The document discusses the economies of the West Asia-North Africa (WANA) region and identifies three main economic groups: 1) Resource-poor economies that suffer from low incomes, poor growth, and high unemployment. 2) Resource-rich but conflict-affected economies whose potential has been damaged by violence and instability. 3) Resource-rich Gulf economies that rely heavily on oil but struggle with diversification and addressing issues like food insecurity. Overall, the region faces development challenges like weak governance, conflict, and inequality, which are linked to varying levels of economic development and opportunity across WANA. A regional development bank could help tap underused resources and promote investment to address these economic issues.
Financial Inclusion of Refugees in Germany_Project BackgroundSwati Mehta
The attached presentation provides the background, objectives, and introduction of team members involved in the research.
The research is being conducted as part of my German Chancellor Fellowship. With this research, we intend to understand what factors affect economic outcomes of the newcomers as they integrate in Germany. More specifically, it aims to collect qualitative insights into the strategies they use to manage day-to-day financial needs, overcome financial risks, and build lump sums of money to seek economic opportunities.
External Financing and Economic Growth in Nigeria 1986 2017ijtsrd
External financing has become a veritable resort to remedying the common problems of low productivity, low productivity, low savings and high dependent on consumption from exports in most less developed economies. The use of external finance is believed to have the capacity to close wide gap between domestic savings and investment and provide the complementary funds to facilitate economic activities necessary for growth in Nigeria. This study aimed to investigate the effect of external financing on economic growth in Nigeria between 1986 and 2017. External financing was captured using five variables of external debt stock EDS , foreign direct investment FDI , official development assistance ODA , remittance RMT and foreign portfolio investment FPI , as the independent variables, regressed on economic growth represented by annual growth rate of gross domestic product GDPR as the dependent variable. Data for these variables were obtained from World Development Indicator, and analyzed based on the Autoregressive Distributive Lag ARDL approach. The findings revealed that, in the long run, EDS and FDI had a negative and a positive, significant effects, respectively, while others had no effect on growth in the short run, all the external financing variables EDS, FDI, FPI, ODA, and RMT had no significant effect on economic growth in Nigeria. The study averred that FDI is a veritable source of financing that can bring about economic sustainability to Nigeria. The study recommended, among others, that government should deploy external debts for regenerative projects that will eventually liquidate themselves in the long run. Ekwunife, Ifeanyi Jude | Dr. J. J. E. Ikeora "External Financing and Economic Growth in Nigeria: 1986-2017" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-6 , October 2019, URL: https://www.ijtsrd.com/papers/ijtsrd29388.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/29388/external-financing-and-economic-growth-in-nigeria-1986-2017/ekwunife-ifeanyi-jude
This paper therefore appeared to illustrate in general three major pillars: economic socio-cultural
and ‘environmental’. These three components, although analyzed separately, are certainly linked. Indeed, the
organization and the economic structure of the region affected by tourism development lead to social
transformations wich themselves influence future tourism development and modify the characteristics of the
different economic variables of the Chaouen-Ouazzane
We are pleased to announce that AHMR: Vol. 3 No. 2, 2017 – Special Issue has been published. We would like to to express our appreciation to Prof Jonathan Crush our guest editor for this issue.
This article investigates capital markets in Sub-Saharan Africa, their opportunities and risks. The article compares their depth, liquidity, investment opportunities and risk profile. While the capital need is there, the market is often more readily suited for FDI than portfolio investors.
AHMR is an interdisciplinary peer-reviewed online journal created to encourage and facilitate the study of all aspects (socio-economic, political, legislative and developmental) of Human Mobility in Africa.
Through the publication of original research, policy discussions and evidence research papers AHMR provides a comprehensive forum devoted exclusively to the analysis of contemporaneous trends, migration patterns and some of the most important migration-related issues.
Financial Inclusion of Refugees in Germany_Project BackgroundSwati Mehta
The attached presentation provides the background, objectives, and introduction of team members involved in the research.
The research is being conducted as part of my German Chancellor Fellowship. With this research, we intend to understand what factors affect economic outcomes of the newcomers as they integrate in Germany. More specifically, it aims to collect qualitative insights into the strategies they use to manage day-to-day financial needs, overcome financial risks, and build lump sums of money to seek economic opportunities.
External Financing and Economic Growth in Nigeria 1986 2017ijtsrd
External financing has become a veritable resort to remedying the common problems of low productivity, low productivity, low savings and high dependent on consumption from exports in most less developed economies. The use of external finance is believed to have the capacity to close wide gap between domestic savings and investment and provide the complementary funds to facilitate economic activities necessary for growth in Nigeria. This study aimed to investigate the effect of external financing on economic growth in Nigeria between 1986 and 2017. External financing was captured using five variables of external debt stock EDS , foreign direct investment FDI , official development assistance ODA , remittance RMT and foreign portfolio investment FPI , as the independent variables, regressed on economic growth represented by annual growth rate of gross domestic product GDPR as the dependent variable. Data for these variables were obtained from World Development Indicator, and analyzed based on the Autoregressive Distributive Lag ARDL approach. The findings revealed that, in the long run, EDS and FDI had a negative and a positive, significant effects, respectively, while others had no effect on growth in the short run, all the external financing variables EDS, FDI, FPI, ODA, and RMT had no significant effect on economic growth in Nigeria. The study averred that FDI is a veritable source of financing that can bring about economic sustainability to Nigeria. The study recommended, among others, that government should deploy external debts for regenerative projects that will eventually liquidate themselves in the long run. Ekwunife, Ifeanyi Jude | Dr. J. J. E. Ikeora "External Financing and Economic Growth in Nigeria: 1986-2017" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-6 , October 2019, URL: https://www.ijtsrd.com/papers/ijtsrd29388.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/29388/external-financing-and-economic-growth-in-nigeria-1986-2017/ekwunife-ifeanyi-jude
This paper therefore appeared to illustrate in general three major pillars: economic socio-cultural
and ‘environmental’. These three components, although analyzed separately, are certainly linked. Indeed, the
organization and the economic structure of the region affected by tourism development lead to social
transformations wich themselves influence future tourism development and modify the characteristics of the
different economic variables of the Chaouen-Ouazzane
We are pleased to announce that AHMR: Vol. 3 No. 2, 2017 – Special Issue has been published. We would like to to express our appreciation to Prof Jonathan Crush our guest editor for this issue.
This article investigates capital markets in Sub-Saharan Africa, their opportunities and risks. The article compares their depth, liquidity, investment opportunities and risk profile. While the capital need is there, the market is often more readily suited for FDI than portfolio investors.
AHMR is an interdisciplinary peer-reviewed online journal created to encourage and facilitate the study of all aspects (socio-economic, political, legislative and developmental) of Human Mobility in Africa.
Through the publication of original research, policy discussions and evidence research papers AHMR provides a comprehensive forum devoted exclusively to the analysis of contemporaneous trends, migration patterns and some of the most important migration-related issues.
The Constitutional Transitions Clinic ‘back office’ has, from 2011 to 2014, prepared
a series of thematic, comparative research reports on issues in constitutional design
that have arisen in the Middle East and North Africa. Zaid Al-Ali, Senior Adviser on
Constitution Building at International IDEA, acted as an adviser on these reports and
oversaw International IDEA’s participation in the report-drafting process. The United
Nations Development Programme’s Regional Center provided both material and
substantive support in relation to the last three of the six reports.
