ARAB COUNTRIES : ACHIEVEMENTS , CHALLENGES AND CRUCIAL FACTORS O F ECONOMIC DEVELOPMENT

Abstract

A thousand years ago the Arab World significantly surpassed Western Europe in terms of culture, science and economic development. Later on, due to a number of internal issues (the strengthening of conservative institutions), as well as external challenges, the Arab States, unlike some other countries, lagged behind in development and has not fully stepped on the path of modern economic growth. The low level of economic diversification, the unfavourable investment climate, the limited accumulation of physical and human capital, as well as the inefficiency of state management systems, have led to a significant slowdown in the productivity growth of Arab economies after the first decades of independence in the 20th century. The Arab Countries have been witnessing recently number of severe social and political problems (i. e. the «Arab Spring»). To overcome current development issues in region it is important to increase the competitiveness of their economies through activation of the private sector and upgrade the skills of population. Also, modern technologies (like the information and communication technologies) might play pivotal role in the economic development of the region. The development of mobile phones, computers and the Internet contributes to the creating of additional jobs in various areas and the emergence of new tools in education.