Common threads link deliberations on the second day of the 5th MENA Development Forum

Moderated by Ms. Chantale Dejou, head of the World Bank's Marseille office, the panelists took part in a session entitled Fostering Reforms: What Works and Does Not Work.

A common thread among the reform issues discussed by the panelists is transparency, which is an integral part of any discussion involving reform. Privatization, liberalization of markets, judicial reforms, gender equality, social change and human resources were among the other recurrent themes of the plenary session.

H.E. Zahira Kamal, former Minister of Women's Affairs in Palestine, highlighted the state of women in her country and the extent of their involvement in the economic and political processes. In her position as the first minister of women's affairs in Palestine, the Minister highlighted her reforms, among the most important of which is the creation of gender balance and eradication of inequality, which is a main deterrent in women's entry into the labor market.

In his comments, Mr. Georges Zard Abou Jaoude, Chair and General Manager of the Lebanese Canadian Bank mentioned the need to place projects into the hands of qualified actors of change, who look for certain criteria when analyzing a target economy, including security and transparency in the judicial system.

Mr. Abou Jaoude further elaborated on the elements necessary for reform, namely the decentralization of power, the rebuilding of financial markets to promote growth and the development of human resources, placing special emphasis on addressing the Lebanese brain-drain.

Mr. Nassib Ghobril, Director of the Economic Studies Department, Byblos Bank, Lebanon, maintains in his address that entry into the WTO necessitates reform in Arab countries. However the reform process in the Arab world is still lagging because of resistance to change. The degree of reform varies between Arab countries depending on political agreement, and the existence of real will for reform, as well as transparency and good governance.

Concerning privatization, Mr. Ghobril mentioned that delays in privatizing the electricity sector in Lebanon caused a loss of $800 million last year and it is expected that the sector will lose $1.2 billion this year. Losses were also incurred in the telecom sector due to delays in privatization.

Mr. Mohamad Chabib, General Manager of MTC Group, Lebanon highlighted his company's experience with continuous change which is required for maintaining efficient and competitive services. MTC's profitable expansion is achieved through its strategy of corporate social responsibility, devised to foster development. Mr. Chabib emphasized that reforms must be total, encompassing a formula that includes government willingness, private sector contribution and public acceptance.

In conclusion, Mr. Chabib stated that mobile sector reforms in Lebanon can be achieved by establishing a telecom regulatory agency and ensuring its independence; and by liberalizing the sector to allow free competition.

Mr. Nemat Frem, Managing Director of Indevco S.A.L. also emphasized the need for modernization of the judicial system in order for it to be able to support true and broad-ranging reforms in Lebanon.

Stating the necessity of a free economy to achieve reform, Mr. A. Taieb-Ezzrami, President, Club Entrepreneurs et Industriels de la Mitidja, presented Algeria's reform initiatives, setting priority on restoring the business environment which was rocked by political instability. Mr. Taieb-Ezzrami listed some of his country's efforts at keeping pace with the globalization trend such as Algeria's entering into a free trade agreement with the EU, its entry into the WTO as well as reforms in agriculture, industry, labor laws, investment laws and customs.

Mr. Abdeljlil Grefft Alami, Advisor to the Minister of Social Development, Morocco highlighted the experiences of his country where there have been reforms but where poverty and illiteracy rates are still high, necessitating urgent reforms. 'One of the most important factors,' he said, 'behind the failure of reform is due to flawed decisions and splits within regulations and policies.' Mr. Alami said there should be a new framework of policies to repair the weakest areas within the system. Mr. Alami also placed emphasis on the need for training in human resources and acquiring long-term financing.

H.E. Valdis Birkavs, former Deputy Prime Minister of Latvia covered his country's experience in overhauling legislative processes, privatizing government agencies, opening borders, and changing the direction of exports. Mr. Birkavs also pointed out the strides made by the Balkan countries in joining NATO and the EU.

Mr. Birkavs said that while Latvia focused on economic reforms, he admitted the need to work on social and educational reforms and described his country's efforts to involve and unite the public through a goal-oriented, enthusiastic vision. In order for reform to succeed, civil society must always question the government, he said.

Mr. Bertin Martins, Regional Economist with the European Commission spoke of the economic aspects of reform saying that financial aid and funding do not generate reform but help in launching the process. Mr. Martins also stressed the need for reforms in keeping pace with on-going developments. The private sector should be given incentives to lead reform, he continued, rather than depending on the public sector for such an endeavor.

Workshops covered the following reform topics for the MENA region: a Palestine case study on institutionalizing and accelerating reforms; considering gender in institutional reforms; citizens, civil society and public sector reform; youth promoting good governance; governance reforms for better city performance; reform for enhancing the business environment, considering gender in institutional reforms, governance reforms for better city performance; capacity and knowledge building for the rule of law, Next-Generation reforms: governance, transparency and integrity initiatives.

Side activities included sessions on youth promoting good governance: best practices and models of change (part 2); governance reforms for better city performance; gender meeting; building regional communities of practice; a review of lessons.