Emerging Markets quotes Rafik Hariri Center Nonresident Senior Fellow Mohsin Khan on economic challenges in the Middle East:
But Mohsin Khan, senior fellow at the Atlantic Council’s Rafik Hariri Center for the Middle East, believes that a 6%-7% rate of inclusive economic growth is needed to “satisfy and pacify” the population.
Demography and time, however, are against the region’s efforts. Creating the necessary economic growth across the wider MENA region will take a long list of structural and institutional reforms, Khan told Emerging Markets. Even if many of the reforms under debate were instituted this would only get growth to perhaps 5%, he said.
“The political will is not really there and the problem is being pushed off into the future,” he said. “It would take five years at least for the necessary reforms to be implemented and then you would start seeing growth rates pick up. But without the growth you could see another uprising in a year or two.
“The oil producing countries have the money to buy peace,” said Khan. “They can throw money at the problem. The other countries can’t.”