The first three of these reports are jointly published by Constitutional Transitions and
International IDEA. The second three are jointly published by Constitutional Transitions,
International IDEA and the United Nations Development Programme. The reports are
intended to be used as an engagement tools in support of constitution-building activities
in the region. The full list of reports is:
• Constitutional Courts after the Arab Spring: Appointment Mechanisms and Relative
Judicial Independence (Spring 2014)
• Semi-Presidentialism as Power Sharing: Constitutional reform after the Arab Spring
(Spring 2014)
• Political Party Finance Regulation: Constitutional reform after the Arab Spring (Spring
2014)
• Anti-Corruption: Constitutional Frameworks for the Middle East and North Africa (Fall
2014)
• Decentralization in Unitary States: Constitutional Frameworks for the Middle East
and North Africa (Fall 2014)
• Oil and Natural Gas: Constitutional Frameworks for the Middle East and North
Africa (Fall 2014)
Opas: ihmisoikeusperustainen kehitysyhteistyö
Suomen UNICEFin laatima opas kertoo tiiviisti ja käytännönläheisesti, miten kehitysyhteistyöhanke suunnitellaan ja toteutetaan ihmisoikeusperustaisesti (human rights-based approach). Opas on englanninkielinen.
Opas auttaa suomalaisia ja kumppanimaiden järjestöjä toteuttamaan työssään YK:n ihmisoikeussopimuksen ja Suomen kehityspolitiikan periaatteita.
Opas valottaa ihmisoikeusperustaisen kehitysyhteistyön erityispiirteitä, toteuttamismalleja, kohderyhmiä ja sanastoa. Käsitteitä on havainnollistettu piirroksilla ja kaavioilla.
THE NEED FOR EFFECTIVE LEADERSHIP IN COMBATING FINANCIAL CRIME IN THE AFRICAN...PROF. PAUL ALLIEU KAMARA
The Need for Effective Leadership is to Promote the fight against Financial Crime in Africa and help to advance Africa Trade Development Agenda
Financial Crime is a major African problem, and combating it requires effective leadership at all levels.
Africa remains at high risk of Financial Crime distress, and the risks have risen in the context of recent large fiscal deficits...
All sectors of African’s Leadership must either act now or never! African Leaders often say that criminal activities are like a lifestyle in the African’s continent: but if left undealt with, the consequences will have adverse effect and will destroy the economic development of Africa and lessen the trust in our Public and Private Institutions. Similarly, leaders must build up effective Political governance within their institutions, the Will and capacity needed to crack down on Financial Crime agents or agencies in the areas of Money Laundering, Counter Terrorism Financing, Fraud, Drug deals, Bribery and Corruption and smugglers, why? Because these criminals have a lot of criminal strategies to evade our African Territories – for example, if they are restricted in the land routes – they would use sea routes- when they are restricted on the seas they use the air. That’s why targeted interventions often have limited impact on Financial Crime and criminal activities in Africa: we need to look at the Leadership capacities and effectiveness in pursing the African Continental Free Trade Zone Area agenda as a big picture, besides the good initiatives and benefits therein it also has negative sides effect of its to tell the whole story of how the criminals are moving on Roads, Seas and air (aviation industry), and the poor border crossing security Agencies of Nations in Africa. This Book intends to tell the story of the poor suffering African’s people with few livelihood options. It is a complex story, with many interconnections; at the heart of which the African Continental Free Trade Zone area lies. While Africa has spread a plethora of beneficial innovations around the world, it has also had many negative consequences in both large and small countries through illicit financial outflows: in fact, security problems in the entire nations of Africa are closely related to the development challenges posed by the Money Laundered to finance Terrorism and Civil Conflicts of Africa. Though the side effects of Financial Crime are particularly strong in the African’s poorest countries those least equipped to respond to these impacts are more vulnerable.
This Book looks at how the role of effective Leadership contributes in the fight beyond specific countries Against Financial Crime and illicit financial flows (fin-iffs) in the African region. The Book zeroed in on Financial Crime, illicit Financial Flows, like Money Laundering, Bribery and Corruption and illicit trade to illustrate the larger scale and the need for effectiveness of African Leaders to combat this menaced:
International Financial Institutions, Middle East, North Africa a primer for ...Dr Lendy Spires
Preface What is this primer? The purpose of this Primer is to shed light on the operations and impacts of international financial institutions (IFIs) that are active in the Middle East and North Africa (MENA), such as the World Bank and the International Monetary Fund, and to reveal how individuals and communities can hold those institutions accountable. The Primer aims at helping civil society groups in the region to more actively and critically engage with those IFIs in setting the development agenda and shaping policies and investments in their countries. What is the “MENA region”? BIC’s MENA program considers the region to be made up of the following predominantly Arabic-speaking countries: Morocco, Algeria, Tunisia, Libya, Egypt, West Bank and Gaza, Jordan, Syria, Lebanon, Iraq, Kuwait, Bahrain, Qatar, United Arab Emirates, Oman, Yemen, and Saudi Arabia. BIC also includes Iran and Israel within its MENA program. However, the countries defined as “MENA” vary from one institution to another, either for political reasons or simply because of the geographic mandate of the institution. The table on Page 6 shows the countries considered part of the MENA region by each IFI discussed in this Primer. The wide range of economic and political conditions of the countries in the MENA region means that relations with IFIs vary considerably from one government to the next. Conflict-affected countries such as Lebanon, Iraq and Palestine, depend to a great extent on IFIs for financing and coordination of donor activities. A smaller number of the region’s countries that are considered “poor”, like Yemen, also rely fairly heavily on financing from IFIs. However, most countries in MENA are considered “middle income countries” by IFIs, and thus are not eligible for grants or the lowest-interest loans that the institutions offer. These countries are also better able to turn to other sources like private banks and commercial investors, to borrow money. Still other countries in the region are world-renowned for their oil riches, and thus are actually in the position of being “donor” countries rather than borrowers at
OBJECTIVE:
Seeking for a Leadership Executive Management Position in the private business sector, non-for-profit organisation, and tertiary industry globally.
The Brochure contains an introduction of the institute, our mission and vision, the institutional focus, Training programs, profiles of members of our Governing Council and other important information.
This Youth Manifesto is a political document especially if we go by the definition of politics as “who gets what, when and how”. It arose out of youth consultative meetings country-wide.
Conflict and the Post 2015 Development Agenda South AfricaDr Lendy Spires
South Africa has an important and respected voice in global policy debates. This derives from its political identity, its economic attributes, and its role in regional and international diplomacy. South Africa’s unique political experience has imbued it with a particular moral legitimacy. Furthermore, through its active inter-national role since 1994, it is regarded as a key player in the emergent African order, and a key African actor in the international system.
It has sub-Saharan Africa’s largest economy (accounting for over a third of its GDP and some 40 per cent of exports), and it is the dominant economy in the southern African region. The shape and content of the new framework for international development after 2015 will be important for future growth and prosperity in Africa. The global process to debate what issues should feature in this framework – and how they can be incorporated – is well underway, with wide-ranging consultations having already taken place, and continuing up until the negotiations phase of the process begins in September 2014.
