Middle East and North Africa Flagships
6 items available
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Top-priority publications representing the most important issues for the Region.
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Publication
Land Matters: Can Better Governance and Management of Scarcity Prevent a Looming Crisis in the Middle East and North Africa?
(Washington, DC: World Bank, 2023)Across the Middle East and North Africa (MENA) region, land is a scarce and valuable resource. The projected increase in land demand due to demographic trends, coupled with decreasing land supply due to climatic and governance factors, indicate a looming crisis happening at a time when the region is also facing dramatic social and political transformation. Reserves for land cultivation are almost exhausted, while total built-up area will need to expand to accommodate high demographic growth. Yet, land remains inefficiently, inequitably, and unsustainably used. There are strong barriers to land access for both firms and individuals. Firms resort to political connections to access land, resulting in land misallocation. Women are 2 to 3 times more likely to fear losing their property in the case of spousal death or divorce, and their rights are not sufficiently supported by institutions and gender-imbalanced social norms. Refugees also face difficulties in accessing land; conflict in the region is causing the displacement of millions of people who lack necessary housing, land, and property rights. This report identifies and analyzes the economic, environmental, and social challenges associated with land in MENA countries, shedding light on policy options to address them. It focuses on two main constraints—scarcity of land and weak land governance—and how they affect land use and access, the resulting inefficiencies and inequities, and associated economic and social costs. It highlights the need for MENA countries to think about land more holistically and to reassess the strategic trade-offs involving land, while minimizing land distortions and serving economic development. It is also an attempt to fill major data gaps and promote a culture of open data, transparency, and inclusive dialogue on land. These efforts are important steps that will contribute to renewing the social contract, accompany economic and digital transformation, and facilitate recovery and reconstruction in the region. -
Publication
Jobs Undone: Reshaping the Role of Governments toward Markets and Workers in the Middle East and North Africa
(Washington, DC: World Bank, 2022-05-16)A decade since the spark of the Arab Spring, the Middle East and North Africa (MENA) region continues to suffer from limited creation of more and better jobs. Youth face idleness and unemployment. For those who find jobs, informality awaits. Few women attempt to enter the world of work at all. Meanwhile, the available jobs are not those of the future. These labor market outcomes are being worsened by the coronavirus (COVID-19) pandemic. Jobs Undone: Reshaping the Role of Governments toward Markets and Workers in the Middle East and North Africa explores ways to break these impasses, drawing on original research, survey data, wide-ranging literature, and young entrepreneurial voices from the region. The report finds that a prominent reason behind MENA’s unmet jobs challenge is a lack of market contestability in the formal private sector. Few firms in the region enter the market, few grow, and those that exit are not necessarily less productive. Moreover, firms in the region invest little in physical capital, human capital, or research and development, and they tend to be politically connected. At the macro level, economic growth has been mediocre, labor productivity is not being driven by structural change, and the growth of the stock of capital per capita has declined. New evidence generated for this report shows that the lack of dynamism is due to the prevalence of state-owned enterprises (SOEs). They operate in sectors where there is little economic rationale for public activity and they enjoy favorable treatment—flouting the principles of competitive neutrality. Meanwhile, labor regulations add to market rigidity, while gendered laws restrict women’s potential. To change this reality, the state must reshape its relationship toward markets, toward workers, and toward women. The region must create a level playing field between SOEs and the private sector, replace labor rigidities with appropriate social protection and labor market programs, and remove barriers to women’s economic participation. Governments can also foster new sectors and occupations, gradually propelling market contestability and job creation. All reforms will have to rely on improved data capacity and transparency to create a new social contract between governments and the people of the region. -
Publication
The Upside of Digital for the Middle East and North Africa: How Digital Technology Adoption Can Accelerate Growth and Create Jobs
(Washington, DC: World Bank, 2022-03-16)The argument that digitalization fosters economic activity has been strengthened by the global COVID-19 pandemic. Because digital technologies are general-purpose technologies that are usable across a wide variety of economic activities, the gains from achieving universal coverage of digital services are likely to be large and shared throughout each economy. However, the Middle East and North Africa region suffers from a “digital paradox”: the region’s population uses social media more than expected for its level of gross domestic product (GDP) per capita but uses the internet or other digital tools to make payments less than expected. The Upside of Digital for the Middle East and North Africa: How Digital Technology Adoption Can Accelerate Growth and Create Jobs presents evidence that the socioeconomic gains of digitalizing the economies of the region are huge: GDP per capita could rise by more than 40 percent; manufacturing revenue per unit of factors of production could increase by 37 percent; employment in manufacturing could rise by 7 percent; tourist arrivals could rise by 70 percent, creating jobs in the hospitality