According to the report, a stronger private sector is needed as an estimated 40 million new jobs have to be created in MNA in the next decade. For this to occur, countries in the region need to reduce discretion in the business environment to encourage more entrepreneurs to invest. The playing field must be leveled for the region's businesses. It will require increasing transparency and strengthening institutions that enforce the rules.
Reforms implemented over the past two decades allowed private enterprises to become the principal source of wealth generated in MNA economies outside hydrocarbons and mining. However, the private sector has still not been able to transform MNA countries into diversified, vibrant economies with sustainable high growth record.
With private investment averaging around 15 percent of GDP, MNA remains far behind more dynamic regions. Export diversification has increased recently. Yet, the best performers in the region export around 1,500 goods—most of them low in technological content—compared with close to 4,000 in countries like Poland, Malaysia or Turkey.
For more information, go to http://www.worldbank.org/.
