1. Building Collaboration Arab Entrepreneur Partnership Forum April 2-3, 2011

2. 2 Normally I would have spoken about: Horizontal and vertical integration Networking Innovation and best practice Arab complementarities Competitiveness and regional clusters Corporate social responsibility (CSR) …………………But I am sure you know about all that! So, instead let’s talk about

3. 3 Amartya Sen & Sustainable Development According to Sen, there are populations today that live in a state of 'unfreedom', unable to realize their capabilities. Poverty is “a deprivation of basic capabilities, rather than merely low income" Five freedoms: 1.Political freedoms 2.Economic facilities 3.Social opportunities 4.Transparency guarantees 5.Protective security

4. Population, Corruption and Freedom Indicators Country Population (Million) Population under 25 GDP per capita, 000 at PPP DemocracyCorruptionFreedom Index of 100=most unstable Algeria 35.947.5 %8.212510514149.7 Bahrain 1.243.9 %241224815336.5 Egypt 84.652.3 %5.91389813065.7 Iraq 31.460.6 %411117514465.7 Jordan 6.454.3 %5.21175014048.7 Kuwait 3.537.7 %40.61145411521.7 Lebanon 4.342.7 %13.48612711530.7 Libya 6.547.4 %18.715814619271 Morocco 32.447.7 %4.71168514646.8 Oman 3.3 M51.5%23.31434115358.4 Palestine 4.164.4 %2.993NA181NA Qatar 1.733.8 %66.91371914620.7 Saudi Arabia 27.150.8 %22.91605017852.5 Sudan 43.259 %2.3151172165NA Syria 22.555.3 %4.715212717867.3 Tunisia 10.442.1 %8.61445918649.4 UAE 6.731 %27.21482815324.3 Yemen 24.365.4 %2.9146 17386.6 The Economist Ranking of democracy ( out of 167 countries ) Ranking of corruption ( out of 178 countries ) Ranking of press freedoms ( out of 196 countries )

5. 5 Democracy and GDP per capita in MENA Income is positively related to Democracy

6. GDP per Capita (PPP, 1000s) Source: IMF

7. Oil/gas Revenues Economies are dependent on hydrocarbon revenues Source: IMF

8. Military Expenditures as % of GDP

9. Foreign Direct Investment as % of GDP, 2009

10. % of Population Under the Age of 30

11. Quality of Education Index

12. Unemployment Rates (%)

13. Youth Employment Rates (%)

14. Youth Unemployment (%) vs. Political Stability

15. % of Population Below the Poverty Line

16. Development Equitable Growth Accountability Transparency Freedom of Speech Democracy A Thesis…

17. Collaboration? But… AgreementDate SignedMembers Pan-Arab Free Trade Area (10 yr transition period) January 1, 1998.All Arab states Agadir AgreementFebruary 25 2003 Egypt, Morocco, Tunisia and Jordan Unified Economic Agreement Signed 1981 and adapted December 2001 Gulf Cooperation Council (GCC) Arab countries resorted to intergovernmental approaches to integration due to reluctance of Arab leaders to transfer sovereignty to supranational bodies

18. Areas of Possible Cooperation: Evidence shows there is little gain from cooperating in manufacturing (goods): lack of competitiveness, low value added, little intra industry trade Integration in Services, Labor, FDI flows (Capital) have high potential gains from integration. Newly democratizing economies will most likely see greater economic integration with each other; the trend may spread throughout region.

19. Thank You