The current framework, the Millennium Development Goals (MDGs), has been influential in defining international development priorities, but it does not incorporate issues of peace and stability. The significance of this omission is evidenced by the fact that only about 20 per cent of the countries that the World Bank categorises as ‘fragile or conflict-affected’ are on track to meet the basic poverty target. The conclusion is clear: if the post-2015 framework is to promote effective development in conflict-affected states, it must address the challenges of violence and insecurity.
Given South Africa’s role on the continent and internationally, it will be an influential actor in defining the shape and content of the post-2015 process – including if and how to include peace and stability in the new framework. In order to inform and catalyse debate about these issues within the South African policy community, four leading South African organisations and Saferworld have compiled this set of short papers on how these issues affect South Africa and the wider continent.
The papers draw on the South African organisations’ extensive experience of researching and responding to the various identified challenges.
The High-Level Conference Women in Public Life : From Policies to Impact is jointly organised by the Supreme Council for Women in the Kingdom of Bahrain and the MENA-OECD Governance Programme.
The conference aims to :
Promote gender mainstreaming in public and private life for inclusive growth;
Take stock of the progress made in implementing the regional recommendations included in the OECD-CAWTAR report “Women in Public Life: Gender, Law and Policy in the Middle East and North Africa”;
Shift the debate from a focus on strategies to one centred on achieving impacts;
Review the legal settings, policies, conditions and institutional capacities for gender mainstreaming in the MENA and OECD region.
Amman Institute (Ai) hosted Marshall Ganz, a lecturer at the Harvard Kennedy School of Government.
A two day training session that included six of Jordan’s community builders and organizers. The training was led by Ganz where he explained concepts of leadership, effects of self, us and now stories, commitments to causes and motivational approaches for sustainable campaigns. The trainers then helped facilitate the training of the 25 participants.
The document give you
- The Story of The Workshop
- Participants
- Coaches
http://www.ammaninstitute.com/project/community-organizing-0
The Advisory Group on Gender Equality will assist WWAP in mainstreaming gender equality considerations in its activities and products, in particular the World Water Development Report (WWDR). It will provide guidance and feedback on the design and implementation of the programme's gender mainstreaming strategy, provide expertise, and suggest actions as needed.
The Advisory Group on Gender Equality will initially serve through the 4th phase of WWAP, until the end of 2012.
More Related Content
Similar to The Case for a WANA Regional Development Bank_0
The Constitutional Transitions Clinic ‘back office’ has, from 2011 to 2014, prepared
a series of thematic, comparative research reports on issues in constitutional design
that have arisen in the Middle East and North Africa. Zaid Al-Ali, Senior Adviser on
Constitution Building at International IDEA, acted as an adviser on these reports and
oversaw International IDEA’s participation in the report-drafting process. The United
Nations Development Programme’s Regional Center provided both material and
substantive support in relation to the last three of the six reports.
The first three of these reports are jointly published by Constitutional Transitions and
International IDEA. The second three are jointly published by Constitutional Transitions,
International IDEA and the United Nations Development Programme. The reports are
intended to be used as an engagement tools in support of constitution-building activities
in the region. The full list of reports is:
• Constitutional Courts after the Arab Spring: Appointment Mechanisms and Relative
Judicial Independence (Spring 2014)
• Semi-Presidentialism as Power Sharing: Constitutional reform after the Arab Spring
(Spring 2014)
• Political Party Finance Regulation: Constitutional reform after the Arab Spring (Spring
2014)
• Anti-Corruption: Constitutional Frameworks for the Middle East and North Africa (Fall
2014)
• Decentralization in Unitary States: Constitutional Frameworks for the Middle East
and North Africa (Fall 2014)
• Oil and Natural Gas: Constitutional Frameworks for the Middle East and North
Africa (Fall 2014)
Opas: ihmisoikeusperustainen kehitysyhteistyö
Suomen UNICEFin laatima opas kertoo tiiviisti ja käytännönläheisesti, miten kehitysyhteistyöhanke suunnitellaan ja toteutetaan ihmisoikeusperustaisesti (human rights-based approach). Opas on englanninkielinen.
Opas auttaa suomalaisia ja kumppanimaiden järjestöjä toteuttamaan työssään YK:n ihmisoikeussopimuksen ja Suomen kehityspolitiikan periaatteita.
Opas valottaa ihmisoikeusperustaisen kehitysyhteistyön erityispiirteitä, toteuttamismalleja, kohderyhmiä ja sanastoa. Käsitteitä on havainnollistettu piirroksilla ja kaavioilla.
THE NEED FOR EFFECTIVE LEADERSHIP IN COMBATING FINANCIAL CRIME IN THE AFRICAN...PROF. PAUL ALLIEU KAMARA
The Need for Effective Leadership is to Promote the fight against Financial Crime in Africa and help to advance Africa Trade Development Agenda
Financial Crime is a major African problem, and combating it requires effective leadership at all levels.
Africa remains at high risk of Financial Crime distress, and the risks have risen in the context of recent large fiscal deficits...
All sectors of African’s Leadership must either act now or never! African Leaders often say that criminal activities are like a lifestyle in the African’s continent: but if left undealt with, the consequences will have adverse effect and will destroy the economic development of Africa and lessen the trust in our Public and Private Institutions. Similarly, leaders must build up effective Political governance within their institutions, the Will and capacity needed to crack down on Financial Crime agents or agencies in the areas of Money Laundering, Counter Terrorism Financing, Fraud, Drug deals, Bribery and Corruption and smugglers, why? Because these criminals have a lot of criminal strategies to evade our African Territories – for example, if they are restricted in the land routes – they would use sea routes- when they are restricted on the seas they use the air. That’s why targeted interventions often have limited impact on Financial Crime and criminal activities in Africa: we need to look at the Leadership capacities and effectiveness in pursing the African Continental Free Trade Zone Area agenda as a big picture, besides the good initiatives and benefits therein it also has negative sides effect of its to tell the whole story of how the criminals are moving on Roads, Seas and air (aviation industry), and the poor border crossing security Agencies of Nations in Africa. This Book intends to tell the story of the poor suffering African’s people with few livelihood options. It is a complex story, with many interconnections; at the heart of which the African Continental Free Trade Zone area lies. While Africa has spread a plethora of beneficial innovations around the world, it has also had many negative consequences in both large and small countries through illicit financial outflows: in fact, security problems in the entire nations of Africa are closely related to the development challenges posed by the Money Laundered to finance Terrorism and Civil Conflicts of Africa. Though the side effects of Financial Crime are particularly strong in the African’s poorest countries those least equipped to respond to these impacts are more vulnerable.
