__MAIN_TEXT__
feature-image

Page 1

MENA ACTIVE WITH

THE MIDDLE EAST AND NORTH AFRICA

September 2016


THE OECD AND THE MIDDLE EAST AND NORTH AFRICA: a mutually beneficial partnership The Middle East and North Africa (MENA) is a large, culturally rich and diverse region. It has been a bridge between civilisations for centuries with the first “global” trade routes between Europe and Eastern Asia passing through the region. Today, it continues to play a significant role in international commerce and communications and is a substantial source of the world’s energy resources. For this reason, MENA economies will also play a central role in the world’s fight against climate change, as economies in the region undergo a green transformation towards renewable energies and wage their own fight against desertification and water scarcity. Economies in the MENA region have enormous growth potential, thanks to their strategic location and their young and increasingly well-educated population. In fact, the region has been advancing in recent decades, with per capita income increasing threefold since 1990 and extreme poverty falling by half. At the same time, MENA economies face several challenges including low integration into global value chains, severe skills mismatches, as well as high unemployment and low labour force participation rates for youth and women. Eight years after the Arab uprisings, many people are still waiting for living conditions to improve as well as greater transparency from their governments. The conflicts in Iraq, Libya, Syria and Yemen have affected well-being in those countries, while also putting economic pressures on their neighbours who play an essential role in hosting refugees escaping war. According to the UNHCR, more than 2 million of these refugees live in the MENA region, with the majority (1.7 million) in Jordan and Lebanon, making these countries the two largest refugee-hosting countries in the world on a per capita basis. Encouragingly, MENA economies are demonstrating their commitment to address the challenges they face. For example, Tunisia is implementing a five-year national development plan to transform the country into an economic hub for sustainable development. Morocco is diversifying its economy, led by the automotive industry, a key export of the country. Egypt is implementing an ambitious economic reform programme in collaboration with international partners. In 2018, Lebanon launched its “Vision for Stabilization, Growth and Employment” to promote economic and social reforms, focusing on infrastructure, fiscal adjustment, economic diversification and support for investment. In the Gulf region, many countries have undertaken fiscal adjustments which have laid the foundations for more sustainable development by reducing economic dependence on hydrocarbons. Reform agendas have also included national strategies for economic diversification and the introduction of a value-added tax in Saudi Arabia and the UAE, with other Gulf Co-operation Council countries following suit more recently.


MENA economies are also committed to multilateralism and several international organisations are working with them to support their reform processes, drawing on the experience of and lessons learnt by other countries in the region and beyond. For its part, the OECD works with MENA economies through various international partners as well as regional and national initiatives, including its support for the Deauville Partnership with Arab Countries in Transition, the MENA-OECD Initiative on Governance and Competitiveness for Development, the Morocco Country Programme, the Suez Canal Economic Zone project and the Arab-DAC Dialogue on Development. The ambitions for these projects are in line with the challenges and aim to build a more prosperous future for the region, based on sustainable and inclusive economic development. Our work at the OECD includes promoting regional integration – as a natural step towards better participation in the global economy, nurturing sustainable and inclusive economic growth, strengthening governance and, very importantly, fostering the participation of youth and women in the economy and public life. The fruitful collaboration with the region has also been very beneficial for the OECD. MENA economies have contributed to improve the Organisation’s understanding of emerging global challenges and the pressing needs of developing economies, shaping at the same time its contribution to global debates. Moreover, MENA economies have helped to disseminate OECD tools and good practices within the region and towards Africa, and have also been an important source of knowledge in areas like economic resilience, migration, infrastructure development, renewable energies or reforms towards gender equality and empowerment. This brochure testifies to the rich and fruitful collaboration between the OECD and the MENA region over more than a decade. It also demonstrates the commitment of the Organisation to promote better policies for better lives, for women and men in all regions. ANGEL GURR�A, OECD Secretary-General INTRODUCTION . 1


THE OECD AND THE MIDDLE EAST AND NORTH AFRICA

2 . ACTIVE WITH MENA


CONTENTS

Contents

THE OECD AND THE MIDDLE EAST AND NORTH AFRICA: HOW WE WORK TOGETHER 4 Snapshot: An heterogeneous region in the global economy 6 The MENA-OECD Initiative on Governance and Competitiveness for Development 9 Support for Improvement in Governance and Management (SIGMA) 14 The Deauville Partnership 15 The Morocco Country Programme 16 Promoting effective development co-operation 20 Engagement with Arab providers of development co-operation 22 A SUSTAINABLE AND INCLUSIVE GROWTH AGENDA 24 Implementing structural reforms for economic diversification and sustainable and inclusive growth 25 Cities and regions working towards sustainable development 27 Fostering regional development, sustainable cities and urbanisation 28 Building resilience in post-conflict situations 30 Tackling gender inequality 32 Increasing agricultural productivity and food security 36 Fostering better data for better policies 37 EFFICIENT AND SOUND MARKETS 40 Enhancing the investment environment 41 Promoting trade and integration in global value chains 43 Fostering sound competition 46 Improving financial education 48 BUDGETING, REVENUE COLLECTION AND EXPENDITURE 49 Improving revenue collection and fiscal management 50 Enhancing tax transparency and compliance 52 Strengthening budgeting and public procurement 53

PUBLIC AND CORPORATE GOVERNANCE 55 Strengthening rule of law 56 Combating corruption and strengthening integrity and accountable governance 57 Building open and innovative governments 60 Raising the bar on corporate governance of private and state-owned enterprises 62 Risk management 64 EDUCATION, EMPLOYMENT AND INNOVATION 65 Fostering skills through education and training 66 Enhancing youth skills, employability and inclusion 68 Building a knowledge economy 70 Supporting SME development and entrepreneurship 71 Mobilising the private sector and promoting social dialogue 73 Fostering quality infrastructure investments and public service delivery through public-private partnerships 74 ENVIRONMENT AND ENERGY 76 Promoting green growth 77 Combating climate change 79 Improving water governance 81 Ensuring access to reliable and clean energy 82 ANNEXES 83 Today’s OECD: Better policies for better lives 84 OECD legal instruments 85 Participation in OECD bodies and intergovernmental activities 86 Adherence to OECD legal instruments 87 Participation in initiatives and networks 88 Dialogue and data 88

CONTENTS . 3


THE OECD

4 . ACTIVE WITH MENA


HOW WE WORK TOGETHER

The green slopes of Ifrane at the Moyen Atlas, Morocco. THE OECD AND THE MIDDLE EAST AND NORTH AFRICA . 5

THE OECD AND MENA

AND MENA


Snapshot: An heterogeneous region in the global economy MENA economies have demonstrated a relative resilience against international economic shocks, yet in the last years, average growth patterns in the region have not reached the rates achieved by similar peers in other parts of the world. With an average regional growth in 2018 of 1.3% and a similar rate expected for 2019, projections show that expected lower oil prices may contribute to sustain the growth of importers (e.g. Morocco, Tunisia, Egypt, Lebanon, Jordan), while revenues of exporters (Saudi Arabia, Algeria, Iraq) may stagnate. The production of strategic resources is a well-known characteristic of the

Rising economic potential l

Increasing economic opportunities for youth and women could unleash strong economic growth

l

With travel market innovation, the number of tourists to the region could grow 180% by 2030

l

Combating informality, currently estimated at 33%, will be important for increasing public revenues

6 . ACTIVE WITH MENA

region, yet, its more critical potential relies on leveraging its regional integration. Intra-MENA trade represents only 9% of total exchanges. The region’s low participation in Global Value Chains and trade in intermediate goods additionally hinders the integration of the region in the global economy and limits its capacity to create new and better jobs for all. Acknowledging its heterogeneity, while building on what the different economies have in common, governments through the region are consciously conducting significant reforms to address the main challenges towards a more prosperous future.

Promoting human development l

Enrolment in tertiary education has increased 190% since 2000

l

If labour market participation of women were that of men, the region’s GDP could increase by more than 10% over the next decade

l

Extreme poverty has almost been cut in half over the past 30 years


THE OECD AND MENA

Expanding trade and regional integration

Boosting entrepreneurship and industrialisation

l

Almost 10% of the world’s naval trade passes through the Suez Canal, an opportunity for the region to integrate global value chains and boost its participation in international trade

l

Entrepreneurial intentions in MENA are ranked among the highest in the world, SME and entrepreneurship policy reform could open up new economic opportunities for many

l

Service exports have increased over 37% in 10 years, contributing to economic diversification

l

l

Intraregional trade has increased 75% over the last decade, but still needs to grow significantly to reach its full potential

Even though the region provides over 32% of the world’s oil production, efforts to diversify and adopt green sustainable energies are increasing

l

Economic diversification has been paying off: Morocco’s car exports now account for EUR 2.3 billion and are expected to grow

Strengthening good governance l

The proportion of seats held by women in national parliaments has increased from 10% to 17% since 2011 in the MENA region

l

The MENA region has made gains in women’s personal status and access to justice by adopting legislation on domestic rape and legal provisions that protect women against these forms of violence

l

Momentum for open government is taking hold with some MENA economies adopting Access to Information laws, implementing online complaints services for citizens and publishing all draft laws for public consultations

THE OECD AND THE MIDDLE EAST AND NORTH AFRICA . 7


I P articipants of the MENA-OECD Initiative on Governance and Competitiveness Steering Group Meeting, 19 March 2018, Paris, France.

8 . ACTIVE WITH MENA


THE OECD AND MENA

The MENA-OECD Initiative on Governance and Competitiveness for Development The Initiative facilitates co-operation between the OECD and the MENA region to promote policies for sustainable and inclusive growth. It addresses regional needs and development priorities, including the integration of women and youth through jobs and greater participation in policy making. It also takes into account the region’s diversity by providing targeted support to individual economies. The Initiative builds on the OECD’s work method of policy dialogue, exchange of good practices and capacity building for the implementation of reforms.

Created at the request of MENA economies, the Initiative brings together MENA and OECD governments, the international community, civil society and the private sector. The Initiative is composed of two pillars, the MENA-OECD Governance Programme and the MENA-OECD Competitiveness Programme. It is governed by a steering group providing strategic guidance. The Initiative adopts a horizontal approach to high-level policy dialogue with working level technical assistance, analysis and capacity building through specialised policy networks. It deepens its impact through co-operation with regional and international partners and aligns its efforts with other international platforms.

MENA-OECD INITIATIVE Steering group (chairs: Tunisia, Turkey and the European Union)

Governance Programme Public sector reforms for quality services, inclusive policy making and transparency

Co-operation with regional/ international partners AfDB, The League of Arab States, AMF, European Commission, IMF, UfM, UNDP, WB, etc.

Competitiveness Programme More and better investment and private sector development for inclusive and sustainable growth

Regional and national support through A) Policy assessment B) Policy dialogue C) Policy advice and capacity building

Co-operation with international initiatives Deauville Partnership, Open Government Partnership, DAC-Arab Dialogue, Summit of the Two Shores, etc.

THE OECD AND THE MIDDLE EAST AND NORTH AFRICA . 9


The MENA-OECD Initiative on Governance and Competitiveness for Development

l Advancing the development of economies in a fragile or

“Tunisia co-chairs the MENA-OECD Governance Programme since 2016. We are proud to consider the OECD our major ally in the implementation of structural reforms to respond to citizens’ aspirations. In 2019, the OECD Public Governance Committee granted Tunisia participant status, which demonstrates the successful reform efforts undertaken by Tunisia in the field of public governance in collaboration with the Programme, particularly in preventing and fighting corruption, empowering and engaging women and youth in public life, and consolidating the role of civil society in promoting the principles of transparency and accountability. We look forward to working hand in hand with the Programme to chair the regional policy dialogue, share best practices and reflect together on what works and what does not in the pursuit of delivering better policies for better lives in the MENA region.”

conflict situation through the sharing of knowledge, good practices and support in reform implementation.

Riadh Mouakhar, Secretary General of the Government Tunisia, co-Chair of the MENA-OECD Governance Programme

The Initiative covers Algeria, Bahrain, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestinian Authority, Qatar, Saudi Arabia, Tunisia, United Arab Emirates and Yemen.

“The future of countries in MENA and Europe is inextricably linked. Good governance is key to building a more peaceful, stable, and prosperous future for the people of the MENA region and for achieving economic progress that benefits all. The European Union is proud to co-chair the MENA-OECD Governance Programme since 2018 and has been a long-standing supporter of the MENA region through Support for Improvement in Governance and Management (SIGMA) as well as through our Association Agreements with the countries of the region. We look forward to continuing the close collaboration with the Governance Programme and invite all OECD Member countries to join this strategic partnership as peers, donors and implementation partners for its fourth mandate (2016-20) and beyond.”

The mandate to 2020 of the Initiative focuses on:

l Supporting regional economic integration to reduce

economic fragmentation and facilitate economies’ integration into global value chains.

l Fostering shared and inclusive economic growth through

policies to support decentralisation, greater investment in infrastructure, economic diversification, productivity, and greater inclusion of women and youth.

l Strengthening the Initiative’s linkages with the wider

development agenda through global initiatives such as the Sustainable Development Goals and deepened partnerships with regional and international organisations.

www.oecd.org/mena

Rupert Schlegelmilch, Ambassador of the European Union to the OECD, co-Chair of the MENA-OECD Governance Programme 10 . ACTIVE WITH MENA


THE OECD AND MENA

“In the third year of its 4th mandate (2016-20), the co-chairmanship of the MENA-OECD Initiative has been marked by the dynamic pace of activities of the working groups that have provided MENA economies with platforms for reflection and exchange on public policies supporting reforms for improving the competitiveness of our countries. Tunisia remains committed to pursuing the process of reforms aimed mainly at improving the business climate, based on the conclusion that the promotion of investment and entrepreneurship lays the foundation that is crucial for maximising its growth. Moreover, Tunisia’s significant progress in the Doing Business rankings (8 places won globally after six consecutive years of decline) bears witness to this determination. Thanks to the MENA-OECD Initiative, a true laboratory of ideas supporting countries undertaking reform measures, Tunisia will continue to move forward to strengthen its regional leadership position in the conduct of public policies that support competitiveness and governance.”

“Through the last years as co-chair of the MENA-OECD Competitiveness Programme I have had the chance to witness how OECD co-operation with MENA has helped deliver results for the region in challenging times. The MENA-OECD Initiative has promoted the exchange of best practices and contributed to create a positive climate for technical co-operation and policy dialogue in support of a more inclusive and prosperous region, enriching at the same time the OECD’s expertise. I am happy to celebrate the outstanding contribution from MENA economies to the Organisation’s work and encourage the OECD and MENA economies to continue working towards a better future for us all.” Erdem Başçı, Ambassador of Turkey to the OECD, co-Chair of the MENA-OECD Competitiveness Programme

Zied Ladhari, Minister of Development, Investment and International Cooperation Tunisia, co-Chair of the MENA-OECD Competitiveness Programme

I Laurence Païs, Deputy Secretary General, UfM and Gabriela Ramos, OECD Chief of Staff and Sherpa to the G20, MoU signature 30 January 2018. THE OECD AND THE MIDDLE EAST AND NORTH AFRICA . 11


The MENA-OECD Initiative on Governance and Competitiveness for Development

The MENA-OECD Governance Programme supports public sector reforms in view of unlocking social and economic development and of meeting citizens’ growing expectations in terms of quality services, inclusive policy making and transparency. The Governance Programme is a strategic partnership to share knowledge and expertise with a view to disseminating standards and principles of good governance and promoting trust and inclusive growth. Its regional and country-specific activities focus on open and inclusive government, efficient

MENA-OECD Civil Society Advisory Board

machinery of government, gender equality, local government and rule of law. Those activities tackle youth inclusion as a cross-cutting theme. The Governance Programme engages policy makers, civil society, independent institutions and parliaments. It also contributes to multilateral initiatives such as the Governance Pillar of the Deauville Partnership for Arab Countries in Transition and the Open Government Partnership. www.oecd.org/mena/governance www.tcmenaoecd.org/

MENA-OECD Governance Programme

MENA-OECD Governance Programme Training Centre of Caserta

GOVERNANCE Working Group on Integrity and Civil ServiceÂ

Working Group on Open and Innovative Government

MENA Senior Budget Officals Network

Working Group on Regulatory Reform and Rule of Law

Women in Government Platform

MENA-OECD Network on Public Procurement

Focus Group on Local Government

MENA-OECD Governance Programme Youth Day

To support the dissemination of good practices and build capacities in the public sector, the OECD and the Italian National School of Administration established the MENA-OECD Governance Programme Training Centre of Caserta in 2012. The mission of the Centre is to provide training courses to support the public administrations of the Arab economies and to promote the efficiency and effectiveness of the public sector and the principles of good governance. The MENA-OECD Governance Centre is officially part of the Action Plan on Open Governance and Anticorruption of the Deauville Partnership for Arab Countries in Transition (Governance Pillar). The Centre co-operates closely with other regional training institutes, such as the Arab Administrative Development Organisation of the State of Arab League and GIFT-MENA. The Centre is also part of the OECD Global Network of Schools of Government. 12 . ACTIVE WITH MENA


THE OECD AND MENA

The MENA-OECD Competitiveness Programme works to improve the business environment for more and better investments and foster the development of the private sector as an engine for sustainable and inclusive economic growth. The Competitiveness Programme is based on an open and participative platform engaging governments, private sector representatives, donor agencies, international organisations and experts. Its activities promote greater international investment

and trade while considering interconnections with and effects upon local economies, for instance through global value chains. The Competitiveness Programme’s activities also mainstream gender and youth elements in policy-making processes. Its work supports the Deauville Partnership for Arab Countries in Transition, EU Southern Neighbours Policy and other initiatives. www.oecd.org/mena/competitiveness

MENA-OECD Competitiveness Programme

COMPETITIVENESS Working Group on Investment and Trade

Working Group on SMEs and Entrepreneurship

Working Group on Corporate Governance

Business Integrity Network

Network on Women’s Economic Empowerment

Taskforce on Economic Resilience in Fragile Situations

Business Advisory Board

THE OECD AND THE MIDDLE EAST AND NORTH AFRICA . 13


Support for Improvement in Governance and Management (SIGMA) Public financial management, public procurement and external audit

Service delivery

SIGMA is a joint initiative of the OECD and the European Union (EU), principally financed by the EU, to provide support for strengthening public administrations and implementing governance reforms in EU candidate economies and potential candidates, and EU Neighbourhood economies, including Algeria, Egypt, Jordan, Lebanon, Morocco Strategic and Tunisia as well as the Palestinian Authority. framework of public administration reform

Policy development and co-ordination

Accountability

Good governance and a well-functioning public admin­ istration are essential in building and sustaining trust in government and in creating the necessary structural reforms for increased living standards in society. SIGMA works towards building the capacities of the public sector, enhancing horizontal governance and improving the design and implementation of public administration reforms, including proper prioritisation, sequencing and budgeting. SIGMA co-ordinates closely with the MENA-OECD Governance Programme. www.sigmaweb.org

Public service and human resource management

14 . ACTIVE WITH MENA


The Deauville Partnership was a multilateral platform providing political and financial support to the six Arab countries in transition (ACTs): Egypt, Jordan, Libya, Morocco, Tunisia and Yemen. It was launched in May 2011 as an initiative of the then G8 to support ACTs in their reform efforts to build stable, prosperous and inclusive economies. The Deauville Partnership included: ACTs, G7 members, International and regional financial institutions, and the OECD Regional Partners (Kuwait, Qatar, Saudi Arabia, Turkey and the United Arab Emirates) The OECD has been a key actor in this process, facilitating policy dialogue in the context of Senior Officials’ Meetings as well as the International Financial Institutions Co-ordination Platform, which it has been chairing since April 2016. In addition, the OECD has provided hands-on support for reform implementation in all 6 ACTs through MENA Transition Fund projects.

