Frontline workers in the fight against Covid-19. Economies in the Middle East and Central Asia need to increase social spending for to boost inclusive growth. Reuters
Frontline workers in the fight against Covid-19. Economies in the Middle East and Central Asia need to increase social spending for to boost inclusive growth. Reuters
Frontline workers in the fight against Covid-19. Economies in the Middle East and Central Asia need to increase social spending for to boost inclusive growth. Reuters
Frontline workers in the fight against Covid-19. Economies in the Middle East and Central Asia need to increase social spending for to boost inclusive growth. Reuters

Middle East and Central Asia's economies need more social spending to boost inclusive growth, IMF says


Sarmad Khan
  • English
  • Arabic

Economies in the Middle East and Central Asia region lag global peers in health, education and social protection spending, which needs to be substantially increased to improve inclusive growth, according to the International Monetary Fund.

The Covid-19 pandemic has magnified socioeconomic challenges for these economies, bringing into sharp focus the "urgent need for higher spending" to protect the most vulnerable, the IMF said in its Social Spending for Inclusive Growth in the Middle East and Central Asia report on Tuesday.

A 10 per cent increase in social spending per capita could close 20 to 65 per cent of the Human Development Index gap between countries in the region and their global peers, the IMF said. HDI is an index that combines four factors: life expectancy, expected years of schooling of children, mean years of schooling for adults and gross national income per capita.

Socioeconomic outcomes in the Middle East and Central Asia have improved substantially over the past two decades. However, the pandemic has had a substantially adverse impact across the world, and the region was no exception.

"Generating inclusive growth has been a key challenge for the Middle East and Central Asian countries for a long time," Antoinette Sayeh, deputy managing director of the IMF, said at a panel discussion on Tuesday evening.

"Even before the pandemic, the region has faced very high and rising inequality – both gender and income inequality –  high youth unemployment … conflicts in some countries and large movements of refugees. All of that is making it more challenging [for regional governments]."

The region, she said, has "made considerable progress in recent decades improving social indicators", but that pace of progress has slowed in recent years.

"The pandemic has just magnified the challenges, exacerbating what was already there", making social spending "a key lever" for supporting and promoting inclusive growth in these difficult times, Ms Sayeh added.

These headwinds, the IMF said, have underscored the importance of "policy efforts to boost opportunities for all and meet the UN Sustainable Development Goals [SDGs]”.

The Covid-19 crisis has plunged the global economy into the deepest recession since the 1930s. It has disrupted health and education systems around the world as governments look to balance protecting people from the virus and reviving their economies. The pandemic risks wiping out gains made in education and health globally over the past decade, particularly in poorer nations, the World Bank said in a report earlier this month.

The IMF said while there is significant cross-country diversity in the Middle East, North Africa, Afghanistan and Pakistan (Menap) and the Caucasus and Central Asia (CCA) regions, social spending overall is lower than in other parts of the world. Governments in the region devote 10.4 per cent of their gross domestic product on average to social spending, compared to an emerging markets average of 14.2 per cent.

The level of social spending by low-income nations within the Menap region is particularly low, averaging only 8 per cent, compared to the global low-income countries’ (LIC) average of 14 per cent of GDP. Social spending within the GCC countries is also lower than in some advanced economies around the world, the IMF said.

There is also a difference in terms of purchasing power parity (PPP) per capita spending, where emerging markets in the Menap region spend an average of $1,220 on social outlays, compared to $1,978 in emerging markets globally.

"The additional spending needed to reach the SDGs underscores the scale of the challenges faced by the region," the IMF said

The median country in the Middle East and Central Asia needs to spend an additional 5.3 per cent of GDP per year by 2030 to achieve five “critical” SDGs including human, social, and physical capital improvements. However, some economies in the region need significantly higher rates of spending.

“The additional spending needed to reach the SDGs underscores the scale of the challenges faced by the region,” the IMF said.

Nearly all countries in the broader Middle East and Central Asian region should aim to increase the efficiency of social spending – particularly those with limited capacity to expand their fiscal space.

"We not only need to look into the efficiency of the social spending, but also the effectiveness", which is equally important for improving socioeconomic outcome, Rola Dashti, executive secretary of the UN's Economic and Social Commission for Western Asia, told the panel.

Social solidarity funds created and managed by wealthy individuals aimed at supporting the poor, without being a part of the government’s fiscal system, could be another way of improving social spending where needed.

"It can bridge the gap between the haves and the have-nots," she added.

In terms of spending on healthcare, the IMF said countries in the region spend 6 per cent of their GDPs on average, which is divided equally between public and private sector expenditure.

However, in lower-income countries in the Menap and CCA regions 71 per cent of overall health spending is on private sector facilities, "perhaps reflecting the unavailability of extensive public medical services”, the IMF said. “This composition of expenditure, tilted toward private sources, raises concerns about the access of poorer individuals to health services.”

Spending on public education in the region is also lower than global peers. On average, governments in the region spend 3.5 per cent of GDP, whereas global emerging markets spend 4.2 per cent, according to the IMF report.

The Washington-based lender said similar patterns could be observed in the amounts dedicated to social protection measures. Countries in the region, on average, spend 4.9 per cent of GDP on social protection, compared to 6.6 percent in EMs.

