Policy Perspectives

The Lack of Productive Employment in the Middle East and North Africa: A Comparison with East Asia

No.

24

Date

October, 2018

Topic

O2. Development Planning and Policy

O1. Economic Development

In a nutshell
  • East Asian countries have achieved structural transformation, whereas MENA countries have yet to do so—to provide jobs for their large youth populations.
  • East Asian countries succeeded because they adopted a package of: openness to exports, FDI, focus on technical higher education, and high investment with macroeconomic stability.
  • The Arab social contract, with guaranteed public sector jobs, subsidized food and fuel, and free basic education, coupled with inward-looking trade and investment policies, prevented MENA countries from pursuing many of the East-Asian policies, much less the whole package.
  • The need to shift to a more open trade and investment policy, technology-oriented education, and greater reliance on private-sector jobs is great, especially since high youth unemployment in MENA may have contributed to the violence and instability in the region recently.
The Lack of Productive Employment in the Middle East and North Africa: A Comparison with East Asia

Authors

Shantayanan Devarajan

Professor of the Practice of International Development,...

The Lack of Productive Employment in the Middle East and North Africa: A Comparison with East Asia

Authors

Howard Pack

Professor Emeritus of Business and Public Policy...