The OECD has also supported the implementation of the Compact for Economic Governance and Near-Term SME Action Plans. Prepared with OECD support and adopted in May 2015 under the German G7 Presidency, the Compact for Economic Governance is a strategic document that provides ACTs with a policy framework for reform efforts in priority areas, namely macroeconomic stability and structural reforms, public sector efficiency, private sector development, and inclusive policy making. The OECD was mandated by Deauville Partners to support ACTs in the implementation of the Compact. With the support of the German Foreign Office, baseline Stocktaking Reports have been prepared for Egypt, Jordan, Morocco and Tunisia. The reports describe progress in reform implementation since 2011 across the four dimensions of the Compact as well as outstanding challenges and policy recommendations for the short to medium term. In addition, the OECD has also supported the development and monitoring of Near-term SME Action Plans in ACTs, which were prepared in 2012. An update on the status of those Plans was presented in November 2017. Since 2011, the Partnership has mobilised through the MENA Transition Fund, political and financial support for reforms aimed at enhancing macroeconomic stability and promoting good governance, job creation, economic diversification and social cohesion. The OECD has been a key partner of this important endeavour. While the MENA Transition Fund was finalised in 2018, a number of relevant projects funded with the fund will continue until 2020. www.oecd.org/mena/competitiveness/thedeauvillepartnership www.menatransitionfund.org www.compactwithafrica.org/content/compactwithafrica

THE OECD AND THE MIDDLE EAST AND NORTH AFRICA . 15

THE OECD AND MENA

The Deauville Partnership for Arab Countries in Transition


The Morocco Country Programme

The Country Programme supports Morocco in the design and implementation of key reforms, strengthens its participation in OECD bodies and helps bring the country closer to OECD policy standards. The first phase of the Morocco Country Programme comprised 16 co-operation projects, adherence to four OECD legal instruments and strengthened participation in nine OECD bodies. Built around competitiveness, social inclusion and public governance, the Country Programme has put the OECD’s expertise at Morocco’s disposal, enriching in return the policy debates of the organisation. Amongst its achievements, the Country Programme served to develop stronger statistical capacity and systematic consultations, as well as evidencebased data and indicators for designing calibrated public policies. It relied heavily on capacity building and peer learning, drawing on the OECD’s network of international experts, to facilitate the acquisition of new skills for Moroccan policy makers. It comprises an innovative monitoring tool to

Digital Government Review of Morocco OECD Digital Government Studies

OECD Digital Government Studies

Digital Government Review of Morocco LayinG thE FOunDatiOnS FOR thE DiGitaL tRanSFORMatiOn OF thE PubLiC SECtOR in MOROCCO

The second phase of the Country Programme has been renewed for 2019-21 to address key policy priorities in Morocco, bolster its reform agenda and support strong, inclusive and sustainable growth. The projects of the second phase will both build on the areas of co-operation of the first phase (investment, public governance, anti-corruption, statistics, education, taxation and territorial development), as well as extend to new activities (women’s economic empowerment, financial education and inclusion, and economic surveys). oe.cd/morocco-programme

MOROCCO COUNTRY PROGRAMME

Please cite this paper as:

Morocco in Global Value Chains: Results and Statistical Recommendations from the Integration of Morocco in the Trade in Value Added Database

OECD (2018), “Effective Policy Approaches for Quality Investment in Tourism”, OECD Tourism Papers, No. 2018/03, OECD Publishing, Paris, https://doi.org/10.1787/88ea780c-en

SCAN TO READ THE REPORTS

OECD Tourism Papers No. 2018/03

Effective Policy Approaches for Quality Investment in Tourism

SECtOR in MOROCCO

LayinG thE FOunDatiOnS FOR thE DiGitaL tRanSFORMatiOn OF thE PubLiC

OECD

· ·))OCDE

DES POLITIQUES MEILLEURES POUR UNE VIE MEILLEURE

16 . ACTIVE WITH MENA

follow-up on the implementation of the various OECD policy recommendations, to ensure the Programme has concrete impact on policy making. By paying particular attention to territorial and participatory considerations, the Country Programme encouraged the development of inclusive public policies. Overall, it has contributed to strengthening the articulation and harmonisation of public policies


THE OECD AND MENA

‘’The Country Programme is the result of a strong and fruitful collaboration between Morocco and the OECD to promote economic growth and strengthen competitiveness, social inclusion and public governance in Morocco. The consolidation of this relationship has already been illustrated by the adherence of Morocco to several OECD instruments in key areas, such as investment, digital governance, taxation, integrity and SMEs development. This programme has allowed Morocco to get closer to standards and good practices promoted by the OECD in different areas such as public governance, economic competitiveness and social inclusion. It has therefore both served as a challenge and a catalyst for decision makers to improve the design and implementation of public policies. Beyond this programme, Morocco aims to further deepen this fruitful relationship of co-operation by strengthening its presence in various OECD bodies, and aligning with the best practices developed by the Organisation.” Saad Dine El Otmani, Head of Government, Morocco

THE OECD AND THE MIDDLE EAST AND NORTH AFRICA . 17


“The OECD benefits substantially from its engagement with the MENA region. In an increasingly interconnected world, the adoption of sound international standards can stimulate economic, social and environmental progress, while also levelling the playing field in favour of companies and societies alike. It can also contribute to making economic growth more inclusive and sustainable, for the benefit of future generations. In addition, through our exchanges with economies in the region, the OECD learns from them and expands its understanding and expertise on challenges that can also affect OECD Members. Furthermore, by promoting greater integration into the global economy and increasing the competitiveness of the MENA region, the OECD is building a solid economic partnership with a strategic and dynamic region. The MENA-OECD Initiative on Governance and Competitiveness for Development, the bilateral co-operation with economies from the region and their participation in OECD global fora are excellent tools to expand and capitalise on this mutually beneficial co-operation.” Ivita Burmistre, Ambassador of Latvia to the OECD, Chair of the External Relations Committee

18 . ACTIVE WITH MENA

Andreas Schaal, OECD Director of Global Relations

“For over 15 years, the MENA-OECD Governance Programme has supported MENA countries in driving public sector reform through peer-to-peer learning and implementation support. The Programme helps countries in the region to build stronger and more resilient institutions and to bring policies and services closer to citizens. We have delivered better policies for young mothers at work in the UAE, improved budget management in Tunisia and established networks of government officials and civil society across Maghreb countries to improve transparency, accountability and citizen participation. We look forward to continuing to support the MENA region in achieving their policy priorities.” Marcos Bonturi, OECD Director for Public Governance

Photo: B.O’Kane / Alamy Stock Photo

I Headquarters of the Arab Fund for Economic and Social Development, Kuwait City.

“Reform-oriented governments in the MENA region see policy dialogue, peer learning and the adoption of international standards as important for promoting better policies at home, integrating more into the global economy and generally creating a better future for their citizens, especially for women and for the rapidly growing numbers of educated young people. This also translates into engagement and co-operation with the OECD. Today, economies from the region participate formally in more than 30 committees and other OECD bodies. In total, there have now been 102 adhesions by MENA economies to various OECD legal instruments that set out good international practices in a broad range of policy areas, from open government to more efficient and decentralised institutions, from addressing issues related to state-owned enterprises to fighting corruption, and from enhancing the business climate to fostering regional integration and promoting international trade and investment. We welcome this strong commitment from economies in the MENA region to the OECD and look forward to working with them in the future.”


THE OECD AND MENA

THE OECD AND THE MIDDLE EAST AND NORTH AFRICA . 19


Promoting effective development co-operation The OECD Strategy on Development, adopted in the 2012 Ministerial Council Meeting, gives impetus to the OECD’s founding mission of contributing to the development of all countries by sharing knowledge and policy experiences. Since 2011, the OECD jointly with UNDP supports the work of the Global Partnership for Effective Development Cooperation (Global Partnership) to advance the effectiveness of all development efforts and contribute to the achievement of the Sustainable Development Goals. Thirteen economies1 in the MENA region have endorsed the Global Partnership principles for effective development co-operation and several regularly participate in its High-Level Meetings. In 2019, senior-level 1. Algeria, Djibouti, Egypt, Iraq, Jordan, Kuwait, Mauritania, Morocco, the Palestinian Authority, Saudi Arabia, Tunisia, the United Arab Emirates and Yemen.

representatives from MENA economies will convene at the Global Partnership’s first Senior-Level Meeting in the margins of the UN High-Level Political Forum on Sustainable Development. The OPEC Fund for International Development, representing the Arab providers of development co-operation, has been a member of the Global Partnership Steering Committee since 2014, and Egypt is actively engaged in the Global Partnership’s work on private sector engagement through development co-operation. MENA economies also engage in the Global Partnership’s biennial monitoring exercise, which tracks progress in the quality and impact of development co-operation. Egypt, Mauritania and Yemen participated in the 2016 monitoring round and have confirmed their participation in the third monitoring round of the Global Partnership (report forthcoming in 2019).

J Participants to the Global Partnership Regional workshop, 11-12 July 2018, United Arab Emirates. 20 . ACTIVE WITH MENA


THE OECD AND MENA

Making Development Co‑operation More Effective 2016 ProgrEss rEPort This report draws on the results of the 2016 global monitoring exercise carried out under the auspices of the Global Partnership for Effective Development Co-operation. It offers a snapshot of progress on internationally agreed principles aimed at making development co-operation more effective. The provision of data and information for the monitoring exercise was led by 81 countries, with the participation of more than 125 bilateral and multilateral development partners, as well as hundreds of civil society organisations, private sector representatives and other relevant development stakeholders in the participating countries. This report presents the findings from the exercise, based on careful analysis and aggregation of this information. It is intended to stimulate and inform policy dialogue at the country, regional and international levels, generating an evidence-base for further collective action to strengthen the contribution of effective development co-operation to the implementation of the 2030 Agenda for Sustainable Development and achievement of the Sustainable Development Goals.

Making Development Co‑operation More Effective 2016 ProgrEss rEPort

The report confirms the importance of principles and commitments to strengthen the focus on development results, ensure country ownership of the development process and the inclusiveness of development partnerships, and enhance transparency and mutual accountability around development efforts. Contents Chapter 1. Overview of the 2016 Global Partnership monitoring round Chapter 2. Focus on development results Chapter 3. Country ownership of development co-operation Chapter 4. Inclusive partnerships for effective development Chapter 5. Transparency and accountability for effective development

Making Development Co‑operation More Effective 2016 ProgrEss rEPort

“The OECD’s work on development co-operation promotes collaboration with partner countries, the United Nations, the private sector, civil society and philanthropic organisations in order to meet the ambitious goals of the Agenda 2030, the Addis Ababa Action Agenda and the Paris Agreement on Climate Change. A key pillar of our engagement has been the regular Arab-DAC Dialogue, which brings together OECD and Arab countries, as well as institutions that provide significant sources of development finance. Over the years trust has been built and increased collaboration has led to improved co-ordination and dialogue on development finance statistics, education, water and sanitation, and on triangular co-operation.”

Consult this publication on line at http://dx.doi.org/10.1787/9789264266261-en. This work is published on the OECD iLibrary, it is also available on the UNDP website. Visit www.oecd-ilibrary.org or www.undp.org/library for more information.

isbn 978‑92‑64‑26569‑1 43 2016 11 1 P

2016

Empowered lives. Resilient nations.

Empowered lives. Resilient nations.

Monitoring profile – October 2016

EGYPT

http://effectivecooperation.org

1. Country Context The Arab Republic of Egypt is a lower middle-income country with an HDI of 0.69 as of 2014. The restoration of political stability, structural reforms undertaken by the government along with the presidential and parliamentary elections in 2015 have facilitated economic recovery. The growth rate during the first three quarters of fiscal year 2014 reached 4.7% compared to only 1.6% in the previous year, which could be attributed to the restoration of stability and investor confidence, increased private consumption and growing government public investments. The Egypt Economic Development Conference held in March 2015 revived foreign interest in the country, as evident in the US$12.5 billion grant from the GCC and US$38 billion in foreign investments. A tentative agreement with the IMF has been reached for a US$12 billion loan over three years. It will target the current fiscal deficit and tighten dollar liquidity in the country. On the social level, women’s representation in parliamentarian seats increased by 15% in 2015 despite low voter turnout. However, the country still faces challenges including security threats and conflict, lack of employment opportunities (especially for youth) and weak regulatory enforcement in public governance.

Quick Facts Surface area 1,001,450 km2 Population 91.5 million (2015) GDP Growth 4.2% (2015) GDP Per Capita US$3,615 (2015) Income level category Lower middle-income country

SCAN TO READ THE REPORTS

Inflows (% Gross Domestic Product) LATEST YEAR AVAILABLE

Key Development Indices:

25 30 8

Jorge Moreira da Silva, OECD Director of the Development Co-operation Directorate

NPI

ODA

GINI

National Poverty Index 25.2% of pop. (2010)

GINI Index 30.8 (2008)

Official Development Assistance/Capital Formation 8.5% (2014)

ODA per Capita US$39.4 (2014)

1

188

Human Development Index (2014) (Best rank: Position 1)

189

Doing Business Rank (2015) (Best rank: Position 1)

-2.5

Anti-corruption Index: -0.59 (2014) (Highest anti-corruption: +2.5)

108

1

131

+2.5

-0.59

Tax Revenue

12.5%

Domestic Credit

95.8%

Net Foreign Direct Investment

2.1%

Remittances

6.5%

Net Official Development Assistance

1.2%

Key Development Challenges

Over the past three decades, Egypt has made progress in addressing issues of child mortality, life expectancy and education. However, poverty and income inequality remain the most pressing challenges to development, as 25% of Egyptians live below the poverty line and mostly concentrate in rural Upper Egypt. The government budget deficit reached 12.6% in fiscal year 2013-2014, reflecting long-standing structural challenges that have been exacerbated by the difficult political transition, with the resulting cyclical factors pushing the government debt-to-GDP ratio to 95.5%. There have been improvements in public health and education services, but regional gaps and deficient service quality require continued government effort.

www.effectivecooperation.org   Monitoring profile – October 2016

YEMEN

http://effectivecooperation.org

1. Country Context The Republic of Yemen is a lower middle-income country with an HDI of 0.498 as of 2014 and an Economic Vulnerability Index of 34.5 as of 2015. It is part of the g7+ and has been suffering a civil war with no functioning government since early 2015. The state and security forces are separate, with the Houthis taking control of the northern regions and the Hadi government occupying the southern part of the country, aided by allies such as the United States and Saudi Arabia. The conflict has been exacerbated by the resurgence of al-Qaeda, which has established a stronghold in Yemen during the level-3 humanitarian crisis. The ongoing crisis has severely disrupted political, economic and social activities within the country and threatened the well-being of all citizens. At least 82% of the population is in need of humanitarian assistance and over 2.5 million people were estimated to be internally displaced at the end of 2015. The conflict also led to destruction of infrastructure, economic blockade to exports and imports, and scarcity of essential commodities for the Yemeni people. Income per capita has dropped by 70% since the war. GDP has spiralled down since 2011 and the negative trend has continued into 2016.

Quick Facts Surface area 527,970 km2 Population 26.8 million GDP Growth 4.16% (2013) GDP Per Capita US$1,408 (2013) Income level category Lower middle-income country

Inflows (% Gross Domestic Product) LATEST YEAR AVAILABLE

Key Development Indices: ODA per Capita US$44.5 (2014)

1 1 +2.5

188 160 67

189 -2.5 -1.55

Human Development Index (2014) (Best rank: Position 1) Doing Business Rank (2015) (Best rank: Position 1) Anti-corruption Index: -1.55 (2014) (Highest anti-corruption: +2.5)

Domestic Credit

33.9%

Net Foreign Direct Investment

-0.4%

Remittances

9.3%

Net Official Development Assistance

3.0%

Key Development Challenges

While the UN emergency appeal for Yemen still faces a wide funding gap, the country needs significant international assistance during and after the crisis. The Gulf States are expected to take a more active role in Yemen’s post-war reconstruction, depending on outcome of the conflict. Long-term challenges include high unemployment, lack of clean water and sanitation, and food security. The country faced chronic poverty and under-development before the outbreak of conflict, so the future unity government will need to focus on restoring basic services and reconstruction. The March 2016 ceasefire on the Yemen-Saudi Arabia border is a positive sign towards conflict resolution, but violations of the deal disrupt progress on peace talks.

Profil de suivi – octobre 2016

MAURITANIE

http://effectivecooperation.org

1. Contexte du pays

Photo © Dominic Chavez/World Bank

La Mauritanie connaît un recul de sa croissance, qui est passée de plus de 5 % en 2014 à 3,1 % en 2015. Plusieurs facteurs en sont responsables, comme la chute des prix des produits de base (minéraux, or et fer) ainsi que le ralentissement économique dans des secteurs clefs tels que le pétrole et l’industrie, la construction et le secteur public. Le taux de croissance actuel est dû à la dynamique de la production halieutique et à la vitalité du secteur minier. La Mauritanie a procédé à des révisions politiques et à des changements structurels pour contrebalancer les chocs économiques externes et internes et pour préserver le taux de croissance actuel. Une loi financière a été promulguée en 2015 pour consolider la stabilité macroéconomique et la mise en œuvre de réformes structurelles clefs. Fin 2015, on a pu constater l’efficacité des efforts de réforme, se manifestant par un taux d’inflation stable de 4,6 % et une diversification progressive de l’économie en soutenant des secteurs à fort potentiel, tels que les services. Les efforts de réforme de la Mauritanie ont été reconnus par le rapport Doing Business 2016, où le classement du pays s’est amélioré, passant de la 176ème à la 168ème place. En outre, le pays est reconnu comme l’un des 10 premiers réformateurs au monde. La Mauritanie a progressé vers la réalisation des OMD ; notamment, vers la réduction de la pauvreté qui est passée de 42 % en 2008 à 31 % en 2015. En revanche, le taux de chômage est passé de 10,1  % en 2012 à 12,85  % en 2015. Cela traduit le manque d’interventions pour la promotion de l’emploi, car il n’existe pas de cadre approprié pour guider les parties prenantes sur les priorités et pour développer des synergies avec les politiques et stratégies sectorielles pertinentes. De plus, la multiplicité des acteurs institutionnels et le manque de coordination contribuent à l’inefficacité des interventions.

En bref Superficie 1 030 700 km2 Population 4 millions (2015) Croissance du PIB 3,1 % (2015) PIB par habitant US$ 1 371 (2014) Catégorie de niveau de revenu Pays à revenu intermédiaire (tr. inférieure)

Ressources (% Produit intérieur brut) Indices clés de développement :

TNP

32 GINI

Taux national de pauvreté 31 % (2014)

Indice de GINI 32.4 (2014)

1

188 156 189 168

+2,5

-2,5 -0,92

55,08% 9,23%

APD nette

4,96%

SCAN TO READ THE REPORTS

APD APD / Formation de capital 8,3 % (2014)

APD par habitant US$ 64,8 (2014)

1

Dette extérieure IDE net

Rang selon l’IDH (2014) (Meilleur classement: Position 1) Rang dans “Doing Business” (2016) (Meilleur classement: Position 1) Indice anti-corruption: -0,92 (2014) (Plus forte anti-corruption: +2,5)

Défis majeurs de développement

Le taux de la dette extérieure de la Mauritanie (55,08 %) est extrêmement élevé et représente un lourd fardeau pour l’économie du pays, notamment en raison des investissements directs étrangers limités, du faible niveau d’APD et des déficits économiques du pays au cours des deux dernières années. Cependant, le pays a également investi dans des secteurs innovants tels que les énergies renouvelables. La Mauritanie a franchi un pas considérable dans l’utilisation des énergies renouvelables, dont la part par rapport à l’énergie totale est passée de 5  % en 2012 à 25  % en 2015. Réduire les inégalités et s’attaquer à la redistribution des richesses sont des défis majeurs que la Mauritanie peut surmonter, à condition de poursuivre son engagement en faveur de la bonne gouvernance, en particulier dans le secteur minier et dans la supervision des entreprises publiques.

THE OECD AND THE MIDDLE EAST AND NORTH AFRICA . 21


Engagement with Arab providers of development co-operation

Arab countries and institutions have been providing substantial amounts of Official Development Assistance (ODA) and have considerable experience to share on development issues.

l Promoting the participation of Arab providers in DAC

The Development Assistance Committee (DAC) has been engaging with Arab providers of development co-operation, notably the institutions of the Arab Co-ordination Group (ACG) institutions and Arab countries, to discuss development issues, learn from each other’s experience and become more effective in delivering the 2030 Agenda on Sustainable Development. Arab providers have been disbursing increasing amounts of ODA since 2011. The DAC’s engagement with Arab countries and institutions has followed three avenues:

meetings and work: Kuwait, Qatar, Saudi Arabia and the United Arab Emirates have become DAC Participants and actively participate in DAC meetings. Several ACG institutions have also enhanced their engagement with the DAC recently, notably the Islamic Development Bank and the OPEC Fund for International Development.

l The DAC is also exploring its engagement with other Arab

countries, notably ‘dual provider-beneficiary’ countries, such as Morocco and Egypt. Morocco’s International Cooperation Agency has been working with the OECD’s Development Co-operation Directorate (DCD) on triangular co-operation issues, and DCD conducted a country visit to Morocco as part of the 2018 French Peer Review.

Arab concessional development flows 2011-16 (gross disbursements, USD billion) United Arab Emirates

2011

Saudi Arabia

Islamic Development Bank (IsDB)

Qatar

Kuwait

OPEC Fund for International Development

Arab Fund for Economic and Social Development (AFESD) Arab Bank for Economic Development in Africa (BADEA)

2012 2013 2014 2015 2016 0

2.5

Source: OECD DAC Statistics. 22 . ACTIVE WITH MENA

5

7.5

10 USD billion

12.5

15

17.5

20


THE OECD AND MENA

l Improving the quality and coverage of development

finance statistics reported by Arab providers to the OECD: Three countries and four multilateral organisations report on their development co-operation flows to the OECD. The OECD welcomes reporting from other Arab providers of development co-operation.

l Discussing development issues with the Arab providers:

Arab-DAC Dialogues on Development Co-operation have been organised regularly since 2009. These meetings provide an opportunity to debate a variety of topics, including education, energy and the private sector. Partners in the MENA region collaborate closely with the OECD on issues related to triangular co-operation, given that this modality helps to achieve the Sustainable Development Goals in innovative and collaborative ways and can provide solutions to overcome today’s most pressing environmental, economic and social challenges. The OECD is studying how countries and institutions in all regions of the world conduct triangular cooperation, looking for new approaches, gathering good practice and lessons learnt, and fostering regional, cross-regional and global dialogue and policy exchange on the subject. Breaking Down the Myths of Triangular Co-operation in Middle East and North Africa illustrates how triangular co-operation is carried out in the region and the varying roles that Arab providers of development co-operation take in these arrangements.

“Empowered women make economies more competitive and benefit all levels of society. Accelerating women’s empowerment will help us reach the Sustainable Development Goals. Arab and DAC providers of development co-operation have a central role to play in supporting developing countries to eliminate the barriers that hinder women’s empowerment.” Susanna Moorehead, Chair of the OECD Development Assistance Committee

www.oecd.org/dac/dac-global-relations/arab-dac-dialogue.htm

Breaking Down the Myths of Triangular Co-operation in Middle East and North Africa Juan Casado-Asensio and Nadine Piefer

SCAN TO READ THE REPORT

OECD DEVELOPMENT CO-OPERATION WORKING PAPER 41 Authorised for publication by Brenda Killen, Deputy Director, Development Co-operation Directorate

February 2018

THE OECD AND THE MIDDLE EAST AND NORTH AFRICA . 23


A SUSTAINABLE AND INCLUSIVE GROWTH AGENDA

24 . ACTIVE WITH MENA


SUSTAINABLE GROWTH

Implementing structural reforms for economic diversification and sustainable and inclusive growth The current geopolitical, security and migration challenges facing the MENA region call for immediate responses. However, achieving enduring and inclusive growth will also require the implementation of structural reforms to ensure that economic growth creates opportunities for all and equitably distributes the dividends of increased prosperity. The OECD supports its MENA partners in the design and implementation of reforms for jobs, economic diversification and more resilient, inclusive and sustainable economies. The OECD examines macroeconomic developments and structural policies of member and partner countries. The Economic Surveys, published biannually, analyse the overall

economic situation in a country and put forward priority reforms. The Surveys also analyse in depth specific thematic issues, which are defined in collaboration with national authorities. The studies are conducted in close co-operation with national authorities and are based on intensive consultations with stakeholders, including with senior leaders of the country, hence increasing the impact of the messages at the highest political levels. The first-ever OECD Economic Survey of Tunisia was published in 2018 and the Organisation is currently preparing the next Survey, to be launched in 2020. The OECD is ready to work with other MENA economies interested in undertaking Economic Surveys.

