Employment generation is a criticalchallenge facing policymakers in the Middle East and NorthAfrica (MENA) region, particularly since the Arab uprisingsas citizens challenge governments to provide greatereconomic and social opportunities. Unemployment levels inMENA are above those of any other region, while the laborforce participation rate remains stubbornly low. Three outof four working-age women do not participate in the laborforce, constituting 80-90 percent of MENA's inactiveworkers. Unemployment is further complicated by thedemographic bulge the region is facing. The lack of goodemployment opportunities in the region is reflected in highlevels of informality: in no MENA country does the formalprivate sector employ more than 20 percent of workers. Inrecent years, policymakers have prioritized developingMicro, Small, and Medium-Sized Enterprises (MSMEs) toaddress the employment challenge in MENA. A small proportionof high performing MSMEs have the potential to grow intointernationally competitive companies, generatingsignificant economic benefits through raised productivity,employment, and economic stability. Addressing theemployment challenge in MENA requires a coordinated set ofpolicy interventions that combine access to finance forMSMEs with direct business development services, early stageinvestment for new firms, and broader reforms to thebusiness regulatory and legal environment.
PDF
download
878987797
028-85220240
