Charles H. Rivkin remarks at "North Africa: Challenges and Opportunities in a Time of Transition"
National U.S.-Arab Chamber of Commerce
Washington, DC
August 4, 2014
Good morning. Thank you Mr. De Marino for
the kind introduction and thanks to the National U.S.-Arab Chamber of
Commerce for hosting this important forum on North Africa.
We meet at a time when this region is undergoing the kind of changes
that some would call momentous and promising but other more cautious
voices might call uncertain and discouraging.
As a businessman in the entertainment industry for more than 20
years, my roots are in the private sector. And during that time, I never
met a business opportunity that didn’t come with the Charles Dickens
dilemma. What do I mean by that? I refer to the opening sentence of “A
Tale of Two Cities.” I think we all know it: “It was the best of times.
It was the worst of times.”
What I learned quickly was what I believe everyone in this room
recognizes: the real question isn’t about identifying the challenges.
That’s the easy part. The real question is about seeing the opportunity
crouching behind those challenges.
North Africa at this moment, amidst the difficulties, presents a
great opportunity for U.S. and local businesses alike, and increased
trade and investment will achieve the kind of sustainable, meaningful
growth that could transform the lives of people there.
The region has undergone tremendous – even tumultuous – change since
2011. And as we also know, those changes are still in motion –
politically and economically. Youth unemployment is almost 30 percent,
and young people make up a rapidly growing proportion of the working
population.
A cautious person might only see uncertainty and young and restive
populations. But behind those challenges are the opportunities: unique
and unprecedented for the region. In fact, the infamous youth bulge is
an extremely powerful asset that offers the potential for substantial
growth in production and increased investment.
The very energy that led young people to demand changes is the same
energy that has made them eager to find jobs, economic opportunity, and
dignity in their lives. They are not only motivated, more and more of
them are highly educated – and they are entering the workforce faster
than jobs can be created for them.
Role of the United States
I’d like to talk briefly about the role the U.S. government is
playing to help our partners realize this potential and how we are
working to pave the way for businesses to flourish and commerce to
expand.
Ultimately, the private sector needs to take the lead because – quite
frankly – progress cannot happen without it. And with its assets,
global reach and competitive capacity, it’s one of the most effective
drivers to bring about positive and sustainable change in the region.
What we do to help the private sector is essentially threefold.
- We promote market-oriented reforms – bilaterally and in conjunction with multilateral partners.
- We foster home-grown entrepreneurship.
- And third, we strengthen commercial ties led by U.S. businesses.
On the first point, we work to support reforms that address fiscal
weaknesses, market rigidities, barriers to trade, government
transparency, regressive and inefficient subsidies, and inadequate
social safety nets.
Last month, for example, the U.S. government fully guaranteed
Tunisia’s $500 million sovereign bond issuance. Tunisia can now borrow
at lower rates than they otherwise could have.
As part of the guarantee, Tunisia committed to improve its social
safety net, modernize tax and customs procedures, clarify investment
regulations, and adopt a plan to resolve bank insolvency. This makes
Tunisia more attractive to investors – and it helps bring jobs to both
our economies.
Entrepreneurship – the second item I mentioned – is one of the best
ways we can turn challenge into opportunity. First of all, it speaks to
what we do best. Entrepreneurship is part of our DNA and is a
cornerstone of our economic strength.
When we partner with the private sector we can not only reap economic opportunity for ourselves, we can address a major 21st century challenge: It is estimated that the world is going to need a half billion new jobs by 2030.
Right now, the U.S. Department of State is partnering with private
partners worldwide to foster entrepreneurship. Through our Global
Entrepreneurship Program, we are working with 100 private partners to
build support systems for young entrepreneurs. And we’ve sent
delegations to Algeria, Egypt, Jordan, Lebanon, Morocco, and Tunisia.
We also organize annual Global Entrepreneurship Summits that convene
entrepreneurs, investors, and government representatives. Last year’s
Summit, in Kuala Lumpur, brought together over 3,000 entrepreneurs,
investors, academics, startup organizers, business people, and
government officials from over 100 countries to help them network and
develop their skills. This November, Morocco will host the fifth summit
in Marrakesh, which should prove to be the best yet.
We also have ongoing engagements with entrepreneurs in North
Africa. Through the Partners for a New Beginning North Africa
Partnership for Economic Opportunity – or PNB-NAPEO – we are working
with local chapters, multilateral companies such as Coca-Cola, and
governments to identify and advance economic opportunities. And with the
Global Innovation through Science and Technology – or GIST –
initiative, we encourage young people in the Middle East, Sub-Saharan
Africa, and other emerging economies to commercialize their science and
technology ideas to create new products and companies.