This Book looks at how the role of effective Leadership contributes in the fight beyond specific countries Against Financial Crime and illicit financial flows (fin-iffs) in the African region. The Book zeroed in on Financial Crime, illicit Financial Flows, like Money Laundering, Bribery and Corruption and illicit trade to illustrate the larger scale and the need for effectiveness of African Leaders to combat this menaced:
International Financial Institutions, Middle East, North Africa a primer for ...Dr Lendy Spires
Preface What is this primer? The purpose of this Primer is to shed light on the operations and impacts of international financial institutions (IFIs) that are active in the Middle East and North Africa (MENA), such as the World Bank and the International Monetary Fund, and to reveal how individuals and communities can hold those institutions accountable. The Primer aims at helping civil society groups in the region to more actively and critically engage with those IFIs in setting the development agenda and shaping policies and investments in their countries. What is the “MENA region”? BIC’s MENA program considers the region to be made up of the following predominantly Arabic-speaking countries: Morocco, Algeria, Tunisia, Libya, Egypt, West Bank and Gaza, Jordan, Syria, Lebanon, Iraq, Kuwait, Bahrain, Qatar, United Arab Emirates, Oman, Yemen, and Saudi Arabia. BIC also includes Iran and Israel within its MENA program. However, the countries defined as “MENA” vary from one institution to another, either for political reasons or simply because of the geographic mandate of the institution. The table on Page 6 shows the countries considered part of the MENA region by each IFI discussed in this Primer. The wide range of economic and political conditions of the countries in the MENA region means that relations with IFIs vary considerably from one government to the next. Conflict-affected countries such as Lebanon, Iraq and Palestine, depend to a great extent on IFIs for financing and coordination of donor activities. A smaller number of the region’s countries that are considered “poor”, like Yemen, also rely fairly heavily on financing from IFIs. However, most countries in MENA are considered “middle income countries” by IFIs, and thus are not eligible for grants or the lowest-interest loans that the institutions offer. These countries are also better able to turn to other sources like private banks and commercial investors, to borrow money. Still other countries in the region are world-renowned for their oil riches, and thus are actually in the position of being “donor” countries rather than borrowers at
OBJECTIVE:
Seeking for a Leadership Executive Management Position in the private business sector, non-for-profit organisation, and tertiary industry globally.
The Brochure contains an introduction of the institute, our mission and vision, the institutional focus, Training programs, profiles of members of our Governing Council and other important information.
This Youth Manifesto is a political document especially if we go by the definition of politics as “who gets what, when and how”. It arose out of youth consultative meetings country-wide.
Conflict and the Post 2015 Development Agenda South AfricaDr Lendy Spires
South Africa has an important and respected voice in global policy debates. This derives from its political identity, its economic attributes, and its role in regional and international diplomacy. South Africa’s unique political experience has imbued it with a particular moral legitimacy. Furthermore, through its active inter-national role since 1994, it is regarded as a key player in the emergent African order, and a key African actor in the international system.
It has sub-Saharan Africa’s largest economy (accounting for over a third of its GDP and some 40 per cent of exports), and it is the dominant economy in the southern African region. The shape and content of the new framework for international development after 2015 will be important for future growth and prosperity in Africa. The global process to debate what issues should feature in this framework – and how they can be incorporated – is well underway, with wide-ranging consultations having already taken place, and continuing up until the negotiations phase of the process begins in September 2014.
The current framework, the Millennium Development Goals (MDGs), has been influential in defining international development priorities, but it does not incorporate issues of peace and stability. The significance of this omission is evidenced by the fact that only about 20 per cent of the countries that the World Bank categorises as ‘fragile or conflict-affected’ are on track to meet the basic poverty target. The conclusion is clear: if the post-2015 framework is to promote effective development in conflict-affected states, it must address the challenges of violence and insecurity.
Given South Africa’s role on the continent and internationally, it will be an influential actor in defining the shape and content of the post-2015 process – including if and how to include peace and stability in the new framework. In order to inform and catalyse debate about these issues within the South African policy community, four leading South African organisations and Saferworld have compiled this set of short papers on how these issues affect South Africa and the wider continent.
The papers draw on the South African organisations’ extensive experience of researching and responding to the various identified challenges.
The High-Level Conference Women in Public Life : From Policies to Impact is jointly organised by the Supreme Council for Women in the Kingdom of Bahrain and the MENA-OECD Governance Programme.
The conference aims to :
Promote gender mainstreaming in public and private life for inclusive growth;
Take stock of the progress made in implementing the regional recommendations included in the OECD-CAWTAR report “Women in Public Life: Gender, Law and Policy in the Middle East and North Africa”;
Shift the debate from a focus on strategies to one centred on achieving impacts;
Review the legal settings, policies, conditions and institutional capacities for gender mainstreaming in the MENA and OECD region.
Amman Institute (Ai) hosted Marshall Ganz, a lecturer at the Harvard Kennedy School of Government.
A two day training session that included six of Jordan’s community builders and organizers. The training was led by Ganz where he explained concepts of leadership, effects of self, us and now stories, commitments to causes and motivational approaches for sustainable campaigns. The trainers then helped facilitate the training of the 25 participants.
The document give you
- The Story of The Workshop
- Participants
- Coaches
http://www.ammaninstitute.com/project/community-organizing-0
The Advisory Group on Gender Equality will assist WWAP in mainstreaming gender equality considerations in its activities and products, in particular the World Water Development Report (WWDR). It will provide guidance and feedback on the design and implementation of the programme's gender mainstreaming strategy, provide expertise, and suggest actions as needed.
The Advisory Group on Gender Equality will initially serve through the 4th phase of WWAP, until the end of 2012.
Similar to The Case for a WANA Regional Development Bank_0 (20)
1. “Knowledge from the region, action for the region”
The Case for a WANA Regional
Development Bank
2. Mays Abdel Aziz
Research Fellow, Human Security
Mays holds a BA (Honours) in Economics and a BA (Hon-
ours) in Political Studies from Queen’s University, Canada.
She obtained her Master’s in International Economic Poli-
cy, with a focus on the Middle East and Intelligence Studies
from the Paris School of International Affairs, Sciences Po
in 2014. Her Master’s Thesis was on Foreign Direct Invest-
ment flows to Jordan and their development implications.
Her areas of interest include economic policies and inter-
national relations, specifically: the political economy of the
West Asia – North Africa region and issues of development.
At the WANA Institute, Mays will be undertaking research
in the Human Security team, with a focus on regional eco-
nomic policies and the economics of refugee crises.
Dr Erica Harper
Executive Director, WANA Institute
Dr. Harper was appointed by HRH Prince El Hassan bin Ta-
lal as the Executive Director of the WANA Institute in 2014.
Prior to this, she was the Senior Rule of Law Advisor for the
International Development Law Organi- zation in Geneva
where she ran a portfolio of legal empowerment projects
spanning 13 countries in the areas of customary justice, com-
munity land titling, and child protection. During this period
she was also seconded to UNHCR as Chair of the Global Pro-
tection Cluster Taskforce on Natural Disasters. Dr. Harper has
worked for various international organisations including UN-
HCR and UNDP, as well as NGOs and academic institutions
in Indonesia, the Philippines, Switzerland, Italy and Australia.
