The paper "The Middle East & North Africa Countries - Reforms & Performance" is a perfect example of a business case study. The Middle East & North Africa (MENA) countries continue to witness challenges associated with development. Job creation is an aspect which is totally ignorant and is due to the weak contract enforcement which will result in around seventy million people seeking employment in the next twenty years. Reports published by the World Bank clearly brought forward the need and importance of having a transition phase so that strong enforcements and laws can be created which will help to ensure that the private sector business contributes positively towards the business.
This will require that the weak contract enforcement is replaced with better rules so that the business environment and the private sector is able to ensure better growth. This paper looks towards dealing with some of the implications entrusted with weak contract enforcement on MENA’ s business environment and the manner the private sector has been able to deal with the different challenges. This will help to ensure that an environment is created which is more formidable and ensures that the private sector is able to create jobs and ensure that systematic reforms and developments take place in the MENA countries. Private Sector Development: Reforms & Performance All MENA countries like Bahrain, Egypt, UAE, Iran and so on look towards developing significant programs so that structural reforms can be developed so that a conducive environment which helps the private sector to ensure better performance can be ensured.
This will help the private sector is market-driven and the weak contract enforcements are replaced through which better reforms can be passed. Since the independence of nations like UAE & Egypt, a social contract between the government and the private sector along with the public has been developed so that the social inequity which is present gets reduced.
This will help to deal with the weak enforcement which is present and will ensure that stronger reforms can be developed but hasn’ t been achieved till now. The social contract was developed keeping in mind the paternalistic view so that the state could be involved in state planning, protecting the local market from external competition, ensuring better public welfare in the organization, developing social service programs and creating public sector jobs (Brown, 1995).
This would require that the contracts which are developed should be strong and should remove the differences which are present so that the private and the public sector are able to contribute positively towards the growth of the economy. Businesses which are developed under the patronage of the government should be such that organizations working under it are able to benefit from it. To ensure maximum benefit the contracts need to ensure strong enforcement so that better monitoring becomes possible as the business environment will be developed based on it. In the early 1970s, some of the MENA countries like Bahrain, Iran & Iran along with UAE started reforming the economic sector by ensuring that the private sector is able to take initiative and ensure that they have a greater role in market development and promoting international trade.
Many countries like Palestine, Kuwait and Saudi Arabia continue to face problems associated with slow or negative growth rates, the negative balance of payment and so on; have looked towards making structural enforcements so that the private sector through the process of strong enforceable contracts is able to contribute positively towards the growth (Brown, 1995).
The process was started by one MENA countries i. e. UAE and then was followed by other countries so that economies could deal and develop the business environment in a positive manner.
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