A heterogeneous region at a glance 2,000

GDP, PPP, current international dollar, billions

1,800 Median GDP per capita: US$ 16 000

Saudi Arabia

1,600 1,400 1,200

Egypt

1,000 800 Algeria

600

United Arab Emirates

Iraq Median GDP: US$ 240 billion

400 Morocco 200 0

Mauritania Jordan 0

Djibouti

Note: Data of 2017.

Tunisia Libya

10,000

Kuwait

Oman Lebanon 20,000

Qatar,GDP pc: US$124k

Bahrain 30,000

40,000

50,000

60,000

70,000

80,000

90,000

GDP per capita, PPP, current international dollar

Source: International Monetary Fund, World Economic Outlook Database, October 2018. A SUSTAINABLE AND INCLUSIVE GROWTH AGENDA . 25


Implementing structural reforms for economic diversification and sustainable and inclusive growth

The OECD also produces economic forecasts during spring and fall, with a score by country summarising recent developments, the outlook for the next two years, as well as reform priorities. These forecasts and analyses are published in the OECD Economic Outlook. An assessment of structural reforms and priorities for the future is summarised in the report Going for Growth. These studies are also based on continuous country monitoring by a team of economists and benefit from the contributions of other OECD experts. Tunisia has been included in the OECD Economic Outlook since 2016 and will be included in the next Going for Growth exercise.

OECD Economic Surveys TUNISIA ECONOMIC ASSESSMENT

Volume 2018/6

MARCH 2018

AFRICA’S DEVELOPMENT tUnisiA

The International Economic Forum on Africa is the leading Europe-based event devoted to Africa’s development. Every year, OECD officials and African policy makers, private sector, academia and civil society leaders as well as high-level

www.oecd.org/dev/mdcr.htm www.oecd.org/about/publishing/betterpoliciesseries.htm www.oecd.org/dev/africa/ www.oecd.org/development/africa-forum/

oECD Economic surveys

The OECD also provides multidisciplinary and whole-ofgovernment support for structural reforms. This support is especially relevant for countries undergoing extensive transitions and structural reforms, and can greatly benefit MENA economies. The Multidimensional Country Reviews identify obstacles to drivers of growth that also impede deeper determinants of economic development and the well-being of citizens. In the MENA region, Morocco has undergone both phases of the Multidimensional Country Reviews, first, to identify key reforms and, second, to understand the policy actions that need to be taken to ensure economic growth.

representatives from international organisations gather to weigh in on the continent’s major transformations and discuss how better policies can further impact the region. The inaugural edition of the Africa’s Development Dynamics 2018 report assesses Africa’s economic, social and institutional performance and analyses the continent’s development policies in light of the African Union’s Agenda 2063. The report also examines the relations between growth, employment and inequalities in each African region – Central, East, North, Southern and West Africa. This analysis of development dynamics aims to help African leaders reach the targets of the African Union’s Agenda 2063 at all levels: continental, regional and national. To this end, the report offers region-specific practical policy recommendations.

DYNAMICS GROWTH, JOBS AND INEQUALITIES March 2018

SCAN TO READ THE REPORTS

2018 26 . ACTIVE WITH MENA


SUSTAINABLE GROWTH

Cities and regions working towards sustainable development

Co-operative climate mitigation commitments made by cities, regions and businesses could result in additional reduction of global emissions by one-third compared to national government policies alone. While SDG11 on cities is central, most of the other goals are interconnected and hold implications for cities and regions.

www.oecd.org/cfe/territorial-approach-sdgs.htm

1: Poverty 2: Food

P

3: Health 4: Education 5: Gender Equality 6: Water 7: Energy 8: Economy 9: Infrastructure 10: Inequality 11: Cities 12: Sustainable Production

ITY

Subnational governments were responsible for 59.3% of total public investment in 2016 in the OECD and for almost 40% worldwide.

Goals

PER

The OECD’s Territorial Approach to the Sustainable Development Goals: A Role for Cities and Regions to leave no one behind works to unlock cities’ and regions’ potential towards the achievement of the SDGs. The programme aims to support cities and regions in implementing the SDGs in their territories through: i) measuring where they stand vis-à-vis the national average and their peers, ii) engaging a multi-level dialogue with their lower and upper levels of government to build consensus on who can do what, at what scale and how, and iii) sharing best practice and lessons from international experience.

65% of 169 targets needs local and regional governments’ engagement in order to be achieved.

OS

Most Sustainable Development Goals (SDGs) require all levels of government be on board to ensure that no one is left behind. Cities and regions have a crucial role to play in the achievement of SDGs, although the 2030 Agenda was not designed specifically for or by them. Indeed, most underlying policies and investments are a shared responsibility across all levels of government, and it is estimated that 65% of the 169 targets underlying the 17 SDGs will not be reached without proper engagement of, and coordination with, local and regional governments.

Why a territorial approach to the SUSTAINABLE DEVELOPMENT GOALS?

PR

Cities and regions play a critical role to promote sustainable development and to cope with climate change, population growth and urbanisation, while contributing to global agendas, in particular the Agenda 2030.

13: Climate 14: Oceans

There are strong territorial disparities within countries: looking at national averages is not enough. The SDGs can foster policy coherence and place-based solutions to complex problems.

15: Biodiversity 16: Institutions 17: Implementation Levels of achievement to be attained by

A SUSTAINABLE AND INCLUSIVE GROWTH AGENDA . 27


Fostering regional development, sustainable cities and urbanisation Effective regional, rural and urban development policies can help make growth more inclusive, sustainable and greener. While the drivers of disparities between regions in a country may vary, they often underline the specificities of urban vs. rural environments and the need to better link urban and rural development in national strategies. New powers brought to regional and local governments through decentralisation create opportunities to better address local needs. To make decentralisation work, the capacities of public institutions at the local level need to be built to enable them to take up their new responsibilities and engage successfully with local business associations and citizens, as well as with the national government, to overcome prevailing regional disparities and contribute to inclusive growth. The OECD supports MENA economies to strengthen governance across levels of government and at the local level. The OECD works with MENA economies to improve their territorial development strategies. As a first step in this direction, the OECD has gathered data on subnational finance and investment in three MENA countries (Jordan, Morocco and Tunisia) as part of the OECD-UCLG World Observatory on Subnational Government Finance and Investment. The OECD also supports MENA economies’ efforts towards sustainable

urbanisation under the framework of the National Urban Policy Programme, together with UN Habitat and Cities Alliance. Through multi-stakeholder dialogues on territorial development, the OECD assists MENA economies to reduce territorial disparities and address economic and social challenges. The OECD-Morocco Dialogue on Territorial Development Policies carried out as part of the OECD-Morocco Country Programme, helped: i) lay the foundation for a metropolitan governance framework in Casablanca, ii) improve urban-rural linkages, iii) strengthen the production and use of territorial indicators, and iv) consolidate multi-level governance of public investment. The Dialogue also supported Morocco’s adherence to the OECD Recommendation on Effective Public Investment across Levels of Government, and its implementation. The OECD is also working with Tunisia to improve its regional indicators to enable national development policies to be better tailored to the specific needs and opportunities of regions. As a result, Tunisian regions are featured in the 2018 edition of OECD Regions and Cities at a Glance. MENA economies could participate in the OECD’s flagship publications OECD Regional Outlook and OECD Regions and Cities at a Glance, which offer international trends and data on regional development, as well as OECD’s comparative

Number

ok 2019

OR CITIES AND RURAL AREAS

onomic performance within countries exist throughout the he underlying causes of economic disparities across regions es to address them. The report makes the case that place-based wing public discontent with the economic, social and political patterns of public discontent are closely related to the degree of ublic discontent need to have a place-based dimension.

OECD Regional Outlook 2019

OECD Regions and Cities at a Glance 2018

LEVERAGING MEGATRENDS FOR CITIES AND RURAL AREAS

SCAN TO READ THE REPORTS

mportant in the future due to several technological, demographic Outlook emphasises that all regions will be affected by these ion to region, even within the same country. Appropriate policy unt and should be tailored to the region-specific impacts of egional Outlook presents steps that policy makers can take today s fit for the future.

OECD Regional Outlook 2019

ISBN 978-92-64-31281-4 04 2019 02 1 P

OECD Regions and Cities at a Glance 2018

ch gathers all OECD books, periodicals and statistical databases. n.

LEVERAGING MEGATRENDS FOR CITIES AND RURAL AREAS

g/10.1787/9789264312838-en.

9HSTCQE*dbcibe+

28 . ACTIVE WITH MENA

subnational governments in oeCD Countries: KeY  Data 2018 edition


SUSTAINABLE GROWTH

study on Rethinking Urban Sprawl that provides a set of indictors on city shapes and their evolution, and helps identify uncontrolled urban development patterns. The OECD Green Cities Programme can also support urban policy makers to tackle climate change and pursue green growth in cities. MENA economies could also participate in territorial, urban and rural policy reviews that address different elements of policy and help in the identification of development opportunities in specific regions and cities. Participation in high-level policy fora could also bring benefits for MENA economies and their cities. For example, the OECD Roundtable of Mayors and Ministers gathers national and

local governments to identify policies for more resilient and inclusive cities in an increasingly urban era. The OECD Rural Development Policy Conference brings together policy makers and experts to identify good practices for the development of rural areas. Morocco has been a participant in the Regional Development Policy Committee for more than 12 years and has requested to become an Associate to this Committee. www.oecd.org/regional www.oecd.org/mena/governance/local-governance.htm www.oecd.org/cfe/regional-policy/Observatory-on-SubnationalGovernment-Finance-and-Investment.htm www.oecd.org/gov/national-urban-policies.htm

A SUSTAINABLE AND INCLUSIVE GROWTH AGENDA . 29


Building resilience in post-conflict situations Conflict and socio-political frictions can lead to enormous human, social and economic costs and create negative regional and international effects that undermine stability and economic activity. The OECD supports affected countries and the international community in dealing with pressing challenges and preparing the ground for economic recovery. The instability and conflicts in Iraq, Libya, Syria and Yemen have caused incalculable human suffering, great damage to societies and a vast loss of economic activity. This has also led to great strain on neighbouring countries that are facing increasing pressure for the provision of services, infrastructure and jobs, not only for refugees, but also for local populations. This complex scenario calls for a concerted international response on several fronts including regaining peace and stability, providing humanitarian assistance, managing the influx of refugees and supporting the integration of newcomers into societies. The OECD’s collaboration with the MENA region helps to address fragility and conflict, and build resilience through strong institutions and sound economic policies. The OECD works with fragile and conflict-affected economies at the regional and national levels through policy reform activities and capacity building that take into account the specific circumstances of fragility in each country. The States of Fragility report provides a yearly analysis of resilience-based programming and country-specific resilience systems in fragile and conflict-affected areas. The International Network on Conflict and Fragility brings together donor agencies from the Development Assistance Committee to adapt their programmes in conflict settings.

The MENA-OECD Economic Resilience Task Force brings together policy makers, private sector representatives, international organisations and other experts to develop policies that can contribute to greater economic resilience. One of Task Force’s main priorities is to connect the short-term reaction to immediate needs generated from conflicts and fragile contexts, with a long-term vision that can lay the foundations for more competitive economies with the capacity to react to internal or external shocks. Through the MENA-OECD Competitiveness Programme, the OECD collaborates with Libya Enterprise, the SME agency affiliated with the Ministry of Economy, as well as with other key Libyan institutions, and private and civil organisations to define and implement a national strategy for SME Development, based on the OECD report, SMEs in Libya’s Reconstruction: Preparing for a Post-conflict Economy. The Programme has also worked with Iraq to strengthen its investment policy

2.6 million refugees are officially hosted in MENA countries External disk: Number of refugees in host country Internal disk: % of refugees in host’s population 119,192

281,905

974,629

271,554 0.1% 0.71% 0.88% 21.4%

Iraq Yemen

0.25% 9.68%

239,741

Egypt Jordan Lebanon Other MENA

705,762 Source: UNHCR 30 . ACTIVE WITH MENA


SUSTAINABLE GROWTH

framework and develop investment promotion. Promoting Investment in a Fragile Context, produced as part of the project, offers recommendations to strengthen the investment policy framework and develop investment promotion in a fragile situation.

“It is well known that the OECD is very engaged in promoting policies that will improve the economic and social well-being of people around the world. Lebanon is dedicated to make a decisive contribution to promoting good and open governance, fairer and more transparent tax systems, a more conducive environment for investment and SMEs development, and greater participation of women in policy making. The OECD is a key partner in this important endeavour to combat bribery, foster integrity and level the field of business. We appreciate all the support provided to us by the OECD to diversify our economy and rebuild our country.”

The OECD implements a project to support Yemen in strengthening the structure and co-ordination capacities of the judiciary for a post-conflict and institutional reconstruction setting, in co-operation with the Arab Fund for Economic and Social Development and the Ministry of Justice of Yemen. In co-operation with the Islamic Development Bank the OECD also assists the Ministry of Planning and International Cooperation in building and reinforcing institutional capacity at the central and local level for the effective delivery of basic public services. The OECD supports its member states and their partners to strengthen and integrate resilience into their strategies and programmes in the MENA region. This work aims to help improve people’s well-being in the face of recurrent shocks and stresses, and to develop longer-term solutions to the drivers of fragility in the region. The OECD has been supporting the development of Sweden’s Regional Strategy for the Syrian Crisis. This has involved the use of the OECD Resilience Systems Analysis Framework to support the development of Sweden’s Whole of Syria development strategy. This strategy complements Sweden’s significant humanitarian investments and addresses long-term issues, including social cohesion, to build resilience to ongoing shocks and stresses. The OECD has also worked with the United Nations Country team in Lebanon to help humanitarian, stabilisation and development efforts to determine how to most effectively support vulnerable communities and institutions in the country, focusing on the resources and capacities that are needed to face the risks related to the crisis in Syria. In addition, there is ongoing work with the Islamic Development Bank in developing their 9HSTCQE*dacagi+ resilience strategy and annual resilience report.

Alia Abbas, General Director of Economy and Trade, Ministry of Economy and co-Chair of the MENA-OECD Economic Resilience Task Force

www.oecd.org/dac/conflict-fragility-resilience/ www.oecd.org/mena/competitiveness/resilience-fragilesituations.htm www.oecd.org/mena/governance/ yemen-mena-transition-fund-project.htm

States of Fragility 2018

Three years into the 2030 Agenda it is already apparent that those living in fragile contexts are the furthest behind. Not all forms of fragility make it to the public’s eye: fragility is an intricate beast, sometimes exposed, often lurking underneath, but always holding progress back. Conflict, forced displacement, violent extremism, famine etc. are all causes and consequences of fragility. Hence the need to better understand, anticipate and respond to fragility.

States of Fragility 2018

States of Fragility 2018 exposes the critical challenge posed by fragility in achieving the aspirations of the 2030 Agenda, sustainable development and peace. It highlights twelve key aspects of fragility, defying common assumptions and simplistic categorisation. It documents progress made in fragile situations on attaining sustainable development, unveiling exit doors from the fragility trap. It then illustrates the current state of financing to address fragility and suggests more effective approaches, accounting for its multidimensionality.

Above all, the report aims to strike a balance between fragility’s inherent complexity and the degree of simplicity that is required for efficient policy and decision making, namely through systems-based thinking; longer-term, consistent aid plans; the financing of peace; and a persistent focus on human beings.

States of Fragility 2018

Consult this publication on line at https://doi.org/10.1787/9789264302075-en.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

SCAN TO READ THE REPORTS

iSbn 978-92-64-30206-8 43 2018 05 1 P

A SUSTAINABLE AND INCLUSIVE GROWTH AGENDA . 31


Tackling gender inequality

Greater participation of women in the economy and in public life leads to stronger and more inclusive economic growth. One of the most important economic and social priorities for MENA economies is promoting gender equality and developing more equitable laws, policies and institutions that are representative of the whole of society. The OECD assists the MENA region in this endeavour through a number of regional and national activities. The MENA-OECD Governance Programme supports women’s participation in policy making as a means to strengthen responsive and equitable governance. This is especially relevant for MENA economies since the regional average for women in legislative bodies accounts for only 17.9%, the second lowest in the world. The OECD regional project Promoting Women in Parliaments and Policy Making aims to maximise women’s integration into public life and the policy-making process in Egypt, Jordan, Morocco and Tunisia by leveraging open government policies and mainstreaming gender perspectives into parliamentary and local council operations. This project is complementary to the 2014 OECD-CAWTAR Report on Women in Public Life: Gender, Law and Policy in the Middle East and North Africa.

Train-the-trainer workshops were organised ahead of elections in Tunisia, where 30% of these trained candidates were elected in the 2018 municipal elections. The MENA-OECD Women in Government Platform ensures that gender considerations are integrated in all activities and working groups of the MENA-OECD Governance Programme. Furthermore, the OECD Council Recommendation on Gender Equality in Public Life guides this work and sets benchmarks for governments. Among others, the Recommendation requires adherents to enable equal access to leadership opportunities – including in parliaments, the executive, and judiciary and public administrations. The OECD Toolkit for Mainstreaming and Implementing Gender Equality was launched in 2018 in order to 32 . ACTIVE WITH MENA

help governments continue their work on gender equality in public life. In 2017, The Gender Balance Guide was prepared by the OECD in collaboration with the United Arab Emirates Gender Balance Council. The Gender Balance Guide lays out the roadmap for the United Arab Emirates and its organisations to harness the untapped potential that women represent. Building on OECD expertise, it provides a list of practical actions that can be taken by UAE organisations in order to achieve gender balance and work towards gender equality. Important legal reforms and supportive policy actions on women’s economic empowerment are underway in many economies, and momentum for change is building across the MENA region. While women in the MENA region are more educated than ever, the female labour force participation rate


SUSTAINABLE GROWTH

Competitiveness and Private Sector Development

Competitiveness and Private Sector Development

Women’s Economic Empowerment in Selected MENA Countries ThE IMPACT of LEgAL frAMEWorkS IN ALgErIA, EgyPT, JorDAN, LIbyA, MoroCCo AND TuNISIA

Women’s Economic Empowerment in Selected MENA Countries

Women’s Political Participation in Egypt

Barriers, opportunities and gender sensitivity of select political institutions July 2018

SCAN TO READ THE REPORTS

MENA - OECD

Governance Programme

MENA - OECD

Governance Programme

in the region continues to be the lowest in the world, and women continue to face additional challenges in setting up and improving their businesses. The MENA-OECD Women’s Economic Empowerment Forum (WEEF), launched in 2017, is a regional network which works to enhance women’s access to economic opportunities across the MENA region. The publication Women’s Economic Empowerment: The Impact of the Legal Frameworks of Algeria, Egypt, Jordan, Libya, Morocco and Tunisia determines whether and to what extent the legal frameworks regulating the status of men and women impact their economic participation. It highlights the complex interplay between different sets of rules, social norms and economic outcomes and offers concrete policy recommendations, building on the OECD’s wider work on gender equality. Followup research is now being conducted to document recent legal reforms and complementary policy actions in support of women’s economic empowerment in selected MENA economies.

WOMEN’S

Political Participation in

JORDAN

GENDER BALANCE GUIDE Actions for UAE Organisations | September 2017

SCAN TO READ THE REPORTS

© OECD 2017 | Gender Balance Guide | Actions for UAE Organisations | Page 1

A SUSTAINABLE AND INCLUSIVE GROWTH AGENDA . 33


Tackling gender inequality

The OECD Development Centre’s Social Institutions and Gender Index (SIGI) is producing data and evidence-based analysis to inform policy makers and development practitioners on the root causes of gender inequality in 180 countries spanning all regions of the world, including MENA. It assesses social institutions holistically on formal and informal laws, social norms and practices that exclude women and girls and consequently curtail social and economic empowerment opportunities. Given its unique focus, the SIGI is a data source for the SDG 5.1.1 indicator measuring “whether or not legal frameworks are in place to promote, enforce and monitor equality and non-discrimination on the basis of sex”. The SIGI’s fourth edition, published in 2017, shows that despite

legal reforms, deeply entrenched discriminatory social norms undermine law implementation and expose women and girls to persistent discriminatory practices in the MENA region. For example, while 50% of the Middle East economies have criminalised domestic violence against women, 29% of women justify this harmful practice. This may partially explain why 27% of women has been a victim of violence by their intimate partner in their lifetime and 12% in the last 12 months. www.oecd.org/mena/competitiveness/women-empowerment.htm www.oecd.org/mena/governance/gender-equality-in-public-life.htm www.genderindex.org/

Labour force participation, % of active population, 2015 or latest available year 80 Total

Women

Young Women

70 60 50 40 30 20 10 0 East Asia and Pacific

OECD

Sub-Saharan Africa Source: International Labour Organisation, ILOSTAT

34 . ACTIVE WITH MENA

Latin America and the Caribbean

Middle East and North Africa


SUSTAINABLE GROWTH

“Women are half of the population in any country and should have equal power to shape society and their own lives. Equality is always an opportunity, never a constraint. The MENA women’s capacity and potential are great. Gender equality contributes to economic growth, and is a multiplier of resources towards inclusive growth and sustainability. It is essential for achieving peace and security. Systemic differences exist, in all countries, between women and men, when it comes to education, work, financial resources, unpaid housework, violence, health, etc. We need to continue to address this, break down stereotypes, and bring forth best practices. The MENA-OECD Women’s Economic Empowerment Forum has become an effective platform to join efforts that contribute to these objectives.” Marie-Claire Swärd Capra, Ambassador of Sweden to Algeria and co-Chair of the MENA-OECD Women’s Economic Empowerment Forum

“The past years have witnessed close and active co-operation between the Arab Republic of Egypt and the OECD on a wide range of priority topics. The MENAOECD Initiative in particular has provided a unique knowledge-sharing platform with renewed opportunities for exchange of views and insights on a number key development issues, particularly in light of the progress being achieved under Egypt’s ongoing and bold economic reform program. Co-chairing the MENA-OECD Women’s Economic Empowerment Forum, launched in Cairo in 2017, has been both a privilege and an opportunity to promote women’s economic empowerment in the region and help raise awareness on the importance of unleashing their full potential to maximise their contribution to the economy. We look forward to enhanced co-operation and an even stronger partnership with OECD.”   Dr Sahar Nasr, Minister of Investment and International Cooperation, Arab Republic of Egypt

“Through its MENA-OECD Initiative, the OECD has worked actively with the region since 2005 to advance gender equality in public and economic life. I am particularly proud of two action-oriented platforms that this Initiative has created: the Women in Government Platform and the Women’s Economic Empowerment Forum. During the latest meeting of the latter, which took place in November 2018 in Tunis, I noted that momentum for change is building across the region. Important legal reforms are underway in many countries. The number of women engaged in politics is increasing. The level of women’s education in the region is high (often surpassing OECD averages in areas such as STEM at the tertiary level). However, this does not yet translate into the workforce, and violence against women remains significant. We need to take forward our work in the region, by better understanding the concrete actions needed to overcome the multiple barriers facing women, improving data collection on women’s economic participation in the region, and better mainstreaming gender so that no policy areas remain “genderblind.” Gabriela Ramos, OECD Chief of Staff and Sherpa to the G20

A SUSTAINABLE AND INCLUSIVE GROWTH AGENDA . 35


Increasing agricultural productivity and food security In the face of volatile food prices, rapid population growth, and climate change, governments are increasingly recognising the value of greater investment in agricultural research and development as an essential element to increase agricultural productivity. The OECD supports countries in improving innovation, sustainability and competitiveness for commercial and smallholder farmers alike.

international trade through the simplification, harmonisation and implementation of globally-agreed certification procedures. www.oecd.org/agriculture www.agri-outlook.org

Agriculture in the Arab world is a quite diverse sector, whose contribution to GDP ranges from more than 14% in Egypt and Morocco to less than 1% in Kuwait and United Arab Emirates. The size of the rural population is likewise diverse, ranging from just above 1% in Qatar to almost 68% in Yemen. With high population growth rates and limited areas of arable land and water resources, the region is facing a clear challenge: how to ensure reliable access to nutritious sources of food. While the region is a net importer of agricultural products – and thus dependent on trade for its basic needs in cereals, cooking oil and sugar, for example – border protection for agricultural products in some economies remains high. The OECD advises governments on moving toward targeted policy instruments that are tailored to specific objectives, equitable and minimally production- and trade-distorting.

