Unfortunately however the literature on arab

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Unformatted text preview: s. 218 Oil DDW 2012 1 Arab countries are uncompetitive due to lack of manufacturing from oil dependence Elbadawi, Research Coordinator for the African Economic Research Consortium in Kenya and Gelb, chief of, the Transition and Macro-Adjustment Division of the World Bank's Policy Research , 10 Ibrahim A. Elbadawi, Research Coordinator for the African Economic Research Consortium in Kenya and Alan H. Gelb, chief of, the Transition and Macro-Adjustment Division of the World Bank's Policy Research, 12-10, [“Economic Diversification and Development in the Arab World,” The Economic Research Forum, http://www.eip.gov.eg/Upload/Publications/ERf_PRR_35[1].pdf] E. Liu Recent literature draws a strong link between industrialization and the job-creation capacity of developing economies. For example, the abovementioned UNIDO report documents experiences of countries adopting labor-intensive, manufacturingbased development; The report finds that, overall, this development strategy creates jobs and that the job-creating capacity of strongly growing manufacturing sectors can be spectacular. Also, as industrialization proceeds not only employment expands, but also wages rise over time. Moreover, manufacturing is usually gender neutral with large number of women also being employed. Such experiences contrast sharply with the dominant role of the low-wage, informal sectors that have emerged as the main source of employment in non-oil Arab economies. Meanwhile, open or disguised unemployment among nationals in the GCC countries exposes the limits of their heavy dependence on the hydrocarbon and non-tradable sectors (e.g Assaad, 2002; Galal, 2002; World Bank, 2004; Elbadawi and Loayza, 2008). Therefore, viewing the unemployment crisis afflicting the Arab world, especially among educated youth, the region’s failure to partake in the phenomenal global expansion of manufacturing exports over the last three decades has, by any measure, been a major development failure. The received traditional development literature as well as the more recent Hausmann and Rodrik-led research on export sophistication, product space, and structural transformation advocate a major role for the state in addressing various types of market imperfections and coordination failures (see below). Unfortunately, however, the literature on Arab industrial development suggests that most of the region’s governments have either totally abandoned this vital role, or instead, pursued ineffective traditional industrialization strategies that blunted these countries’ ability to compete and their productivity growth (e.g. Sekkat, 2009). 219 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 Saudi Reforms Turn – Hydrogen 220 Oil DDW 2012 1 Hydrogen transition key to OPEC economies – leads to necessary reforms Blanchette Deputy Chief Engineer for Army Programs at the Software Engineering, 08 Stephen Blanchette Jr., Deputy Chief Engineer for Army Programs at the Software Engineering, 08, [“A hydrogen...
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