Middle East economies as a whole are ill-prepared for the twenty-first century. States with vast human and natural resources remain mired in poverty and unemployment, reliant upon state-centric rentier systems that simply cannot keep pace with their demographic demands. Increased state spending will not pull the region out of this hole—particularly in an age of $30-per-barrel oil. Instead, the Economic Recovery and Revitalization Working Group report, co-convened by Sherif Kamel and Christopher M. Schroeder, reveals that two factors seem to be key in achieving economic momentum: reformed education with a focus on critical thinking skills and the complete opening of legal and regulatory frameworks to nurture small business entrepreneurs and encourage the successful movement of ideas, people, goods, and capital.
