DOHA: Political instability, lack of clear vision and a delay in implementing reforms are hindering development of the Arab Spring economies, a session of the Doha Forum was told yesterday.
Business experts and politicians from Egypt, Tunisia and Yemen addressed the session titled “Arab Spring economies- challenges and opportunities”.
“We are paying the high cost of transition. The interim government is not in a position to properly implement reforms. There is great imbalance between rural and urban areas in terms of development. Investment is not attracted due to security issues and the continuing terrorist attacks,” said Osama Al Saghir, one of the youngest members of the Tunisian parliament representing the ruling Annahda party. He said the Tunisian economy had started showing signs of recovery, despite the many challenges. Economic growth was 3.5 per cent last year after it plunged to as low as minus two per cent in 2011, immediately after the revolution. Last year’s growth rate was higher than the 3.1 per cent pre-revolution growth recorded in the first quarter of 2010.
Tourism sector that was badly hit by the revolution grew by 30 per cent by the end of last year.
“Unemployment at over 60 per cent is the biggest problem facing the economy. More than 70 per cent of our trade was with European countries and the recession in Europe has inflicted a major blow on the economy,”
“We want to continue trade relations with European Union but we are also looking towards countries in the East, North and the South,” added Saghir. Later, replying to a question from the audience, he said Qatar and Turkey are playing a major role in supporting development of Tunisia, while France, Germany and Italy have also stepped up investments.
Mondher Ben Ayed, a business expert from Tunisia said that the Tunisian constitution is expected to be ready by July and the elections would take place by December.
“A permanent government is a necessary to take the reforms ahead. There is a delay in implementing reforms. Bold decisions are needed after the revolution,” he said.
Food production grew by 35 per cent last year but inflation was at a high 6.5 per cent.
Osama Mourad, CEO, Agrogate — Dongolla Argeen Highway company based in Egypt said the basic problem facing the Arab economies is “a lack of vision and a plan for the future” and “failing to plan is planning to fail”.
He said Egypt after the Mubarak era, is looking forward to a fresh start.
“We want to achieve global standards and are striving for an Arab economic integration. We have 90m people and the poor in Egypt are extremely poor. We have a strong soft power. Our jokes, our dramas, our Islamic and Coptic clerics are popular in the Arab world. But we can not survive if we don’t hold together,” said Mourad. Fighting corruption and doing away with subsidies were also cited by most speakers as major challenges facing the Arab Spring economies.
Yahya Y Almutawakel, professor of Economics at Sanaa University shed light on the difficult economic and political scenario in Yemen.
Abdulwahab Alkebsi, regional director, Center for International Private Enterprise was the moderator.The Peninsula