Dr Harper is the author of six books on international legal issues, and has been published in more than 15 academic
journals. She holds a Bachelor of Commerce (Economics), Bachelor of Laws (Hons) and Doctor of Philosophy (Inter-
national Law). Dr. Harper is a thought leader and regular commentator on international criminal law and the state-civil
society compact; she has worked as an advisor and speech writer for political leaders and former Heads of State in Europe
and Asia. The mother of three daughters, Erica aspires for a world where equal opportunity, critical thinking and social
consciousness are embedded rather than tolerated norms. She is passionate about anything that takes her into the outdoors,
literature and the people of Jordan.
Previously, she worked at Al-Bawaba News, the Institute of Intergovernmental Relations at Queen’s University and the
Arab Fund for Economic and Social Development. During her time as a student, she was President of Queen’s Interna-
tional Affairs Association and participated extensively in Model United Nations conferences.
4. The Case for a WANA Development Bank (WDB) Mays Abdel Aziz
www.wanainstitute.org
1
Executive Summary…………………………………………………………………………………………………………………………..………1
1: The Economies of the WANA Region………………………………………………………………………………………....……....…..3
2: Why Do We Care? Low Incomes and Resource Dependence as Key Drivers of Conflict………………………..……5
3: The Economic Case for a WANA Development Bank……………………………………………………………………………....7
4: Realising the Bank Concept……………………………………………………………………………………………………………..……11
Table of Contents
5. The Case for a WANA Development Bank (WDB) Mays Abdel Aziz
www.wanainstitute.org
2
New and better solutions are needed to respond to the economic challenges that are affecting the West Asia-
North Africa (WANA) region and potentially maintaining it in a conflict trap. These solutions must evolve from
the region itself, both for sustainability and to galvanise the political will necessary for needed policy changes
to take hold. The good news is that region does have the capacity to resolve its economic challenges; resources
are simply under-tapped and poorly managed. First, the massive foreign reserves accumulated by oil-
exporting Gulf States could be better channeled into development projects in resource-scare and conflict-
affected countries to raise economic activity and create jobs. Second, public-private partnerships could serve
as a vehicle to for governments to obtain much-needed infrastructure without raising taxation or utilising
other public funds, and promote engagement by the private sector in the region’s development agenda. Third,
despite its enormous potential, zakat has not been effectively used as a development tool. Instead, insufficient
checks and balances to guard against corruption and distribution methodologies that prioritise charitable
giving over sustainable and inclusive development have done more to entrench poverty traps than solve them.
Gulf finance, public-private partnerships and zakat might be brought together in a Regional Development
Bank operating on the economic principles of integration, comparative advantage and specialisation to deliver
new economic opportunities. Such a Bank would not only finance development projects, but also initiatives to
promote resilience, social cohesion and conflict avoidance. The Bank would also act as a hub of critical
analysis on development theory specific to the region to guide loan making, investments and projects. This
paper makes the case for a regional development bank, outlines its constitutive elements and presents a series
of next steps for realising the Bank concept.
Key take-aways
• The benefits of investment-driven economic integration respond to the region’s development needs
and aspirations, yet remain largely untapped
• Oil rents, while traditionally rendered as an unproductive source of income, can generate productive
economic activity. Given the availability of surplus capital in the region, the opportunity for
establishing a regional developmental bank that transforms oil rents to value-added economic activity
is ripe
• The economic challenges facing the WANA are too complex to be tackled by either the public or
private sector separately. A better model for development projects is public-private sector
cooperation and under the auspices of a supranational development bank
• A regional bank would not only promote and facilitate physical infrastructure projects, but also
projects that advance social cohesion. A more equitable distribution of resources through a Shari’ah-
compliant zakat fund would fill a persistent financing gap in WANA in a manner that respects the
region’s religious and cultural specificities
• Establishing a regional development bank means putting in place the required institutional
framework for democratisation to thrive
Executive Summary
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The WANA region is facing unprecedented and multi-faceted development challenges. These include weak
governance, chronic conflict, gender inequality and an emerging threat of violent extremism. One challenge
linking each these issues is varying levels of economic development and functionality. WANA has become
synonymous with deficits such as unemployment, rentierism and stunted private sector growth. Moreover,
while the region is home to vast wealth, it is also one of entrenched economic and social inequality: in 2013,
Qatar’s GDP per capita stood at USD 93,714 compared to Yemen’s meagre USD 1,473.1 Another set of
challenges relates to employment and entrepreneurial opportunity. Despite high secondary and tertiary
education rates in many Arab states, youth unemployment sits at 22 percent for men, and as high as 40
percent for women. Members of the informal economy, which make up 60 percent of the Arab workforce, are
exposed to unsafe working conditions (especially in the garment-making and domestic labour sectors), and
suffer from poor access to entitlements such as minimum wages, social security and insurance. A review of
where Arab countries sit on the Ease of Doing Business Index illustrates the stifling of entrepreneurialism
caused by difficulty in obtaining credit, enforcing contracts, and accessing training and skills development.
These concerns must be considered against a poor economic outlook with inflation as high as 11 percent in
some countries, and one-fifth of the Arab population living beneath the poverty line.
To understand this complex, and somewhat contradictory, state of affairs, the three economic ‘families’ of the
WANA region need to be more closely examined. First, there are the resource-poor economies of Egypt,
Jordan, Lebanon, Morocco, Tunisia, Djibouti, Mauritania and Palestine. These countries suffer from low
incomes, poor growth, high unemployment and consequently a net outflow of skilled labour, mainly to the
West and oil-producing Gulf countries.2 Insufficient economic activity coupled with a depletion of skilled
labour leaves them unable to compete both with low-income countries producing labour-extensive products,
and advanced economies in terms of exporting technological and knowledge-intensive goods and services.
They have become fixed in, what Michael Spence has termed, a middle income ‘trap’.
The second group is the resource-rich, labor abundant economies of Algeria, Iraq, Syria and Yemen. These
countries serve as harsh reminders of how the region’s massive economic potential has fallen victim to
conflict. Syria’s economy has been cut in half since 2011,3 while Yemen’s economy slipped into recession with
GDP contracting by 12.7 percent since 2011,4 and in Iraq, breakdowns in governance, civil unrest and the rise
of Daesh shrank the economy by 2.7 percent in 2014 alone.5
The final group of countries is the resource-rich Gulf countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia,
and the United Arab Emirates. They account for around 60 percent of the region’s economic activity6 and
enjoy some of the highest GDP per capita rates in the world. They have, however, had difficulty directing their
massive windfalls to diversify their markets, raise living standards and address food and water insecurity.
1 D Sorensen, An Introduction to the Modern Middle East: History, Religion, Political Economy, Politics. Westview Press, 2008. The Middle East is home to
extremes of wealth and poverty, as measured in per capita income- the GDP per capita for the United Arab Emirates in 2006 was $ 45,200; for Yemen it was
$900
2 According to a 2014 UN Development Programme (UNDP) report, Arab ‘brain-drain’ is worsening, from an estimated 10-15 percent loss in workforce
in 2012, to 20-25 percent today R James, ‘Arab 'brain drain' accelerates after Arab Spring: UN’, Middle East Eye, 8 May 2015.
3 M Lobel, ‘Syria's economy cut in half by conflict’, BBC News, 23 June 2015.
4 The World Bank, ‘Country Overview: Yemen’ <http://www.worldbank.org/en/country/yemen/overview> at 11 August 2015.
5 ‘Iraq’s economy: an empty chest’, The Economist, 21 March 2015.