Agricultural Policy Monitoring and Evaluation 2018 This report is the 31st in the series of OECD reports that monitor and evaluate agricultural policies across countries, and the 6th report to include all 35 OECD countries, the 6 non-OECD EU Member States and a set of emerging economies: Brazil, the People’s Republic of China, Colombia, Costa Rica, Kazakhstan, the Philippines, the Russian Federation, South Africa, Ukraine and Viet Nam. This annual report is a unique source of up-to-date estimates of support to agriculture and uses a comprehensive system of measuring and classifying support to agriculture – the Producer and Consumer Support Estimates (PSEs and CSEs), the General Services Support Estimate (GSSE) and related indicators. These estimates provide insight into the increasingly complex nature of agricultural policy and serve as a basis for OECD’s agricultural policy monitoring and evaluation. Detailed data and documentation for the calculation of support are available on line www.oecd.org/agriculture/PSE.

Agricultural Policy Monitoring and Evaluation 2018

Comprehensive country chapters and the Statistical Annex containing detailed background tables with indicators of agricultural support are available in electronic form at the publication website http://dx.doi.org/10.1787/agr_pol-2018-en.

Consult this publication on line at http://dx.doi.org/10.1787/agr_pol-2018-en.

OECD‑FAO Agricultural Outlook 2018‑2027

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

36 . ACTIVE WITH MENA

isbn 978-92-64-30234-1 51 2018 06 1 P

9HSTCQE*dacdeb+

SpECiAl FOCuS: MiDDlE EASt AnD nOrth AFriCA

OECD‑FAO Agricultural Outlook 2018‑2027

Egypt, Morocco and Tunisia are adherents to several of the OECD Agricultural Codes and Schemes. The Codes facilitate

Agricultural Policy Monitoring and Evaluation 2018

The OECD and the Food and Agriculture Organisation of the United Nations (FAO) annually publish the OECD-FAO Agricultural Outlook, which assesses agricultural trends in OECD and selected non-OECD counties. The current edition of the report provides world market trends for biofuels, cereals, oilseeds, sugar, meats, fish and dairy products over the 20182027 period and contains an evaluation of recent developments, key issues and uncertainties in those commodity markets.

SCAN TO READ THE REPORTS


SUSTAINABLE GROWTH

Fostering better data for better policies High-quality and reliable statistics are critical for informing the development of effective policies and for monitoring and measuring the implementation, impact and effectiveness, of development policies, which can in turn ensure an effective and targeted use of valuable strategic resources. The OECD plays a leading role in developing comprehensive and internationally comparable data and promotes the adoption of international statistical standards across its members and partners.

of communities. The OECD Better Life Initiative builds on a framework distinguishing between well-being “here and now” and the resources needed to sustain it over time. It encompasses a bi-annual report, How’s Life?, which monitors and benchmarks the performance of OECD members and (selected) partner countries through:

Recent years have seen significant improvements in the capacities of MENA economies and their development of legal frameworks supporting the development of robust national statistical offices. Evidence also points to considerable differences across the region in key statistics required for sound policy making and, in particular, in developing robust development strategies that can deliver broad based and inclusive growth. On average, MENA countries are present in 26% of the OECD’s most important indicators. This includes well-known indicators such as TiVA, PISA, or indicators referring to trade or tourism, among many others. However, this 26% hides the heterogeneous participation at the country level. For example, Saudi Arabia leads MENA’s presence, appearing in 78% of these indicators, while other economies appear only in roughly 10% of them.

l methodological guidelines to gather better measures in

In 2019, the MENA-OECD Competitiveness Programme organised the MENA-OECD Regional Conference on Statistics to discuss a common strategy for developing better statistics on competitiveness and other relevant policy areas. This conference also enjoyed the support of the Partnership in Statistics for Development in the 21st Century (PARIS21), which works on supporting National Strategies for the Development of Statistics (NSDS) in MENA economies. Since 2011, the OECD has played a leading role in developing well-being metrics which could be used, alongside more traditional economic indicators, to assess the well-being of people and the health

l dashboards of indicators relating to average well-being

outcomes, inequalities thereof, and resources for the future,

areas that are not yet well-covered by official statistics (such as trust, subjective well-being, quality of the working environment and wealth inequalities),

l a dedicated online interactive tool (the OECD Better Life

Index) that allows users to build their own measure of countries’ aggregate well-being performance based on their own choices on the importance of various dimensions. This stream of OECD work focuses on developing better wellbeing measures and on bridging the gap between well-being metrics and policy uses. Outreach is a significant component of this stream of OECD work. In this context, the OECD participates at the Global Happiness Council, supported by the United Arab Emirates, leading the Council thematic group on Measurement and Evaluation. As part of this work, the OECD authored a chapter of the 2018 Global Happiness Policy Report, published by the UN Sustainable Development Solutions Network. A follow-up report, to be included in the 2019 edition of the Global Happiness Policy Report and presented at the 2019 World Government Summit in Dubai, will focus on the tools and mechanisms that can support the policy use of well-being indicators, and on ways to overcome barriers to implementation.

A SUSTAINABLE AND INCLUSIVE GROWTH AGENDA . 37


Fostering better data for better policies

As part of OECD outreach activities in this field, OECD experts participated in the expert meeting on Designing a Governance Indicator Framework for the Arab Region organised by UNDP in Beirut in 2018. The event, which took place under the umbrella of the UN Praia City Group on Governance Statistics, aimed at making regionally-relevant governance data available through the Arab Development Portal website and its SDG 16 tracking tool. OECD experts presented the recent work by the Organisation on measuring trust in institutions through household surveys (the 2017 OECD Guidelines on Measuring Trust) and the Trustlab platform, which combines games from experimental economics and behavioural sciences with traditional survey questions to assess people’s trust in others and in government.

Global Happiness and Wellbeing Policy Report 2019

Global Council for Happiness and Wellbeing

How’s Life? 2017

Measuring WeLL‑being

How’s Life? charts the promises and pitfalls for people’s well-being in 35 OECD countries and 6 partner countries. It presents the latest evidence from 50 indicators, covering both current well-being outcomes and resources for future well-being, and including changes since 2005. During this period there have been signs of progress, but gains in some aspects of life have been offset by losses elsewhere.

How’s Life? 2017

This fourth edition highlights the many faces of inequality, showing that gaps in people’s achievements and opportunities extend right across the different dimensions of well-being. It exposes divisions according to age, gender, and education, and reveals pockets of inequality in all OECD countries. It also brings to light the many well-being disadvantages that migrants face in adapting to life abroad. Additionally, the report examines governance as seen from the citizen’s perspective, revealing gaps between public institutions and the people they serve. Finally, it provides a country-by-country perspective, pinpointing strengths, challenges and changes in well-being over time in 41 country profiles.

Measuring WeLL‑being

How’s Life? is part of the OECD Better Life Initiative, which features a range of studies and analysis about people’s well-being and how to measure it, and includes the interactive Better Life Index website.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

Measuring WeLL‑being

Consult this publication on line at http://dx.doi.org/10.1787/how_life-2017-en.

How’s Life? 2017

https://paris21.org/ www.oecd.org/statistics/better-life-initiative.htm www.oecd.org/statistics/measuring-well-being-and-progress.htm9HSTCQE*cgffhi+ www.oecdbetterlifeindex.org www.happinesscouncil.org

SCAN TO READ THE REPORTS

isbn 978‑92‑64‑26557‑8 30 2017 01 1 P

OECD Guidelines on Measuring Trust OECD Guidelines on Measuring Trust

The Statistical Capacity Development Outlook 2019, a new flagship series produced by PARIS21, provides a snapshot of trends and current issues in statistical capacity development. The report consists of four chapters. Chapter 1 provides an overview of the report. Chapter 2 summarises trends and assesses global performance in different areas of statistical capacity. Chapter 3 reviews how the concept of statistical capacity is evolving to adjust to the new data ecosystem and explores recent approaches to measuring it. Finally, Chapter 4 highlights recent developments in understanding and measuring data use. The report aims to guide future efforts to develop capacity within and across national statistical systems and co-ordinate efforts among development partners.

STATISTICAL CAPACITY

DEVELOPMENT

Visit: https://paris21.org/flagship/2019

OUTLOOK 2019

The report is accompanied by the Statistical Capacity Monitor, a comprehensive and accessible online platform providing the most relevant and publicly available indicators on statistical capacity. Visit: https://www.statisticalcapacitymonitor.org/ Table of contents Chapter 1. Overview Chapter 2. Recent trends in statistical capacity development Chapter 3. A revised approach to assessing statistical capacity in the new data ecosystem Chapter 4. Developing capacity for the more effective use of statistics

www.PARIS21.org @contactPARIS21

38 . ACTIVE WITH MENA

© Jorge Lasca

SCAN TO READ THE REPORTS

PARTNERSHIP IN STATISTICS FOR DEVELOPMENT IN THE 21ST CENTURY


SUSTAINABLE GROWTH

OECD Framework for measuring well-being and progress

CURRENT WELL-BEING

[Populations averages and differences across groups] QUALITY OF LIFE

MATERIAL CONDITIONS

Health status

Income and weath

Work-life balance

Jobs and earnings

Education and skills

Housing

Social connections Civic engagement and governance Environmental quality Personal security Subjective well-being

RESOURCES FOR FUTURE WELL-BEING Sustaining well-being over time through preserving

Natural capital

Human capital

Economic capital

Social capital

A SUSTAINABLE AND INCLUSIVE GROWTH AGENDA . 39


40 . ACTIVE WITH MENA

EFFICIENT AND SOUND MARKETS


EFFICIENT MARKETS

Enhancing the investment environment Investment is an essential component of economic growth. It triggers technology transfers and productivity spill overs, assists human capital formation, fosters trade and improves competitiveness, with positive effects on growth and employment. The OECD and the MENA region actively co-operate to improve investment environments and policies to materialise the important development potential of the region. Investment has not recovered from the global financial shocks, regional political instability that occurred around a decade ago, and lasting tensions and conflicts. Total foreign direct investment (FDI) inflows to the region decreased by more than

65% between 2007 and 2011. While investment slowly improved in the following two years, it has largely stagnated since. Inward FDI flows in 2017 remained 40% less than 2007 flows. The region only accounts for 1.3% of the world’s total FDI, and intra-regional investment flows are weak, reflecting the lack of international and regional integration. To resume with growth and generate jobs – 29% of the region’s young population is unemployed – governments need to attract not only more, but better-quality investment. To achieve this, MENA governments are showing commitment to implement ambitious reforms to create more enabling investment climates. Sweeping legislative and institutional reforms to better promote investment have been undertaken by most MENA economies.

FDI flows to the MENA region have slowed-down in the last decade (FDI, million $ USD) 11,000 Algeria

Egypt

Jordan

Morocco

Lebanon

Palestinian Authority

Libya Tunisia

9,000

7,000

5,000

3,000

1,000

-1,000

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Source: International Labour Organisation, ILOSTAT EFFICIENT AND SOUND MARKETS . 41


Enhancing the investment environment

Egypt, Morocco, Tunisia and Jordan are adherents to the Declaration on International Investment and Multinational Enterprises. The Declaration enshrines countries’ commitment to providing an open and transparent environment for international investment and encouraging positive contributions by multinational enterprises to economic and social progress. For each adherent, the OECD conducts Investment Policy Reviews which look at investment trends, restrictions and policies, and investment promotion and facilitation. Other related areas are covered by the Policy Framework for Investment.

The OECD has also directly supported countries in the implementation of tailored reforms through three projects: Improving the Business and Investment Climate in Iraq, Investment and Competitiveness in Jordan, and Enhancing the Investment Climate in Egypt. The projects supported the design and implementation of reforms and built the capacities of institutions in charge of investment policy, promotion and services. National FDI statistics reviews have also been conducted. www.oecd.org/investment www.oecd.org/investment/investment-policy/ oecddeclarationanddecisions.htm www.oecd.org/mena/competitiveness/investment-and-trade.htm www.oecd.org/mena/competitiveness/promoting-investment-inthe-mediterranean.htm

Building on these OECD instruments, the MENA-OECD Competitiveness Programme’s Working Group on Investment and Trade fosters economic integration, growth and prosperity by: facilitating dialogue among policy makers on trade and investment interconnections and ways to maximise benefits for MENA economies; collecting and analysing statistical trends; monitoring reforms and impact to enhance policy coherence; improving co-operation with all stakeholders and national coordination; and helping economies integrate regional and global value chains.

ENHANCING THE LEGAL FRAMEWORK FOR SUSTAINABLE INVESTMENT Lessons from Jordan

Over the last few years, Jordan has been challenged by an unstable and fragile regional context and has engaged in a global reform agenda to enhance its economic growth and stability. Jordan is actively committed to improving its business and investment environment. Major legal and institutional investment reforms undertaken in this context include the adoption of a modernised Investment Law in 2014 and creation of a unified Investment Promotion Agency. To guarantee long-lasting impact, all of these measures require efficient implementation.

Under the Jordan Investment and Competitiveness Project (2014-2017), the OECD supported the reforms of Jordan’s domestic investment legal framework, which focused on investors’ protection and the revision of the FDI restrictions regime. The Project also built capacities among investment policy stakeholders, and delivered advice and training to help modernise the Jordanian international investment framework. Enhancing the legal framework for sustainable investment: Lessons from Jordan presents an analysis of the recent investment reforms and the lessons learnt in the process. It demonstrates that, despite a complex environment, building a more conducive investment climate in support of inclusive growth is possible.

Project Insights

ENHANCING THE LEGAL FRAMEWORK FOR SUSTAINABLE INVESTMENT : LESSONS FROM JORDAN

The OECD also implements the EU-OECD Programme on Promoting Investment in the Mediterranean which supports efforts to boost the quality and quantity of investment to and within the region. Working in partnership with governments and the private sector, it engages in regional and national actions to create more robust and coherent investment policies and strategies, including: modernising investment policies; promoting inclusive investment strategies; increasing the region’s investment promotion capacities; building institutional capacity through peer learning; promoting networking between investment promotion agencies; enhancing public-private dialogue for more inclusive policy making; and engaging the business sector responsibly.

Enhancing the Legal Framework for Sustainable Investment Lessons from Jordan

SCAN TO READ THE REPORT

www.oecd.org/mena

www.oecd.org/mena/competitiveness

GLOBAL RELATIONS

Middle East and North Africa

42 . ACTIVE WITH MENA


EFFICIENT MARKETS

Promoting trade and integration in global value chains International production, trade and investment are increasingly organised within global value chains (GVCs) in which the different stages of the production process are located across different countries. OECD analysis and recommendations help OECD members and non-members, including in the MENA region, increase and improve their participation in GVCs. Trade in intermediate inputs makes up over 50% of goods and 70% of services trade. As a result, GVCs challenge how we understand globalisation and raise questions about how policies in a broad range of areas should be developed. The OECDWTO Trade in Value Added (TiVA) initiative was developed to generate new insights about commercial relations among economies and the process of value creation. The 2018 edition

of TiVA indicators covers 64 economies, including Morocco, Saudi Arabia and Tunisia, 36 industrial activities and the period 2005 to 2015. Further efforts are being made to improve country coverage and provide new insights on the scale of regional value chains in the MENA region. These activities are also useful to explore the scope to improve statistical information systems in order to provide insights into the more complex dynamics of GVCs, for example concerning the role of FDI, the integration of SMEs, skills, jobs and the contribution of knowledge based capital. OECD work underscores that GVCs impact an economy’s competitiveness and that investment in skills and knowledge-based assets is increasingly important in helping countries to move up or upgrade in value chains.

EFFICIENT AND SOUND MARKETS . 43


Promoting trade and integration in global value chains

The OECD provides support for the MENA region as economies seek to move up global value chains and enhance the contribution of international investment and trade to their growth agendas. An OECD study on the Participation of Developing Countries in Global Value Chains included analysis of the MENA region. The study found that productivity, export sophistication and export diversification are positively associated with greater participation in GVCs. The study also highlighted the importance of trade and investment liberalisation.

The report Upgrading Global Value Chains through Investment in Tunisia assesses the country’s current integration in GVCs and identifies measures for the modernisation of the legal and institutional framework for trade and investment. The analysis builds on OECD tools such as TiVA and the Policy Framework for Investment. It notes the need for Tunisia to consider the complexity of GVCs in their entirety, including the role of services and the limitations of relying only on the offshore regime.

Foreign value added share of gross exports, 2016 50

Morocco

45

Saudi Arabia

Tunisia

40 35 30 25 20 15 10 5

D0

1 fo T03 re : A str gr y a icu nd ltu fis re, D0 hi 5T ng 0 an 9: D1 M d 0 qu ini be T12 ar ng ve : F ry in o ra o g g D1 d e s a pr 3T nd od 15 to uct ap : Te ba s, pa xt cc re iles D1 l, l , w o ea e 6T th ar 18 er in :W an g d… pr ood o a du nd no D ct p n- 19 s; ap m T2 pr e et 3 in r all : C tin ic he g m m D2 in ic er al 4T al s a fa 25 pr n br : B od d ica a uc te sic d m ts m et et al al s a ele D pr n ct 26T od d ro 2 u ni 7: c a Co cts nd m D2 ele put 8: ct ers ric , M ac al… eq hin ui er pm y a D2 n D3 9T ent, d 30 1T ne :T 33 c r :O eq ansp re ther u o ip r pa m ir an me t an u nt f d a D i c wa 35T nsta turi l n te 39 r s : E latio g; up lec n… pl tri y, ci se ty, D4 we g 1T ra as, ge 43 ,… :C o D4 ns tru 5T 82 ct io :T n ot al de s ec bu fe D t s nc 84 e; T8 or s ines e s ed 8 uc : Pu rvic es at b io lic na a D9 d nd m 0 he in, an T98 alt d :O h pe t rso he na r so l s cia er l vic es

0

Source: OECD (2019), Domestic value added in gross exports (indicator). 44 . ACTIVE WITH MENA


EFFICIENT MARKETS

The OECD has also developed a set of Trade Facilitation Indicators (TFIs) to help governments improve their border procedures, reduce trade costs, boost trade flows, and reap greater benefits from international trade. The TFIs cover the full spectrum of border procedures for over 160 economies, including for 12 economies in the MENA region, allowing governments to devise targeted policies for improved capacity. The TFIs show that in the MENA region, governments could cut costs by up to 17.5% through comprehensive trade facilitation reform. www.oecd.org/trade oe.cd/tiva www.oecd.org/sti/ind/measuring-trade-in-value-added.htm www.oecd.org/sti/ind/tiva-2018-flyer.pdf www.oecd.org/tad/trade-policy-implications-global-value-chains.pdf oe.cd/gvc www.oecd.org/sti/ind/global-value-chains.htm www.oecd.org/dev/global-value-chains.htm

Inclusive Global Value Chains DIREC TIONS IN DE VELOPMENT

Trade

OECD Development Policy Tools

Cusolito, Safadi, and Taglioni

The OECD Development Centre hosts the Initiative for Policy Dialogue on GVCs, Production Transformation and Development. The Initiative is the OECD’s platform for a global dialogue on economic transformation between OECD, emerging and developing economies. It provides structured knowledge sharing and peer learning to help governments transform their economies by harnessing the country’s potential to increase productivity, spur innovation, technological upgrading and digitalisation. Morocco and Egypt are members of the Initiative and actively participate in plenary meetings, allowing countries to exchange on policy experience and engage in peer learning on GVCs integration and upgrading strategies. Within this initiative, the Production Transformation Policy Reviews are the policy tool for assessment and guidance on strategies for economic transformation. They provide an innovative policy and guiding framework to inform policy choices on competitiveness, answering to countries’ increasing concerns with the future of globalisation and industry and their role in global production networks.

