graduates into the large public sectors, leading to a decreased emphasis on STEM while in school. With workers oversaturating the public sector and the private market demanding knowledge of both math and science, the educational curriculum needs to be reoriented around STEM subjects for the up and coming youth. Additionally, the education experience should encourage greater openness to innovation and risk-seeking, traits rewarded in the tech industry, in contrast to the conservative nature of students currently produced in the region. These changes should focus on critical thinking, managerial, and collaborative work arrangement skills.40 With companies like Careem, a mobile ride-hailing business going from a start-up to a billion-dollar company in MENA, other companies and educated youth need to follow suit.41
SOLUTION 8: Investing in the Digital Economy: Digital Infrastructure MENA has some of the lowest internet penetration rates compared to other regions in the world, hovering barely above 40% of the population. 42 In Southeast Asia, by contrast, the digital economy is increasing at an exponential rate, and will move from $32 to $300 billion from 2015 to 2025 according to Al Jazeera (see Appendix G ).43 Countries in Southeast Asia have done some things to maximize both their internet penetration and digital economies, such as investing in wireless, sharing infrastructure, putting public services 40 Arezki, Rabah, Mottaghi, Barone Yuting Fan, Kiendrebeogo, and Lederman 41 Somerville, Heather. “Uber Buys Rival Careem in $3.1 Billion Deal to Dominate Ride-Hailing in Middle East.” Reuters. Thomson Reuters, March 26, 2019. https:// www.reuters.com/article/us-careem-m-a-uber/uberbuys-rival-careem-in-3-1-billion-deal-to-dominate-ridehailing-in-middle-east-idUSKCN1R70IM. 42 Clement, J. “Global Regional Internet Penetration Rate 2019.” Statista, January 7, 2020. https://www.statista. com/statistics/265149/internet-penetration-rate-byregion/. 43 Al Jazeera. “Online All the Time: Southeast Asia’s Booming Internet Economy.” News | Al Jazeera. Al Jazeera, October 4, 2019. https://www.aljazeera.com/ ajimpact/online-time-southeast-asia-booming-interneteconomy-191003101641367.html.
online, and letting private companies, such as Grab and Gojek, be leaders of innovation.44 Clearly the digital economy will be the future of economic expansion in the 21st century and for MENA to adequately seize the market opportunity that the digital economy presents, it must first increase the ubiquity of internet connectivity. MENA as a region should follow after Southeast Asia, combining both public and private initiatives to create expansive internet connectivity. While MENA’s rulers as a whole may have a sensitive touch to internet connective after the Arab Spring since services like WhatsApp were instrumental in unifying the efforts, it is high time for MENA to join the digital economy or face the risk of missing the clearest link to global markets that the 21st century has to offer. This connectivity is a prerequisite for technological advancements, e-commerce, and training.45 Investments by private and public enterprises in the technological infrastructure should be taken, with specific focus on universal internet connectivity.
RECOMMENDED SOLUTION With most economic proposals, it is tempting to become so fixed upon the potential future, that policy implementation realities get overlooked, leading to a naively optimistic proposal that can miss the practicality of implementation, and in turn any true benefits. Although all the previous solutions are feasible, some have major hindrances in policy adoption, due to different situations state to state, fighting massive cultural changes, and funding the proposals. With that said, the recommended proposal combines solutions 3 and 5-8 with these solutions further segmented into a short term and long-term strategy. To begin in the short term, solutions 5,7, and 8, must be intermixed. The short-term levers will determine the longterm outcome for economic growth in MENA, 44 Al Jazeera 45 “Sustainable Investment in the Middle East and North Africa Region Repo.” ifc.org, January 2011. https:// www.ifc.org/wps/wcm/connect/topics_ext_content/ifc_ external_corporate_site/sustainability-at-ifc/publications/ publications_report_sustainableinvestmentmena__ wci__1319577030052.
Vol. 12, Issue 1
December 2020
19
