The news here is both good and bad. There is greater interest in privatization, the establishment of new stock exchanges, and more efficient capital markets. At the same time, the very forces that have stifled economic growth for so long continue to hold much of the region in their grip. Yet today, it risks being relegated to the fringes. And even more surprising, only one percent of annual international private investment finds its way to this part of the world.
Old habits die hard.
Even during this era of globalization, the practices of four decades continue to impede investment. Local entrepreneurs and international investors are discouraged by overly bureaucratic procedures, a large state sector, and stifling red tape. Before coming to Jordan, I spent three days in Egypt. As you probably know, that country is making real progress with growth rates of up to 5 percent, inflation down and foreign currency reserves growing. An over-regulated economy that forced entrepreneurs to devote too much of their time to problems of bureaucratic interference is opening up.