Effects of Economic Reform Policy and Privatization on Unemployment in Arab Countries

Haifa Abdel Rahman Yasin

Haifa Abdel Rahman Yasin Tikrit universitey-Faculty of Administration and Economics

Abstract

With the beginning of the 1980s, Economic conditions have worsened as a result of the accumulation of external indebtedness, and with the loss of economic stability,and there are two options in front of the south states either continue in their policy or applying the installation and structural adjustment (economic reform) programme.

The economic reform programme have been associated with impose the privatization process that shift the public sector to the private sector and what the consequent them in the short time and during the transitional phase from reduce spending procedures on the important social sectors before the health, education, transportations, fuel, and consumer goods.

The Arabic countries had adopted with varying proportions the privatization process resulting of it decline the real income and lay off workers in the corporations with continuing deficit in government budgets and instability of the local GDP, and increase indebtedness and service the public debt for the borrowing Arabic countries, and declining the growth of labor force in economic sector and employment shrinking for the lack of chock the business environment for implementation in the private sector which increase of unemployment proportion.

The rate of unemployment amount (146%) for 2014 in the Arabic countries and it is the highest among the countries of the world that amount (6.4%) in the same year and thereby increasing the unemployment proportion that is 60% of the Arabic countries population whom they are under twenty-five years old from the unemployment and the unemployment are increased among the educators youth, the higher education, add to spread among the women and the job seekers for the first time. The future estimates show that unemployment will be till 80 million in (2025).

This research includes series of recommendations, notably:

1- Improve the Arabic economic performance.

2- States concerned to perform in increasing expenditures on the social services before the health, the educational and social security and adoption of flexibility in the field of employment.