Home / Knowledge / News / Textiles / Seven countries growth restrained from poor polices – WB
Seven countries growth restrained from poor polices – WB
14
Aug '14
Countries like Libya, Lebanon, Iran, Yemen, Jordan, Egypt and Tunisia are trapped in a ‘Poor Policy – Poor Growth’ cycle, which hampers these economies from moving to a sustainable growth path, says a latest report from the World Bank.

In a economic brief on the Middle East & North Africa region titled ‘Predictions, Perceptions and Economic Reality - Challenges of Seven Middle East and North Africa Countries Described in 14 Charts,” the report notes that the situation has worsened since the 2011 uprisings.

The report says that growth continues to be weak and does not generate enough jobs, despite recent signs of economic improvement in Egypt and Tunisia and fiscal deficits are still high and public debts are growing at a faster pace than before, leaving little space for growth-promoting investments.

The report goes on to add that private sector activity is sluggish, and the few jobs that are created in the public sector, are filled through connections. Many workers are moving to the informal sector, thereby creating a large vulnerable group exposed to external shocks.

“While the problem of high unemployment is especially pernicious in these countries, an even greater problem is that of those working in the informal sector”, says Shanta Devarajan, World Bank Chief Economist for the Middle East and North Africa region.

“These people, who are not part of the unemployment statistics, are in an even worse situation, since they lack security in their earnings and often live near the poverty line.”

These seven countries have the potential to move to a higher growth path but the sustainability of growth depends heavily on their government’s choice of economic policies.

“There is a risk of policy error if, by trusting economic forecasts that paint a positive outlook for their economies, policymakers resist needed reforms,” says Lili Mottaghi, World Bank MENA Economist and the author of the brief.

Studies have shown that there is an optimism bias in growth forecasts for developing regions and in particular for MENA, because these forecasts do not necessarily take into account new information that comes in at the last minute, nor the structural breaks that sometimes drive an economy, the report goes on to say.

The report recommends prompt actions, which are needed to promote economic activities that deliver sustainable well-being for all citizens, which include structural reforms - targeting of subsidies, strengthening the investment climate, improving governance, and removing rigidities in product and labour markets – that are well integrated with economic policies.

The report concludes by saying that these reforms are necessary whether the short-term economic prospects are rosy or gloomy, as without them, the private sector will struggle to become a growth driver and create jobs.

Fibre2fashion News Desk - India


Must ReadView All

Coats acquires yarn manufacturer Patrick Yarn Mill

Textiles | On 12th Dec 2017

Coats acquires yarn manufacturer Patrick Yarn Mill

Coats, the world’s leading industrial thread manufacturer, has...

India’s garment imports from Bangladesh up 56% post-GST

Apparel/Garments | On 12th Dec 2017

India’s garment imports from Bangladesh up 56% post-GST

India has imported $87.4 million worth of readymade garments from...

Courtesy: Badger Sportswear

Apparel/Garments | On 12th Dec 2017

Badger Sportswear acquires Alleson Athletic

Badger Sportswear, a leading manufacturer of athletic apparel and...

Interviews View All

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search