With so much fighting going on, how can economies grow?
Slow Growth In Middle East And North Africa Region Calls For Bold Approach To Economic Reform – World Bank
February 10, 2014 By Eurasia Review
Ongoing regional tensions, together with a challenging external environment, have hit the economies of the Middle East and North Africa (MENA) region hard. Economic growth is slowing, fiscal buffers are depleting, unemployment is rising, and inflation is mounting in seven transition countries in the region. Long overdue reforms, that could help spur growth and create jobs, have continued to be delayed to avoid further social and political discontent. The World Bank GroupÂ’s latest Quarterly Economic Brief argues that these countries should seize the opportunity to advance structural reforms needed to break the vicious circle of slow growth and political instability.
“Governments in these countries cannot afford to continue short term policy actions such as increasing public sector wages and subsidies”, says Shanta Devarajan, World Bank Chief Economist for the Middle East and North Africa region. “These policies exacerbate a situation which is driven by long-standing structural weaknesses, including labor market rigidities, complicated and opaque regulations, infrastructure deficiencies, regressive and inefficient subsidies, and inadequate social safety nets”.
Continue reading at:
Slow Growth In Middle East And North Africa Region Calls For Bold Approach To Economic Reform - World Bank Eurasia Review
Slow Growth In Middle East And North Africa Region Calls For Bold Approach To Economic Reform – World Bank
February 10, 2014 By Eurasia Review
Ongoing regional tensions, together with a challenging external environment, have hit the economies of the Middle East and North Africa (MENA) region hard. Economic growth is slowing, fiscal buffers are depleting, unemployment is rising, and inflation is mounting in seven transition countries in the region. Long overdue reforms, that could help spur growth and create jobs, have continued to be delayed to avoid further social and political discontent. The World Bank GroupÂ’s latest Quarterly Economic Brief argues that these countries should seize the opportunity to advance structural reforms needed to break the vicious circle of slow growth and political instability.
“Governments in these countries cannot afford to continue short term policy actions such as increasing public sector wages and subsidies”, says Shanta Devarajan, World Bank Chief Economist for the Middle East and North Africa region. “These policies exacerbate a situation which is driven by long-standing structural weaknesses, including labor market rigidities, complicated and opaque regulations, infrastructure deficiencies, regressive and inefficient subsidies, and inadequate social safety nets”.
Continue reading at:
Slow Growth In Middle East And North Africa Region Calls For Bold Approach To Economic Reform - World Bank Eurasia Review
