Breaking the Barriers to Higher Economic Growth: Better Governance and Deeper Reforms in the Middle East and North Africa.

Sinclair, Andrew Michael

BREAKING THE BARRIERS TO HIGHER ECONOMIC GROWTH: BETTER GOVERNANCE AND DEEPER REFORMS IN THE MIDDLE EAST AND NORTH

AFRICA

Mustapha Kamel Nabli

(Washington, DC: The World Bank, 2007), 486 pages.

In a three-part compilation of seventeen papers and speeches, Mustapha Kamel Nabli cogently argues for a comprehensive reform agenda for the countries in the Middle East and North Africa (MENA). Drawing upon his work as the Chief Economist for the MENA region at the World Bank, Nabli presents thoroughly researched scholarship on growth, reform, governance, labor markets, human capital, trade competitiveness and investment in the region.

The central tenet of this work is that MENA economies must realign from their current public sector dominance and become more open, diversified (i.e., less reliant on oil and its rents) and based on the private sector. Each section elaborates on this goal. Part I deals with the nexus of economic reforms and better governance, arguing that piecemeal economic reforms are insufficient. Nabli highlights the heavy-handed government restriction that left past reforms unimplemented and then calls for comprehensive and refocused policies that take into account the role of better governance. Part II focuses on integrating the region's private sectors with the world economy. He points to the EU-Mediterranean partnership and the necessary labor market adjustments that must be undertaken to absorb the huge numbers of unemployed now and in the future. Part III highlights the issues relating to trade reform, enhancing competitiveness and private investment. He builds upon his earlier goal of holistic reform, demonstrating the integral role that government institutions play in the overall investment climate of developing economies.

Recognizing the financial and political roadblocks, Nabli's book combines an accessible, well-documented and in-depth look at the region's economic problems, while simultaneously offering broad-based prescriptions of how to plot the way toward higher economic growth. The challenges are immense, but rethinking development for the MENA region along this general frame work presents policy makers with a long-term agenda to follow.