Production Transformation Policy Reviews

Inclusive Global Value Chains Policy Options for Small and Medium Enterprises and Low-Income Countries Ana Paula Cusolito, Raed Safadi, and Daria Taglioni

ACTIONS TO SUCCEED IN A CHANGING WORLD

SCAN TO READ THE REPORTS

EFFICIENT AND SOUND MARKETS . 45


Fostering sound competition Fostering sound competition in the MENA economies supports economic diversification and an attractive business climate. A strong competition policy stimulates innovation, contributes to higher productivity, and encourages more inclusive growth. The OECD is working with MENA economies to advance effective competition policies, as many laws and regulations in the region continue to restrict competition in the marketplace. Such anti-competitive regulations hamper productivity and innovation and can raise prices, harming the poorest consumers in particular. Competition legislation is particularly important in countries where markets are highly concentrated and where barriers to imports are high. Competition in MENA economies can be weak because of state-sanctioned monopolies, sectors or markets protected by regulation or because of political influence in the case of state-owned companies or state-dominated markets. These economies need effective competition legislation, strong enforcement institutions and pro-competitive structural reforms. Recently, the OECD has been focusing efforts to deepen relations with competition officials in MENA, particularly in the countries of the Gulf region. A first informal dialogue to

46 . ACTIVE WITH MENA

discuss potential areas of co-operation was held in the margins of the 2018 Global Forum on Competition (GFC). As part of this work, the OECD, UN-ESCWA and UNCTAD are developing their collaboration to enhance support to the region. Egypt is a Participant in the OECD Competition Committee and is a regular contributor to its bi-annual meetings. All of the MENA economies attend the GFC, which brings together high-level competition officials from all around the world, with more than 100 competition authorities represented. The GFC promotes a wider dialogue that encompasses the linkages between competition policy and other aspects of economic


EFFICIENT MARKETS

development, including employment and poverty alleviation. At the same time, the meeting provides delegates with a venue to discuss current and emerging enforcement challenges and strategies. Employing the OECD’s tools and instruments to promote pro-competitive regulatory reform can help MENA economies overcome economic challenges and improve growth. One of the instruments available to governments to develop their competition policies is an OECD Peer Review of a country’s competition law and policy. A Peer Review closely examines a country’s competition regime, assesses strengths and

weaknesses, and sets out policy options and a roadmap for legislative and institutional reform where appropriate. This may be particularly useful for countries that seek to initiate reform. The OECD can also deliver targeted technical assistance. For example, the OECD is currently undertaking a project on competition impact assessment of regulation in Tunisia based on the OECD’s Competition Assessment Toolkit. Training on competition assessment and fighting bid rigging in public procurement, another flagship OECD product, have been delivered in Egypt and Morocco respectively. The OECD regularly hosts meetings of the Africa Competition Forum (ACF), which includes representatives from all of the North African competition authorities. The ACF allows for African competition authorities to exchange experiences and to hold capacity building seminars with an African focus, including North Africa. www.oecd.org/daf/competition www.oecd.org/competition/globalforum/ www.oecd.org/competition/ guidelinesforfightingbidrigginginpublicprocurement.htm

COMPETITION ASSESSMENT TOOLKIT

COMPETITION ASSESSMENT TOOLKIT

1 principles

PRINCIPLES

SCAN TO READ THE REPORT 1

EFFICIENT AND SOUND MARKETS . 47


Improving financial education The importance of financial literacy and the need to promote financial education are globally recognised to improve financial inclusion, foster individuals’ financial well-being and support financial stability.

work of the G20. Established in 2008, the OECD/INFE brings together experts from over 260 public institutions in over 119 economies in order to undertake analytical work, identify good practices and develop policy instruments.

MENA economies promote financial education and inclusion as a tool for economic growth and financial stability, as well as a starting point for more inclusive economies and societies. Lebanon, Jordan, Morocco and Saudi Arabia are developing or implementing a national strategy for financial education in line with the OECD recommendations in this policy area, while other economies include financial education as an important component of financial inclusion initiatives.

Egypt, Lebanon, Morocco, the Palestinian Authority, Qatar and Saudi Arabia are members of the Network. Lebanon has measured the financial literacy levels of its adult population using OECD/INFE instruments. Morocco is a member of the OECD/INFE Working Groups on Digital Financial Literacy and of the Working Group on Standards, Implementation and Evaluation and has contributed to the development of the G20 OECD/INFE Policy Guidance Note on Digital Financial Literacy.

The OECD formulates financial education recommendations through the OECD International Network on Financial Education (OECD/INFE) and through its participation in the

www.oecd.org/finance/financial-education www.oecd.org/finance/financial-education/advancing-nationalstrategies-for-financial-education.htm

NATIONAL STRATEGIES FOR FINANCIAL EDUCATION OECD/INFE Policy Handbook

SCAN TO READ THE REPORTS

48 . ACTIVE WITH MENA


BUDGETING, REVENUE COLLECTION AND EXPENDITURE BUDGETING, REVENUE COLLECTION AND EXPENDITURE . 49


Improving revenue collection and fiscal management Effective and efficient fiscal systems play a fundamental role in providing sufficient resources to overcome economic and social challenges and improve income distribution. The OECD works with the MENA region to improve revenue collection and the redistributive capacity of taxes and expenditure. To date, nine MENA countries (Bahrain, Djibouti, Egypt, Morocco, Oman, Qatar, Saudi Arabia, Tunisia and United Arab Emirates) have joined the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) and participate on an equal footing in developing standards on BEPS-related issues and reviewing and monitoring its consistent implementation. The OECD is currently undertaking projects with Morocco on Improving Connectivity in the Maghreb (2015-19), funded by the Deauville Partnership, and Egypt on Enhancing domestic

resource mobilisation in Egypt through a better tax and exchange of information system (2018-20), funded by the European Union. The projects’ objective is to assist governments mobilise domestic resources to foster sustainable economic growth and income redistribution by improving the design of tax policies, and through greater transparency and international cooperation. A similar project had been undertaken by the OECD in Tunisia on Enhancing Domestic Resource Mobilisation through an Effective Tax System Design and Improved Transparency and International Co-operation (2014-18), funded by the Deauville Partnership. The OECD is also currently assisting Egypt and Tunisia in the implementation of the BEPS measures to protect their tax bases and tackle tax avoidance, in Egypt as part of the above-mentioned project. Statistics on public revenues – and on tax in particular – are essential for designing tax and customs policies, and

Tax levels broken down by main tax categories in Egypt, Morocco and Tunisia in comparison to OECD, Africa and LAC averages 40

Other taxes

35

Other taxes on goods and services

30

5111 Value added taxes

25

2000 Social security contributions (SSC)

20

1200 Taxes on income, profits and capital gains of corporates

15

1100 Taxes on income, profits and capital gains of individuals

10 5 0

OECD average

Tunisia

Morocco

LAC* average

Africa (21) average

Source: Global Revenue Statistics Database 50 . ACTIVE WITH MENA

Egypt

* Latin America and the Caribbean


BUDGETING

Progress report July 2017-June 2018

Revenue Statistics in Africa 1990-2016 Revenue Statistics in Africa Statistiques des recettes publiques en Afrique

Statistiques des recettes publiques en Afrique

SCAN TO READ THE REPORTS

1990-2016

1990-2016

1990-2016

www.oecd.org/ctp/beps/ www.oecd.org/ctp/tax-global www.oecd.org/tax/tax-policy/global-revenue-statistics-database.htm

OECD/G20 Inclusive Framework on BEPS

2018

implementing administrative reforms to improve revenue collection. As the importance of taxation in international trade and development grows, so does the need for comparable tax data. The OECD’s Global Revenue Statistics project provides reliable, detailed, and comparable data on public revenues for more than 90 countries, within and beyond the OECD, of which three are MENA countries (Egypt, Morocco, and Tunisia). This is the largest public source of comparable tax revenue data, serving to facilitate both regional and global comparisons. Egypt, Morocco and Tunisia are part of the annual publication Revenue Statistics in Africa, which includes data on non-tax revenue such as grants and oil revenues to provide a more complete picture of country finances for 21 African countries. All economies from the MENA region are welcome to join the Global Revenue Statistics project.

2018

J Workshop on Transfer Pricing Aspects of Financial Transactions, 18-20 June 2018, Rabat, Morocco. BUDGETING, REVENUE COLLECTION AND EXPENDITURE . 51


Enhancing tax transparency and compliance Tax transparency is a priority for good governance and economic development. The OECD works closely with the G20 on this topic, seeking to motivate and inform effective collective action. The OECD stands ready to support MENA economies in the implementation of reforms in this area. The OECD has developed an international standard on exchange of information on request (EOIR) and more recently an international standard for automatic exchange of information on financial accounts (AEOI). The Global Forum on Transparency and Exchange of Information for Tax Purposes (GFTEI), with more than 150 member jurisdictions, has been ensuring that the high standards of transparency and EOIR are in place around the world through its monitoring and peer review activities. In 2018, more than 100 members of the GFTEI started exchanging information on financial accounts automatically.

The Global Forum has 12 members in the MENA region1 and has in place a number of initiatives to assist them in implementing the international standards on transparency and exchange of information. In particular, its Africa Initiative open to all African countries is aimed at ensuring that African countries take advantage of improvements in international tax transparency to enhance domestic resource mobilisation and fight against illicit financial flows from the continent. www.oecd.org/tax/transparency/

1. Bahrain, Djibouti, Egypt, Kuwait, Lebanon, Mauritania, Morocco, Oman, Qatar, Saudi Arabia, Tunisia and the United Arab Emirates

TRANSPARENCY AND EXCHANGE OF INFORMATION IN THE MENA REGION

Deauville Partnership projects: Tunisia and Morocco

Africa Initiative

Automatic Exchange of Information

lmproving legal framework and organisation to comply with the standards, including the set-up of exchange of information units

Building capacity in transparency and exchange of information

Commitment to implement the AEOI by 2018

Raising awareness on the standards and their importance for the tax administration

52 . ACTIVE WITH MENA

Training tax auditors in effectively using exchange of information to tackle tax evasion


Maintaining fiscal discipline, allocating resources to attain government objectives and achieving greater efficiency in public performance all have a crucial impact on overall national economic development and well-being. The OECD supports MENA economies in strengthening the efficiency and effectiveness of their budgeting and public procurement systems. The OECD carries out research across the full range of budgeting issues through reviews of country budgeting systems, undertakes comparative analyses of specific aspects of the budgeting system across countries, and maintains a comprehensive database on International Budget Practices and Procedures covering 97 countries. The results of this work are published in the OECD Journal on Budgeting.

BUDGETING

Strengthening budgeting and public procurement The OECD Working Party of Senior Budget Officials (SBO) convenes since 1980 to consider latest developments in international budget practice. The MENA-SBO Meeting, hosted annually by a country in the region, is a unique platform for MENA and OECD countries to discuss their challenges and explore ways to modernise governance structures and processes for more efficient, transparent and participatory public financial management (PFM). In recent meetings, OECD and MENA economies discussed the OECD Recommendation on Budgetary Governance and Toolkit for Budget Transparency, as well as a number of shared challenges in the areas of fiscal sustainability assessments or performance evaluation. Recent meetings focused also on how the budget is increasingly recognised as a tool to achieve broader strategic goals of social and economic policy, e.g. how gender budgeting can support advancement of gender equality.

L Meeting of the MENA-OECD Network on Public Procurement in the MENA-OECD Governance Centre in Caserta, 20-21 November 2018. BUDGETING, REVENUE COLLECTION AND EXPENDITURE . 53


Strengthening budgeting and public procurement

The MENA-OECD Governance Programme supported the Tunisian government to implement its public financial management (PFM) reform to improve performance and accountability. This support contributed to the preparation of the Organic Law on Budget, which made performance-based budgeting mandatory across the public administration. Progress in budget transparency has enabled Tunisia to join the Open Government Partnership. In the MENA region public procurement represents a substantial portion of government expenditure, it accounts for between 15 to 25 % of GDP, above the OECD average of 12%. The MENAOECD Network on Public Procurement provides a vehicle for identifying policy priorities, conducting capacity-building events and sharing insights from progress made. The network is cochaired by Egypt and Italy. The activities of the network assist countries in moving closer to international standards including the 12 principles of the OECD Recommendation on Public Procurement. The Network also supports the adoption of e-procurement solutions, with several countries making significant strides in

54 . ACTIVE WITH MENA

this regard. The OECD has been providing training activities on diverse Public Procurement topics as well as additional events targeted to broad anti-corruption issues. The network meets once per year to discuss emerging challenges and enhance the regional dialogue on covering topics of high interest for the region, including: institutional arrangements and set-up for public procurement functions; efficiency tools and centralisation strategies; e-procurement and the use of data; risk management; control mechanism; complementary policy objectives and remedies system. In addition, regional meetings on public procurement and risk management are organised in co-operation with the IMF-CEF Center for Economic and Finance.

www.oecd.org/gov/budgeting www.oecd.org/gov/budgeting/oecdjournalonbudgeting.htmh www.oecd.org/gov/ethics/menaoecdnetworkonpublicprocurement.htm www.oecd.org/mena/governance/efficient-and-effectivebudgeting.htm


PUBLIC AND CORPORATE GOVERNANCE

PUBLIC AND CORPORATE GOVERNANCE . 55


Strengthening rule of law Legal certainty and an efficient regulatory framework are important foundations for social and economic development. The OECD works with the MENA region to enhance the independence and efficiency of the judiciary, improve access to justice and implement regulatory reform. Enhancing the regulatory environment using sound evidence, systematic consultations, regulatory tools and regular reviews of the stock of legislation is a common priority for MENA countries that have often inherited multiple layers of regulation. The OECD has developed a Regional Charter for Regulatory Quality providing MENA countries with a common framework of principles and good practice for regulatory management. MENA countries also benefit from the OECD Recommendation on Regulatory Policy which supports the implementation of regulatory reform to achieve strategic public policy objectives. The Working Group on Regulatory Reform and the Rule of Law of the MENA-OECD Governance Programme provides a forum for MENA countries and international experts to exchange good regulatory practices and mechanisms to strengthen the rule of law. For example, the Working Group assists countries in strengthening legislative drafting skills, using regulatory impact assessments (RIA) and facilitating stakeholder consultations for evidence-based, transparent, efficient and effective regulations. At the country level, the OECD supports the implementation of good regulatory practice in the Abu Dhabi Department of Health. The OECD has supported Egypt, the Palestinian Authority and Kurdistan Regional Government in implementing processes and tools for effective and transparent rule making. This has resulted, among others, in the development of Legislative Drafting Manuals and implementation support for national stakeholders. The OECD also assists MENA countries in enhancing public trust in the justice system by improving the performance of justice institutions, enhancing access to justice and evaluating the use of alternative dispute resolutions. In Egypt, the OECD supports 56 . ACTIVE WITH MENA

the implementation of an automated case management system in the Court of Cassation to reduce case backlog and strengthen the provision of justice services. OECD’s justice work also facilitates the implementation of country commitments under the Sustainable Development Agenda (SDG 16), notably through the links between access to legal and justice services and dimensions of inclusive growth (e.g. health, employment). The Regional Charter for Regulatory Quality provides MENA economies with a common framework of principles and good practices for regulatory management. It recognises effective and efficient justice systems as a prerequisite to build better governance and advance Agenda 2030 for Sustainable Development (SDGs). Within the framework of the UN’s MAPS (Mainstreaming, Acceleration and Policy Support) Engagement, the OECD also provides support to Egypt in strengthening the institutional framework governing the implementation of the SDGs, including SDG 16. In particular, the OECD’s work focuses on fostering vertical and horizontal collaboration across the government to deliver effectively on the SDGs and promoting transparency, accountability and inclusive institutions. www.oecd.org/mena/governance/rule-of-law.htm

Legislation and good governance: The role of legislative drafting manuals Insights for the Egyptian manual for legislative drafting Preliminary version

SCAN TO READ THE REPORT


GOVERNANCE

Combating corruption and strengthening integrity and accountable governance Corruption is a key impediment to economic and social development and a threat to long-term stability. The OECD works with MENA partners in strengthening integrity and transparency, building trust and promoting accountability in the public and private sectors. The MENA-OECD Competitiveness Programme works to strengthen business integrity, improve the effectiveness of anti-corruption strategies in the region and foster transparent public-private dialogue through the MENA-OECD Business Integrity Network (MOBIN). The MOBIN convenes the private sector, governments and civil society to assess challenges and progress in preventing corruption and promoting stronger integrity frameworks through practical tools and innovative solutions. It aims to support the convergence of MENA regulatory frameworks and MENA businesses with internationally-recognised integrity norms, standards and best practices. Its work builds on the OECD Convention on

Combating Bribery of Foreign Public Officials in International Business Transactions, the Recommendation for Further Combating Bribery and the Good Practice Guidance on Internal Controls, Ethics and Compliance. The MENA-OECD Competitiveness Programme also supports countries to implement anti-corruption reforms and promote integrity at the national level. In Morocco in particular the OECD assisted the government, business partners and civil society in promoting business integrity and facilitating the development of collective action initiatives against corruption in the health, transport and energy sectors. The MENA-OECD Governance Programme assists governments, independent institutions, and civil society organisations in promoting integrity and fighting corruption by evaluating integrity frameworks and providing capacity building and implementation support for legal and institutional reforms.

“The OECD is a major ally in our fight against corruption. Together we are addressing both its preventive and coercive side, affecting citizens as well as enterprises, at the central and local level.� J Official visit of Youssef Chahed, Head of the Government of Tunisia, 14 February 2019. PUBLIC AND CORPORATE GOVERNANCE . 57


Strengthening integrity and accountable governance

At the regional level, the Programme provides regional dialogues through the Working Group on Civil Service and Integrity and the MENA-OECD Network on Public Procurement. This work builds on the OECD Recommendations of the Council on Public Integrity and on Public Procurement and has directed regional comparative reports on internal control and risk management, access to information and youth in anti-corruption. The Programme also undertakes country-specific projects. For example, in Tunisia, it provides implementation support to reduce corruption in public service delivery, improve coordination among anti-corruption actors, strengthen internal control and auditing systems, and reinforce transparency and efficiency in public procurement. It also provides assistance at local level to help empower citizens and civil society in their role as watchdogs against corruption. In addition, the OECD Integrity Scan of Morocco: Implementing integrity policies to enhance public trust carried out as part of the Morocco Country Programme provides an assessment of policies and practices related to integrity and the fight against corruption in the public sector. The scan includes recommendations to promote integrity in areas including public administration, public procurement, tax collection, competition and in society as a whole.

Using Risk Assessment in Multi-year Performance Audit Planning

www.oecd.org/corruption www.oecd.org/corruption/ethics www.oecd.org/mena/competitiveness/business-and-integrity.htm www.oecd.org/corruption/integrity-forum/ www.oecd.org/mena/governance/integrity-and-anti-corruption.htm www.oecd.org/corruption/oecdantibriberyconvention.htm www.oecd.org/gov/ethics/menaoecdnetworkonpublicprocurement.htm

OECD Public Governance Reviews

Good Governance and Anti-Corruption in Tunisia Project Highlights – January 2019

Good Governance and Anti-Corruption in Tunisia 1

58 . ACTIVE WITH MENA

The OECD organises training seminars on integrity for public and private sector representatives from across the MENA region. The seminars are hosted and supported by the IMF Middle East Centre for Economics and Finance (IMF-CEF) in Kuwait City. They present good practices and tools to strengthen integrity. Focus areas include the role of the judiciary and independent institutions (such as anti-corruption agencies), and engaging the private sector in corruption prevention through effective compliance programmes, internal control systems and collective action against corruption, as well as the links between anti-corruption and anti-money laundering.

SCAN TO READ THE REPORTS

Internal Control and Risk Management for Public Integrity in the Middle East and North Africa


GOVERNANCE

L Annual meeting of the MOBIN, 6 December 2019, Paris, France. PUBLIC AND CORPORATE GOVERNANCE . 59


Building open and innovative governments Greater transparency and public participation lead to better policies and services and promote public sector integrity. This is essential to strengthen the trust of citizens in the public administration and to trigger more inclusive growth. Open government is a fundamental element of a democratic society and a people-focused public administration. MENA countries have embarked upon open government initiatives to reform their public sectors and are moving closer to the OECD Recommendation of the Council on Open Government. Jordan, Morocco and Tunisia joined the Open Government Partnership (OGP) underlying their commitment for more open, transparent, accountable and participatory policy making. The OECD assists Jordan, Lebanon, Morocco, Tunisia and the Palestinian Authority in assessing institutions, policies and practices supporting the implementation of open government principles at national and local levels. The OECD also supports MENA countries in the implementation of their OGP National Action Plans and open government commitments such as in Tunisia through Citizen Charters. Through Open Government Reviews, the OECD provides comprehensive assessments of legal, institutional, policy and implementation frameworks

Towards a New Partnership with Citizens JORDaN’s DECENTRalisaTiON REfORm

SCAN TO READ THE REPORTS

SECtOR in MOROCCO

60 . ACTIVE WITH MENA

OECD Public Governance Reviews

LayinG thE FOunDatiOnS FOR thE DiGitaL tRanSFORMatiOn OF thE PubLiC

TRENDS.OECD-OPSI.ORG

JORDaN’s DECENTRalisaTiON REfORm

FEBRUARY 2019

Towards a New Partnership with Citizens

Global Trends 2019

The digital transformation of the public sector is creating a new public policy environment for governments and creates implications for overall public sector governance frameworks. This transformation requires governments to take a user-driven approach, empowering citizens and business to interact and collaborate with the public sector to express and contribute to addressing their own needs. Mobilising digital technologies strategically to deliver greater public sector performance

Digital Government Review of Morocco OECD Digital Government Studies

OECD Public Governance Reviews

EMBRACING INNOVATION IN GOVERNMENT

against OECD instruments and good practices in the fields of open and inclusive policy making, digital government and public sector innovation. Thematic reviews on open government practices of municipalities, the role of public communication and media ecosystems for transparency and participation, and access to information frameworks further support countries in strengthening the implementation of their open government reforms. The OECD also supports MENA economies in assessing and strengthening the capacities of public institutions for more open, effective and accountable local authorities able to accompany decentralisation processes, answer citizens’ needs, and encourage citizens’ active participation in the decisionmaking process. Finally, countries benefit from innovative open government cases selected through the Open Government Toolkit Navigator.

