## Unleashing Growth Potential in the Middle East

_IMF Blog, February 24, 2011_

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**Canonical URL:** [Unleashing Growth Potential in the Middle East](https://www.imf.org/en/blogs/articles/2011/02/24/middle-east-growth-potential)

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## Bibliographic details
- Authors: Masood Ahmed
- Published: February 24, 2011

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### Short-run economic impact
- Recent popular protests in the Middle East and North Africa region, although likely to have a negative economic impact in the short run, might actually help to unleash the countries’ long-term growth potential.
- The economic and social costs of chronically high unemployment in the region have been on the IMF's radar for some time.

### Reforms, governance, and competition
- By providing the impetus for reforms, these events may encourage:
  - better governance,
  - greater transparency,
  - more competition.
- These reforms address many of the constraints that have held back progress in these societies.

### Unemployment and private sector job creation
- Creating opportunities for the private sector to provide more jobs is identified as the major policy priority.
- This priority is especially important in those countries “where unemployment has been a problem for many years”.

### Social safety nets — design and priorities
- Measures will be needed to ease the human costs of today’s social pressures.
- Priority should be designing a well-targeted social safety net.
- Characteristics of well-targeted schemes:
  - Provide assistance only to those most needy.
  - Target people, not products.
- Contrast with generalized subsidies that benefit everyone, which are implied to be less sustainable and less efficient.

### Additional commentary and outreach
- Masood Ahmed discussed events in the region, the policy challenges, and actions that might help these countries recognize their full potential in a recent interview (video below).

*Masood Ahmed — February 24, 2011*

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## References

- [chronically high unemployment](http://www.imf.org/external/pubs/ft/survey/so/2007/CAR051D.htm)
- [late last year](http://blogs.imf.org/2010/10/31/more-than-18-million-jobs-needed/)
- [Managing Director stressed](http://www.imf.org/external/np/speeches/2010/110410.htm)

_Source: https://www.imf.org/en/blogs/articles/2011/02/24/middle-east-growth-potential_