Report on Arab Development Challenges features IPC IG Publication

The Arab Development Report 2011 was launched in Cairo,Egypt in February 2012. Rathin Roy and Radhika Lal were contributing writers for the report and IPC-IG researchers also contributed to a background paper Rathin Roy, Khalid Abu-Ismail, and Raquel Ramos. 2011. “Is there Fiscal Space for Financing an Arab Development Transformation”. This has also just been released as an IPC-IG working paper downloadable here.

 

Brasilia, 1 March 2012 -The report aims to contribute to the present policy debate, particularly in countries in transition, on the future direction of the region’s developmental trajectory. Its authors argue for a new Arab development model, where issues of stability are not addressed solely from a security standpoint and above all where progress is not simply viewed in terms of utility of goods and services (such as growth in per capita income), but rather in terms of substantive capabilities to choose a life one has reason to value. The developmental state is capable of transforming the enormous potential and natural resources of the region into an inclusive growth base that respects human rights, reduces poverty, and creates decent work opportunities and views social expenditure as a real investment in the future. The Arab world is richer than it is developed. Thus, the main mission of the Arab developmental state is to invest in its citizens. To this end, what is required and is feasible, is an overhaul of current social policies, sound national development plans that emphasize industrial, agricultural and trade policies, increasing labour productivity and prioritization of investment in sectors and projects that guarantee a sustainable economic and environmental base. The implementation of these national development strategies within a broader Arab regional integration framework would also create positive spill-over effects at the national and regional levels.

The poor development outcomes in the region are largely due to the corrupting influence of rents on the choice of development paths. The politics of patronage practiced in the region has weakened the mutual accountability of state and citizens. As a result of poor governance mechanisms private sector investment has been skewed towards speculative activities, public investments had limited effectiveness and higher incomes for current generations have come at the expense of future generations.

The report argues for an end to the politics of patronage and the adoption of a new social contract of mutual accountability between the State and citizens. The report highlights the critical role of governance failures revitalized State would be socially and administratively accountable and capable of supporting a more inclusive and sustainable development process. The report can be downloaded here.

See media coverage of the report featured on Al Jazeera Arabic