## From Rabat to Amman

_IMF Blog, May 10, 2014_

## Source details

**Canonical URL:** [From Rabat to Amman](https://www.imf.org/en/blogs/articles/2014/05/10/from-rabat-to-amman)

## Other formats

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## Bibliographic details
- Authors: Christine Lagarde
- Published: May 10, 2014

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### Context and purpose
- Christine Lagarde visited Morocco as the first stop on her Middle East and North Africa trip; Morocco is described as "a dynamic hub for the region" and "a model of stability" despite external challenges including "the economic crisis in Europe" and "political transition in Arab countries."
- The Amman regional conference "Building the Future: Jobs, Growth, and Fairness in the Arab World" convenes senior policymakers, civil society representatives, private sector partners, and academics to debate the next phase of economic transformation for Arab countries in transition.

### Unemployment and youth
- More than 15 million people are currently unemployed in the Middle East and North Africa.
- Youth unemployment is disproportionately high, especially among people under 25.
- In Morocco:
  - Youth unemployment: 19 percent
  - Average population unemployment: 9.2 percent
- The IMF will discuss unemployment and job creation strategies at the Amman conference.

### Strengthening the "middle"
- Sustained growth is framed as contingent on a solid macroeconomic foundation that builds confidence, spurs investment, and creates jobs.
- Lagarde's prescription to "strengthen the 'middle'":
  - Create more vibrant small and medium-sized enterprises.
  - Strengthen the middle class.
  - Ensure government that is "neither too small nor too large."
- Role of the private sector:
  - Private sector can play a significant role but requires an improved business environment.
  - Needed reforms include smarter regulations, more competition, streamlined conditions for business entry, and adequate financing for small and medium-sized firms.
- Elements of a more inclusive economy:
  1. The right conditions for more youth and women to enter the job market.
  2. Education that matches students’ skills with the needs of modern business.
  3. Better functioning labor markets.

### Women’s labor force participation and economic gains
- Data from Morocco:
  - 66 percent of recent graduates are women.
  - Only 26 percent of women actively participate in the labor force.
- Observed pattern: a low female labor force participation ratio is common in many parts of the region and represents "a huge waste of resources."
- One calculation cited: if the gap between male and female labor force participation in the region were only double (rather than currently triple) the average gap in comparable countries, output over a decade would be $1 trillion higher.

### Governance, transparency, and corruption
- A more inclusive economy also requires better transparency and enhanced governance.
- Citizens want clarity on government spending and assurance that banks and companies are financially sound.
- Strong governance is essential because corruption undermines economic effectiveness and can erode social cohesion.

### Youth perspectives and outreach
- The IMF conducted a Facebook campaign in the run-up to the Amman conference to gather Arab youth views on job creation.
- Youth inputs emphasized:
  - Greater investment in the region.
  - More assistance to entrepreneurs.
  - The urgency of stamping out corruption.
- Meetings with students, including those at the Université Internationale de Casablanca, gave confidence that the new generation of Arab youth is ready to tackle forthcoming challenges.

*Source: From Rabat to Amman, Christine Lagarde, May 10, 2014*

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## References

- [regional conference in Amman](http://www.imf.org/external/np/seminars/eng/2014/act/index.htm)
- [speech](http://www.imf.org/external/np/speeches/2014/050814.htm)

_Source: https://www.imf.org/en/blogs/articles/2014/05/10/from-rabat-to-amman_