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IPI
INTERNATIONAL
PEACE
INSTITUTE Monday. June 4, 12 Ladies and Gentlemen, good morning.
IPI is dedicated to promoting the prevention and settlement of conflict by strengthening
multilateral institutions. It sees peace and security as prerequisites for poverty eradication and
development.
Since 2008, at IPI we have been keeping a close eye on global trends that affect these fields in
which we work. We have done this particularly with our program Coping with Crisis, Conflict,
and Change.
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Global Trends and Crises Monday, June 4, 12
Today, I would like to focus on two themes.
First of all, I will highlight a few main global trends and crises of our times.
Second, I will present data specific to the Middle East and North Africa. The reason, of course,
is that this is a region affected by sweeping changes that also have global implications.
Let me begin with global trends and crises.
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Demography Environment Technology Economic Power Social Tensions
Geopolitical Balance
We have identified six mega-trends, for lack of a better word, that are creating massive
changes.
Namely:
"World demography," "Pressures on the Environment,"
"Technological Innovation," "Shifts in Economic Power,"
"Social Tensions," and "Shifts in the Geopolitical Balance."
These mega-trends are transforming the conduct of world affairs as we speak. States and
multilateral organizations are struggling to come to grips with these changes on a daily basis.
The first mega-trend is demography.
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People 11 People 1900 People Demographic Shifts Population per square km
I would like to emphasize three of many vital demographic changes.
First: the dramatic increase in world population over the last 100 years is creating
unprecedented challenges for humankind.
In 1900, there were on average 11 people living in every square kilometer.
In 1950, there were more than one and a half times as many people in the same space.
In 2010, this number grew to 46 people.
And by 2050, it will reach 62 people.
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Second, the distribution of population throughout continents is changing dramatically.
Let me take just the most startling example. In 1950 the population of Europe was nearly two-
and-a-half times that of Africa's...
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Europe Africa 2050
Poor d Population Prospects' The 2010 Revision Popular on Database. LN Population Division. 2011
By the middle of the century, Africa's population will be more than three times that of Europe's.
By 2100, Nigeria alone will have more people than Europe today.
This has massive implications for those countries that will have to produce jobs and services
for a huge number of people.
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Russia Pakistan 401111111rorw 1950
Asia is another continent where most of the population growth is happening. Just to make
another comparison, in 1950, the population of Russia was more than two-and-a-half times that
of Pakistan's.
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Russia Pakistan 2050
World Population Prospects: The 2010 Revision Population Database, UN Population Division, 2011
Monday. June 4. 12
By 2050, Pakistan's population will be more than twice that of Russia's.
RI CC1701
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Some countries, like Russia, will age dramatically, facing challenges for their pension and
health care systems. Other countries, like Pakistan, will have massive numbers of young
people requiring jobs and education.
In fact, a recent World Bank report estimated that the economies of South Asia will need to
create 1.2 million jobs every month for the next 20 years just to keep up with these
demographic shifts.
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16 Cities Over 1 million people in 1900
Urbanization is the third demographic shift. In 1900, only 16 cities had populations over 1
million.
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442 Cities Over 1 million people today
Today, 442 cities have populations over 1 million.
Indeed, in 2008, for the first time in human history, more than half the people on the planet live
in cities.
Urbanization is a global trend, but it is particularly strong in some regions. Cairo, for example,
has more than doubled its populations since 1970. In fact, we can say that the Arab Spring is
an urban phenomenon, which has been facilitated by the networks and proximities that cities
offer.
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FragilCities
Growing urban populations create critical demands on housing, transportation, security and
infrastructure.
Fragile cities can become as dangerous as fragile states.
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Environment
The second mega-trend is the growing pressure on an already strained ecosystem.
The rapid growth in global population and in economic development have increased the
demand for natural resources. This, in turn, has increased the degradation of our environment.
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- Global United States More energy consumption has led to more emissions.
Global CO2 emissions have increased by over 180% from 1965 to 2010.
For much of this time, the global north, and particularly the United States, has been the primary
source of these emissions. In 2007, for the first time in history, China surpassed the United
States as a primary source of these emissions.
The United States and China make up almost half the global carbon emissions. This makes an
agreement between the two countries of paramount importance to the issue of carbon
reduction.
