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Cover IMF Working Papers
Demographic Transition in the Middle East: Implications for Growth, Employment, and Housing
Ms. Rina Bhattacharya, Tarik Yousef, and Mr. Pierre Dhonte
The working age population is expected to grow faster in the Middle East than in any other region in the world between now and 2015—rising annually by 2.7 percent, or 10 million people. This demographic explosion presents the region with a major challenge in terms of providing jobs, incomes, and housing for the growing population, but the expanding labor force can also be seen as an opportunity to generate higher per capita income growth on a sustainable basis. The paper concludes by emphasizing the importance of market-friendly institutions in turning the challenge into opportunity.
Keywords:
WP; Med country; growth rate; GDP; demography; growth; housing; age structure; growth requirement; employment growth; Med context; physical capital; labor force; census result; replacement ratio; demography of Med; housing investment; employment target; Aging; Labor force participation; Employment; Middle East; East Asia; North America
Cover IMF Working Papers
Demographic Transition in the Middle East
Implications for Growth, Employment, and Housing
Ms. Rina Bhattacharya, Tarik Yousef, and Mr. Pierre Dhonte

of such factor expansion, the efficiency with which factors are employed, and the long-term technological developments which also increase efficiency depend very much on policy. Good policy includes an effective legal support of property rights…” ( IMF (1998) ). There are many facets to “good policy” in this context, which have been detailed, in the MED context, in recent contributions ( Chabrier (1998) and Nashashibi (1999) ). Let it suffice here to focus on several quantifiable indicators: MED countries are not, as a rule, seen as secure locations by foreign

Keywords:
WP; Med country; growth rate; GDP