sector; long-term unemployment rates could fall to negligible levels; and female labor force participation could double to more than 40 percent. To reap these gains, universal access to digital services is crucial, as is their widespread use for economic purposes. The book explores how fast the region could approach universal coverage, whether targeting the rollout of digital infrastructure services makes a difference, and what is needed to increase the use of digital payment tools. The authors find that targeting underserved populations and areas can accelerate the achievement of universal access, while fostering competition and improving the functioning of financial and telecommunications sectors can encourage the adoption of digital technologies. In addition, building societal trust in the government and in related institutions such as banks and financial services is critical for fostering the increased use of digital payment tools. -
Publication
Convergence: Five Critical Steps toward Integrating Lagging and Leading Areas in the Middle East and North Africa
(Washington, DC: World Bank, 2020-02-09)Policymakers across the Middle East and North Africa (MENA) have long tried to integrate their people spatially and economically. Wishing to bring communities together and narrow economic gaps, governments have made large capital investments in transport corridors and "new cities." Hoping to provide jobs in places with little economic activity, governments have designated new industrial zones supported by spatially targeted business incentives. Yet the results of these place-based initiatives in MENA are limited. The disparities between capital cities and lagging areas, and between richer and poorer quarters of cities, remain stark. Across much of the region, a fortunate few are connected to opportunity, while many more people are marginal to the formal economy--or live outside it, seemingly forgotten. Why have place-based spatial initiatives in MENA countries largely underdelivered not yielding more sustainable jobs and growth? While the challenges are many and vary across the region, this report explains that many of these place-based policies get one thing wrong: they attempt to treat inequity’s spatial and physical symptoms, not its causes. This report presents the five roots of spatial inequity in institutional inefficiencies across MENA--urban regulatory frictions, credentialist education systems, centralized control over local public services, barriers to the spatial mobility of goods and people, and barriers to market entry and lop-sided business environments – within cities, within countries, and across national borders. It proposes five transitional steps toward enabling convergence informed by economic geography. -
Publication
Expectations and Aspirations: A New Framework for Education in the Middle East and North Africa
(Washington, DC: World Bank, 2020)Education has a large untapped potential to contribute to human capital, well-being, and wealth in the Middle East and North Africa (MENA). It had been at the heart of the region’s history and civilizations for centuries. The region invested heavily in education for decades but has not been able to reap the benefits of its investments. Despite series of reforms, the region remained stuck in a low learning – low skills level. There are four key sets of tensions that are holding back education in the MENA region. These tensions: Credentials and skills, discipline and inquiry, control and autonomy, and tradition and modernity are shaped by society and are reflected in schools and classrooms. If not addressed, MENA will continue to operate below its potential. Addressing these tensions and unleashing the potential of education requires a new framework with a three-pronged approach: A concerted push for learning that starts early for all children regardless of background, with qualified and motivated educators that leverages technology and uses modern approaches and monitors learning. It also requires a stronger pull for skills by all stakeholders in the labor market and society and involves coordinated multi-system reforms within and outside the education system. Finally, it requires a new pact for education at a national level with a unified vision, shared responsibilities and accountabilities. Education is everyone’s business and not just the responsibility of the education system. The push, pull, pact framework offers an opportunity for the MENA region to charge forward and reclaim its heritage of a learned region and meet the expectations and aspirations of its people. The current situation in MENA requires a renewed focus on education not just as a national priority for economic growth and social development but as a national emergency for stability, peace and prosperity. -
Publication
Trust, Voice, and Incentives : Learning from Local Success Stories in Service Delivery in the Middle East and North Africa
(Washington, DC: World Bank, 2015-04)This report examines the role of incentives, trust, and engagement as critical determinants of service delivery performance in MENA countries. Focusing on education and health, the report illustrates how the weak external and internal accountability undermines policy implementation and service delivery performance and how such a cycle of poor performance can be counteracted. Case studies of local success reveal the importance of both formal and informal accountability relationships and the role of local leadership in inspiring and institutionalizing incentives toward better service delivery performance. Enhancing services for MENA citizens requires forging a stronger social contract among public servants, citizens, and service providers while empowering communities and local leaders to find 'best fit' solutions. Learning from the variations within countries, especially the outstanding local successes, can serve as a solid basis for new ideas and inspiration for improving service delivery. Such learning may help the World Bank Group and other donors as well as national and local leaders and civil society, in developing ways to enhance the trust, voice, and incentives for service delivery to meet citizens’ needs and expectations.