Presentation on MENA

PRESENTED BY

DEBOPRIYA BHATTACHARYA DIPAN SARKAR

JASHWANT PRASAD SINGHKOUSHIK SINGHAMANINDER SINGH

MUGDHA CHAKRABORTYNISHANT AGARWAL

PAROMIK DASPOUSALI MUKHERJEE

MENA

INTRODUCTION

FREE TRADE AREA: A free-trade area is a trade bloc whose member countries

have signed a free-trade agreement (FTA), which eliminates tariff, import quotas, and preferences on most goods and services traded between them.

FREE TRADE AGREEMENT: Agreement between two or

more countries to establish a free trade area where commerce in goods and services can be conducted across their common borders, without tariffs or hindrances but (in contrast to a common market) capita or labor may not move freely. Member countries usually impose a uniform tariff (called common external tariff) on trade with non-member countries.

INTRODUCTION

The Middle East and North Africa (MENA) is an economically diverse region that includes both the oil-rich economies in the Gulf and countries that are resource-scarce in relation to population, such as Egypt, Morocco, and Yemen.

The region’s economic fortunes have been influenced by the price of oil and the legacy of economic policies and structures

MENA COUNTRIES

CHALLENGES FOR MENA REGION

Job creation is the top priority : Job creation is the first priority in the MENA region. The available evidence indicates that the region suffers from long-term unemployment, ranging between 10 and 25 percent.

Fighting corruption and strengthening the rule of law: Along with high unemployment levels and limited economic opportunities, the main drivers of the Arab Spring have included pervasive corruption, cronyism, and the absence of democratic representation. And, although these concerns can be generally identified as the ―political demands of protestors, it is undeniable that they can also have significant effects on economic activity and investment decisions.


A bloated public sector has distorted labor markets and crowded out the private sector:

Another key challenge facing the region is bloated public sectors, including both government agencies and SOEs, that employ significant shares of the labor force. Employment in the public sector ranges from 22 percent in Tunisia to around 33–35 percent in Syria, Jordan, and Egypt.

Entrepreneurship is very low in most MENA countries: Another important challenge facing the region is the low level of enterprise creation.


A. Unemployment rates in percent in 2000 and 2009 or closest years for which data are available

B.Unemployment in percent among youth, women, and the educated in 2009 or most recent

Source: World Bank 2011a.

OPPORTUNITIES FOR MENA

The young population represents a great potential as a market and as a labor force

Renewable energies have the potential to become an important economic activity.

Renewable energies have the potential to become an important economic activity.

There are significant development opportunities for manufacturing and services, including agribusiness and tourism.

TRADE

• Free Trade Agreements in MENA countries and its trade effects :

• Did not create trade between member countries. Most member countries continued to export commodities, mainly oil to the rest of the world

• MENA’s recent trade performance is weak relative to other countries. MENA’s trade-GDP or export-GDP ratio is above the world average and has been since at least the mid 1990s, but this is in large part due to petroleum exports.

• MENA’s trade performance over time is mixed. The region’s share of global exports fell from 2.2 percent in 1995 to 1.8 percent in 2008, suggestive of a declining importance in trade.

TRADE PERFORMANCE

TRADE PERFORMANCE

Source: World Bank, World Development Indicators.

MENA’s Trade as a Percent of GDP Compared to Other Regions, 2010

MENA INVESTMENT

Investment policies and promotionSME policy, entrepreneurship and human capital

developmentWomen's entrepreneurship and economic empowermentBusiness integrity / corporate governanceFinancial sector development and economic

diversificationBusiness climate assessmentEnergy and infrastructureTax policy and administration

MENA GOVERNANCE

Public Sector IntegrityOpen and Innovative GovernmentPublic Financial ManagementRegulatory ReformGender

ECONOMIC DEVELOPMENTS AND PROSPECTS

Foreign Direct Investments. Looking Ahead after a Year in Transition Enabling Employment Miracles Economic Development Prospects: Investing for Growth and

Jobs Regional Economic Outlook: MENA Facing Challenges and

Opportunities Regional Integration for Global Competitiveness Job Creation in an Era of High Growth

BIBLIOGRAPHY

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.200.3708&rep=rep1&type=pdf

http://www.oecd.org/mena/49036903.pdfhttp://web.worldbank.org/WBSITE/EXTERNAL/

COUNTRIES/MENAEXT/0,,menuPK:247619~pagePK:146748~piPK:146812~theSitePK:256299,00.html

http://www.eia.gov/countries/mena/http://www.univ-orleans.fr/leo/infer/PARRA

%201.pdf

THANK YOU

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Presentation on MENA