OECD Digital Government Studies

Digital Government Review of Morocco LayinG thE FOunDatiOnS FOR thE DiGitaL tRanSFORMatiOn OF thE PubLiC SECtOR in MOROCCO


GOVERNANCE

will mean promoting a whole-of-government approach that recognises the use of technologies as a cross-cutting agent in the design and implementation of public policies. The capacity of governments to respond to the digital transformation underway and produce more inclusive, convenient and collaborative processes and services is crucial for securing citizen’s trust. Stressing the importance of using digital technologies to more effectively embed the principles of openness and accountability in public sector reforms, the OECD provides digital government reviews and benchmarking exercises using the Recommendation of the Council on Digital Government Strategies. The online Digital Government Toolkit provides a comprehensive overview of the Recommendation linked to good practice examples of how some technologically advanced governments are sustaining core government functions while exploring the use of technology and data.

from national and regional civil society organisations helps to define the priorities of the regional dialogue. MENA public sector practitioners also benefit from the OECD’s Observatory of Public Sector Innovation (OPSI), a global forum for public sector innovation, helping governments to understand, test and embed new ways of doing things through the application of fresh insights, knowledge, tools and connections. As part of its mission to uncover emerging practices and identify what is next, OPSI has partnered with the UAE and its World Government Summit to conduct global reviews that explore how governments are innovating and taking steps to make innovation a routine and integrated practice across the globe, available at trends.oecd-opsi.org. www.oecd.org/governance/observatory-public-sector-innovation www.oecd.org/governance/digital-government/toolkit

The MENA-OECD Working Group on Open and Innovative Government aligns with these Recommendations and Toolkits in a regional dialogue to deliver more inclusive outcomes benefiting all parts of society, including women and youth. The MENA-OECD Civil Society Advisory Board with representatives

l government policies and practices across OECD provide advice on the use of digital technologies to make , transparent and inclusive.

//dx.doi.org/10.1787/9789264268012-en.

brary, which gathers all OECD books, periodicals and statistical

Benchmarking Digital Government Strategies in MENA Countries

ernment strategies in MENA countries against s. Using the OECD Recommendation of the Council s analytical framework, the report provides e by Egypt, Jordan, Lebanon, Morocco, Tunisia e digital technologies strategically to support broader s can help foster economic value creation, make institutions eness and promote effective decision-making in the public e use of ICTs to strengthen trust in government through , and suggests how MENA countries can better co-ordinate of the public sector.

OECD Digital Government Studies

Studies

ital Government Strategies s

OECD Digital Government Studies

Benchmarking Digital Government Strategies in MENA Countries

RIGHT RIGHT RIGHT RIGHT

TO TO TO TO

ACCESS ACCESS ACCESS ACCESS

INFORMATION INFORMATION INFORMATION INFORMATION

The right to access information guarantees everyone the right of access to all information and documents related to the management of public affairs regardless of the status of the concerned person and the purpose for obtaining the required information.

RIGHT RIGHT RIGHT RIGHT

SCAN TO READ THE REPORTS

TO TO TO TO

ACCESS ACCESS ACCESS ACCESS

INFORMATION INFORMATION INFORMATION INFORMATION

The right to access information guarantees everyone the right of access to all information and documents related to the management of public affairs regardless of the status of the concerned person and the purpose for obtaining the required information.

nformation.

iSBN 978-92-64-26800-5 42 2016 47 1 P

9HSTCQE*cgiaaf+

PUBLIC AND CORPORATE GOVERNANCE . 61


Raising the bar on corporate governance of private and state-owned enterprises Effective corporate governance policies can help countries attract higher levels of investment and boost private sector development. By creating an environment of trust, transparency and accountability, good corporate governance is also crucial to develop sound domestic capital markets that can help countries finance investment in the real economy. The OECD works closely with MENA jurisdictions to strengthen corporate governance standards for listed companies and state-owned enterprises.

The Working Group’s activities draw upon the G20/OECD Principles of Corporate Governance and the OECD Guidelines for Corporate Governance of State-Owned Enterprises, which provide international standards for creating trust and good corporate governance in business. The Principles and Guidelines do not prescribe a one-size-fits-all approach. Instead, they provide a tool that can be adapted to different legal, social and economic contexts, drawing on a wealth of global experience.

The MENA-OECD Working Group on Corporate Governance supports the development of sound corporate governance frameworks to boost competitiveness, promote private sector development and attract capital. This work builds on governance reform efforts and progress made in the MENA region using international standards as a benchmark to support implementation of the region’s policy priorities. In this context, the OECD provides policy advice underpinned by comparative analytical work with a view to support policy formation and implementation at national and regional level in MENA economies. To achieve this objective, the Programme promotes policy dialogue and consensus building through the exchange of experiences and good practices as well as capacity building to identify, implement and monitor corporate governance reforms that may affect the business climate.

FOR COMPETITIVENESS AND GROWTH

Corporate Governance in MENA BUILDING A FRAMEWORK FOR COMPETITIVENESS AND GROWTH

2018

2019

Phase 1 Recognise challenges

Phase 2 Identify policy options for reform

Phase 3 Develop strategies for implementation

OECD Guidelines on Corporate Governance of state-Owned Enterprises, 2015 Edition

G20/OECD Principles of Corporate Governance Corporate Governance

2017

The G20/OECD Principles of Corporate Governance help policy makers evaluate and improve the legal, regulatory, and institutional framework for corporate governance. They also provide guidance for stock exchanges, investors, corporations, and others that have a role in the process of developing good corporate governance. First issued in 1999, the Principles have become the international benchmark in corporate governance. They have been adopted as one of the Financial Stability Board’s Key Standards for Sound Financial Systems and endorsed by the G20.

G20/OECD Principles of Corporate Governance

Contents Recommendation of the Council on Guidelines on Corporate Governance of State-Owned Enterprises About the Guidelines Applicability and definitions I. Rationales for state ownership

SCAN TO READ THE REPORTS

This 2015 edition takes into account developments in both the financial and corporate sectors that may influence the efficiency and relevance of corporate governance policies and practices.

II. The state’s role as an owner

III. State-owned enterprises in the marketplace

IV. Equitable treatment of shareholders and other investors V. Stakeholder relations and responsible business Corporate Governance in MENA

VI. Disclosure and transparency

Consult this publication on line at http://dx.doi.org/10.1787/9789264236882-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

G20/OECD Principles of Corporate Governance

BUILDING A FRAMEWORK FOR COMPETITIVENESS AND GROWTH

i.org/10.1787/2a6992c2-en.

which gathers all OECD books, periodicals and statistical databases. mation.

VII. The responsibilities of the boards of state-owned enterprises Annotations to the Guidelines

Consult this publication on line at http://dx.doi.org/10.1787/9789264244160-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

ISBN 978-92-64-78979-1

9HSTCQE*hijhjb+

isbn 978-92-64-23687-5 26 2015 02 1 P

62 . ACTIVE WITH MENA

isbn 978-92-64-24412-2 26 2015 06 1 P

OECD Guidelines on Corporate Governance of state-Owned Enterprises, 2015 Edition

is essential for MENA economies as they strive to boost economic uild prosperous societies. The G20/OECD Principles of Corporate Corporate Governance of State-Owned Enterprises are a reference port assesses the corporate governance landscape in the MENA osing policy options for reform. The findings of the report are based four thematic areas: boosting access to finance and capital markets, hieving gender balance in corporate leadership and enhancing s in MENA. Overall, the report finds that MENA economies have governance frameworks in recent years, but that the region still faces corporate governance measures that support economic efficiency,

Corporate Governance

nce in MENA

The three phases for the MENA Working Group on Corporate Governance

OECD Guidelines on Corporate Governance of state-Owned Enterprises 2015 EDiTiOn


GOVERNANCE

The activities of the Working Group are carried out in close co-operation with regional partners such as the Union of Arab Banks, the Arab Federation of Exchanges and the Union of Arab Securities Authorities, as well as national institutes of corporate directors, corporate governance centres, individual companies, investors and stakeholders. The Working Group also benefits from the experiences of similar regional OECD initiatives in Asia and Latin America. Portugal hosted the 2018 meeting of the Working Group in Lisbon, accompanied by the United Arab Emirates as co-chair. The meeting objectives were to strengthen the commitments of MENA economies, discuss thematic policy options and advance in policy reforms to support decision makers in their efforts to improve corporate governance. Delegates participated as part of phase two of the programme relaunch to identify policy options for reform. Phase one in 2017 was the identification of challenges to develop corporate governance frameworks in the region, and phase three for 2019 will be the development of strategies for implementation. In 2017, four key themes were identified: capital market development and access to finance, disclosure practices and transparency, gender balance in corporate leadership, and corporate governance reform of state owned enterprises in the region. Focus groups covering these topics were established comprising regional experts, who worked with the Working Group to identify challenges and develop policy options for reform. The report Corporate Governance in MENA: Building a Framework for Competitiveness and Growth covers the three phases of work and results of the thematic work with the focus groups. www.oecd.org/mena/competitiveness/mena-corporategovernance.htm

Extent of conflict of interest regulation index (0-10) Qatar

2

Libya

3 3.3

Algeria

3.7

Jordan

4.3

Yemen Egypt

4.7

Iraq

4.7 5

Lebanon Regional Average

5.2

Oman

5.3

Latin America and the Caribbean

5.4

Bahrain

5.7

East Asia and the Pacific

5.7

Palestinian Authority

5.7

Tunisia

6

Kuwait

6

Morocco

6

Europe and Central Asia

6.2

South Asia

6.4

OECD

6.5

Saudi Arabia

7.3

United Arab Emirates

7.7 8.7

Djibouti 0

2

4

6

8

10

Source: World Bank, Doing Business 2019. PUBLIC AND CORPORATE GOVERNANCE . 63


Risk management

Risk management is essential to promote better public governance frameworks and achieve improved economic performance. Citizens and businesses have high expectations of governments to provide safety and security, and to effectively manage negative consequences of exogenous shocks. In a context where the economic, environmental, technological and societal trends that drive major risks are quickly evolving, governments must adapt to new vulnerabilities, including in the MENA region. The OECD High Level Risk Forum provides policy makers with a collaborative platform to improve preparation for large scale shocks to the economy and society. The OECD Recommendation on the Governance of Critical Risks sets the standard for risk governance. Morocco and Tunisia’s adherence to this instrument in May 2014 demonstrates the interest of the MENA region to update risk management policies and increase their resilience, as highlighted at the 14th Annual Conference of the Arab League Development Organization on Cooperation in Establishing Resilience toward Global Risks in the Arab Region.

The OECD launched in 2016 the OECD Review of Risk Management Policies in Morocco. Based on a peer review process, this report provides targeted policy advice and identifies novel practices to strengthen the management of critical risks in the country. The OECD now supports Morocco’s implementation of the Reviews’ recommendations with targeted policy advice and capacity-building activities. This review could serve as a basis for future analyses of risk management policies in the MENA region. The OECD is also in discussions with MENA economies on the possibility of holding regional dialogues to reduce economic risks associated with illicit trade. www.oecd.org/governance/risk www.oecd.org/gov/risk/recommendation-on-governance-ofcritical-risks.htm www.oecd.org/gov/risk/launch-event-improving-themanagement-of-major-risks-in-morocco.htm

OECD Review of Risk Management Policies Morocco

OECD Review of Risk Management Policies Morocco

Meeting of the OECD Council at Ministerial Level Paris, 6-7 May 2014

SCAN TO READ THE REPORTS www.oecd.org OECD Paris 2, rue André-Pascal, 75775 Paris Cedex 16 Tel.: +33 (0) 1 45 24 82 00

64 . ACTIVE WITH MENA

RECOMMENDATION OF THE COUNCIL ON THE GOVERNANCE OF CRITICAL RISKS Adopted on 6 May 2014


EDUCATION, EMPLOYMENT AND INNOVATION EDUCATION, EMPLOYMENT AND INNOVATION . 65


Fostering skills through education and training Governments seeking to design effective policies need evidence that is comprehensive, tailored to a country’s needs and internationally comparable. Growing participation in the OECD’s international education surveys is helping more and more economies in the MENA region address these needs and improve the impact of their education policies. A growing number of MENA economies are participating in the OECD Programme for International Student Assessment (PISA) that assesses 15-year-old students in reading, mathematics and science. PISA, unlike content-based assessments, assesses the extent to which 15-year-old students can apply what they have learned in schools to real life situations. This allows PISA to provide insights into whether students have acquired key competencies that are essential for full participation in the global economy. PISA also provides a wealth of contextual data on school, student- and system-level characteristics that can help policy makers better understand the various factors associated with learning outcomes and how they might be improved. Over 80 economies participate in PISA, including Algeria, Jordan, Lebanon, Morocco, Qatar, Saudi Arabia, Tunisia and the United

Arab Emirates in the latest 2018 edition. More MENA economies are expected to join in the upcoming 2021 edition. In 2018, the OECD organised in collaboration with the Abu Dhabi Department of Education and Knowledge a ministerial meeting to discuss the MENA region’s performance in PISA and how to improve student learning and equity. Ministers of Education and high-level policy makers from all over the MENA region participated alongside policy makers from Estonia, Finland, Shanghai and Spain. The Teaching and Learning International Survey (TALIS) provides information on the working conditions of teachers and learning environments in schools, and insights for improving teacher policy. There is a growing interest for this survey in the MENA region. The United Arab Emirates and Saudi Arabia participated in the 2018 edition of the survey and Jordan is using TALIS released questions in its national teacher survey. The OECD is also providing tailored advice on education and skills policy to individual MENA countries and encouraging peer learning in the region.

PISA 2015 results for MENA countries Algeria

Jordan

Lebanon

Qatar

Tunisia

United Arab Emirates

OECD average

Mean performance in science

376

409

386

418

386

437

493

Percentage of low achievers (students below level 2) in science

70.8

49.8

62.6

49.8

65.9

41.8

21.2

Score-point difference in science associated with a one-unit increase in the ESCS index*

8

25

26

27

17

30

38

Note: The ESCS index is the PISA index of economic, social and cultural status. Source: OECD, 2016, PISA Dataset 66 . ACTIVE WITH MENA


EDUCATION & INNOVATION

of ideas and experiences between Saudi teachers and their colleagues from abroad, using OECD data to support discussions.

Photo: Arne Hoel / World Bank

The OECD undertook a review of evaluation and assessment policies in education in Morocco. The review published in July 2018, highlighted the strengths and challenges of Morocco’s policies and practices in the areas of student assessment, teacher appraisal, school evaluation and education system evaluation. It also provided concrete recommendations on how the country can improve its evaluation and assessment system to meet the goals of its Education Strategy (Vision 2030). The OECD is also currently working with the Ministry of education in Saudi Arabia to conduct a review of Saudi Arabia’s policies and of the intended educational reforms with a focus on school performance management, teacher appraisal, early childhood education and early literacy, and curriculum and assessment. The OECD provides technical support to countries by contributing to teacher training forums. The OECD organised with the Crown Prince Court of Abu Dhabi the Global Qudwa Forum 2017: Teaching for Tomorrow which brought together over 800 educators from all over the United Arab Emirates and 13 countries to learn and exchange about effective teaching practices. Following the success of Qudwa, the OECD organised a similar Forum in Saudi Arabia in 2018,. The Forum acted as an open space for the exchange

The OECD organises in collaboration with the Arab Bureau for Education in the Gulf States a peer-learning workshop series on education policies. The workshops convene policy makers from Ministries of education from Arab Gulf States as well as from OECD countries. From 2016-17, these workshops focused on policy lessons from PISA and assessment for learning, while the 2019 workshop focused on school evaluation and monitoring. www.oecd.org/pisa www.oecd.org/edu/school/talis.htm

PISA 2015 Results EXCELLENCE AND EQUITY IN EDUCATION VOLUME I

PISA P

r

o

g

r

a

m

m

e

f

o

r

I

n

t

e

r

n

a

t

i

o

n

a

l

S

t

u

d

e

n

t

A

s

s

e

s

s

m

e

n

t

SCAN TO READ THE REPORT

EDUCATION, EMPLOYMENT AND INNOVATION . 67


Enhancing youth skills, employability and inclusion The MENA region registers one of the highest rates of youth unemployment in the world and youth frequently express little trust in government. In some countries nearly one out of two young people, especially young graduates are out of jobs while opportunities for meaningful engagement of young men and women in public life are often absent. Providing youth with tailored services to successfully transit to adulthood, equipping them with relevant skills, and removing barriers to their employment are priorities for most economies in the region. The OECD Action Plan for Youth provides a framework to adopt strategic perspectives to develop education systems and labour market arrangements that work better for young people. The report Investing in Youth: Tunisia, provides a detailed diagnosis of the youth labour market in Tunisia, including a focus on vocational education, training and entrepreneurship, within the context of Tunisia’s transition to a green economy. It takes an international comparative perspective, offering policy options to help improve school-to-work transitions. The report also provides an opportunity for other countries to learn from the

innovative measures that Tunisia has taken to strengthen the skills of youth and their employment outcomes. In the framework of the Youth in Public Life project, the OECD supports Jordan, Morocco and Tunisia in bringing public policies and services closer to young people’s needs. Based on an assessment of the policy, institutional and legal context in each country (forthcoming), and the capacity of governments to deliver on the concerns of young people, including marginalised groups, the project provides opportunities for peer-to-peer dialogue, regional knowledge exchange and targeted implementation support. In Jordan, a national programme was set up for young people to run their own initiatives through local youth centres; in Tunisia, efforts materialised in the creation of local youth councils which operate based on a participatory approach; and in Morocco, the project resulted in the elaboration of guidelines for inclusive youth participation at local level. The annual Regional Youth Day, organised by the MENA-OECD Governance Programme in the context of this collaboration, provides a regular opportunity to share good practices among youth stakeholders from MENA and OECD economies. Findings at the country level

Total and youth unemployment rate (%)

30

Unemployment

25

Youth Unemployment

20 15 10 5 0

East Asia and Pacific

OECD

Sub-Saharan Africa

Latin America and the Caribbean

Source: International Labour Organisation, ILOstat. Latest data available. 68 . ACTIVE WITH MENA

Middle East and North Africa


EDUCATION & INNOVATION

are consolidated in a regional comparative assessment entitled “7 Key Findings from the Youth Governance Survey�.

Youth Well-being Policy Review of Jordan

Under the Youth Inclusion Project, the OECD analysed policies for youth in nine developing and emerging economies, including Jordan in the MENA region. The project took a multi-sectoral approach to support countries in better responding to the aspirations of young people and strengthening youth involvement in national development processes. The project shed light on what determines youth vulnerabilities and successful transitions, in particular from school to work. It also strengthened national capacities to design evidence-based policies that promote youth inclusion and youth well-being. Youth in the MENA Region How to BRiNg tHEM iN Contents

Youth in the MENA Region

Chapter 1. Readjusting public governance frameworks towards youth demands and inclusive growth Chapter 2. A glance at youth in the MENA region

Chapter 3. Towards a public governance framework for effective and inclusive youth engagement

How to BRiNg tHEM iN

Chapter 4. Open government: A lever to engage youth

Chapter 5. Mainstreaming youth considerations in public governance

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

How to BRiNg tHEM iN

Consult this publication on line at http://dx.doi.org/10.1787/9789264265721-en.

Youth in the MENA Region

The Youth Well-being Policy Review of Jordan, published by the OECD as part of the Youth Inclusion Project, provides a full diagnosis on the situation of young Jordanians using a well-being lens and a multi-dimensional approach covering critical areas such as 9HSTCQE*cgfhdi+ education and skills, employment, health, active citizenship and subjective well-being. In particular, the review analyses youth employment challenges and the role of technical and vocational education and training (TVET). The review shows that close to one-third of young people in Jordan are neither in employment nor in education or training, and those who work often take informal jobs that do not match their qualification and receive poor wages. Given the strong growth of medium-skilled professions, TVET can improve youth labour market outcomes. However, improvement of quality, relevance, co-ordination and governance is needed to become an attractive alternative for young Jordanians. The review further provides concrete policy recommendations on how to align the TVET system with the demands from youth and firms.

SCAN TO READ THE REPORTS

isBN 978-92-64-26573-8 42 2016 35 1 P

Strengthening the Employability of Youth during the Transition to a Green Economy

Investing in Youth TUNISIA

www.oecd.org/youth.htm www.oecd.org/dev/inclusivesocietiesanddevelopment/youthinclusion-project.htm www.oecd.org/mena/governance/promoting-youth-inclusionand-empowerment.htm

Investing in Youth TUNISIA

SCAN TO READ THE REPORTS Seven key findings from the Youth Governance Survey

EDUCATION, EMPLOYMENT AND INNOVATION . 69


Building a knowledge economy

Investments in knowledge-based capital (e.g. databases, design, brands and intellectual property) have implications for innovation, productivity growth and increasing living standards. The OECD stands ready to support the increasing number of MENA economies designing and implementing economic diversification strategies based on the knowledge economy.

performance across a number of thematic areas in OECD countries and major emerging economies, including Egypt. The STIP Compass is a joint initiative of the EC and the OECD to collect together in one place quantitative and qualitative data on national trends in STI policy. STIP Compass is the new generation semantic platform for storing, accessing and linking country policy data.

OECD support to the region can be guided by tools such as the Innovation Strategy 2015 and the report The Innovation Imperative: Contributing to Productivity, Growth and Well-Being. These tools set out a concrete agenda to strengthen innovation performance and put it to use for stronger, greener and more inclusive growth for countries at all levels of development. It sets out five priorities for policy makers that together provide the basis for a comprehensive and action-oriented approach to innovation: i) strengthen investment in innovation and foster business dynamism, ii) invest in and shape an efficient system of knowledge creation and diffusion, iii) seize the benefits of the digital economy, iv) foster talent and skills and optimise their use, and v) improve the governance and implementation of policies for innovation. The OECD is currently working on an Innovation Review for Kuwait, to be launched in 2020.

Digital transformation affects different parts of the economy and society in complex and interrelated ways. Impacts manifest themselves not only in sectors as diverse as banking, retail, energy, agriculture, transportation, education or health, but more generally in innovation, business models, markets, as well as in terms of how people connect, communicate, live and work. The OECD Digital Economy Outlook 2017 examines key digital trends in OECD countries and partner economies, and how governments take advantage of digital transformation to meet public policy objectives. It provides comparative evidence on regulatory practices and policy options to help policy makers maximise the potential of digital transformation as a driver for innovation and inclusive growth. www.oecd.org/innovation www.oecd.org/sti/ieconomy https://stip.oecd.org/stip.html

The OECD Science, Technology and Innovation Outlook reviews key trends in science, technology and innovation policies and

ogy and Innovation

oECD Digital Economy outlook 2017

Isbn 978-92-64-30756-8 92 2018 04 1 P

Chapter 2. Innovation today

ConTrIbuTIng To ProduCTIvITy, growTh and well-beIng

Chapter 3. Fostering talent and skills for innovation Chapter 4. The business environment for innovation

SCAN TO READ THE REPORTS

Chapter 5. Knowledge creation, diffusion and commercialisation Chapter 6. Effective innovation policies

Chapter 7. Applying the framework for innovation

Chapter 8. Governance and implementation of innovation policies

This publication is a contribution to the OECD Going Digital project which aims to provide policymakers with the tools they need to help their economies and societies prosper in an increasingly digital and data-driven world. For more information, visit www.oecd.org/going-digital

Making the transformation work for growth and well-being

#goingDigital

Consult this publication on line at http://dx.doi.org/10.1787/9789264276284-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

9HSTCQE*dahfgi+

isBN 978-92-64-27626-0 93 2017 01 1 P

Consult this publication on line at http://dx.doi.org/10.1787/9789264239814-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

Isbn 978-92-64-23980-7 92 2015 04 1 P

9HSTCQE*chgcga+ 922015041.indd 1

70 . ACTIVE WITH MENA

ConTrIbuTIng To ProduCTIvITy, growTh and well-beIng

athers all OECD books, periodicals and statistical databases.

