 | | Investing in youth can have a positive multiplier effect on the region’s growth |
October 24, 2008 — Unemployment rates in the Arab world are among the highest in the world. And they are especially high among people under 24, who make up almost 60 percent of the region’s population.
As one way of addressing the problem, many governments are now working closely with the private sector to integrate a corporate social responsibility (CSR) approach. It involves a commitment by businesses to manage and improve the economic, environmental, and social implications of their activities. The approach is attractive to both Arab companies and governments who want to help close the gap between young people’s skills and the needs of the labor market. “Responsible business, or CSR, is gaining momentum and establishing itself as a driving force in the Middle East,” said Djordjija Petkoski, head of the Business, Competitiveness and Development program at the World Bank Institute (WBI). Incentives are growing for Arab businesses to move toward this approach. Transparent, law-abiding, and responsible firms have better access to finance, enhance their reputation and brand identity, and attract skilled employees. Businesses and governments are ready to practice corporate social responsibility, but many lack the knowledge to do so convincingly.  | | Dr. Mahomoud Mohieldin, minister of investment in Egypt, applauds the WBI and the Egyptian Institute of Directors partnership on CSR issues in the MENA region. |
Executive Development in Arabic
WBI is tackling the “how to” with private sector leaders in the Arab World through in-depth, targeted consultations and its new Executive Development Program, Inclusive and Sustainable Business: Creating Markets with the Poor. Egypt launched its national initiative on corporate social responsibility in March and approached WBI to assist the Egyptian Institute of Directors in delivering a multi-year learning program for the Egyptian and regional private sector. WBI has since developed a tailor-made program on corporate social responsibility and sustainable competitiveness in Arabic, to be launched October 27 in Cairo. The program will provide guidance to business leaders on how to put CSR at the core of their business models. The program will offer customized training materials relevant to the realities of the Arab World, and interactive e-learning sessions. Through case study analysis and discussion, participants will have the opportunity to learn about what companies worldwide are already doing on these issues, and will be able to interact with local and global CSR experts and practitioners.  | | WBI Dr. Ahmed Nazif, prime minister of Egypt, launches the National Initiative for Corporate Socal Responsibility in Cairo. |
“Corporate Social Responsibility is not just about making a donation or a grant. It is regular, systematic institutional work that maximizes corporate value,” said Egyptian Prime Minister Dr. Ahmed Nazif.
On to Universities The WBI program will be scaled up to local universities to create a new generation of responsible business leaders. Investing in youth can have a positive multiplier effect on the region’s growth, while also creating a more qualified and entrepreneurial labor force. “There is only one way to build a brighter future for the Arab World, and that is by intensifying our investment in its greatest asset — young people,” said Daniela Gressani, vice president, MNA Region. Value in Partnerships Facing competition from other regions and growing domestic pressure from a young workforce, several governments have made efforts to attract private sector investments and engage businesses through public-private partnerships (PPP). For example, the Egyptian Ministry of Investment is implementing various projects in education, health, and water and sanitation services through such partnerships. More than 2,200 schools are being operated through PPPs, with the private sector investing in construction and maintenance, while the government provides teachers’ salaries, administrative staff, and annual operating costs.  | | Dr. Djordjija Petkoski, head of the WBI Business, Competitiveness and Development Program, moderates a session at the National Initiatives for CSR in Cairo. |
“We are happy with our cooperation with the World Bank, OECD, UNDP and local organizations,” said Dr. Mahmoud Mohieldin, minister of investment in Egypt. “We want to encourage businesses to move beyond donations, toward confidence and partnership building.”
Contributed by Ekaterina Svirina, WBI
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