Unleashing the Economic Potential of the Maghreb—the Role of Foreign Investment
Christine Lagarde Managing Director of the IMF gave a speech in Nouakchott to Ministers and central bank governors from across the Maghreb on unleashing the region's potential and creating jobs for young people to realise the aspirations of the Arab awakening.
Source : https://www.marocafrik.com/english/Unleashing-the-...
She called for strong economic growth matched by greater inclusiveness and a business environment where fairness, transparency and private enterprise could thrive. It requires a private sector awakening.unleashing the productive potential of the Maghrebian people and creating an environment that supports innovation creativity, and jobs linked to entrepreneurship and supported by FDI.
She observed that the Maghreb had great potential to attract FDI but did not always live up to expectations. The level of FDI to GDP was low when compared to other regions of the world and had dropt from 3 per cent at its peak before the onset of the financial crisis in 2008 to 2 per cent , US$6.5 billion in 2011 as a result of recent political instability. Most foreign investment came from Europe and much of it went into sectors such as energy and mining.
She said that the situation coud be improved and that the Maghreb enjoyed the advantage of proximity to Europeand the Middle East and had a young and educated workforce. The Maghreb should take steps to restore or maintain economic stability and its investment and business climate. She observed that the region still had some way to goin removing barriers to private sector development and providing a level playing field for all without privilege and favour.
She recommended impartial regulation, better quality infrastructure and fair and predictable tax and customs administration. A strong, independent, and impartial judiciary is essential as well ash a financial system that supports productivity and greater access to credit.
Christine Lagarde emphasised that greater openess would increase FDI in the Maghreb region and a sense of common destiny in the Maghreb. The Maghreb needed greater integration which was theidea behind theArab Maghreb Union, and also greater internationalisation and diversification.
The whole region would benefit from becoming more open to itself ,she commented , noting that barriers to trade need to come down to achieve mutual advantages. Allowing a free flow of goods and services in the Maghreb offers limitless possibilities for a market of over 80 million people.
She called for small companies to increase their international profile to encourage investment and for the Maghreb businesses to recognise that theywere part of a larger regional community.She said that expertise could be shared citing Morocco's and Tunisia's advances in agribusiness where Algeria,Mauritania and Libya which are less advanced in thissector could benefit from shared expertise.
Integration and internationalisation could also facilitate accelerating business connections with sub Saharan Africa, she pointed out.She recommended diversifying investment contacts which have beenmainly European and she felt that the BRIC countries offered important opportunities for the Maghreb. She stressed the importance of creating niche investment sectors such as engineering, software development and computing.
She concluded that new societies developing from the Arab awakening needed new economies and she stressed that the IMF would support the Maghreb in this endeavour pointing out that it had committed US 8.5 billion to Jordan, Morocco, and Yemen, and that the IMF is in discussions with other Maghreb countries.
She observed that the Maghreb had great potential to attract FDI but did not always live up to expectations. The level of FDI to GDP was low when compared to other regions of the world and had dropt from 3 per cent at its peak before the onset of the financial crisis in 2008 to 2 per cent , US$6.5 billion in 2011 as a result of recent political instability. Most foreign investment came from Europe and much of it went into sectors such as energy and mining.
She said that the situation coud be improved and that the Maghreb enjoyed the advantage of proximity to Europeand the Middle East and had a young and educated workforce. The Maghreb should take steps to restore or maintain economic stability and its investment and business climate. She observed that the region still had some way to goin removing barriers to private sector development and providing a level playing field for all without privilege and favour.
She recommended impartial regulation, better quality infrastructure and fair and predictable tax and customs administration. A strong, independent, and impartial judiciary is essential as well ash a financial system that supports productivity and greater access to credit.
Christine Lagarde emphasised that greater openess would increase FDI in the Maghreb region and a sense of common destiny in the Maghreb. The Maghreb needed greater integration which was theidea behind theArab Maghreb Union, and also greater internationalisation and diversification.
The whole region would benefit from becoming more open to itself ,she commented , noting that barriers to trade need to come down to achieve mutual advantages. Allowing a free flow of goods and services in the Maghreb offers limitless possibilities for a market of over 80 million people.
She called for small companies to increase their international profile to encourage investment and for the Maghreb businesses to recognise that theywere part of a larger regional community.She said that expertise could be shared citing Morocco's and Tunisia's advances in agribusiness where Algeria,Mauritania and Libya which are less advanced in thissector could benefit from shared expertise.
Integration and internationalisation could also facilitate accelerating business connections with sub Saharan Africa, she pointed out.She recommended diversifying investment contacts which have beenmainly European and she felt that the BRIC countries offered important opportunities for the Maghreb. She stressed the importance of creating niche investment sectors such as engineering, software development and computing.
She concluded that new societies developing from the Arab awakening needed new economies and she stressed that the IMF would support the Maghreb in this endeavour pointing out that it had committed US 8.5 billion to Jordan, Morocco, and Yemen, and that the IMF is in discussions with other Maghreb countries.
Source : https://www.marocafrik.com/english/Unleashing-the-...