The African Development Bank in North Africa 2012 report puts
the spotlight on the problem of youth unemployment in the region, which
is triggered by the global economic crisis and exacerbated by recent
political instability.
The report recommends several policy options governments can adopt to
address the situation. Some of these include reforming school and
university curricula to address mismatch of skills, reducing financial
and administrative costs in doing business in the region, and
encouraging companies to provide on-the-job training. The report says
governments can encourage them via subsidies and tax incentives.
An extract from the Forward below:
Geographically situated at the northern rim of the continent, North Africa (Algeria, Egypt, Libya,
Mauritania, Morocco, and Tunisia) constitutes a central
part of Africa. It is also central to the the history and the
daily operations of the African Development Bank (AfDB).
The countries of the region were instrumental in the
creation of the AfDB more than 45 years ago and are
now contributing nearly 20 percent of the Bank’s
subscribed capital.
Since the beginning of its operations
in 1966, the Bank Group has committed nearly US$
17 billion in loans and grants to North Africa, consistently
supporting the people of the region in their endeavors
to develop and modernize their economies, and improve
their living conditions. Producing about one-third of
Africa’s total GDP and home to nearly 170 million people,
North Africa is today the most prosperous region on the
continent and occupies a geopolitical position that goes
significantly beyond its economic weight.
In 2011, North
Africa also became the epicenter of social and political
change as the Arab Spring began in Tunisia and spread
across and beyond the region. The report provides an assessment of recent
macroeconomic developments. It also examines two
important long-term challenges for the region, namely
the causes and consequences of youth unemployment
and the importance of moving the region’s exports up
the value chain.
The African Development Bank must learn from the
momentous changes currently underway in the region,
understand their underlying causes and make adjustments
as appropriate to its interventions. This will be done
through close consultation with our clients to ensure that
we provide the best-possible support to improve the lives
of the people in the region.
In particular, as we finance
infrastructure and other projects, we will ensure that
rural and disenfranchised regions are developed and
integrated, and pay particular attention to the creation of
meaningful jobs. Ours is a long-term commitment and
we remain engaged in this important region especially
during these important times. It is in this spirit that we
present this year’s Annual Report for North Africa.