2014年-世界发展银行全球_Why_MENA_Needs_a_Finance_and_Private_Sector_Marshall_Plan_4页_1019kb

MENA Knowledge and Learning: Quick Notes Series - Why MENA Needs a Finance & Private Sector Marshall Plan

Core Content

The document outlines the challenges facing the Middle East and North Africa (MENA) region in terms of financial inclusion, private sector development, and job creation. It highlights that despite being a Middle Income (MIC) region, MENA performs more like a Low Income (LIC) region on key economic indicators, which contributes to weak job growth. The report argues that the World Bank must accelerate its support for the region to improve its economic performance and foster shared prosperity.

Main Areas of Concern

Employment

• Low labor force participation rate: MENA has the lowest labor force participation rate globally at 46%, compared to 57% in South Asia and 69% in Sub-Saharan Africa.
• High youth unemployment: The youth unemployment rate in the Middle East is approaching 30%, and in North Africa it is 24%, the highest in the world.
• Limited entrepreneurial activity: MENA has one of the lowest startup rates, with only 6.3 businesses formed per 100 people annually, compared to 7.8 in South Asia and 42 in high-income countries.

Finance

• Low bank account penetration: Only 18% of adults in MENA hold a bank account, compared to 24% in Sub-Saharan Africa and 33% in South Asia.
• Gender disparity in access to finance: Women in MENA have significantly less access to financial services, with only 13% holding a bank account, compared to 21% in Sub-Saharan Africa and 25% in South Asia.
• Low formal savings: Only 23% of adults in MENA saved formally in the past year, versus 30% in South Asia and 55% in Sub-Saharan Africa.
• Limited microfinance outreach: MENA has only 2.0 to 3.0 million microfinance borrowers out of a population of 340 million, while Bangladesh has 20 million borrowers with 150 million people.
• Low credit to microfinance institutions: Less than 1% of bank credit in MENA goes to microfinance institutions, compared to nearly 5% in South Asia and Africa.
• Few SMEs have access to credit: Only 20% of SMEs in MENA have a bank loan or line of credit, lower than South Asia (30%) and other regions.

Entrepreneurship

• Low access to finance for women entrepreneurs: Women entrepreneurs in MENA receive only 5.7% of SME loans, compared to 15.1% in Sub-Saharan Africa and 9.5% in South Asia.
• Low participation in early-stage entrepreneurial activity: Only 9% of youth and 7.1% of adults in MENA are involved in early-stage entrepreneurship, compared to 29% and 27.5% in Sub-Saharan Africa.

Trade and Investment

• Low level of intra-regional trade: MENA's share of intra-regional trade was 8% in 2010, significantly lower than Sub-Saharan Africa (12%), SADC (13%), MERCOSUR (16%), ASEAN (25%), EU (67%), and NAFTA (50%).
• Low private investment: Private investment in MENA averages 15% of GDP, similar to Sub-Saharan Africa, but well below the 30% average in more dynamic MIC regions like East Asia.

Gender Disparities

• High female unemployment: The average female unemployment rate in MENA is 20%, but rises to 50% for young women, the highest globally.
• Low female labor force participation: Only 23% of working-age women in MENA participate in the labor force, the lowest in the world.
• Few female-owned firms: Only 17% of MENA firms are owned by women, lower than Sub-Saharan Africa (33%) and equal to South Asia.

Enabling Environment for Doing Business

• Restricted access to judgments: In only 29% of MENA countries are commercial case judgments publicly available, compared to 75% in Sub-Saharan Africa and 83% in South Asia.
• Limited insolvency transparency: Only 69% of MENA countries require courts to publicize the start of insolvency proceedings, compared to 82% and 83% in Africa and South Asia, respectively.
• Low credit registry coverage: MENA has the lowest coverage of public credit registries or private credit bureaus globally, at 15%, compared to 12% in Sub-Saharan Africa and 10% in South Asia.
• High cost of electricity access: The cost of getting an electricity connection in MENA is 1,317% of income per capita, the second highest globally after Sub-Saharan Africa.
• Limited online access to documentation: Only 38% of MENA countries provide online or public notice access to building permit documentation, compared to 42% in Sub-Saharan Africa and 75% in South Asia.
• Low accessibility of trade documentation: Only 33% of MENA countries have easily accessible trade documentation requirements, compared to 49% in Sub-Saharan Africa and 63% in South Asia.

Key Recommendations

• Accelerate support for finance and private sectors: The World Bank must increase its support to improve financial inclusion and private sector development.
• Promote job creation: Given the increasing education levels in the region, there is a need to create more jobs that match the skills of the workforce.
• Institutional reforms: Credible institutional reforms are essential to level the playing field and reduce market monopolies by the privileged.
• Public-private collaboration: A collaborative approach between the public and private sectors is necessary to foster a more competitive and dynamic economy.

Conclusion

The MENA region is at a critical juncture following the Arab Spring. The data underscores the urgent need for enhanced support in finance and private sector development to address persistent challenges in employment, gender equity, and business environment. Strengthening these areas is vital for meeting the region's growing expectations for job creation and shared prosperity.

Contact Information

• Gerard A. Byam, Director, Strategy and Operations, MENA Region, The World Bank
• Preeti Ahuja, Manager, MNADE
• Regional Quick Notes Team: Omer Karasapan and Mark Volk
• Tel: (202) 473 8177

Disclaimer

The MNA Quick Notes are intended to summarize lessons learned from MNA and other Bank Knowledge and Learning activities. They do not necessarily reflect the views of the World Bank, its board, or its member countries.