Thirdly, the State Department – and specifically the Economics and
Business Affairs Bureau – takes a leading role in building trade
agreements and investments and promoting commercial ties globally.
We have a Free Trade Agreement with Morocco, as well as Trade and
Investment Framework Agreements with Algeria, Egypt, Libya, and Tunisia.
And through the Overseas Private Investment Corporation (OPIC), the
U.S. Government is providing more than $400 million in financing and
insurance in Egypt. This supports companies that work in transportation,
finance, high-tech, energy, construction, and franchising.
Every day, our Ambassadors and economic officers advocate for U.S.
businesses and investors abroad. Two of our most successful initiatives
are our own Direct Line to Business program and our Business Information
Database System, or BIDS. Through our Direct Line webinars, businesses
can speak to our Ambassadors and officers in the field to get
on-the-ground analysis of market conditions and opportunities. The
programs also help businesses find out about new opportunities and give a
snapshot of trends in the increasingly competitive global economy.
I’d like to share one example of how this plays out on the ground. We
have worked with American biopharmaceutical companies encourage their
buy-in to Algeria’s vision to create a local biotech cluster in Algeria –
based on the ones in California and the Northeast Corridor. And
recently, the Pharmaceutical Research and Manufacturers of America
largest innovative pharmaceutical association here in the United States
signed an MOU with the National Pharmaceutical Products Control
Laboratory of Algeria to encourage innovation, employment and investment
in their economy.
There are many more examples I could share – but they all point to
one clear message: What the region needs is the initiative and the
pioneering hand of the private sector.
Conclusion
It’s easy to forget what a rugged and unforgiving terrain the United
States used to be. But it was the work of the private sector that built
this country – from railroad magnates to bankers to bridge builders. And
it took that first wave of far-sighted investment to literally pave the
way for further investment and prosperity.
North Africa is a region where similar long term rewards await –
requiring the kind of foresight and early investment that can lead to
powerful and sustainable economic growth. The earlier the role that the
private sector takes, the greater the prospects for the region’s
democratic and economic futures, and the greater its own long term
prosperity.
Thank you – and we are all looking forward to seeing what you can do
in the immediate and long term future not only for North Africa but for
Americans back home.
Introductions
- I am honored to introduce four people with an extraordinary depth and breadth of experience in the increasingly overlapping worlds of business and diplomacy.
- Henry Ensher, US Ambassador to the People’s Democratic Republic of Algeria since March 2011, served as a Foreign Service Officer for 27 years in Mexico, Muscat, Tunis, Damascus, Jeddah, Algiers, and Tel Aviv. He has served as political and economic section chief, and has worked in the commercial and public diplomacy programs. And his most recent chapters have included extensive and highly influential postings in Afghanistan and Iraq. He is a fluent speaker of Arabic and Hebrew. And he has received the Department of State Award for Heroism and the Office of the Secretary of Defense Medal for Exceptional Civilian Service.
- Ambassador Dwight Bush, Sr., has more than 30 years of international corporate banking experience for Chase Manhattan Bank, as well as other banking and financial companies and organizations from Sallie Mae to the Urban Trust Bank. He is the president of D. L. Bush & Associates, a Washington, DC-based financial advisory and business consulting firm. And he has worked with a variety of philanthropic and education institutions, including Cornell University, Xavier University and the National Symphony Orchestra.
- Jake Walles, U.S. Ambassador to the Republic of Tunisia since July 2012, was Deputy Assistant Secretary of State for Near Eastern Affairs, which included U.S. policy with respect to Egypt, Israel, Jordan, Syria, Lebanon and the Palestinians. For more than 20 years, he was an active participant in U.S. efforts to promote peace in the Middle East dating back to the 1991 Madrid Conference. He’s a career member of the Senior Foreign Service with the rank of Minister Counselor, and the recipient of a Presidential Rank Award in 2007 and the Department’s Superior Honor Award in 2001 and 1994 for his work in promoting peace in the Middle East.
- Charge d’Affaires for Mauritania Martha Patterson served most recently as Deputy Chief of Mission in Slovakia. Her career as a foreign service officer is also extensive: from Economic Counselor in Islamabad to Economic Chief on the Russia Desk; and from Turkmenistan to Tajikistan. She has served in Iraq three times. She has been the Gaza political officer based in Tel Aviv. And she spent many years serving in Eastern Europe during the challenging 1990s and early 2000s. She speaks Russian, Serbo-Croatian, claims to have forgotten much of her Arabic, and is currently working on her French.
- All of them have come through different paths … all with their own sets of expertise … but all of them understand deeply that political and economic progress, as well as prosperity and security, all go hand in hand. And I look forward to hearing those different perspectives over the course of this important forum.
