9 October 2007
The World Bank will focus on labor-intensive export to boost employment in the Arab World.
The Wall Street Journal reported on Tuesday October 9, 2007 that Mr. Zoellick plans to focus more on the Arab World where unemployment is the greatest challenge facing the World Bank. Mr. Zoellick suggests that encouraging labor-intensive export industries, like textiles, would help create more jobs in the region. He adds that he will encourage "reformers" in the region like those he met with when he was pushing for stronger trade ties among Egypt, Israel and Jordan.
Mr. Zollick was referring to the QIZs (Qualified Industrial Zones) agreement, he helped crafted when he was the US Trade Representative in 2004 between the US, Egypt, Jordan and the Israel. According to those agreements both Egypt and Jordan are allowed to duty-free export to the US certain goods that have Israeli inputs. The agreements focused on textiles.
This statement raises many questions. To what extent will the World Bank carry those trade policies adopted by the US administration? How will this direction be reflected on World Bank operations in the region? Will we see more money allocated to textiles industry in the Arab World? How will the Bank push for more agreements among Arab countries and Israel given the increasing hostility among Arab people towards Israel, as a consequence of the war in Iraq?
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