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Embarking on a Path of Renewal – MENA Commission on Stabilization and Growth: Insights into More Hopeful Directions
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Our Senior Fellow Hafez Ghanem takes part of the Economic Research Forum annual conference and shares his insights in a high level panel entitled “Embarking on a Path of Renewal – MENA Commission on Stabilization and Growth –Insights into More Hopeful Directions”.
While some reduction in government expenditure is unavoidable, much of the political capital invested in adjusting to the current macro shocks and to high indebtedness should go towards improving growth prospects. Several dimensions of the challenge can be highlighted:
- Public expenditure should be reoriented to social protection and pro-growth spending. To what extent can debt restructuring help achieve these goals? Can countries count on more cooperation between the IMF and the World Bank in shaping longer term growth-focused adjustment programs?
- How to adapt the growth agenda to new global circumstances? Global conditions are not favorable. But there are new possibilities. Export-led growth can get boosted by the delocalization of value chains close to the GCC and Europe. Digitalization can improve labor productivity. Green growth needs to focus on adaptation but can also develop comparative advantage in green-energy intensive products.
- There seems to be enormous new opportunities to expand regional cooperation that can be mobilized in support of reformist national programs on climate adaptation, technology, food security, energy.
- Political leaders need to lead the reform effort. They need to mobilize winners and compensate losers. Improved trust in institutions and confidence about the future can support collective action and generate a virtuous process of progress on all fronts.
In light of these findings, this session will draw the outlines of a research agenda that can take a deep dive to ultimately generate knowledge that can enlighten the policy debate with evidence and rigorous analysis.
Watch the full panel on:
