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From Privilege to Competition : Unlocking Private-Led Growth in the Middle East and North Africa - World Bank

From Privilege to Competition

Unlocking Private-Led Growth in the Middle East and North Africa

Paperback Published: 1st November 2009
ISBN: 9780821378779
Number Of Pages: 274

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'From Privilege to Competition: Unlocking Private-Led Growth in the Middle East and North Africa' sheds new light on the difficult quest for stronger and more diversified growth in a region of unquestionable potential. It underlines the need to strengthen reforms in many areas--specifically, by reducing policy uncertainty and improving credit and real estate markets. It also highlights other important issues that restrain the credibility and impact of reforms in many parts of the region: conflicts of interest between politicians and businesses, an investment climate that favors a few privileged firms, and a dominant private sector that often opposes reforms. The book recommends that countries in the Middle East and North Africa (MENA) engage in more credible reform agendas by improving the implementation of policies in a manner that will reduce discretion and privileges. This renewed commitment to stronger growth would entail several developments. First, governments will need to reduce opportunities for rent-seeking and foster competition. Second, they will need to work to reform institutions: private sector development policies will need to be systematically anchored in elements of institutional and public sector reforms in order to reduce discretion and opacity and improve the quality of services to firms. Third, they will need to mobilize all stakeholders, including larger representations from the private sector, around dedicated long-term growth strategies. Short of such a fundamental shift in the way private sector policies are formulated and implemented, investor expectations that governments are committed to reform will be limited. It will take political will--and time--to support sustained reforms that credibly convince investors and the public that changes are real, deep, and set to last. MENA countries are endowed with strong human capital, good infrastructure, immense resources, and a great deal of untapped creativity and entrepreneurship. The economic and social payoff of embarking on a more ambitious private-led growth agenda could thus be immense--for all.

Forewordp. xiii
Prefacep. xvii
Acknowledgmentsp. xxiii
Glossary of Termsp. xxvii
Abbreviationsp. xxix
Overviewp. 1
What Is This Report About?p. 1
Is the Private Sector Able to Play the Role of a Growth Engine?p. 2
How Has the Private Sector Performed So Far?p. 3
Is It about Missing Reforms?p. 6
Is It about the Way Rules Are Implemented?p. 9
Why Is It Difficult to Improve the Business Environment in the Region?p. 12
Weak Demand for Reform: A Private Sector That Has Yet to Become an Agent of Changep. 13
Weak "Supply" of Reforms: Policy-Making Institutions That Lack Credibilityp. 14
What Should Be Done Differently? Where Should Each Country Start?p. 15
Getting Specific: A Roadmap for Credible Private-Led Growth Strategies in MENAp. 16
Looking Forwardp. 22
Voices of EntrepreneursùStories of Success, Hope, and Challengep. 25
Listening to Entrepreneursp. 27
Government Successes and Pitfalls in Supporting the Private Sectorp. 30
Challenges Facing EntrepreneursùFrom Regulatory Barriers to Conflict and Warp. 31
Privileges, Unlevel Playing Fields, and the Credibility of the Reformsp. 35
Hope and Enthusiasm for the Futurep. 38
Private Sector Performance in the MENA Region: Explaining the Untapped Potestialp. 43
Searching for Signs of Sustained Private-Led Growth in MENAp. 45
The Growth of MENA Economiesp. 46
An Economy-Wide Perspectivep. 50
Firm-Level Productivityp. 63
Summing Upp. 65
Explaining the Private Sector's Weak PerformanceùAn Organizing Frameworkp. 69
The Need for Humility in Prescribing the Keys to Private-Led Growthp. 69
Policies, Institutions That Implement Them, and Expectations about the Futurep. 71
Measuring Rules, How They Are Applied, and Expectations about the Futurep. 75
Policy Reforms in MENA, Their Credibility, and Their Implementationp. 79
Is the Problem with Missing Reforms?p. 80
The Problem Is the Insufficient Private Sector Response to Reformsp. 84
Is It about the Way Rules and Policies Are Implemented?p. 86
Symptoms of a Business Environment That Is Not the Same for Allp. 97
Summing Upp. 104
Policies and How They Are Applied: State Intervention and Discretion in Credit Land, and Industrial Policyp. 107
Access to Credit in MENA: Toward Better Supervision and Less Interferencep. 109
Credit Markets and Banking Systems in MENAp. 111
Business Manager Perceptions of Credit Constraintsp. 113
Beyond Perceptions and Complaints: How Many Firms Are Really Credit Constrained?p. 114
What Can Governments Do to Increase Access to Credit?p. 117
Reassessing the Spate's Role in Industrial Land Marketsp. 129
The Low Access to Land in MENA Countriesp. 130
Sources of Inefficiencies in Land Marketsp. 132
Getting the Incentives Right in Enclavesp. 142
Power and Rent Seeking in Public Land Allocation and Regulationp. 143
The Way Forwardp. 145
New Industrial Policies: Opportunities and Perils of Selective Interventionsp. 151
A Tradition of Subsidies and Selective State Interventionsp. 152
A Framework to Clarify a Controversial Debatep. 153
Private Sector Policies in MENAùA Legacy of Disproportionate Interventionismp. 159
Assessing Risks of Industrial Policy Interventionsp. 162
Should Oil-Rich Countries Intervene? Yes, but the Risks of Failure Are Higherp. 166
A Final Cautionary Note: Industrial Policies Could Succeed if the Right Conditions and Processes Are in Placep. 167
Designing Credible Private Sector Reforms Informed by Political Economy Realitiesp. 169
Institutions and State-Business Alliances Constraining Reforms and Credibilityp. 171
Weak Supply of Reforms: Policy-Making Institutions That Lack Commitment and Credibilityp. 173
Weak Demand for Reform: A Private Sector That Has Yet to Become an Agent of Changep. 182
What Can Reformers Do to Change the Political Economy Status Quo?p. 191
Rethinking Private Sector Policy Making in MENAp. 195
What Should Be Done Differently to Realign Investor Expectations?p. 196
Looking Forward: Unlocking the Region's Private Sector Potentialp. 207
Referencesp. 209
Indexp. 219
Table of Contents provided by Ingram. All Rights Reserved.

ISBN: 9780821378779
ISBN-10: 0821378775
Series: Mena Development Report
Audience: Professional
Format: Paperback
Language: English
Number Of Pages: 274
Published: 1st November 2009
Publisher: World Bank Publications
Country of Publication: US
Dimensions (cm): 25.15 x 17.78  x 1.78
Weight (kg): 0.57

Earn 196 Qantas Points
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