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C mate Change
IND
'bal Analysis 2010
The implications on the climate have been amply discussed. Let me show you only one piece
of data.
The dots on this map indicate the temperature anomalies in 2010, calculated on the average
from 1971 to 2000. The larger the dot, the bigger the anomaly.
We all are affected by climate change in one way or another, but for some regions, such as
North Africa and the Middle East, as you can see from the map, it can become a threat
multiplier.
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Another effect is the steady rise of natural disasters in the last forty years.
While not all of this can be attributed to climate change, shifting sea temperatures have been
linked to an increase in the severity of storm and coastal flooding, which has a significant
human toll. Urbanization has also increased vulnerability to natural disasters, especially in
countries with limited response capacity.
For this reason, IPI supported the State of Qatar in developing the HOPEFOR initiative, which
aims to improve the use of military and civil defense assets for natural disaster response.
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A consequence of environmental degradation is the growing concern over water scarcity. It
affects 1 in 3 people worldwide.
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International Water Management Institute 2006 Comprehensive Assessment
As of today, 70% of water use goes to agriculture.
And of even greater concern, 80% of the used water is neither collected nor treated.
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Technology
The increasing pace of technological change is our third mega-trend.
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Technology is changing faster today than ever before in human history. In less than a
generation, things like texting, blogging and streaming video have transformed politics and
society irrevocably.
Just think about this: In 2010, there were more cellphone subscribers than human beings
living on our planet in 1985.
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ITU The World in 2010: ICT Facts and Figures
Today, the speed of technology diffusion is unprecedented.
For example, global access to the internet has more than doubled in the last 5 years.
However, the diffusion of this technology has not been distributed evenly across regions.
In the Americas, more than half the population has regular access to the internet.
In the Arab States, less than 30%.
And in Africa, less than 10%.
The digital divide still persists.
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This famous image of our planet at night illustrates this point.
It conveys the vivid contrast between the bright and technologically advanced urban centers
and the darker, less developed, but increasingly crowded regions of the rest of the world.
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Technology creates immense opportunities. However, it also carries unforeseen dangers.
2011 has seen a major wave of cyber attacks. Targets included Apple, Citigroup, Google, NBC,
and the Hong Kong Stock Exchange. Defense ministries in Australia, Japan, Norway, the US,
and NATO were also hacked.
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Cyber attacks can also disrupt critical infrastructure. Things as diverse as power plants, water
treatment and air traffic control are all heavily dependent on computer networks and easily
targeted by terrorists and criminals.
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Economic Power
The fourth trend that is driving major change is the shifts in economic power.
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IMF 2011 World Economic Outlook Database
The global economy is still characterized by uncertainty and volatility. The Eurozone might not
have avoided the worst, and remains a long way from recovery. Brazilian growth estimates
were recently downgraded. Some experts also see signs of a bubble in the Chinese economy.
However, one trend is clear. Even before the 2008 financial crisis, economic influence has
begun to move from Western countries to emerging powers.
Different countries' relative contribution to the world economy has changed dramatically.
In 2000, the G7 countries contributed to 65% of the world economy.
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In only ten years, they went down to 51%, while the so called BRIC countries have grown from
one-sixth of the world economy to almost a quarter. This trend seems to be bound to continue.
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Part of the strain on the global economy is due to the price fluctuation of scarce commodities
like oil and food.
Demand for energy will increase by one-third in the next 25 years.
Non-OPEC countries currently produce roughly half of the global oil supply.
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However, at current production rates, the known reserves in non-OPEC countries will run out
within the next two decades.
Barring new discoveries, this will drastically increase the share of OPEC in global production
by 2035.
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Regardless, the age of cheap oil is over as companies turn to more difficult and costly sources
to meet demand.
Nuclear power has now lost some support due to the Fukushima disaster.
And green renewable technology is not yet scalable to meet global demand.
While oil will continue to play a significant role, by 2035 natural gas will become crucial to meet
demand.
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But oil is not the only resource under pressure. Food is another. The FAO estimates a growth
of 70% in the demand for food by 2050.
As oil prices spike, potential food price increases are a serious risk for instability.