The specs

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Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

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SPECS

Nissan 370z Nismo

Engine: 3.7-litre V6

Transmission: seven-speed automatic

Power: 363hp

Torque: 560Nm

Price: Dh184,500

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EA Sports FC 26

Publisher: EA Sports

Consoles: PC, PlayStation 4/5, Xbox Series X/S

Rating: 3/5

Specs

Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request

Pad Man

Dir: R Balki

Starring: Akshay Kumar, Sonam Kapoor, Radhika Apte

Three-and-a-half stars

The specs

Engine: 1.5-litre 4-cyl turbo

Power: 194hp at 5,600rpm

Torque: 275Nm from 2,000-4,000rpm

Transmission: 6-speed auto

Price: from Dh155,000

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THE BIO

Age: 30

Favourite book: The Power of Habit

Favourite quote: "The world is full of good people, if you cannot find one, be one"

Favourite exercise: The snatch

Favourite colour: Blue

Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

Available: Now

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UAE currency: the story behind the money in your pockets
The biog

DOB: 25/12/92
Marital status: Single
Education: Post-graduate diploma in UAE Diplomacy and External Affairs at the Emirates Diplomatic Academy in Abu Dhabi
Hobbies: I love fencing, I used to fence at the MK Fencing Academy but I want to start again. I also love reading and writing
Lifelong goal: My dream is to be a state minister

OPENING FIXTURES

Saturday September 12

Crystal Palace v Southampton

Fulham v Arsenal

Liverpool v Leeds United

Tottenham v Everton

West Brom v Leicester

West Ham  v Newcastle

Monday  September 14

Brighton v Chelsea

Sheffield United v Wolves

To be rescheduled

Burnley v Manchester United

Manchester City v Aston Villa

Bio

Born in Dubai in 1994
Her father is a retired Emirati police officer and her mother is originally from Kuwait
She Graduated from the American University of Sharjah in 2015 and is currently working on her Masters in Communication from the University of Sharjah.
Her favourite film is Pacific Rim, directed by Guillermo del Toro

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

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THE SIXTH SENSE

Starring: Bruce Willis, Toni Collette, Hayley Joel Osment

Director: M. Night Shyamalan

Rating: 5/5

THE SPECS

      

 

Engine: 1.5-litre

 

Transmission: 6-speed automatic

 

Power: 110 horsepower 

 

Torque: 147Nm 

 

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On sale: now  

 
GAC GS8 Specs

Engine: 2.0-litre 4cyl turbo

Power: 248hp at 5,200rpm

Torque: 400Nm at 1,750-4,000rpm

Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

On sale: Now

Price: From Dh149,900

UAE currency: the story behind the money in your pockets
Farage on Muslim Brotherhood

Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

THE CLOWN OF GAZA

Director: Abdulrahman Sabbah 

Starring: Alaa Meqdad

Rating: 4/5

2.0

Director: S Shankar

Producer: Lyca Productions; presented by Dharma Films

Cast: Rajnikanth, Akshay Kumar, Amy Jackson, Sudhanshu Pandey

Rating: 3.5/5 stars

LILO & STITCH

Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders

Director: Dean Fleischer Camp

Rating: 4.5/5

It's up to you to go green

Nils El Accad, chief executive and owner of Organic Foods and Café, says going green is about “lifestyle and attitude” rather than a “money change”; people need to plan ahead to fill water bottles in advance and take their own bags to the supermarket, he says.

“People always want someone else to do the work; it doesn’t work like that,” he adds. “The first step: you have to consciously make that decision and change.”

When he gets a takeaway, says Mr El Accad, he takes his own glass jars instead of accepting disposable aluminium containers, paper napkins and plastic tubs, cutlery and bags from restaurants.

He also plants his own crops and herbs at home and at the Sheikh Zayed store, from basil and rosemary to beans, squashes and papayas. “If you’re going to water anything, better it be tomatoes and cucumbers, something edible, than grass,” he says.

“All this throwaway plastic - cups, bottles, forks - has to go first,” says Mr El Accad, who has banned all disposable straws, whether plastic or even paper, from the café chain.

One of the latest changes he has implemented at his stores is to offer refills of liquid laundry detergent, to save plastic. The two brands Organic Foods stocks, Organic Larder and Sonnett, are both “triple-certified - you could eat the product”.  

The Organic Larder detergent will soon be delivered in 200-litre metal oil drums before being decanted into 20-litre containers in-store.

Customers can refill their bottles at least 30 times before they start to degrade, he says. Organic Larder costs Dh35.75 for one litre and Dh62 for 2.75 litres and refills will cost 15 to 20 per cent less, Mr El Accad says.

But while there are savings to be had, going green tends to come with upfront costs and extra work and planning. Are we ready to refill bottles rather than throw them away? “You have to change,” says Mr El Accad. “I can only make it available.”

If you go

The flights

The closest international airport for those travelling from the UAE is Denver, Colorado. British Airways (www.ba.com) flies from the UAE via London from Dh3,700 return, including taxes. From there, transfers can be arranged to the ranch or it’s a seven-hour drive. Alternatively, take an internal flight to the counties of Cody, Casper, or Billings

The stay

Red Reflet offers a series of packages, with prices varying depending on season. All meals and activities are included, with prices starting from US$2,218 (Dh7,150) per person for a minimum stay of three nights, including taxes. For more information, visit red-reflet-ranch.net.

 

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Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

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Price: From Dh590,000

Jetour T1 specs

Engine: 2-litre turbocharged

Power: 254hp

Torque: 390Nm

Price: From Dh126,000

Available: Now

Volvo ES90 Specs

Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)

Power: 333hp, 449hp, 680hp

Torque: 480Nm, 670Nm, 870Nm

On sale: Later in 2025 or early 2026, depending on region

Price: Exact regional pricing TBA

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