Photo: Arne Hoel
Middle east and north Africa Dramatic political changes occurred throughout the Middle East and North Africa in fiscal 2012, marked by revolutions, elections, and violent conflict in some countries and significant reforms in some others. A com mon thread across many of the countries that have witnessed the Arab Spring has been a consistent call led by the region’s thousands of ener gized youth. They are demanding respect, dignity, and good governance and asking for jobs and socioeconomic opportunities that an inclusive growth path would bring. The Bank also needs to operate differently in this region, as it focuses on deeper consultations with a wider group of stakeholders, particularly civil society. The consultative process is a critical foundation of the Bank’s sup port of efforts by these countries to progress toward appropriate gover nance mechanisms—a move away from the cronyism and corruption of previous regimes—and a renewed focus on the role effective private sec tor actors can play. Given this localized background and broader economic turbulence, especially in developed countries, economic growth in the region fell to just 3 percent in fiscal 2012. However, rising oil prices, and some economic recovery in countries affected by the revolutions are expected to increase regional growth to 4.2 percent this fiscal year. Countries that are oil export ers are expected to grow by 5.7 percent, while oil importers likely will grow by only 2.8 percent, leaving their fiscal situation tenuous.
World Bank Assistance Bank support reached $1.5 billion in fiscal 2012, including $1.4 billion from IBRD and $80 million from IDA—entirely in the form of grants. The Bank also allocated $63 million in special financing for the West Bank and Gaza, and delivered 123 Economic and Sector Work and non-lending Technical Assistance activities. In response to the Arab Spring, the Bank is implementing a new frame work for engagement and support to the MNA countries. This framework is based on four pillars: strengthening governance; increasing social and economic inclusion; creating jobs, including for youth and women; and accelerating sustainable growth. These pillars are underpinned by the cross-cutting themes of gender, regional integration, and fostering a com petitive private sector. Creating Jobs Jobs—particularly jobs for youth and women—are critical to develop ment. But the region is providing too few of them. In the 2000s, Middle East and North Africa created only 3.2 million jobs per year. It needed to create 1 million more to bring unemployment down. The growing attention to employment is reflected in the fiscal 2012 program for the region. The Arab Republic of Egypt’s $200 million Emergency Labor Intensive Project focuses on temporary jobs. Tunisia’s
FIGURE 2.9
FIGURE 2.10
MIDDLE EAST AND NORTH AFRICA IBRD AND IDA LENDING BY SECTOR | FISCAL 2012
MIDDLE EAST AND NORTH AFRICA IBRD AND IDA LENDING BY THEME | FISCAL 2012
SHARE OF TOTAL OF $1.5 BILLION
SHARE OF TOTAL OF $1.5 BILLION
Water, Sanitation, and Flood Protection
5%
< 1%
Agriculture, Fishing, and Forestry 8%
Public Administration, Law, and Justice Industry and Trade
Economic Management
2%
Education
13%
Environmental and Natural Resources Management
19% 29%
4%
Energy and Mining
Social Protection and Risk Management Social Development, Gender, and Inclusion
Health and Other Social Services
16%
Urban Development
< 1%
Transportation
Rural Development 26%
9%
Finance
Rule of Law
16%
20%
Financial and Private Sector Development
8%
Human Development
7% 9% 1%
7%
Public Sector Governance
9