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

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

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
February 2017

February 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search