Contact: Washington,September 12, 2008 — According to anew World Bank Report: "Strengthening MENA’s Trade and Investments with China and India”, the rise of the Chinese and Indian economies has had mixed implications for MENA countries. “China and India’s spectacular economic rise over the last two decades has accelerated their trade and investment flows with the Middle East and North Africa (MENA), particularly with the oil-producing countries, “ said Miria Pigato, World Bank Sector Manager, MENA region and lead author of the report. “ However, some producers of industrial goods have been adversely impacted —and in a few cases severely—affected by competition with the two Asian countries in both third and domestic markets,” she further added. The report focuses on the recent evolution of trade and investment flows between the Middle East and Asia, especially China and India - by country and sector - and on the factors that are likely to determine the future evolution of these flows. Report findings indicate that the region as a whole has benefited from the rise of China and India in terms of better terms of trade, significant increases in oil and gas exports, and cheaper imports. China and India are also investing more in MENA, particularly in oil-producing countries. But they are contributing very little to job creation or to the transfer and diffusion of technology. These trends are likely to continue in the future. “Countries in the MENA region need to accelerate productivity to tackle unemployment, especially among youth,” said Ritva Reinikka, World Bank Director of the Economic and Social Development Department, MENA region. “This may require a wider implementation of broader institutional changes such as that which China and India have experienced” she added. The report recommends a number of critical reforms targeting MENA economies and institutions that can accelerate productivity, trade, and investment in the region. For additional information on the report, please visit: www.worldbank.org/mna |
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