6 Unofficial estimates suggesting that unemployment among the GCC’s youth (16–24 years), and especially among university graduates, is more than
twice that of the total labor force (more than 35 percent across the GCC region). S Salacanin, ‘GCC Sovereign Wealth Funds Manage over USD 1.7
trillion’, Qatar BQ Magazine (Doha), December 9th, 2014.
1: The Economies of the WANA Region
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Their principal economic challenge is resource over-dependency, the so-called ‘oil curse’. Reliance on volatile
hydrocarbon markets causes local currency appreciations, making other exports uncompetitive (as the money
earned is worth less in terms of local currency).7 This retards the growth of labour intensive exports that
otherwise have the potential to grow rapidly and further technological progress.8 Over the long term, it is
unlikely that the oil benefits can continue to outweigh the costs. Rentierism is broadly incompatible with
political resilience and resource insecurity will ultimately become an existential threat. Moreover, it is
impossible to ignore that oil revenues have not translated into human development gains. Despite enjoying
OECD levels (or higher) of GDP per capita, the Gulf countries lag behind on important development
indicators.9 This abnormal discrepancy between material wellbeing and human development exposes the
broader limitations of the rentier welfare state model.
7
P Collier, The Bottom Billion: Why the Poorest Countries in the World are Failing and What Can be Done About It? (2007) 39-40.
8 ibid 121, 162 ; Hvidt, Martin, Economic Diversification in GCC Countries: Past Record and Future.
9 For example, while Qatar ranks second in terms of global GDP per capita, it still ranks 36th in terms of HDI (UNDP 2013). The Human Development
Index (HDI) which takes into account life expectancy, literacy, education, standards of living, and quality of life for countries worldwide.
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The most obvious reason to be concerned about the performance of WANA economies is because of the dire
consequences that stem from under-development and poverty. Poor societies rank badly on a range of
development indicators including basic education, infant mortality, malnutrition and preventable disease.
Another key reason to be concerned is because two of the key drivers of civil conflict are found in these
economies:
2.1 Low incomes and slow (or negative) economic growth
Over a five-year period, a typical low-income country faces a 14 percent risk civil war; each percentage point
of growth, however, equally reduces the risk of conflict.10
2.2 Dependence on natural resources
The main natural resources prevalent in WANA are oil and gas. In Algeria, Iraq and Syria, oil has played a role
in conflicts, either by providing a source of finance for rebels (as in the case of Syria) or a ‘honey pot’ to fight
over (as in the case of Iraq and Algeria). It is important to note that when natural resources are sufficiently
abundant, the risk of conflict drops, perhaps explaining the stability of the oil-rich states. This is not to say that
over-dependence on natural resources is a positive thing; as explained above, rents inflate local currency,
skewing export investment and slowing growth. Rentierism also enables governments “to function without
taxing the incomes of citizens, which gradually detaches it from what citizens want”.11
Once civil conflicts start, they have devastating consequences for national economies. On average, civil war
reduces a country’s growth by 2.3 percent per year; a typical seven-year war leaving a country 15 percent
poorer than it would have been without conflict.12
Syrian economic performance in the decade before 2011 was considered
impressive; between 2000-2010 real growth averaged nearly 4.5 percent,
inflation was running at less than 5 percent and positive external balances
allowed an accumulation of international reserves to USD18.2 billion.13 Today,
it is estimated that Syria’s economy has been cut in half,14 throwing the country
back to its economic status in the 1970s.15 Another striking example is Yemen;
when conflict engulfed the region in 2011, the economy slipped into recession
with GDP contracting by 12.7 percent.16 Likewise in Iraq, breakdowns in
10 Collier (n 7) 20.
11 P Collier Wars, Guns and Votes: Democracy in Dangerous Places (2010) 126.
12 Research by Collier based on cross-country panel date in the last 50 years suggests that the cost of civil wars range from 1.6 percentage to 2.3
percentage of GDP per year of violence; Collier (n 7) 27.
13 M Khan and S Milbert, ‘Syria’s economic glory days are gone’, The Atlantic Council, April 3 2014
<http://www.atlanticcouncil.org/blogs/menasource/syria-s-economic-glory-days-are-gone> accessed 8 August 2015.
14 S Heller. “The Cost of Civil War: Syria's Economy After Four Years of Conflict” Global Envision <http://www.globalenvision.org/2015/03/25/cost-
civil-war-syria’s-economy-after-four-years-conflict> accessed 6 July 2015; see also D Butter “Syria's Economy: Picking Up the Pieces.” Chatham House
2.
15 M Lobel, ‘Syria's economy cut in half by conflict’, BBC News, 23 June 2015.
16 The World Bank, ‘Country Overview: Yemen’ <http://www.worldbank.org/en/country/yemen/overview> at 11 August 2015
2: Why Do We Care? Low Incomes and Resource
Dependence as Key Drivers of Conflict
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governance, civil unrest and the rise of Daesh shrank the economy by 2.7
percent in 2014 alone.17
At the domestic level, such costs accrue in the forms of direct asset and infrastructure destruction, increased
spending on health, policing and security, reduced productivity, and the opportunity costs that flow from
governments diverting funds earmarked for socially useful forms of investment to cover military and other
conflict-related expenditures.18 Externally, disruption to trade and reduced investment are the main
explanations for lost growth. The World Bank has found that investor risk perception in the first year of a
war can reduce trade by between 12-25 percent, and up to 40 percent for severe civil wars (those with a
cumulative death toll greater than 50,000, as is the case in Syria).19 Terrorist violence has a particularly
sharp relationship with foreign investment;20 in Lebanon it reduced foreign direct investment by 26.6
percent between 2012-2013.21 These impacts last long after fighting subsides; recovering to original growth
paths takes around 14 years of peace.
The destruction, slowed growth and weakened civic cohesion that accompanies conflict manifests in
increased poverty.22 Social and economic development is near impossible in the context of war, and war
tends to create legacies of crime and violence that are profitable and hence difficult to shed.23 This
relationship has evidential support. Countries experiencing conflict have, on average, a poverty rate 21
percentage points higher than those that are conflict-free.24 The key issue is that slow growth and poverty —
the consequences of conflict — are also key predictors of conflict. Conflict, reduced growth and poverty hence
work in a destructive and mutually constituting cycle. This theory is supported by strong data on conflict
recurrence; 39 percent of states emerging from conflict return to war in the first five years, and another 32
percent return to conflict in the following five years.25
17 ‘Iraq’s economy: an empty chest’, The Economist, 21 March 2015.
18 Military spending typically increases by 2.2 percent during civil war; a civil war reduces a country’s average rating on the International Country Risk
Guide by around 7.7 points (on a 100-point scale); World Bank, World Development Report (2011) 64-65.
19 id.
20 ibid 65.
21 International Monetary Fund, UNCTAD World Investment Report (2014). A key reason why conflict impacts growth so severely is that the costs of
war do not end with a cessation of hostilities. Three years after peace, investor risk perception remains 3.5 points lower that non-conflict affected
countries and, on average, it takes 20 years for trade to recover to pre-conflict levels; ibid 64.
