The most important obstacles to economic development in the Arab countries

Prof. Moustafa Mohamad El Abdallah Alkafry
2022 / 7 / 2

When developing countries begin to experiment with building the national economy, they face two forms of economic construction experience in developed countries: the capitalist system based on a free economy and the socialist system based on a planned economy. When developing countries try to choose a method for the process of socio-economic development and building the national economy, they must pay attention to the process of their peoples’ interaction with this approach. Mobilizing all energies in its battle against backwardness and achieving the highest pace of growth in it.

Colonialism, in its new and old forms, remains responsible for the state of socio-economic backwardness in the Arab countries. The Arab countries will not be able to get out of this situation except by using the available local natural resources to increase the amount of goods and services they produce in order to meet the needs of their citizens. This is the required economic development.

Comprehensive development in the Arab world faces a number of problems and difficulties, the most important of which are:

The high rate of population growth in the Arab countries.
The shortage of national cadres.
Dependency and the importance of the oil sector.
The disparity in the level of socio-economic development.
Low level of savings and capital accumulation.
Fragmentation and impeding development in the Arab world.
Arranging these difficulties in order of importance may not be realistic, as mentioned above. In the Arab countries, for example, the fifth factor may be before the first, and this is related to the general conditions of each country, and the degree of influence of one of these factors varies from one country to another.

The high rate of population growth in the Arab countries:
The important obstacle in the way of economic development in the Arab world is the high rate of population growth, so that the annual production increase rates are equal to´-or-less than the population growth rate, which makes poor countries poorer. The large increase in the population imposes a heavy burden on the national economy, and the available resources are depleted faster. Some Arab countries have succeeded in-limit-ing population growth, and other Arab countries have been able to make sound beginnings in order to reach the same goal, and there are some Arab countries that have not been able to reduce the rate of population growth, which has hindered the progress of the development process. its economic and social.

The Arab countries are characterized by the low percentage of the population who participate in the economic activity in them. While the total population at the beginning of the current decade (the seventies), about 170 million people. The size of the workforce is estimated at 45 million workers. That is, the participation rate did not exceed 26.5%. This is due to the age structure of the population and the weak contribution of women in organized productive activities outside the home and family.

In addition, the economic performance in the Arab countries is characterized by low labor productivity, especially in the agricultural sector. Of course, this is due to the weak qualifications and skills of manpower, the nature of the technology used and the efficiency of managing economic activity.

The report prepared by the International Committee headed by Willy Brandt and published in 1980 concludes that (development reduces the birth rate). The link between births and development emerges in two -dir-ections. On the one hand, the higher the level of economic and social development, the lower the birth coefficient and approached the level that arose in the industrially developed countries. On the other hand, the higher the birth coefficient, in other similar conditions, the more difficult it is to achieve higher indicators of development, especially for the individual population. In the end, the growth rates of the gross domestic product per capita of the population stop. In the end, the rates of growth of the gross domestic product per capita (the economic indicator of the country and its capabilities) depend, whether on the volume of production and its growth rates,´-or-on the annual growth rates of the population.

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The most important obstacles to economic development
in the Arab countries
Prof. Dr. Moustafa El-Abdallah Al Kafri
Contents
The high rate of population growth in the Arab countries: 3
Arab countries by population: 5
The shortage of national cadres in Arab countries: 6
Dependency and dominance of the oil sector in Arab countries: 8
The disparity in the level of development among Arab countries: 11
Accumulation, saving and investment in the Arab countries: 12




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