The year is ending with a positive economic note from the UN on two accounts: that the last quarter of this year has shown a positive signal of recovery, and that next year and the year after are expected to show sustained growth.

The World Economic Situation and Prospects (WESP) report issued by a number of organizations said that they expected growth to top 3 percent next year and 3.3 percent in 2015 from 2.1 percent this year.

The highlights of the report indicate that the euro has finally come out of a long and protracted recession, that growth in US has strengthened, and China and India will continue their moderate economic growth providing some kind of a leading engine.

More important, inflation is expected to be tamed, while international trade will pick up to 4.7 percent though prices of primary commodities are expected to be flat, but that is bound to be affected by the supply situation, where geopolitical tensions can lead to shocks, interruption of supplies and jump in prices.

Foreign direct investments (FDI) will be highly affected by this geopolitical tension and its main characteristic could easily be termed volatile.

The main challenge in this relatively best economic forecast in years and since the world financial crisis of 2008 is unemployment, which continues to haunt developed as well as underdeveloped countries.

On the regional level, Africa came out with a robust picture with an estimated economic growth of 4.7 percent next year from strong 4 percent in the current year.

The Middle East region, which is grouped within the western Asia segment, is expected to achieve this year 3.6 percent growth rising next year to 4.3 percent.

That is a good record given the world’s feeble performance. And with the strong economic growth in the GCC countries, it is expected to continue given the impact of high oil prices.

Within all this the political uncertainty will have the major impact almost on every aspect of domestic, regional and international economy.

For instance, the political instability in the region, coupled with security problems and tension, and social unrest that have engulfed the region over the past three years, has led to subdued economic activity be it in terms of FDI, projects or even across the border economic activities in various forms.

However, the fact that the world has finally started to get out from one of its worst recessions provides a positive note that needs to build on. And that involves international cooperation.

Following the 2008 crisis that started with financial problems and then turned into food, oil and economic crisis in the full sense of the word, there came a significant development of setting up the G20 of major economies.

From the G7 of the major Western economies that was expanded to include Russia given its role on the world stage, we now have the G20 as a forum, more representative of a more diversified world, and as such stands a chance of providing some solutions.

These are changing times, where old rules and institutions are no longer very much suitable to provide answers and solutions to growing and expanding world problems of today.

But at the same time, new ones have not emerged out fully yet. And that is where the real challenge is because life goes on and solutions have to be found first and then implemented, and have an impact to change the environment that in itself will create new conditions that will impact the following stages.

Domestic and regional players can handle their own affairs in a better way as they know the conditions and they may overcome problems, but coordination is essential not only as a reasonable thing to do.

But with a lack of solid solutions of international dimensions, domestic and regional components get an added value to share experiences, pool resources and adopt a more holistic approach that in the end will have a more positive impact.

Though it is no longer a time for great ideological divide politically and economically between those who give the state and public sector the upper hand in running their affairs or leave it entirely to the private sector, but still the challenge is how to strike a balance between the public and private sectors, and the role of the individual and the state.

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