The Innovation Imperative

Chapter 1. The role of innovation and the rationale for public policy

The Innovation Imperative

Making the transformation work for growth and well-being

1787/sti_in_outlook-2018-en.

Contents

oECD Digital Economy outlook 2017

al

ConTrIbuTIng To ProduCTIvITy, growTh and well-beIng

oECD Digital Economy outlook 2017

adaPTIng To TeChnologICal and soCIeTal dIsruPTIon

adaPTIng To TeChnologICal and soCIeTal dIsruPTIon

gital project which aims their economies and en world.

oeCd science, Technology and Innovation outlook 2018

e field, research and innovation statistical data, as well as e use of country responses to the 2017 EC OECD STI policy utions by renowned experts and academics to broaden the ntroversial, angles to it.

The Innovation Imperative

The biennial OECD Digital Economy Outlook examines and documents evolutions and emerging opportunities and challenges in the digital economy. It highlights how OECD countries and partner economies are taking advantage of information and communication technologies (ICTs) and the Internet to meet their public policy objectives. Through comparative evidence, it informs policy makers of regulatory practices and policy options to help maximise the potential of the digital economy as a driver for innovation and inclusive growth.

oeCd science, Technology and Innovation outlook 2018

and soCIeTal dIsruPTIon

utlook 2018 is the twelfth edition in a series that biennially vation (STI) policy in OECD countries and a number of major tion look at a range of topics, notably the opportunities and mpacts of artificial intelligence on science and manufacturing, nnovation. The report also discusses the shortcomings of elopment Goals are re-shaping STI policy agendas, and the s to technology governance and policy design. While these mber of ways, the digital revolution underway also provides n and monitoring.

07-Oct-2015 1:37:15 PM


EDUCATION & INNOVATION

Supporting SME development and entrepreneurship Over the past twenty years, MENA economies have increasingly established the foundations of SME policy as a vital component for inclusive and sustainable economies. There is still much to do to provide a better business environment and more effective targeted support to SMEs and entrepreneurs, especially for women and youth-led businesses. The MENA-OECD Competitiveness Programme’s Working Group on SME and Entrepreneurship Policy is a regional network of policy makers, private sector associations and other stakeholders engaged in reforms to pursue a better business environment and more effective SME support measures. Its mission is to use international tools and good practices to strengthen policies and materialise the development potential of SMEs and entrepreneurs. It recognises the important role that SMEs can play for inclusion by creating jobs and sources of income for millions. It also recognises the positive impact that SMEs can have in productivity growth and competitiveness. The SME Working Group pursues this mission by facilitating policy dialogue, policy analysis for the identification of reforms and building capacity for effective implementation. Since its launch in 2008 the SME Working Group has contributed to tangible results. For example, through extensive and intensive exchanges at the regional and national levels, the

The Mediterranean Middle east and north africa 2018 InTerIM assessMenT oF Key sMe reForMs

The development dimension

sMe Policy Index

The development dimension

sMe Policy Index

sMes in libya’s reconstruction PreParIng For a PosT-ConFlICT eConoMy Contents Chapter 1. Libya’s conflict and implications for private sector development Chapter 2. Libya’s private sector and SME landscape Chapter 3. Framework conditions for private sector development in Libya Chapter 5. Recommendations for SME policies in post-conflict Libya

Building on the knowledge base developed by the SME Working Group and on international experience, the Competitiveness Programme and the International Monetary Fund’s Middle East Centre for Economics and Finance (IMF-CEF) organise yearly capacity-building seminars on Improving Policies and Access to Finance for SMEs. Over the past seven years the seminars have benefited more than 230 SME policy makers and practitioners from 18 MENA economies. The seminars facilitate learning among peers and the dissemination of good international practices. The Competitiveness Programme also supports SME policy development in the context of the Deauville Partnership. It has worked with Arab Countries in Transition in the identification of SME Near-Term Actions identifying concrete activities

The development dimension

sMes in libya’s reconstruction PreParIng For a PosT-ConFlICT eConoMy

Chapter 4. Libya’s SME policies

SME Working Group has performed three full-scale regional studies benchmarking SME policies across the region in 2008, 2014 and 2018. The latest of these assessments is the SME Policy Index: The Mediterranean Middle East and North Africa 2018, which identifies important progress in areas such as access to finance, but also notes the need to improve the evidence base for SME policy making and evaluation of the impact of support. The report is helping several economies across the region to review and redesign their SME policies from a strategic and holistic perspective, considering the important policy linkages with areas such as education, social protection and investment and trade.

sMes in libya’s reconstruction

The Mediterranean Middle east and north africa 2018

SCAN TO READ THE REPORTS

Isbn 978-92-64-26419-9 03 2016 11 1 P

PreParIng For a PosT-ConFlICT eConoMy

InTerIM assessMenT oF Key sMe reForMs

Consult this publication on line at http://dx.doi.org/10.1787/9789264264205-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

9HSTCQE*cgebjj+

EDUCATION, EMPLOYMENT AND INNOVATION . 71


Supporting SME development and entrepreneurship

to promote SME and entrepreneurship as a means to face economic and social instability. The programme is also leading the implementation of Transition Fund projects on SME policies in Libya and Jordan. The SME Development Strategy for Libya project contributes to preparing the ground for private sector development for a postconflict situation in the country by supporting the development of a SME strategy.

The SME Policy effectiveness in Jordan project supports the implementation of the Jordanian SME Strategy for 2016-20. It focuses on strengthening institutional co-ordination, publicprivate dialogue, SME statistics and monitoring and evaluation of policies. www.oecd.org/mena/competitiveness/smes-andentrepreneurship.htm www.oecd.org/regional

Improving business: what needs to be done? Ease of doing business

Starting a business

Dealing with construction permits

Getting electricity

Registering property

Getting credit

Protecting minority investors

Paying taxes

Trading across borders

Algeria

157

150

129

106

165

178

168

156

173

112

76

Bahrain

62

66

57

82

26

112

38

5

77

128

93

Enforcing contracts

Resolving insolvency

Djibouti

99

96

101

119

110

161

2

108

145

140

48

Egypt

120

109

68

96

125

60

72

159

171

160

101

Iran

128

173

86

108

90

99

173

149

121

89

131

Iraq

171

155

103

126

113

186

125

129

181

143

168

Jordan

104

106

139

62

72

134

125

95

74

108

150

Kuwait

97

133

131

95

69

134

72

7

159

77

115

Lebanon

142

146

170

124

105

124

140

113

150

135

151

Libya

186

160

186

136

187

186

185

128

128

141

168

Morocco

60

34

18

59

68

112

64

25

62

68

71

Oman

78

37

66

66

52

134

125

12

72

73

100

Palestinian Authority

116

171

157

85

84

22

161

107

54

123

168

Qatar

83

84

20

69

20

124

178

2

97

122

120

Saudi Arabia

92

141

36

64

24

112

7

78

158

59

168

Syria

179

136

186

158

157

175

95

85

178

161

163

Tunisia

80

63

77

51

87

99

83

133

101

80

67

UAE

11

25

5

1

7

44

15

2

98

9

75

Yemen

187

175

186

187

81

186

132

83

189

139

157

Note: The number indicates the country’s global ranking. Source: World Bank’s Doing Business 2018 72 . ACTIVE WITH MENA


MENA economies are still struggling to effectively promote entrepreneurship: less than one enterprise per 1000 working age people is created every year, compared to around five in OECD countries. Partnering with the private sector and civil society in a structured, systematic and transparent way is key to supporting reform efforts aimed at improving the business environment and fostering job creation and development. To address this, the OECD is supporting public-private dialogue and social dialogue through different activities. In 2018, the MENA-OECD Business Advisory Group (BAB) was created to provide a new platform where representatives from key business organisations from MENA and OECD countries can gather and exchange. The main objective of this platform is to support the private sector in voicing its concerns with governments and enabling it to take an active and positive role in economic policy making. The BAB, developed in collaboration with Business at the OECD (BIAC), also feeds into the different policy dialogue working groups of the MENA-OECD Competitiveness Programme. Additionally, a specific group was created under the BAB focusing on Youth Business Associations, which met for the first time in 2019 to develop a new initiative to empower youth businesspeople across the region. Through the project Building Consensus for Reform in Lebanon, the OECD works with the Economic and Social Council of Lebanon and key stakeholders to effectively lead social dialogue efforts on the country’s priorities. Through a series of high-level capacity building and dialogue seminars, the project aims to provide the Economic and Social Council with the analytical and methodological tools to become an actor for dialogue and bring together multiple stakeholders to develop and endorse ambitious economic reforms on priority areas such as fiscal consolidation, anti-corruption or business climate.

L MENA-OECD Business Advisory Board Launch, 20-21 September 2018, Madrid, Spain.

The MENA-OECD Competitiveness Programme also promotes a systematic and structured dialogue with trade unions through the Arab Trade Unions Confederation and the Trade Union Advisory Committee to the OECD (TUAC). TUAC is involved in all relevant activities of the Programme and is regularly consulted in the development of the Programme’s analytical work. www.oecd.org/mena/competitiveness/private-public-dialogue.htm www.tuac.org www.biac.org

EDUCATION, EMPLOYMENT AND INNOVATION . 73

EDUCATION & INNOVATION

Mobilising the private sector and promoting social dialogue


Fostering quality infrastructure investments and public service delivery through Public-Private Partnerships (PPPs) Decision makers worldwide agree on the importance of PPPs in achieving countries’ infrastructure and public service needs. Yet PPPs need a particular framework and the right approach by governments, if they are to be successful. The challenge is to ensure that PPPs are affordable, represent value for money and are transparent. Like the rest of the world, the MENA region is facing an infrastructure gap as well as fiscal constraints. The task is therefore to find a way to deliver growth-enhancing infrastructure which is both affordable for government and users, and represents more value for money than the traditional way of procuring infrastructure. In the right circumstances,

PPPs can deliver on these demands. By harnessing private sector expertise and allocating risks to the parties best suited to manage them in a cost-effective way, governments can make great strides getting the best return on their investments. MENA economies are increasingly recognising the critical role quality infrastructure investment plays in fostering inclusive growth and development, including by enhancing countries’ connectivity and integration into regional and global value chains. As an international leader on multiple fronts related to infrastructure, the OECD can play a role in promoting an evidence-based and multi-stakeholder discussion in MENA on quality infrastructure investments and in sharing good practices from OECD and other

L MENA-OECD Conference on Promoting Quality Infrastructure Investments, 19-20 March 2019, Cairo, Egypt. 74 . ACTIVE WITH MENA


NA-OECD

VESTMENT ROGRAMME

EDUCATION & INNOVATION

Nicola Ehlermann-Cache d of the MENA Investment Programme D Global Relations Secretariat a.ehlermann-cache@oecd.org

As part of the OECD’s ongoing support to the development of the Suez Canal Economic Zone, the Programme also works with the Suez Canal Authority on quality infrastructure development. The second phase of this project, which started in 2019, focuses on the implementation of sound policy frameworks for a dynamic and competitive economic zone, including for quality infrastructure planning and delivery.

PUBLIC-PRIVATE PARTNERSHIPS IN THE MIDDLE EAST AND NORTH AFRICA: A HANDBOOK FOR POLICY MAKERS

handbook provides an overview of key obstacles policy issues facing the development of Publicte Partnerships across the Middle East and h Africa region, with a particular focus on the sport and renewable energy sectors in Egypt, an, Morocco and Tunisia. It is aimed at senior als and decision-makers in the region and intends sist them in moving projects forward from a eptual stage to viable transactions suitable for ate-sector and/or international financial institution nvestment. It is the result of research and ultations led by the ISMED Support Programme ughout 2014. Building on OECD instruments and d practices related to PPPs and infrastructure stment, as well as on extensive consultations with ner IFIs and local stakeholders, the Handbook ains recommendations to address some of the acles identified as inhibiting the successful pletion of PPP programmes.

relevant countries. Building on the G7 Ise-Shima Principles for Promoting Quality Infrastructure and the related G20 Leaders’ Declaration, the MENA-OECD Competitiveness Programme is working with economies in the region to enhance the quality of infrastructure investments and maximise its socio-economic benefits. In 2019, it held in Cairo the first regional policy dialogue on quality infrastructure investments. It set the foundations for the promotion of a shared understanding on this issue and provided a regional platform for a productive exchange between senior policy makers, the private sector and other stakeholders.

The OECD Network of Senior Infrastructure and PPP Officials was established to ensure that PPPs and capital investment projects are done right and that potential risks are managed properly. The Network has developed the OECD Principles for Public Governance of PPPs which help to examine institutional capacities, select PPP projects based on value for money and use the ordinary budget process to ensure fiscal sustainability. www.oecd.org/gov/budgeting/ppp.htm www.oecd.org/daf/inv/investment-policy/ppp.htm www.oecd.org/mena/competitiveness/suez-canal-economic-zone.htm www.oecd.org/mena/competitiveness/concept-note-on-qualityinfrastructure.pdf

PRIVATE SECTOR DEVELOPMENT Handbook

Public-Private Partnerships in the Middle East and North Africa A Handbook for Policy Makers

SCAN TO READ THE REPORT

w.oecd.org/mena/investment NA.Investment@oecd.org

e financial assistance uropean Union

EDUCATION, EMPLOYMENT AND INNOVATION . 75


ENVIRONMENT AND ENERGY

76 . ACTIVE WITH MENA


ENVIRONMENT & ENERGY

Promoting green growth

Growing concerns over the environment and the depletion of non-renewable resources have led governments to reshape their policies. Green growth is about fostering economic growth and development while ensuring that natural assets continue to provide the resources and environmental services on which our well-being relies. Fostering green growth, a central element of OECD support, is increasingly recognised in the MENA region as an integral part of sustainable development strategies. Based on the Green Growth Strategy, the OECD advises member and partner economies on integrating green growth policy into the design and implementation of economic and environmental policies. The report Putting Green Growth at the Heart of Development outlines a twin-track agenda for national

and international action to achieve green growth in developing countries, and includes examples of activities in Egypt, Jordan, Morocco, Tunisia and United Arab Emirates. The report Green Growth in Cities also argues that cities can play a key role in both national growth and environmental performance. The policy recommendations and examples from the OECD cities presented in the report are relevant to urban policy makers in the rapidly urbanising MENA region too. Green growth is beginning to take root in the MENA region. Morocco and Tunisia are adherents to the OECD Declaration on Green Growth, which is now signed by 45 countries and the European Community. Relevant organisations from the MENA region are also encouraged to take part in the Green Growth Knowledge Platform (GGKP). The GGKP is a partnership

ENVIRONMENT AND ENERGY . 77


Promoting green growth

between the Global Green Growth Institute, the OECD, UNEP and the World Bank. The GGKP is a global network of researchers and development experts that identifies and addresses major knowledge gaps in green growth theory and practice. Through widespread consultation and world-class research, GGKP provides practitioners and policy makers with better tools to foster economic growth and to implement sustainable development.

investment promotion and facilitation, competition policy, financial market policy, public governance, and other crosscutting issues. The case of Jordan illustrates the importance of setting robust policies and predictable targeted incentive schemes. This review is a country-specific application of the OECD Policy Guidance for Investment in Clean Energy Infrastructure, which is a non-prescriptive tool to help governments identify ways to mobilise private sector investment in clean energy infrastructure, especially in renewable electricity.

The Development Assistance Committee (DAC) collects statistics on development assistance that includes a focus on the global objectives of the Rio Conventions. These data are publicly available online and can be viewed for individual countries or regions. Total bilateral development finance commitments from DAC members targeting climate change adaptation and mitigation to the MENA region reached USD 2.2 billion on average per year in 2014-16, representing on average 12% of the total bilateral ODA portfolio to the region over the period. At the same time, the UAE, a DAC participant since 2014, committed over the period 2014-16 USD 400 million in climaterelated development finance (4% of its total ODA), of which USD 187 million were committed to economies in the MENA region. Committed bilateral development finance also included a focus on biodiversity totalling USD 1.2 billion over the period 2014-16, which accounted for up to 4% of total bilateral ODA to the region. The OECD’s report Mainstreaming Biodiversity for Sustainable Development examines how biodiversity can be integrated into policy and planning processes, including development co-operation.

www.oecd.org/greengrowth www.oecd.org/greencities www.oecd.org/dac/environment-development/green-growthdevelopment.htm www.oecd.org/dac/stats/rioconventions.htm

Putting Green Growth at the Heart of Development Contents Chapter 1. Understanding the development dimension of green growth Chapter 2. Why is green growth vital for developing countries? Chapter 3. An agenda for action on national green growth policy Chapter 4. International co‑operation on green growth Chapter 5. Measuring progress towards green growth Chapter 6. Gearing up for green growth across the developing world

Consult this publication on line at http://dx.doi.org/10.1787/9789264181144-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases.

The need to mainstream biodiversity into economic growth and development is being increasingly recognisedVisit www.oecd-ilibrary.org for more information. and is now also firmly embedded in the Sustainable Development Goals. Drawing on experiences and insights from 16 predominantly megadiverse countries, this report examines how biodiversity is being mainstreamed in four key areas: 1) at the national level, including national development plans and other strategies, institutional co-ordination and national budgets; 2) the agriculture, forestry and fisheries sectors; 3) in development co-operation; and 4) the monitoring and evaluation of biodiversity mainstreaming and how this could be improved.

Consult this publication on line at https://doi.org/10.1787/9789264303201-en.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

iSBn 978-92-64-30319-5 97 2018 09 1 P

78 . ACTIVE WITH MENA

Putting Green Growth at the Heart of Development

Mainstreaming Biodiversity for Sustainable Development -:HSTCQE=V]VVWU: ISBN 978-92-64-18112-0 43 2012 17 1 P

Mainstreaming Biodiversity for Sustainable Development

The Jordan Clean Energy Investment Policy Review aims to help policy makers strengthen the conditions for investment in renewable electricity generation. It takes stock of recent policy reforms and identifies policy priorities in Jordan and lessons learned for the MENA region. The report aims to create a stable pipeline of bankable projects in solar photovoltaic 9HSTCQE*dadbjf+ and wind energy. It focuses on the areas of investment policy,

OECD Green Growth Studies

Putting Green Growth at the Heart of Development

Mainstreaming Biodiversity for Sustainable Development

OECD Green Growth Studies

OECD Green Growth Studies

SCAN TO READ THE REPORTS


ENVIRONMENT & ENERGY

Combating climate change The OECD has been working across multiple fronts to support efforts to tackle climate change, both at the international level through the UNFCCC process and at the state level to understand their policies and progress towards a low-emissions, climate-resilient future. Since 1993, the OECD, together with the International Energy Agency (IEA), has been supporting the UNFCCC process through the Climate Change Expert Group (CCXG), which has been providing impartial and rigorous analysis on climate change issues. It holds bi-annual climate change-focused Global Forums on the Environment events and seminars held in an informal setting outside of the UNFCCC process which promote

dialogue and enhance understanding between countries on technical issues being discussed in international climate change negotiations. Participants include country representatives and experts from a variety of economies, including from the MENA region. The CCXG’s work currently focuses on transparency of mitigation, adaptation and support within the UNFCCC framework. The OECD also analyses countries’ national mitigation and adaptation policies, and delivers evidence-based workshops on how countries can achieve their climate objectives as well as other environment and development objectives. The OECD’s report Investing in Climate, Investing in Growth, launched under

ENVIRONMENT AND ENERGY . 79


Combating climate change

the German G20 Presidency in 2017, shows how governments can generate inclusive economic growth in the short term, while making progress towards climate goals to secure sustainable long-term growth. As follow up to this report, the OECD is disseminating and tailoring the messages to non-G20 economies, including in the MENA region. In 2018 the OECD joined forces with the World Bank and the UN Environment Programme to deliver an initiative on Financing Climate Futures: Rethinking Infrastructure, which aims to help countries make financial flows consistent with a pathway towards low emissions and climate-resilient development.

concentrated population, economic activities and greenhouse gas emissions. Economies in the MENA region can take part in the OECD Green Cities Programme, which supports countries’ efforts in tackling climate change by assessing policy challenges and opportunities that cities face related to climate mitigation and adaptation, and presenting tailored policy recommendations for national and local governments in a given country. In addition, recognising the role of cities and regions in implementing the Paris Agreement, the OECD highlights the need for an effective and co-ordinated whole-of-government approach in implementing Nationally Determined Contributions, and provides key policy options for such an approach.

The impacts of climate change have a strong local dimension, which requires place-based policy reactions. For instance, the ongoing rapid urbanisation in the MENA region poses distinct challenges in urban areas such as loss of ecologically intact land, increased risk of ecological degradation and urban heat island effects. Cities have an important role to play in mitigating and adapting to climate change, due to

www.oecd.org/env/cc/ www.oecd.org/env/cc/ccxg.htm www.oecd.org/environment/cc/g20-climate/ www.oecd.org/environment/cc/climate-futures/

Investing in Climate, Investing in Growth This report provides an assessment of how governments can generate inclusive economic growth in the short term, while making progress towards climate goals to secure sustainable long-term growth. It describes the development pathways required to meet the Paris Agreement objectives and underlines the value of wellaligned policy packages in mobilising investment and social support for the transition while enhancing growth. The report also sets out the structural, financial and political changes needed to enable the transition.