22 The World Bank has established that “a country that experienced major violence over the period from 1981 to 2005 has a poverty rate 21 percentage
points higher than a country that saw no violence” Saferworld (2013) Addressing Conflict and Violence from 2015; see further Figure 1.6, World Bank (n 18)
60-62.
23 Collier (n 11) 138; Collier (n 7) 33-34.
24 “People in fragile and conflict-affected states are more than twice as likely to be undernourished as those in other developing countries, more than
three times as likely to be unable to send their children to school, twice as likely to see their children die before age five, and more than twice as likely
to lack clean water.” World Bank (n 18) 5. “Poverty reduction in countries affected by major violence is on average nearly a percentage point slower per
year than in countries not affected by violence. After a few years of major violence, the contrast can be quite stark: countries affected by violence
throughout the 1980s lagged in poverty reduction by 8 percentage points, and those that had experienced major violence throughout the 1980s and
1990s lagged by 16 percentage points”. ibid 60.
25 ibid 57; “90 percent of the last decade’s civil wars occurred in countries that had already had a civil war in the last 30 years” ibid 2.
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As intimated above, the diverse challenges impacting the economics of the WANA region require a diverse set
of solutions. Resource poor and conflict-affected states need to make structural changes towards value-added
activities (such as manufacturing),1 and at the same time attract large-scale capital inflow investments to
counter unemployment and increase growth rates.1 For such investment to take place and be effective,
however, stability must be consolidated, deficits in opportunity addressed and governance strengthened. Oil
exporting countries, by contrast, need to move away from retail, real estate and services and into sectors that
generate value-added economic activity, a more inclusive and resilient form of governance will need to be
adopted, and a local, high productivity labour force needs to grow.
Economists argue that the way forward is elaborated regional economic integration. Currently, inter-Arab
financial linkages principally exist as functions of remittance and aid flows. A healthier driver of economic
integration is Foreign Direct Investments (FDI’s). The theory is that FDIs foster economic growth and
development by bridging the gap between domestic savings and investments and transferring the latest
technologies and management know-how from developed to developing economies.
And perhaps the solution lies close to home. While the Gulf oil economies have traditionally directed their
foreign investments towards American and European markets, they are increasingly investing their funds
closer to home. 26 It is not only the quantity and location of their investments that is changing but also their
nature — the pattern is a transition from low-risk to high-risk portfolios.27
Facilitating inter-regional investments within the South-South context of the WANA region may unleash
unprecedented developmental opportunities. This could be managed through a regional development bank
operating on the economic principles of integration, comparative advantage and specialisation. In short such a
Bank would link up the account deficits in resource-poor and resource-rich labor-abundant countries, with
the record surpluses in the resource-rich countries, creating compatible and mutual opportunities for
economic advancement. Poor and conflict-affected economies would receive the investment needed to
promote growth, create jobs and raise incomes, thereby bolstering their resilience to conflict; while Gulf
States would diversify their markets and move away from the rentier-state model to one that generates
productive and sustainable economic activity.28 This would not be the Bank’s only source of funds. Zakat
contributions and public-private sector partnerships would also feature in the Bank’s operational modalities,
allowing for broader project opportunities and a range of aid-based development interventions.
3.1 Why a Regional Bank?
Despite its economic, chronic conflict and governance challenges, WANA is the only region without a
development bank. Existing development funds, such as the Arab Fund for Economic and Social Development
and the Kuwait Fund for Arab Economic Development, operate primarily on a bilateral basis and focus on
26 At the same time, the region is experiencing an unprecedented trend where a “new phase of integration is characterized by three secular shifts:
business is playing a more important role than government, foreign direct investment (FDI) is more important than trade, and the Gulf is a pivotal
player. S Hertog, ‘The GCC and Arab Economic Integration: a New Paradigm’ 14(1) Middle East Policy 14 (2007), 53. Emerging Trends in the regional
SWF landscape, KPMG report (2013). <http://www.kpmg.com/AE/en/Documents/2013/Emerging_trends_in_the_regional_SWF_landscape.pdf>
27 A Babood, ‘The Growing Economic Presence of Gulf Countries in the Mediterranean Region’, Gulf Research Centre, University of Cambridge (2009):
203- 209.
28 Despite having massive start-up costs, infrastructural projects, for example, are economically proven to generate consistent financial returns in the long-term. Hence, by
making investments in their neighboring countries’ sectors that generate value-added economic activity, catering the Gulf’s surplus capital towards regional developmental
needs, also presents a real opportunity for the Gulf economies to diversify their sources of income for the long-term.
3: The Economic Case for a WANA Development Bank
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‘traditional’ sectors of the economy. They do not have a multilateral function nor do they engage both the
public and private sectors. There is also an insufficient linking up between policy scholarship on resilience
and development and the way these funds operate.
Arguably, a redistribution of WANA resources conducive to development is not possible without the
establishment of a regional Bank on the lines of the European Bank for Reconstruction and Development or
the Asian Development Bank. Moreover, only a supra-national structure with a development mandate would
be capable of facilitating regional integration and spearheading necessary economic, political and social
reforms.
3.2 What would the Bank do?
The main mission of the Bank would be to incentivise, finance, and facilitate investment projects that would
contribute to the region’s developmental needs, and specifically those that would: generate value-added
economic activity; create employment opportunities; advance key sectors such as education, manufacturing
and infrastructure; and promote cross-border investments and developmental projects.
Second, as the agent linking capital flows to regional development priorities, the Bank would be in a strong
position to promote policy and economic reforms. It could do this through conditional investments and
financing; i.e. the financing of developmental projects would not only be linked to economic needs, but also to
good governance reforms.
Third, the Bank would also act as a hub for critical analysis and region-specific knowledge generation on
economic development, policy reform and market restructuring. This regional outlook would provide it with a
comparative advantage over other financing mechanisms in guiding loan-making, investments and projects.
Finally, the Bank would go beyond the traditional function of advancing physical infrastructure and economic
opportunities, to work on the advancement of ‘social’ infrastructure, specifically resilience, social cohesion
and conflict avoidance. Critically, as the Bank would receive and allocate zakat funds, it could also invest in
and undertake social redistributive projects, microcredit and other forms of social development financing.
3.3 How would the Bank be financed?
The region’s economic challenges are too large and complex to be tacked by a single entity, be it public or
private. A bank would most likely require donor government support, but the majority of funds would be Gulf
investment, along with zakat contributions and public-private partnership investment.
3.3.1 Matching surplus capital to development gaps
Following the unprecedented surge of oil prices in the early 2000’s, the Gulf States have accrued
unprecedented current account surpluses. Like other oil-exporting countries, these states transformed this oil
windfall into financial wealth by setting up dedicated investment funds. With 10 sovereign wealth funds
(SWF’s) and USD1.7 trillion worth of assets under management, the Gulf States have fast emerged as the
world’s largest net supplier of financial resources.29
These account surpluses have also translated into loans, aid, and even oil shipments (at times of crisis) to
their non-oil producing and conflict-affected regional counterparts. Such capital transfers are not, however,
profitable. Moreover, because they have not been directed into the sectors that generate the most value-added
economic activity, like real estate, they have done little to allow both donor and recipient economies to escape
renterism and aid dependency traps, respectively.
