Doing Business in Iraq
Economic Reform Program Strategy In Middle East
By Center for International Private Enterprise (CIPE)
Oct 15, 2003, 23:31

In building allies in the Middle East, it should be remembered that much of the Arab business community has the incentive and interest to work closely with the United States. First, they want to advance much needed reform in the Arab world by fostering modern management techniques based on good corporate governance and Western business practices. Second, more than any other group in the region, Arab business leaders realize the enormous challenge of creating jobs for young people now wishing to enter the job market and, for the young entrepreneurs who will have to create these jobs.

Through CIPE’s work in the region, a number of Arab business leaders have expressed interest in developing projects that would enhance the private sector's capacity to be agents for change. Projects with likely application in the region include:

* Institute of Directors. Corporate governance is beyond a buzz-word within the Arab business community. The Arab private sector looks at this issue as a key way to improve the business climate within which they operate. A crucial part of the corporate governance movement is the private sector's push for the development of an Institute of Directors to build the private sector's capacity to steer modern companies within a competitive market environment. This has the added benefit of helping to attack the supply side of corruption.

* Access to Economic Information. Many people in the Arab business community point to the urgent need for transparent, accurate, and responsible economic information in the region in order for them to make effective business decisions. The challenges for the region include the need to address economic media generally ill-equipped to conduct economic analysis and reporting, governments that do not provide accurate economic information, and some people in the business community who do not see the incentives to transparency.

* Youth and Entrepreneurship. With a relatively young population coming from an educational system that does not promote self-initiative, risk taking, and understanding of entrepreneurship and market economy, the Arab world generally produces college graduates ill-equipped break into the market place. In addition, the barriers to entrepreneurship have locked many out, creating the informal sectors that proliferate throughout the region. CIPE has developed a new program in Egypt on entrepreneurship that can be replicated elsewhere.
* Business Association Capacity Building. Voluntary private sector associations are growing in the Arab world, and are intent on pushing an economic reform agenda that focuses on the common good. However, there is a clear need to professionalize these business associations in order to support the growing private sector in the region to be more competitive in the global marketplace. Key to the associations' role is their advocacy for the private sector voice in public policy making.

Through the establishment of institutions that enable and support market-based economies in the Arab world, public support for public policies and political entities that are open, objective and based on the rule of law is reinforced and expanded.

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