Consult this publication on line at http://dx.doi.org/10.1787/9789264273528-en. This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

Infrastructure worldwide has suffered from chronic under-investment for decades and currently makes up more than 60% of greenhouse gas emissions. A deep transformation of existing infrastructure systems is needed for both climate and development, one that includes systemic conceptual and behavioural changes in the ways in which we manage and govern our societies and economies. This report is a joint effort by the OECD, UN Environment and the World Bank Group, supported by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety. It focuses on how governments can move beyond the current incremental approach to climate action and more effectively align financial flows with climate and development priorities. The report explores six key transformative areas that will be critical to align financial flows with low-emission and resilient societies (planning, innovation, public budgeting, financial systems, development finance, and cities) and looks at how rapid socio-economic and technological developments, such as digitalisation, can open new pathways to low-emission, resilient futures.

Investing in Climate, Investing in Growth

Financing Climate Futures RETHINKING INFRASTRUCTURE

Investing in Climate, Investing in Growth

Isbn 978-92-64-27351-1 97 2017 06 1 P

9HSTCQE*chdfbb+ Financing Climate Futures

Growth, Investment and the Low-Carbon Transition

RETHINKING INFRASTRUCTURE

OECD/The World Bank/UN Environment (2018), Financing Climate Futures: Rethinking Infrastructure, OECD Publishing, Paris, https://doi.org/10.1787/9789264308114-en.

Financing Climate Futures

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

ISBN: 9789264308107 97 2018 46 1 P

FCF Report cover [4].indd 1

80 . ACTIVE WITH MENA

SCAN TO READ THE REPORTS

RETHINKING INFRASTRUCTURE

Consult this publication online at https://doi.org/10.1787/9789264308114-en

9HSTCQE*daibah+ 15/11/2018 21:47

ENVIRONMENT AND ENERGY . 80


ENVIRONMENT & ENERGY

Improving water governance

Managing scarce freshwater resources and ensuring access to water supply and sanitation is a significant challenge throughout the MENA region.

contributed to the development of the implementation strategy of the Principles: the Sebou River Basin in Morocco pilot tested the indicator framework, while Israel, Jordan and the Palestinian Water Authority shared their experiences illustrating the implementation of the Principles.

In 2017, Ministers of the Union for the Mediterranean (UfM) agreed on a new water agenda to enhance regional co-operation towards sustainable and integrated water management in the region. The OECD is collaborating with the UfM and the European Commission Directorate-General for Neighbourhood and Enlargement Negotiations to develop a financial strategy.

OECD studies on Water

Implementing the OECD Principles on Water Governance InDICATOR FRAMEWORK AnD EVOLVInG PRACTICEs

Water and its improved governance are critical for economic growth, social inclusiveness and environmental sustainability. Three years after the adoption of the OECD Water Governance Principles, this report takes stock of their use and dissemination. It provides a water governance indicator framework and a set of evolving practices for bench-learning, building on lessons learned from different countries and contexts. Based on an extensive bottom up and multi-stakeholder process within the OECD Water Governance Initiative (WGI), these tools are conceived of as voluntary methodologies to be carried out at country, region, basin and/or city levels to improve water policies. The indicator framework is composed of a traffic light system based on 36 input and process indicators and a checklist with questions on a number of more specific governance conditions. The framework concludes with an action plan to help prioritise steps towards better design and implementation of water policies.

This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information.

Isbn 978-92-64-29266-6 42 2018 24 1 P

The OECD Council has developed a Recommendation on Water, which compiles good practices to manage water quantity, water quality and water-related disasters. The Recommendation also includes Principles on Water Governance and a related implementation strategy. The Principles, which set standards for more effective, efficient and inclusive water governance, were endorsed by OECD Ministers in June 2015 and are available in 15 languages, including French and Arabic. MENA economies

OECD studies on Water

Implementing the OECD Principles on Water Governance InDICATOR FRAMEWORK AnD EVOLVInG PRACTICEs

InDICATOR FRAMEWORK AnD EVOLVInG PRACTICEs

OECD Council Recommendation on Water

Consult this publication on line at http://dx.doi.org/10.1787/9789264292659-en.

Implementing the OECD Principles on Water Governance

Water is essential for economic growth, human health, and the environment. Yet governments around the world face significant challenges in managing their water resources effectively. The problems are multiple and complex: billions of people are still without access to safe water and adequate sanitation; competition for water is increasing among the different uses and users; and major investment is required to maintain and improve water infrastructure in OECD and non-OECD countries. This OECD series on water provides policy analysis and guidance on the economic, financial and governance aspects of water resources management. These aspects generally lie at the heart of the water problem and hold the key to unlocking the policy puzzle.

OECD studies on Water

The OECD has held policy dialogues in Jordan and Tunisia to diagnose the main governance and financing challenges to private sector participation in the water supply and wastewater sector and to provide ways forward to address these challenges. Several MENA stakeholders are also engaged actively within the OECD Water Governance Initiative (WGI), an international multi-stakeholder network of more than 100 delegates that gather twice a year in a policy forum. These include the Global Water Partnership-Mediterranean, the UfM and the Mediterranean Institute for Water. The WGI aims to share ongoing reforms and good practices in support of better water governance, including across north and south Mediterranean countries. The 8th WGI meeting held at the headquarters of the Delegated Ministry for Water, Rabat, Morocco in January 2017 highlighted water governance in Morocco, in particular aspects relating to water demand management.

www.oecd.org/governance/oecd-principles-on-water-governance.htm www.oecd.org/gov/water

9HSTCQE*cjcggg+

SCAN TO READ THE REPORTS December 2016

ENVIRONMENT AND ENERGY . 81


Ensuring access to reliable and clean energy Fostering the development of renewable energies is important for job creation, satisfying increasing energy demand and diversifying the economy. MENA economies need to put in place an effective policy framework to attract private investment in the sector and to reap the benefits of their favourable resource endowment, especially in regards to solar and wind energy. Since 2010, the MENA-OECD Task Force on Energy and Infrastructure works to formulate policy recommendations to help spur investment in renewable energy in the MENA region, letting policy makers benefit from the private sector’s view and experience. The Task Force works to promote green growth and contributes to the OECD’s Green Growth Strategy, providing tailored recommendations for the Middle East and North Africa. The publication Renewable Energies in the Middle East and North Africa: Policies to Support Private Investment makes the case for a stronger deployment of renewable energies in the region and identifies appropriate support policies to stimulate private investment and achieve the targets and goals defined by MENA governments.

Marke t Report Series

The International Energy Agency’s 2018 Renewables Market Series Report includes an assessment of renewable energy prospects in the MENA region. The World Energy Outlook special

report, Outlook for Producer Economies, released in October 2018, provides an in-depth look of how the changing energy outlook could impact several of the world’s most prominent oil and gas producers, including Saudi Arabia, Iraq and the United Arab Emirates. The report provides a view of the risks to economies that depend heavily on revenues on oil and gas in several scenarios, and assesses what role the energy sector could play in ensuring a more robust, diversified and resilient economy going forward. In 2018 and 2019, the IEA conducted an in-depth review of Morocco. The review welcomed Morocco’s efforts to reduce both the energy import bill and greenhouse gas emissions by both diversifying into renewables (wind and solar as well as hydropower) and by elevating energy efficiency to a national priority. Important steps have also been taken to reduce – and in some cases remove altogether – subsidies on fossil fuels. These are energy challenges which engage all economies in the MENA region. The IEA also remains fully committed to the ProducerConsumer Dialogue and the work of the International Energy Forum in improving the transparency of energy markets. www.iea.org/renewables2018/ www.iea.org/

Secure Sustainable Together

Renewables 2O18

SCAN TO READ THE REPORTS

Analysis and Forecasts to 2O23

82 . ACTIVE WITH MENA

PARTNER COUNTRY SERIES

Clean Energy Technology Assessment Methodology Pilot Study Morocco


ANNEXES ANNEXES . 83


Annexes GLOBAL RELATIONS Through its relationship building over the last 50 years, the OECD has transformed itself into a global organisation, with 36 Members from America, Europe, Asia, and Oceania, including developed and emerging countries. Colombia and Costa Rica are in the accession process towards OECD membership.1 In 2007, the OECD identified Brazil, China, India, Indonesia and South Africa as “key partners” and has been enhancing engagement with these countries. OECD’s relations with non-Members have been further extended. Its regional initiatives cover South-East Asia, South-East Europe, Eurasia, the Middle East and North Africa, as well as Latin America and the Caribbean. The OECD has also developed Country Programmes with Kazakhstan, Morocco, Peru and Thailand. FAST FACTS Château de la Muette, OECD Headquaters.

TODAY’S OECD: BETTER POLICIES FOR BETTER LIVES The OECD is an intergovernmental organisation created to promote policies that will improve the economic and social wellbeing of people all over the world. The OECD provides a forum in which governments can work together to seek solutions to common problems, share experiences and identify best practices.

History: Established in 1961 Headquarters: Paris, France Secretary-General: Angel Gurría Membership: 36 countries Accession: 2 countries Key Partners: 5 countries Regional Programmes: 5 regions Country Programmes: 4 countries Publications: About 250 new titles per year Committees: About 250 Committees and their subsidiary bodies

Governments of members and partners work with the Organisation to understand the key drivers of economic, social and environmental change. The OECD measures productivity and global flows of trade and investment, it analyses and compares data to predict future trends, and it sets international standards on a wide range of areas, from governance, the fight against bribery and corruption, taxation to the environment. 1. On 3 and 25 May 2018, the OECD Council invited Colombia to become Members. Since March 2014, activities related to the accession process of the Russian Federation to the OECD have been postponed. 84 . ACTIVE WITH MENA


ANNEXES

Governance structure of the OECD

The OECD is structured around the Council, substantive committees and the Secretariat: l

COUNCIL Strategic direction and control

Decision-making power is vested in the OECD Council. Overseeing the Organisation’s functioning and giving strategic direction, it is made up of one representative per member country plus a representative of the European Union. The Council takes decisions by consensus.

l

At the committee level, representatives of member countries

and partners from the permanent delegations to the OECD or their capitals participate in meetings, to request, review and contribute to work undertaken by the Secretariat. Terms for partner participation in committees and their subsidiary bodies are discussed on page 86.

l

COMMITTEES Discussion, monitoring and peer reviews

SECRETARIAT Research, analysis and policy recommendations

The Secretariat collects data, conducts research and analyses

and produces policy proposals. The Secretary-General heads the Secretariat and is assisted by one or more Deputy SecretariesGeneral. The Secretary-General also chairs the Council, providing the link between national delegations and the Secretariat.

Through the OECD, governments work together with a multidisciplinary approach to develop evidence-based policy guidance, increasingly involving different stakeholders including parliaments, business communities and civil society. On the basis of comparable statistics collected across member and partner governments, the OECD Secretariat analyses countries’ policy experiences and identifies good practices, to inform policy making in participating countries and beyond. “Peer reviews”, based on dialogue and consensus-building, allow for an effective monitoring of reform progress in a broad range of policy areas. Identified good practices and policy recommendations contribute to designing new international standards that can be embodied into OECD legal instruments as described on page 87. OECD LEGAL INSTRUMENTS Since the creation of the OECD in 1961, around 450 substantive legal instruments have been developed within its framework. These include OECD Acts (i.e. the Decisions and Recommendations adopted by the OECD Council in accordance with the OECD Convention) and other legal instruments developed within the OECD framework (e.g. Declarations, International Agreements).

The OECD works in a broad range of policy areas Development assistance Education Healthcare

Migration Pensions Employment

Corruption

Competition Trade

Governance

Tax evasion

Entrepreneurship Fiscal policy Finance Agriculture

Climate change Innovation

Energy

ANNEXES . 85


Annexes

There are five categories of OECD legal instruments: Decisions are legally binding on all adherents. While they are not international treaties, they entail the same kind of legal obligations. Adherents are obliged to implement Decisions and must take the measures necessary for such implementation. Recommendations are not legally binding but practice accords them great moral force as representing the political will of adherents. There is an expectation that adherents will do their upmost to fully implement them. Declarations are prepared within the Organisation, generally within a subsidiary body. They usually set general principles or long-term goals, have a solemn character and are usually adopted at Ministerial meetings of the Council or of committees of the Organisation. International Agreements are negotiated and concluded in the framework of the Organisation. They are legally binding on the parties. Arrangements, Understandings and Others: several ad hoc substantive legal instruments have been developed within the OECD framework over time, such as the Arrangement on Officially Supported Export Credits, the International Understanding on Maritime Transport Principles and the Development Assistance Committee Recommendations. PARTICIPATION IN OECD BODIES AND INTERGOVERNMENTAL ACTIVITES OECD co-operation with the Middle East and North Africa facilitates a greater participation of Arab countries in the work of OECD bodies. Associates participate in OECD bodies, including projects or the development or revision of OECD legal instruments, for an open-ended period, with the same rights and obligations as OECD members. Participants take part in OECD bodies for an open-ended period, except in discussions marked as confidential. Competition Committee and all subsidiary bodies – EgyptP Committee on Consumer Policy – EgyptP Working Party on Consumer Product Safety – EgyptP Advisory group for Co-operation with Partner Economies – UAEA 86 . ACTIVE WITH MENA

Corporate Governance Committee (main committee only) – Saudi ArabiaA Scheme for Crucifer Seed and other Oil or Fiber Species – Egypt,A Morocco,A TunisiaA Development Assistance Committee – KuwaitP, QatarP, Saudi Arabia,P UAEP Governing Board of the Development Centre – Egypt,A MoroccoA, TunisiaA Committee on Digital Economic Policy – EgyptP Committee on Fiscal Affairs - Project on Base Erosion and Profit Shifting (BEPS) – BahrainA, DjiboutiA, EgyptA, MoroccoA, OmanA, QatarA, TunisiaA, Saudi ArabiaA, UAEA Global Forum on Environment – UAEO Global Forum on Tax Treaty – UAEO Global Forum on Transparency and Exchange of Information for Tax Purposes – Bahrain, Djibouti, Egypt, Kuwait, Lebanon, Mauritania, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, UAEA Scheme for Grass and legume Seed – EgyptA, MoroccoA, TunisiaA Green Growth and Sustainable Development Forum – UAEO Investment Committee Freedom of Investment Roundtable – EgyptA, MoroccoA, TunisiaA Investment Committee in enlarged session for work related to the Declaration on international investment and MNEs – EgyptA, JordanA, MoroccoA, TunisiaA Joint OECD/ITF Transport Research Committee – MoroocoA Public Governance Committee – EgyptP, MoroccoP, TunisiaP Working Party on Centres of Government – EgyptP, MoroccoP Working Party of Senior Digital Government Officials (E-Leaders) – EgyptP, MoroccoP Working Party of Senior Public integrity Officials – EgyptP, MoroccoP Working Party of the Leading Practitioners on Public Procurement – EgyptP, MoroccoP Regional Development Policy Committee – MoroccoP Working Party on Rural Policy – MoroccoP Working Party on Territorial Indicators – MoroccoP Working Party on Urban Policy – MoroccoP Board of Participating Countries of the Teaching and learning international Survey (TALIS) – Saudi ArabiaA, UAEP Tourism Committee – EgyptP, MoroccoP Steel Committee – EgyptP A – Associate, P – Participant, O – Other form of participation


ANNEXES

ADHERENCE TO OECD LEGAL INSTRUMENTS Protocol Amending the Convention on Mutual Administrative Assistance in Tax Matters – Bahrain, Kuwait, Lebanon, Morocco1, Qatar, Tunisia, Saudi Arabia, United Arab Emirates Decision of the Council on Conflicting Requirements being imposed on Multinational Enterprises – Egypt, Jordan, Morocco, Tunisia Decision of the Council on International Investment Incentives and Disincentives – Egypt, Jordan, Morocco, Tunisia Decision of the Council on the OECD Guidelines for Multinational Enterprises – Egypt, Jordan, Morocco, Tunisia Decision of the Council Revising the OECD Scheme for the Application of International Standards for Fruit and Vegetables – Morocco Decision of the Council Revising the OECD Schemes for the Varietal Certification or the Control of Seed Moving in International Trade – Egypt, Morocco, Tunisia Declaration for the Future of the Internet Economy (The Seoul Declaration) – Egypt, Morocco Declaration on Automatic Exchange of Information in Tax Matters – Saudi Arabia Declaration on Base Erosion and Profit Shifting – Tunisia Declaration on Better Policies to Achieve a Productive, Sustainable and Resilient Global Food System – Saudi Arabia Declaration on the Digital Economy: Innovation, Growth and Social Prosperity (Cancún Declaration) – Egypt Declaration on Green Growth – Morocco, Tunisia Declaration on International Investment and Multinational Enterprises – Egypt, Jordan, Morocco, Tunisia Declaration on Policies for Building Better Futures for Regions, Cities and Rural Areas – Morocco Declaration on Propriety, Integrity and Transparency in the Conduct of International Business and Finance – Morocco, Tunisia Declaration on Strengthening SMEs and Entrepreneurship for Productivity and Inclusive Growth – Algeria, Egypt Istanbul Ministerial Declaration on Fostering the Growth of Innovative and Internationally Competitive SMEs – Algeria, Egypt, Jordan, Morocco, Tunisia Paris Declaration on Aid Effectiveness – Djibouti, Egypt, Iraq, Jordan, Kuwait, Mauritania, Morocco, Palestinian Authority, Saudi Arabia, Syrian Arab Republic, Tunisia, Yemen

Recommendation of the Council on Effective Public Investment Across Levels of Government – Morocco Recommendation of the Council concerning Member Country Exceptions to National Treatment and National Treatment related Measures concerning Investment by established ForeignControlled Enterprises – Egypt, Jordan, Morocco, Tunisia Recommendation of the Council on Digital Government Strategies – Egypt, Morocco Recommendation of the Council on Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas – Morocco Recommendation of the Council on the OECD Due Diligence Guidance for Responsible Business Conduct – Egypt, Jordan, Morocco, Tunisia Recommendation of the Council on the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector – Egypt, Jordan, Morocco, Tunisia Recommendation of the Council on Gender Equality in Education, Employment and Entrepreneurship – Morocco Recommendation of the Council on High-Level Principles on Financial Consumer Protection – Saudi Arabia Recommendation of the Council on Member Country Exceptions to National Treatment and Related Measures concerning Access to Local Bank Credit and the Capital Market – Egypt, Jordan, Morocco, Tunisia Recommendation of the Council on Member Country Exceptions to National Treatment and National Treatment Related Measures in the Category of Official Aids and Subsidies – Egypt, Jordan, Morocco, Tunisia Recommendation of the Council on Member Country Exceptions to National Treatment and National Treatment Related Measures concerning the Services Sector – Egypt, Jordan, Morocco Recommendation of the Council on Member Country Measures concerning National Treatment of Foreign-Controlled Enterprises in OECD Member Countries and Based on Considerations of Public Order and Essential Security Interest – Egypt, Jordan, Morocco, Tunisia Recommendation of the Council on the Governance of Critical Risks – Morocco, Tunisia Recommendation of the Council on Open Government – Morocco ANNEXES . 87


Annexes

Recommendation of the Council on Principles of Corporate Governance – Saudi Arabia Recommendation of the Council on Principles for Internet Policy Making – Morocco The Bologna Charter on SME Policies – Algeria, Egypt, Morocco, Tunisia Third Revised Decision of the Council concerning National Treatment – Egypt, Jordan, Morocco, Tunisia 1. Not yet ratified

The involvement of MENA economies in the OECD Global Parliamentary Network is very recent with Jordan and Morocco taking part in meetings of the network in 2016. This Network aims at facilitating dialogue amongst parlamentarians on the enacting and implementation of reforms. www.tuac.org www.biac.org www.oecd.org/parliamentarians

PARTICIPATION IN INITIATIVES AND NETWORKS OECD Policy Dialogue on Natural Resource-based Development – Morocco OECD Policy Dialogue on Global Value Chains, Production Transformation and Development – Egypt and Morocco “Interrelations between Public Policy, Migration and Development” project (OECD DEV, EU) – Morocco “Revenue Statistics in Africa” project (OECD DEV, CTP) – Egypt, Morocco and Tunisia “Youth Inclusion” project (OECD DEV, EU) – Jordan DIALOGUE AND DATA The Trade Union Advisory Committee to the OECD (TUAC) is an international trade union organisation which has consultative status with the OECD, serving as the official voice of the labour movement at the OECD. TUAC collaborates with the MENA region through the integration of the Arab Trade Union Confederation in the the International Trade Union Confederation (ITUC). Business at OECD (BIAC) is an independent business association devoted to advising policy makers at the OECD, and officially recognised by the OECD as representative of the OECD business community. In the MENA region, BIAC works with Morocco which has one organisation participating in the committee – Confédération Générale des Entreprises du Maroc (CGEM).

News and information about OECD work and events involving the Middle East and North Africa are available at www.oecd.org/mena

Discover reports, data and analysis about the Middle East and North Africa alongside the world’s leading economies on OECD iLibrary, the global knowledge base – www.oecd-ilibrary.org 88 . ACTIVE WITH MENA


The OECD: A Global Policy Network

BRAZIL ACTIVE WITH

AFRICA

ACTIVE WITH

ACTIVE WITH

LATIN AMERICA AND THE CARIBBEAN

CHINA ACTIVE WITH THE PEOPLE’S REPUBLIC OF

EURASIA ACTIVE WITH

ACTIVE WITH

SOUTHEAST ASIA

The OECD Member countries are: Australia, Austria, Belgium, Canada, Chile, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Latvia, Lithuania, Luxembourg, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the United Kingdom and the United States of America.

Brochure design by baselinearts.co.uk

The Organisation for Economic Co-operation and Development (OECD) is an international organisation helping governments tackle the economic, social and governance challenges of a globalised economy. It provides a setting where governments can compare policy experiences, seek answers to common problems, identify good practice and work to co-ordinate domestic and international policies.

ACTIVE WITH

THE UNITED NATIONS


www.oecd.org/globalrelations GRS.contact@oecd.org

June 2019

Main cover image: Arne Hoel / World Bank Inset images © Shutterstock.com

Global Relations Secretariat OECD, 2 rue André Pascal 75775 Paris Cedex 16 France

Profile for OECD

Active with the Middle East and North Africa 2019  

The Active with the Middle East and North Africa brochure provides a full picture of how the OECD works with the region to bring about susta...

Active with the Middle East and North Africa 2019  

The Active with the Middle East and North Africa brochure provides a full picture of how the OECD works with the region to bring about susta...

Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded

Recommendations could not be loaded