Many countries use subsidies to mitigate costs. However, this practice is becoming untenable.
Nigeria recently attempted to reduce oil subsidies, but demonstrators and strikes forced the
government to back down.
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Social Tensions The fifth mega-trend is the growing social tensions.
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In the Middle East, social unrest has produced the most striking effect.
But, it is not only the Middle East. From New York to Athens, from London to Moscow, from
New Delhi to Madrid, huge numbers of people took to the streets in protest of governments and
policies.
There is the perception that, globally, the gap between people and institutions is widening.
This was so evident that in 2011 Time Magazine named the protester the "person of the year".
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Some experts have linked these social tensions to the growing level of income inequality within
countries.
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Relative increase of income share of the richeW.3%
In fact, inequality is truly a global trend. Globally between 1988 and 2005, the share of
household income for the richest 5% increased by 8%. For the poorest 25%, this share has
decreased by 32%.
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The sixth and last mega-trend is the shift in geopolitical balance. It goes without saying that this
is heavily influenced by the trends we just described.
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SIPRI Military Expenditure Database 2010
The implications of the rise of new powers such as Brazil, China, India, South Africa, and
Turkey are uncertain. The shifting political landscape in the Arab world is still playing out in
unpredictable ways.
One thing is clear, however: the geopolitical balance is shifting irrevocably.
In military terms, power is primarily concentrated in the hands of the United States. America
has the largest defense budget compared to any other country in the world, with almost $740
billion in 2010-11. While Chinese defense spending is rising, there remains a substantial gap.
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However, power can no longer be measured by arms and expenditure alone. The limits can
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In fact, advances in technologies, such as guided missiles and drones, are fundamentally
changing the nature of warfare.
Yes, we still live in the age of US military supremacy. However, many countries continue to
modernize their military capability.
From 2007 to 2011, the volume of global arms transfers was 24% higher than in the previous
five years. India is the largest recipient of arms, accounting for 10% of global imports. China,
which was previously the largest recipient of arms, is now a major exporter. Meanwhile, in 2011
Saudi Arabia placed the largest arms order of the past two decades with 154 F-15 aircrafts.
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Nuclear energy and its military use are also part of the shifting balance.
In the last decades we have seen an increase in the number of nuclear powers.
Currently there are 9 states that possess nuclear weapons.
As we all know, Iran is attempting to enrich uranium and could potentially develop nuclear
weapons in the future. Should that happen, the number of aspirant nuclear-armed countries in
the region may grow in response.
This proliferation will change the balance of power across the globe in drastic ways.
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These geopolitical shifts reveal a fundamentally new world, which is changing at
unprecedented speed.
The so-called BRIGS countries now meet at summit level. The Arab League is center stage in
the current crisis in Syria. Individual countries are expanding their area of influence, such as
Turkey and Qatar in the Middle East, or Brazil and China in Africa.
Countries are exercising influence in multiple arenas and institutions. These developments are
making the United Nations less central to global affairs than it was in the past.
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Demography Environment Technology Economic Power Social Tensions
In these transformative times, we are all struggling to come to grips with these new historical
realities.
Some talk of a multipolar world, some of non-polarity.
Whatever word you choose, no country or group of countries has the power to set the
international agenda and solve global problems alone.
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In fact, there is still lack of globally cooperative responses to the new and increasingly grave
challenges to human well-being.
- Poverty - Conflict - Crime - Hunger - Illness - Inequalities
If we consider all these crises together, the result is deeply troubling. The emerging picture is
extremely complex.
What we think is the main feature of this complexity is the overlapping nature of crises.
Because crises seldom exist in isolation.
They compound each other. They exacerbate each other.
Let me highlight some of these crises.
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Youth Bulge More than 50% between ages 15 and 29
UN Population Division, 2010
The first crisis I want to address is the increasing youth population, commonly referred to as
"youth bulge," a condition that occurs when a disproportionate segment of the population is
aged between 15 and 29.
In extreme stress cases, 50% of the adult population is in this age range.
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Extreme Poverty Countries with highest poverty level
Human Development Report. 2008 Statistical Update Extreme poverty is another serious crisis.
Globally, 1.4 billion people continue to live on less than $1.25 a day.
