“To retain talent and reduce unemployment, it is essential to align the education system with the job market. To enhance productivity, technology should be initially imported but subsequently developed by creating centers of excellence,” he added.
The task is difficult, but not impossible, he said, adding that MENA’s countries are relatively homogeneous, with a majority of the population sharing the same language and religion.
“It is a worthwhile effort. As shown in the case of the EU, while increased interdependence helps building a middle class with supranational interests, economic development and integration bring about peace and its dividend: prosperity,” he said.
But to capitalize on the rewards of the potential upside, Bocchi said the region’s governments must act now.
“To prevent the situation from deteriorating, MENA needs tens of millions of jobs to be created over the next five years,” he said.
“MENA’s leaders should swiftly enact credible, meaningful reforms. After all, if not now, when? At this point, naive optimism is a must — if unlocked, the potential is enormous,” Bocchi said.
