The International Monetary Fund (IMF) and the Middle East Institute (MEI) co-hosted an exclusive panel on the sidelines of this year's Annual IMF/World Bank Meetings in Marrakech on the topic of economic structural reforms in the Middle East and North Africa region (MENA).
The "Structural Reforms to Reinvigorate Growth in MENA" session discussed on Tuesday the recent succession of economic shocks to the MENA region and the actions taken to mitigate their impact.
It also explored the impact of these actions on the MENA countries with a tight macroeconomic policy space amid a continued uncertain external environment.
The report addressed a chapter on structural reforms titled "From Setbacks to Comebacks: Reforms to Build Resilience and Prosperity."
Several participants referred to the Saudi reforms in empowering women and enhancing their participation in the labor market as a model.
They asserted that a small structural reform in the Kingdom was enough to transform the economic scene, and women now have a significant role in the labor market.
IMF's Director of the Middle East and Central Asia Department, Jihad Azour, explained that the primary goal must be to provide job opportunities for young people.
Azout indicated that structural reforms offer a way to increase potential growth and establish growth in the near term.
He noted that the reforms would be an influential factor in accelerating the pace of economic diversification among oil-exporting countries, stressing that most structural reforms help raise output, with their impact increasing over time.
The expert added that governance reforms, mainly enhancing the rule of law and government effectiveness, are especially important and can also generate positive output effects during periods of weak growth or relatively limited policy space.
Amid high public debt and inflation, fiscal consolidation and tight monetary policy are needed in many countries in the region.
In this context, structural reforms offer a way to increase potential growth and accrue near-term growth benefits.
However, Azour noted that merely maintaining macroeconomic stability will not achieve the required transformative change.
He indicated that stability represents the foundation, not the building, adding that structural reforms will also be necessary to accomplish comprehensive growth for all segments of society.
Some participants discussed the need to strengthen the role of the private sector and pave the way for it to create confidence, which in turn contributes to the arrival of investments.
Improving the government's ability to implement policies and regulations to promote private sector development also fosters growth through improved investment and productivity.
Economic and policy expert Alia Moubayed explained that the region suffers from weak growth due to high inflation.
Moubayed explained that the region can benefit significantly if it implements structural reforms, which is its only way to improve the situation.
She referred to Oman, which implemented reforms and improved its situation after several credit rating agencies lowered its rating.