29 Salacanin S, ‘GCC Sovereign Wealth Funds Manage over USD 1.7 trillion’, Qatar BQ Magazine, Doha, December 9th, 2014.
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At the same time, the SWF Gulf countries are continuously proving that oil rents can, at times and under
certain conditions, generate productive economic activity. Gulf wealth, flowing from both governments and
private businesses, has translated into developmental projects both at home and abroad. Gulf capital has
financed massive infrastructural and educational projects including Jordan’s revamping of the Queen Alia
International Airport and the ongoing USD90 billion GCC-wide education boom.30
The main purpose of a regional Bank, therefore would not be to mobilise additional funding, but to better
direct pre-existing capital towards the region’s economic and social development needs, providing the Gulf
with a profitable alternative and ultimately leading to greater economic, financial, and political integration for
the region.
3.3.2 Public-private sector partnerships
The public-private partnership (PPP)31 model for facilitating infrastructural projects is gaining increased
legitimacy in the WANA region.32 They are a particularly viable option for the resource poor and conflict-
affected countries because they occur as an ‘off balance sheet’ project making it possible for governments to
obtain much-needed infrastructure without raising taxation or utilising other public funds. The central
element of PPP procurement is how it finances projects; in contrast to corporate finance where the project
relies on the strength of the borrower’s balance sheet or credit history, credit is extended on the basis of the
project’s projected cash generation. PPPs bring together a consortium of a host government, private sector
investors and lenders to undertake projects that would be too large or risky for an individual entity, be they
public or private. Because risk, profit, and power are shared equitably, group financing can allow developing
countries to pursue projects to heighten growth and expand their economic prospects. Moreover, the model
means that creates strong incentives to avoid and prevent corruption and mismanagement. Finally, the PPP
model is a means of overcoming long-standing discord between private business and state interests (which
have acted as a major obstacle to the region’s political reforms), by incentivising owners of private capital to
engage with the region’s development agenda. In this case the Bank would act as a linking agent; using its
vision to match finance to projects that are most needed and strategic for regional development.
3.3.3 Zakat
Zakat — one of the five pillars of Islam — requires that Muslims to donate 2.5 percent of their wealth above a
specified amount to eight specified purposes, the most important of which is support for the poor and needy.33
In most Muslim countries, zakat it is collected and administered by the government. Since the 1980s,
however, there has been a trend towards dedicated agencies managing and disseminating zakat, as well as
private collection mechanisms, such as mosques. The potential volume of annual zakat collection is enormous;
a 2012 study estimated that USD200 billion-USD1 trillion are spent annually in zakat and voluntary charity
across the Muslim world.34 This places zakat within the 10 highest donors with respect to Official
30 ‘GCC to spend $150 billion on education reform,’ AlBawaba News, 14 July 2014.
31 The definition of PPP’s, as put forth by the European Investment Bank is as follows, a PPP is “a partnership between the public and private sectors
pursuant to a long term contractual agreement and covering the design, construction, financing and on-going operation and maintenance of an
infrastructure asset”. ‘Public Private Partnership: Prospects in the Mediterranean Region’, European Investment Bank, Febraury 17, 2011.
<http://www.eib.org/infocentre/events/all/ppp-in-the-mediterranean-region.htm>
32 Prime examples include but are not limited to: Jordan’s QAIA airport, and energy and irrigation projects in Tunisia:
http://www.unece.org/fileadmin/DAM/ceci/documents/2013/PPP/High-level_Consultations/10_Tunisia.pdf
33 While there is extensive debate among jurists and particularly the different schools of Islam, regarding the uses of zakat, the eight popularly accepted
categories are: Al-Fuqara: the Poor, Al-Masakin: the Needy, Al-‘Amilina ‘Alayha: administrators of Zakat, Al-Mu’allafate-Qulubuhum: people who have
embraced Islam or who are inclined towards it, Fir-Riqab: those in bondage/slaves, Al-Gharimin: those in Debt, Fi-Sabilillah: in the Cause of Allah,
Ibnas-Sabil: the Wayfarer (those who have left home for a lawful purpose and for whatever good reason does not possess enough money to return
home.
34 https://www.linkedin.com/pulse/20140704205505-28147646-zakat-for-development-z4d
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Development Assistance, and up to 15 times more than global humanitarian aid contributions.35
Despite such potential, zakat as a development tool suffers from three major constraints. First, due to deficits
in transparency and accountability, zakat administration seems to be particularly prone to corruption and
embezzlement, especially where cash disbursements are used. 36 Second, zakat contributions are
increasingly not reaching their potential; whether this is due to ineffective collection mechanisms or
skepticism on the part of contributors regarding the efficient use of funds is unclear.37 Finally, zakat
distribution generally follows a charity model, with funds used to support to short-term consumption needs of
the poor. It is well established that such charitable giving is not an effective means of promoting longer-term,
sustainable and inclusive development, and is more likely to entrench poverty traps than close them.
A Bank could act as a vehicle for zakat collection and distribution for the purposes of poverty alleviation and
social development. A portion of the funds would be retained and re-invested according to Shari'ah, with a
waqf governance structure overseeing the maintenance of such funds and outlining their proper use, allowing
the fund to become independent and self-sustaining. A principal objective would be to shift mentality from
private zakat giving to centralised giving that invests in long-term, evidence- based methods of combating
poverty and vulnerability. Such a mechanism would also revive the concepts of sustainable investment and
proper management of trust funds embodied in the Islamic waqf institution, as well as the original conception
of waqf as a long-term funding source for public good. There would be several advantages to such an
approach. Principally, understanding zakat as a sustainable and indigenous mechanism for social
development and poverty reduction is preferable to relying on foreign aid, which operates in the same way as
rents, whereas zakat operates more like a tax, and hence with fewer deleterious economic side-effects.
It should be noted that the Islamic finance model is gaining increased attention and legitimacy in the
international arena. Like PPP’s, the risk-sharing feature of Islamic finance creates a wider incentive for
countries on both the donor and beneficiary end to participate. Unlike traditional loans, any return donor
countries accrue on their financial capital is based on investment returns instead of mere interest. This idea of
avoiding interest, and instead receiving returns on capital through investments is the pinnacle of Islamic
finance.
35 http://www.globalhumanitarianassistance.org/understanding-role-zakat-humanitarian-response-5087.html
36 http://tribune.com.pk/story/862165/financial-indiscipline-auditors-say-zakat-system-vulnerable-to-corruption/
37 Centre of Language and Culture of the Islamic State University of Jakarta (2005) http://www.irti.org/English/Research/Documents/334.pdf)
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The next step in realising the Bank concept is a broader viability assessment that would examine:
• An optimisation rationale for the establishment of the Bank
• An assessment to gauge the interest of WANA states in joining and financing the Bank’s mission
• Structural modalities for the Bank’s ‘think-tank’ department, operation and management
• Country-by-country assessment of WANA states to assess investment and development priorities
• Evaluation of zakat collection and disbursement throughout the region
• Evaluation of potential legal frameworks that would establish and protect the rights and duties of all
stakeholders
4: Realising the Bank Concept