Home
IMF" calls for the Gulf to diversify the economy
28-12-2014 09:30 AM
Free -
Called on the International Monetary Fund and the Gulf states to adjust the incentives of workers and companies to encourage them to work and production in the non-oil sector if the wills of success in diversifying their economies, especially after oil prices fell by 40 percent, since June last year. was abundant oil flows for decades to succeed, in building a strong economy, the Arab Gulf States, with a time of reduced oil prices begin a spiral of problems surrounding the economies of the Gulf states, from a deficit of public budgets, and a decline in spending, followed by either postpone public projects was intended to be implemented, or delay in the implementation of projects list. He Fund, in a report Saturday that "while governments have made in the Gulf region, some progress towards economic diversification in recent years, still requires much effort ', adding that' to make significant progress towards reducing dependence on oil, you need the governments of the Gulf states To change the structure of the economy to encourage individuals to work in the private sector, and stimulate companies to look beyond the local markets, to search for new export opportunities. ' required a new model depends growth in the Gulf oil major source of export finance and revenue, which led to the existence of economic and social repercussions strong. Over the years, raised the Gulf states the number of workers in the public sector spending on infrastructure, health and education, which led to a rise in living standards and support private sector activity, especially in the construction, trade, retail, transport and restaurants sectors. The IMF said the report of the 'growth model current suffers from weakness', stressing that increased diversification of the economy to reduce exposure to fluctuations in the global oil market, and help create jobs in the private sector, and the establishment of the non-oil economy is required in the future when dry oil revenues. The report cites examples of diversification of the economy in several countries across means, including pumping investments in productive industrial sectors high, even in the absence of comparative advantage, and showed the first experiment in Malaysia, Mexico, Indonesia, that import substitution or reliance on labor-intensive industries pushed inefficient companies limited scope to make a profit and increase productivity. The change companies in those countries to approach despite starting from the technological base is low, to the development of countries for its exports by focusing on manufacturing sectors and raise the level of technology. The use of Chile exports and partnerships between the public and private sector support for the establishment of new companies, and raise the technical level of skills in sectors specific. The report said a model using foreign capital to promote the transfer of technology, a means of diversifying the economy, in the eighties, has attracted Indonesia foreign capital through the establishment of free trade zones, and provide tax incentives, reducing tariff barriers and non-tariff barriers, while Malaysia and Mexico implemented policies Similarly, in Mexico, playing to join the North American Free Trade Agreement an important role in foreign direct investment, which facilitated the development of the automotive sector to attract. Among the ways to diversify the economy, the use of export subsidies, tax incentives, and access to financing to facilitate the carrying business risk, and private institutions Small and medium-sized. and plays pumping investments in training to ensure the availability of highly skilled workers an important role in diversifying the sources of the economy, The establishment of industries that require capital and human skills relevant to this sector, along with the necessary infrastructure and industrial facilities. For example, Malaysia, Mexico, focused on training to upgrade workers' skills, and financed operations workers get training abroad, and with the passage of time, paid investments came in training to fruition in the construction of high-skilled work force. It offers Fund Report lessons of the Gulf, pointing out that more than economic diversification requires a reorganization of the current incentives offered to companies and workers. focused support diversification to secure a stable economic environment, and improve the business climate, investment in infrastructure and education policies, and these are all important steps in the right direction, and a degree of diversification of GDP, but did not addressing the impact of the distribution of oil revenues to the incentives. high wages and benefits generous encourages citizens in the Gulf States to look for work in the public sector rather than private, while the high government spending in a relatively protected local environment encourages companies to produce goods and services that are not negotiable, and although some progress, these policies have not achieved a lot of diversification in the GCC exports, which are still mostly oil. The Fund stresses that measures to change the task of incentives to stimulate economic diversification in the Gulf states, which should include moving away from the use of the public sector as the largest employer and last, ensuring that provide education and training systems workers with the skills needed to work in the private sector, and the development of social safety nets to be more powerful to ensure a minimum income levels and support the activities of the job search. It should also take measures to address the lack of competition in some local markets in the Gulf, and reduce incentives for low production and export promotion.
