Transcript Business Elites in the Arab Region

Business Elites in the
Arab Region
Mostafa Konsowa
Youssef Gaber
Introduction
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The problem: Bad governments
The private sector as seen by the Arab Region:
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A substitute
A financial resource
The proposed solution:
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A collaboration between the government and the private sector in order to effectively provide public
services.
A step further:
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Bringing CBOs into the equation
Public-Private Partnership
• A common understanding:
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Goals
Willingness to change things around to achieve those goals
Ongoing research
The role of private wealth in social and political
reform in the Arab region
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Many have come to believe that by partnering closely with government on pressing social issues, they can
also influence political and civic reform
They form alliances with existing governments, civil society and CBOs
Arab governments have undertaken profound policy shifts to create open markets, encourage foreign
direct investment, and prepare local businesses to compete globally, motivating entrepreneurs
In addition to this, the increase in prices of oil created trade opportunities
Accordingly many Arab business leaders are partnering with governments and civil society organizations.
Since poverty and environmental degradation are bad for businesses, business leaders are becoming
founders of non profit organizations and are benefitting the public as well as themselves
The changing face of Arab civil society
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In most Arab countries there have been local non profit organizations, but they have been lacking in some
areas:
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No international funds
No communication
Starting from 1980 changes were taking place
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Foreign aid sick of government turned to CBOs
Local communication
This left the relationship between CBOs and the government in a bad state
State-controlled media sources attempt to discredit local organizations for accepting foreign funds
Case Study: The Hashemite Kingdom of Jordan
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Jordan’s location and its effects:
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Political problems
Goals of current Jordanian government:
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Economic problems
Education
Job opportunities
How??
History
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Jordan came in to existence after WWI
The Refugee Problem:
Demographic shifts and their causes:
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Refugees
40% of the population are Palestinian refugees
Iraqi refugees are increasing in Jordan as well
Political Scene
• Economic Crisis lead to debt and inflation
• Islamic Action Front (IAF):
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Mobilization of public opinion against pro U.S alignment
• Law of proportional representation
Economy
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Jordan has a stable economy:
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Public grants
Jordanian workers who work abroad and send money back to Jordan
The Refugee Problem has been creating challenges for this stable economy
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Cost of living
No change in incomes
Import and export problems due to the war in Iraq
With all the challenges Jordan has still managed to achieve positive growth in its GDP per capita, meaning its economy
has been robust.
King Abdullah’s plan in order to make the country’s economy and politics better is known as the National Agenda. This
involves getting the youth to help Jordan in its transformation.
The Rise of the Jordanian Private Sector
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Government Policies:
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Creating an attractive business climate
Privatization of all businesses owned
Relaxing regulations
Jordan still has its problems
Consistent growth of private sector has lead to a wealthy class of highly educated, globally connected citizens
Involvement of private sector:
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Partnerships with governments in certain areas
Partnerships with NGOs
Establishment of philanthropic institutions
The Jordan Education Initiative (JEI)
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What is its importance?
A public-private partnership model involving the government, the international
private sector, the local private sector, NGOs and donors.
Goals and Objectives:
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Acceleration of educational reform
Build IT industry to provide innovative learning solutions
Building a model of reform that can be exported to and replicated in other countries
Local private sector is not just providing resources, they are active partners
Madrasti: The School Adoption Initiative
• Complementary to JEI
• Community participation is integral
• Business involvement is encouraged
• Create a sense of commitment towards education
• An example of how partnerships can be leveraged to lead to sustainable
social change
The Jordan River Foundation
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A model of a non-profit NGO being closely tied with the private sector
Mission: Promote the development of a dynamic Jordanian society, by supporting sustainable social,
economic and cultural programs that empower communities based on their needs and priorities
Two programs:
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Supporting individuals and communities
Protecting the rights and needs of children
Huge funding and first Arab region NGO to publish a GRI certified sustainability report
Professionalized organization
Adding members of private sector to their Board to increase the likelihood of involvement in long term.
Ruwwad: A Model for Private Philanthropic
Institutions
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Founded by the CEO of Aramex, Fadi Ghandour, in 2006 as a non-profit company
According to Fadi Ghandour, he and his colleagues “just want to give back to their surrounding
communities.”
Mission: To adopt a poor and marginalized area that is densely populated and work closely with
the local community to define and solve the communities’ problems
Funded by businesses and individuals from the private sector
Actively partnered with government lobbying them to provide the community with necessary
public services
Transferring expertise to a similar non-profit called Tawasol in the poor urban slum area of Establ
Antar in Cairo.
Conclusion and Final Message
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The case study of Jordan demonstrates how the growth of the private sector has
led to the creation of an elite business community willing to contribute not simply
funds but also time and management expertise to the solution of difficult social
problems
Governments are inherently incapable of achieving all of their goals alone; and the
private sector cannot and should not assume the jobs of the government
Civil society needs fewer regulatory restrictions
Government and ruling elites having a vision and will it not enough.