In the poorest countries, over 40 percent of the population lives with less than $1.25 a day.
Over the last 20 years, economic prosperity in many countries has lifted millions out of poverty.
However, progress has generally been uneven.
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t 9fr Inequality Within Countries Countries with the greatest income inequality
Human Development Report. 2008 Statistical Update
In fact, we are losing ground when it comes to inequality within countries.
These are the countries with the highest level of income inequality within their populations.
As I mentioned before, inequality has also been indicated as a potential source of conflict and
instability, especially when it aligns with other factors such as ethnicity.
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Lack of Education More than 30% of adults cannot read
Human Development Report. 2008 Statistical Update
Another crisis of our times is the lack of education, especially among the extreme poor.
One in every six adults - more than 776 million people in the world - is unable to read and
write.
These are the countries where more than 30% of the adult population cannot read or write.
If we also consider the gender imbalance in these countries, we see that, on average...
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44%
Illiteracy among men in these countries ...44% of men are illiterate...
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67%
Illiteracy among women in these countries ...compared with a staggering 67% of women.
Gender empowerment is one of the fundamental changes of the last decades. However, as
this figure shows, there is still a long way to go.
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Poor Public Health Fewer than 70% of children age one vaccinated with DTP
Our next crisis is also linked to lack of education: poor public health.
Experts tell us that one of the best ways to measure health access in a country is to see how
many children have been vaccinated against diphtheria, tetanus, and pertussis. On the map,
you can see the 20 countries where less than 70 percent of children age one have been
vaccinated. Some of these countries have rates of vaccination as low as 33 percent.
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I
Food Crisis Over a third with chronically insufficient food intake
FAO State of Food Insecurity in the World, 2008 Disease is intrinsically related to food.
These are the countries with the greatest food insecurity.
In these countries millions of people consume less than their minimum calorific requirements.
They lack either the money to buy enough food or the resources to produce that food for
themselves.
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Water Crisis People without access to 20L per day within lkm
Human Development Report. 2008 Statistical Update
An increasing number of people is also suffering from chronic water shortages. I already
mentioned water scarcity as a global mega-trend.
Here on the map we can see the countries facing the gravest conditions of water scarcity.
Many also have pointed to water scarcity as a possible cause of conflict, such as in Darfur.
As we talk a lot about energy security, should hydro security receive at least the same
attention?
It seems to us a very urgent matter.
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Pt
Is
Perceived Corruption Based on expert surveys
Corruption Perceptions Isclen, Transparency International , 201 1
Many countries experiencing these crises suffer from one additional aggravation: corruption.
Here you can see the countries with the greatest perception of corruption.
The unfortunate fact is that states suffering from corruption are weakened in their ability to
respond to other crises.
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Crises Overlap [pause]
I'm sure you've noticed that most of these crises occur in the same regions.
Crises overlap. Many of you are familiar with this data. But each of them has to be understood
within its broader context.
Let me illustrate this point by geographically overlapping these crises.
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Corruption Corruption
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Water Crisis June 4.12 Water Crisis
EFTA R1 001IU2]e
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Food Crisis Montlay, June d, 12 Food Crisis
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Poor Public Health
4
Poor Public Health
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Lack of Education Lack of Education
EFT0,1_00,0239
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Inequality Monday, June 4 12 Inequality
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Extreme Poverty 141 4'5 Extreme Poverty
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Youth Bulge
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Crises Overlap Monday, June June 4, 12 The deeper red the country, the more crises it has to face.
And that's not all. A lot of these countries are facing security challenges.
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Let's add conflict.
Uppsala Conflict Data Program (UCDP), 2011
The number of wars has seen a decline over the past 15 years. But in 2010, the last year in
which data is available, we still counted a total of 30 active conflicts.
Many of these wars have also regional and global implications.
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Monday June 4, 12
Let me make just one more example. Another very lethal and highly destabilizing threat is
transnational organized crime. Criminal groups are some of the biggest profiteers of
globalization.
Look at cocaine flows: supply from the Andean countries and demand from Europe has
caught West Africa in the cross-fire.
Demand for heroin in Europe and a massive supply of opium in Afghanistan is creating
instability in Eurasia, spreading drug use and enriching criminal groups.
