Despite increasing levels of spending on schooling across much of the region, expectations have not been met. Randi Sokoloff for The National
Despite increasing levels of spending on schooling across much of the region, expectations have not been met. Randi Sokoloff for The National

Education provides a foundation for growth



Significant and growing numbers of young people across the Middle East and North Africa (Mena) are being inadequately taught and are emerging from education systems with little or no employment prospects.

The evidence of underperformance in the region is well documented: low literacy rates; low secondary and higher education enrolment; high drop-out rates; and high levels of unemployment.

Basic schooling, the standard of which is taken for granted elsewhere, is falling short. Education systems struggle to attract and retain good staff and use old teaching methods with traditional models of learning, which leave students poorly equipped to function in more modern, knowledge-based economies.

Good-quality education is a contributor to economic growth. Although there has been progress recently, it does not seem to have translated into such growth - and jobs for many. Reasons might include low-quality schooling and education systems, but more plausible is that the lack of growth is symptomatic of structural imbalances in Mena economies.

The absence of a vibrant private sector is critical. Unlike more mature developed economies, the Mena region does not have an ageing population, but one dominated by a large proportion of young people; two thirds of the population across the region are below 24 years old. They are being short-changed, with the largest numbers in Egypt, Tunisia, Iran, Iraq and Libya.

The issue has contributed to recent outbreaks of public unrest in parts of the Mena region.

Despite increasing levels of spending across much of the region, expectations have not been met. Basic schooling has not delivered the necessary levels of mathematics and literacy, meaning many young people are unemployable in any occupation requiring numeracy and communication skills. Greater emphasis is required on science and mathematics; currently almost two thirds of students graduate in social sciences and humanities. There is an insufficient supply of students with competencies best suited to the economic development needs of the region. The mismatch between expectations and economic return are most acute for those who have progressed to higher education: there is insufficient payback.

As a result, many young people feel not only disillusioned and economically disenfranchised, but also powerless to influence change for the better.

What does the vision of "better" look like? Better outcomes at primary, secondary and tertiary levels are all essential as is a focus on technical skills. The three components that can help to improve quality and develop systems responsive to the needs of economies are: resources - study after study reinforces the need for high-calibre teaching staff as the main driver for successful educational outcomes.

Experience needs to be imported, which is often expensive and transient in nature; performance management - often anathema to the teaching profession, but the need to link rewards and incentives to educational results is an imperative; accountability to stakeholders - herein lies what is perhaps one of the key issues at the heart of the Mena protesters' complaints: the opportunity to influence how systems such as education and health are constructed and financed.

Options leaders and policymakers should consider include: giving more power to the people - be willing to cede control to the local or institutional level and allow people to influence the shape of education institutions, the ownership of institutions, or to play a role with schools that enables them to influence what education is delivered and how; playing the role of market-maker by acting as a regulator and a buyer of services, not a provider - governments should consider extending the role of the private sector by developing closer ties to industry and commerce and becoming more responsive to their needs. This may mean being prepared to partner in new ways; focus on delivering more vocational training that delivers increased employment rates - programmes that do not require four-year commitments for the prestige of a degree.

Now more than ever, Mena governments need to think and act radically in reforming and investing in their education systems to secure sustainable change.

Sally Jeffery is an advisory partner for PricewaterhouseCoopers in the Middle East, Duncan Lampard is the director of education and Jumana Salti is the senior manager of education

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

MATCH INFO

Manchester United 1 (Greenwood 77')

Everton 1 (Lindelof 36' og)

Scoreline:

Cardiff City 0

Liverpool 2

Wijnaldum 57', Milner 81' (pen)

The Matrix Resurrections

Director: Lana Wachowski

Stars: Keanu Reeves, Carrie-Anne Moss, Jessica Henwick 

Rating:****

TWISTERS

Director:+Lee+Isaac+Chung

Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos

Rating:+2.5/5

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

Kill

Director: Nikhil Nagesh Bhat

Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal

Rating: 4.5/5

'Gold'

Director:Anthony Hayes

Stars:Zaf Efron, Anthony Hayes

Rating:3/5

Confirmed bouts (more to be added)

Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez

Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.

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Investment required: $500,000

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If you go

  • The nearest international airport to the start of the Chuysky Trakt is in Novosibirsk. Emirates (www.emirates.com) offer codeshare flights with S7 Airlines (www.s7.ru) via Moscow for US$5,300 (Dh19,467) return including taxes. Cheaper flights are available on Flydubai and Air Astana or Aeroflot combination, flying via Astana in Kazakhstan or Moscow. Economy class tickets are available for US$650 (Dh2,400).
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