U.S. sees improvement in Arab economies
Special to World Tribune.com
MIDDLE EAST NEWSLINE
Monday, November 20, 2000
U.S. SEES IMPROVEMENT IN ARAB ECONOMIES
WASHINGTON — The Clinton administration appears encouraged by what
it says is a steady liberalization of Arab economies.
Administration officials said Arab countries are moving away from direct
economic control and toward privatization and information services. They
said the oil-rich countries are shifting from dependence on the energy
sector to other industries.
"Many countries are coming to realize that economic development
strategies need to extend beyond the energy sector. As we enter the next
century, we are learning that the ways of the old, single commodity and
largely static economies are giving way to the highly dynamic, diversified
and globally interconnected new economies," U.S. Commerce Department
counselor Jan Kalicki said.
Addressing a conference organized by the Middle East Economic Digest in
New York on Wednesday, Kalicki said the Middle East could benefit from the
development of Internet, privatization, and tourism. The official said the
United States would encourage this trend in bilateral and multilateral
agreements.
Such examples are Internet City in Dubai, operations by Cisco Systems
and Motorola in Egypt and Internet service competition in Syria. The U.S.
officials also cited Jordan's privatization of 40 percent of its
telecommunications system; Morocco's sale of 35 percent of its state
telephone monopoly; Cairo's offering of 20 percent of Egypt Telecom; the
public offering by Qatar of its telecommunications company Q-Tel, the
largest IPO ever placed in a Gulf Cooperation Council member state.
Kalicki said Arab states, however, continue to stand by policies that
exclude foreign participation in oil and gas exploration and development. He
said this is stopping the flow of technology to the Middle East.
"Although I have highlighted some of the positive examples of
privatization, quite frankly these examples are still the exception and not
the norm," Kalicki said. "State control of industry remains a remnant of the
old economy in the Middle East region that has a lagging effect on economic
development."
In Washington, U.S. Deputy Treasury Secretary Stuart Eizenstat said the
United States intends to expand trade and investment with Algeria, Morocco
and Tunisia, which he said are engaged in broad-ranging reforms.Eizenstat
said North African has great potential in agriculture, service industries,
regional tourism and energy and must implement sound economic policies that
attract investment.
Monday, November 20, 2000
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