World Economic Forum Examines Transformations in Arab World

Opening speaker says “people power” could unleash economic boom

By David Shelby , Washington File Staff Writer

Dead Sea, Jordan — Waves of “people power” sweeping across the Middle East and North Africa hold the potential to unleash a boom of economic development if the region’s leaders can harness the popular energy, according to the opening speaker at the World Economic Forum in Jordan.

“We have seen it in the streets of Beirut and in other places … . You have seen 1 million people in the streets of Beirut in a very civilized white revolution. They have done in two days what the governments of Lebanon have not done in 20 years,” said the National Bank of Kuwait’s Chief Executive Officer Ibrahim Dabdoub at the opening of the forum May 20.

Dabdoub said that, with modern media and communications, this movement could not be contained. “The world has become so globalized,” he said, adding that the people of upper Egypt were able to watch the Ukraine revolution live on CNN.

“I think the Middle East is going through a major transformation,” he said. “Many factors are contributing to this transformation — the increased oil revenues, the reforms, whether political or economic, that are happening here and there, the liberation of Iraq from a regime that was so harsh on its people. And I think this part of the world that has been in history on the frontier of science and education in the world, now hopefully will seize the moment and regain its importance if the leaders will take the opportunity,” Dabdoub said.

“Seizing the Moment” is the theme of the 2005 World Economic Forum in Jordan. The forum is an independent, nonpolitical, international organization based in Switzerland that promotes economic development by engaging political and business leaders in global and regional economic partnerships.

Frederic Sicre, the forum’s managing director, said the organization first chose to convene a Middle East conference in 2003 in the belief that it was crucial for the global leaders of industry and politics to work together to ensure a place for the region in the future global economic development.

He said a subsequent gathering in 2004 focused on ways in which the Arab world could begin developing homegrown plans to respond to the external pressures of globalization.

Sicre said the popular movements during the past year have provided the themes of this year’s forum: the growth of internal demands for political and economic reform and pressures for popular participation in the future development of the countries.

Dabdoub said that the historically high oil prices and the resulting inflow of cash to oil producing countries have created a unique opportunity for the region. He said the Gulf countries do not have enough local investment opportunities to absorb the cash and that the other countries of the region should be the logical beneficiaries.

“This is a window of opportunity for the capital importing countries to attract foreign direct investment from the Gulf,” he said. “There are many countries that are doing the right things — countries like Jordan — and I think they will benefit from that.”

Forum participants include business leaders and investors from outside the region as well as from the Middle East. Peter Brabeck-Letmathe, chairman and chief executive officer of Nestle, said he believes international business leaders should take an active role in this economic dialogue with the region.

“We recognize that it’s not enough for a company just to work on the microeconomic level, but that we have to help that the macroeconomic conditions are improving so that investors, whether local investors or international investors, find a more productive platform so that development can go faster,” he said.

He also expressed optimism for the region’s future based on the growing democratic movements.

“We are very confident that this is quite a unique situation from a political, economic and social aspect,” he said.