PDF A Strategy for Development

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Tourism-related service sectors account for more than 25 percent of economic output. Abu Dhabi, the largest of the seven emirates and the main exporter of oil, is earmarking sizable funds and directing them toward the establishment of capital-intensive, export-oriented industries. It is developing large industrial zones and establishing capital-rich national champions in aluminum, steel, and petrochemicals, and even innovation-based sectors such as aerospace, semiconductors, and renewable energy.

Obstacles to Diversification But the majority of Gulf projects aimed at creating what we consider to be true diversification have not yet reached fruition. The development of this remote area is intended to create a mix of industries meant to diversify the Saudi economy. Yet Saudi contractors and producers of building materials are having trouble keeping up with demand, which could slow construction.

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The infrastructure to deliver electricity is still being developed, so there is concern about whether there will be adequate supplies of energy. And ultimately, there is the question of skilled labor: Thousands of workers will probably have to be imported from Pakistan, India, and China. This project exemplifies a deeper challenge for the Gulf states — addressing pervasive structural gaps.

It is unclear whether enough capital and labor are being routed to productive economic sectors, such as manufacturing, as opposed to so-called support sectors, such as construction and real estate, infrastructure, and logistics, to which abundant resources are being channeled. In Gulf countries, however, this is not the case.

The vast majority of the workforce is employed in sectors that are relatively less economically productive and of secondary strategic importance in sustainable development. At the same time that the Gulf states need human capital to advance their diversification efforts, they have double-digit rates of unemployment.

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This situation is expected to worsen as a substantial segment of the population reaches working age in the near future and pours into the job market. The root of the problem is that the available workers do not have the skills, knowledge, or motivation needed to match the available jobs. Two other lessons seem clear.

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These indicators can offer a more accurate measurement of sustained performance. Second, governments seeking to make their GDPs more evenly distributed need to understand that it is not strictly an economic challenge. Rather, they need to look at their policies regarding labor force development, education, and health care, and determine the implications of those policies for their economic strategy.

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They also need to examine their financial regulations, capital efficiency, and overall macroeconomic stability; indirect and portfolio investments must flow smoothly, while the overall system remains disciplined, robust, and immunized against excesses, shocks, and abrupt corrections. They will have to develop export markets for the products they hope to manufacture and the innovation engines that will create the products these markets need.

In sum, instigating true economic diversification and sustainable development, and thus entrenching economic resilience, requires achievement of a long and exhaustive checklist of initiatives. If the leaders of the Gulf states understand what is involved in true diversification, they have a better chance of creating clusters of economic activity or whole industries that are capable of innovation.

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But that is the key to creating long-term, sustainable growth in their economies and ensuring stability and a high standard of living for their people. In so doing, they could serve as an example to other single-resource economies around the world and become paragon states of economic resilience. He focuses on public administration modernization, public policy, large-scale transformation, and organizational development and change management.

He focuses on public policy, socioeconomic development plans, macroeconomic policy and governance frameworks, and turnaround and transformation projects. He specializes in financial services and public sector projects and has led and participated in various strategy, operations improvement, and organization projects in the Middle East, Europe, and Asia. Moujaes and Consultant Carla Khoury. People are more trustworthy than you think 2.

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ufn-web.com/wp-includes/69/logiciel-pour-stylo-camera-espion.php Reviews and mentions of publications, products, or services do not constitute endorsement or recommendation for purchase. All rights reserved. Please see www. No reproduction is permitted in whole or part without written permission of PwC. The item has been saved. Speeches that follow explore current development issues in India, Indonesia, Pakistan, and China. A strategy for development is then outlined; building an economic climate that facilitates investment and growth, and empowering poor people to participate in that growth.

A concluding speech examines the role of the international financial institutions in promoting investment and overcoming poverty. See Less -. Document also available in : Spanish. All language versions and volumes across World Bank Repositories. The World Bank. Google Buzz Stumble Upon Delicious. This Page in:. See Less - Document also available in : Spanish.