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Middle East This is the complex picture at global level.
Our planet is so interconnected that no crisis is isolated. Change on one side of the world has
implications that go beyond borders and continents.
Nowhere is this more true than in the Middle East. In fact, the Middle East and North Africa are,
for the moment, the places where these challenges appear the starkest.
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Lebanon Occupied Palestinian Territories Israe Kuwait
Qatar Bahrain Middle East & North Africa Before our eyes, history is in the making.
As you all know, unprecedented unrest is sweeping across the Arab region. No movement is
isolated. Rather, they sustain and inspire each other.
Nobody knows how far the Arab spring still has to go before summer arrives. However, even if
the changes remain unpredictable, it is clear that nothing will ever be the same in the region.
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Mirroring some of the global trends we examined earlier, we can say that the Arab Spring
emerged from a set of common pressures:
Demographic;
Economic;
Technological;
Social; and Political.
Frustration with living standards and governance grew to the point that a large number of
young Arabs confronted their leadership head on.
A crisis of expectation fed grassroots movements.
And thanks to new technologies, they grew stronger. People power acquired a new meaning.
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As of today, countries in the region are in different phases.
Libya just emerged from a bloody civil war.
Syria is heading towards one, if the international community does not succeed in preventing it.
Following recent elections, Egypt, Tunisia and Yemen are experiencing major political
transitions.
Morocco, Algeria, Jordan, and Bahrain are witnessing varying degrees of political change and
protest.
Other countries in the region have remained relatively stable.
Let's have a look at some of the changes that occurred over the last year.
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In Morocco, Tunisia, Egypt and Kuwait, recent parliamentary elections gave the majority to
Islamist parties.
This new development in the region has to be watched carefully. Some believe that moderation
will prevail. Others worry that multiple voices in these societies could be stifled, especially in
Egypt and Tunisia where new constitutions will be drafted in the coming months.
Ethnic and religious tensions are on the rise in the region, as exemplified by the sectarian strife
in Yemen and incidents of violence toward Christian minorities in Egypt. The bloody situation in
Syria will only make things worse.
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Overall foreign direct investments dropped by more than a quarter.
In Egypt, it plunged from $6.4 billion in 2010, to $500 million last year. In Libya, it dropped from
$3.8 billion to almost nothing.
In the long term, however, foreign investments will likely re-start, as the countries stabilize and
the economic downturn reverses.
What is more worrying are structural issues such as the poor state of the government
machinery, the continuing cost of subsidies, and big budget deficits.
For example, the Egyptian deficit is 10% of the GDP, while food subsidies eat up 4% of the
budget.
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9%
15%
[repeated 3 times]
9%
Unemployment Gallup World Poll. 2011
This has exacerbated an already depressed labor market. Though some of the official data
may under-estimate the problem, current unemployment remains quite high. Last year in
Morocco and Egypt, the unemployment rate went up by 5% alone.
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35%
[repeated 5 times] Underemployment
35%
Gallup World Poll, 2011
When people are not able to match their skills to adequate jobs, they are considered under-
employed. In the Middle East underemployment estimates range from a minimum of 15%, such
as in Lebanon, Israel, and Kuwait, to a maximum of 35%, such as in Algeria, Libya, and
Yemen.
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60%
72%
77%
68%
71%
67%
68%
Daily Hardship
67%
57%
50%
57%
/ 75%
48%
40%
47%
53%
* no 2011 data Gallup World Poll 2011 These facts are confirmed in people's perceptions.
According to a recent Gallup Poll, in Morocco 77% of people say they feel like they are
struggling, in Tunisia 71%, in Algeria and Egypt 68%.
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Do governments face a crisis of efficiency and effectiveness in addressing these global
challenges?
Is the current multilateral system, which was set up in the aftermath of World War Two,
outdated?
Our answer is yes.
In order to cope with these new realities, leaders in governments, corporations, and civil
society need to adapt.
Because we believe that if institutions are not able to change, they are bound to fail.
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IPI
INTERNATIONAL
PEACE
INSTITUTE www.theglobalobservatory.org
Many thanks for your kind attention. I look forward to your comments, ideas, suggestions, and
criticisms.
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