[You must be registered and logged in to see this link.]
28-12-2014 09:30 AM
Free -
Called on the International Monetary Fund and the Gulf states to adjust the incentives of workers and companies to encourage them to work and production in the non-oil sector if the wills of success in diversifying their economies, especially after oil prices fell by 40 percent, since June last year. was abundant oil flows for decades to succeed, in building a strong economy, the Arab Gulf States, with a time of reduced oil prices begin a spiral of problems surrounding the economies of the Gulf states, from a deficit of public budgets, and a decline in spending, followed by either postpone public projects was intended to be implemented, or delay in the implementation of projects list. He Fund, in a report Saturday that "while governments have made in the Gulf region, some progress towards economic diversification in recent years, still requires much effort ', adding that' to make significant progress towards reducing dependence on oil, you need the governments of the Gulf states To change the structure of the economy to encourage individuals to work in the private sector, and stimulate companies to look beyond the local markets, to search for new export opportunities. ' required a new model depends growth in the Gulf oil major source of export finance and revenue, which led to the existence of economic and social repercussions strong. Over the years, raised the Gulf states the number of workers in the public sector spending on infrastructure, health and education, which led to a rise in living standards and support private sector activity, especially in the construction, trade, retail, transport and restaurants sectors. The IMF said the report of the 'growth model current suffers from weakness', stressing that increased diversification of the economy to reduce exposure to fluctuations in the global oil market, and help create jobs in the private sector, and the establishment of the non-oil economy is required in the future when dry oil revenues. The report cites examples of diversification of the economy in several countries across means, including pumping investments in productive industrial sectors high, even in the absence of comparative advantage, and showed the first experiment in Malaysia, Mexico, Indonesia, that import substitution or reliance on labor-intensive industries pushed inefficient companies limited scope to make a profit and increase productivity. The change companies in those countries to approach despite starting from the technological base is low, to the development of countries for its exports by focusing on manufacturing sectors and raise the level of technology. The use of Chile exports and partnerships between the public and private sector support for the establishment of new companies, and raise the technical level of skills in sectors specific. The report said a model using foreign capital to promote the transfer of technology, a means of diversifying the economy, in the eighties, has attracted Indonesia foreign capital through the establishment of free trade zones, and provide tax incentives, reducing tariff barriers and non-tariff barriers, while Malaysia and Mexico implemented policies Similarly, in Mexico, playing to join the North American Free Trade Agreement an important role in foreign direct investment, which facilitated the development of the automotive sector to attract. Among the ways to diversify the economy, the use of export subsidies, tax incentives, and access to financing to facilitate the carrying business risk, and private institutions Small and medium-sized. and plays pumping investments in training to ensure the availability of highly skilled workers an important role in diversifying the sources of the economy, The establishment of industries that require capital and human skills relevant to this sector, along with the necessary infrastructure and industrial facilities. For example, Malaysia, Mexico, focused on training to upgrade workers' skills, and financed operations workers get training abroad, and with the passage of time, paid investments came in training to fruition in the construction of high-skilled work force. It offers Fund Report lessons of the Gulf, pointing out that more than economic diversification requires a reorganization of the current incentives offered to companies and workers. focused support diversification to secure a stable economic environment, and improve the business climate, investment in infrastructure and education policies, and these are all important steps in the right direction, and a degree of diversification of GDP, but did not addressing the impact of the distribution of oil revenues to the incentives. high wages and benefits generous encourages citizens in the Gulf States to look for work in the public sector rather than private, while the high government spending in a relatively protected local environment encourages companies to produce goods and services that are not negotiable, and although some progress, these policies have not achieved a lot of diversification in the GCC exports, which are still mostly oil. The Fund stresses that measures to change the task of incentives to stimulate economic diversification in the Gulf states, which should include moving away from the use of the public sector as the largest employer and last, ensuring that provide education and training systems workers with the skills needed to work in the private sector, and the development of social safety nets to be more powerful to ensure a minimum income levels and support the activities of the job search. It should also take measures to address the lack of competition in some local markets in the Gulf, and reduce incentives for low production and export promotion.
[You must be registered and logged in to see this link.]
