Arab Knowledge Report 2009: Towards Productive

FIGURE 2-8Index of global competitiveness for Arab countries6543210QatarSaudi ArabiaUAEKuwaitTunisiaBahrainOmanJordanMoroccoEgyptLibyaAlgeriaMauritaniaBrazilTurkeyIndiaSouth AfricaChinaMalaysiaOn a Scale of 1.00 (least competitive) to 7.00 (most competitive)Source: The World Economic Forum, 2008bboom, beginning in 2000, from whichthe oil and gas producing and exportingcountries in particular derived great benefit,and which led to an exceptional economicrevival, unlike what was happening at thesame time in many countries of the world,including certain developed countries.From 2000-2007, there was an increasein GNP (gross national product) in Arabcountries, especially the petroleum exportersamong them, and even a number of nonpetroleumexporters such as Egypt andTunisia, which benefited partially from theincrease in petroleum prices (World Bank,2009). Secondly, some Arab countries likeEgypt, Kuwait, and Jordan took importantsteps towards openness and on the road tothe deregulation of their economies andthe removal of some inhibiting restrictionsto business and to commercial, banking,and investment activity. This contributedto a relatively good economic performancefor this period, which preceded the currenteconomic crisis.However, most of these huge petroleumrevenues were invested in specific sectorslike construction, which relies heavily onforeign labor, as well as in investmentsoutside the Arab world which producerapid returns. Therefore, petroleumrevenues did not produce a comparablesurge in the growth of the per capita GDPin many Gulf countries. On the contrary,after 2005, these averages actually declined 17in a number of petroleum countries, suchas the UAE, Bahrain, Saudi Arabia, andKuwait (see Figure 2-9). Likewise, the oilboom was not accompanied by a boom inknowledge mirroring the investment of oilrevenues in knowledge sectors, nor was itreflected in an improvement in individualliving conditions in all the social brackets inthe Arab world as a whole. In fact, the poorgrew poorer in the shadow of the inflationwhich swept across the world and throughthe Arab region at least until the autumnof 2008. Investment in the establishmentof a knowledge society and economy wasvery modest, whether in quantitative orqualitative terms or in terms of impact. Thisis not to deny the numerous praiseworthyefforts and initiatives that have beenmade in this regard, both by the publicand private sectors and by civil societyorganisations 18 whose goals are the transferand indigenisation of knowledge andthe enhancement of knowledge contentor that include knowledge programmesand activities in one form or another.Numerous initiatives have been undertakenin the region in production fields such asindustry, agriculture, and services, and inThe oil boom wasnot accompaniedby a boom inknowledge mirroringthe investmentof oil revenues inknowledge sectorsin the Arab worldas a wholeARAB KNOWLEDGE PERFORMANCE ENVIRONMENTS73