‘Arab Stabilization Plan’ with Mr. Majid H. Jafar
|Date||Wednesday, March 14, 2012|
On March 14th, 2012, the Stimson's Pathways to Progress project co-hosted with the US-Qatar Business Council Majid Jafar, CEO of Crescent Petroleum and sponsor of the "Arab Stabilization Plan," an initiative that addresses the economic crisis in the Arab countries in transition, Egypt in particular. Mr. Jafar underscored the threat to Arab world stability posed by youth unemployment and the inability of new and emerging governments to address the worsening economic environment. While the private sector will need to play a critical role in the region's recovery, government leadership - especially from the Gulf - will be essential to jump-start the recovery. His proposed "Arab Stabilization Plan" seeks to create 3 to 11 million jobs over the next five years. Unlike other initiatives such as the G-8's Deauville Partnership, the "Arab Stabilization Plan" would be Arab-led, inject more capital than other plans (an estimated $100 billion over five years from key Gulf countries) and focus directly on job creation through large-scale infrastructure projects, rather than fiscal stabilization. The plan identifies three key stakeholders - investors, target populations, and non-oil producing Arab governments. Four key Gulf countries - Saudi Arabia, Qatar, UAE, and Kuwait - would take the lead among investors, while China and international financial institutions might play a secondary role.