Americans Storm the Maghreb
7 December 2010
Read by 1407 persons
Despite government efforts and past successes and failures, economic partnership between the United States and the Arab Maghreb region has been slow. Americans are taking the lead...
After repeated failures, for various reasons, to strengthen economic ties and trade, the United States now seems to be preparing a "push" into the Arab Maghreb market.
The visit of José W. Fernandez, US Under Secretary of State for Economic, Energy and Business Affairs, to four countries in the region (Algeria, Tunisia, Libya and Morocco), the launch on December 1st in Algiers of the North African Partnership for Economic Opportunities (Napeo) and the recent EU-Maghreb Conference on entrepreneurship can only be understood in this context.
Mr. Fernandez, the highest-ranking US economic official to visit Tunisia in three years, was in Tunis to promote Napeo and explore investment opportunities in a large and still largely untapped market.
"American Push"
Mr. Fernandez acknowledged to the Tunisian press that "American companies have not penetrated the region as they should." Stressing that his government is very keen to "improve trade with Tunisia," the American official said that any initiative will be based on a public-private partnership (PPP), the formula that obviously appeals most to both political decision-makers and American investors.
Therefore, the strategy that the US government will adopt will be typically American. A renowned think tank, the Aspen Institute, and Intel, the GPU giant, will be full-time partners in the initiative.
Aspen will handle day-to-day management ("the secretariat," according to Fernandez) and bring its PPP experience. Intel will provide its expertise in training and teacher training.
The Algiers Conference, the first in a series of annual conferences on entrepreneurship, "aims to strengthen the capacity of entrepreneurs through training workshops and networking opportunities," emphasizes Fernandez.
"The United States supports this initiative by identifying key stakeholders, participants and American entrepreneurs who can help advance our shared goals of economic partnership for entrepreneurship, innovation and job creation in the Maghreb."
More of a Cultural than an Economic Problem
The people of the Maghreb countries, and the markets, now only want concrete results. They are tired of promises and political speeches that are difficult or impossible to implement on the ground.
"We have no preconceived ideas," replies José Fernandez. "We are open to proposals from the Tunisian government and we only aim to create jobs and develop trade."
He continues: "Our goal is to create jobs. Both in the Maghreb and in the United States."
The United States is Tunisia's sixth largest trading partner. "That's not bad," says Fernandez, "but we hope to do much better."
Gordon Gray, the US ambassador to Tunis, recalled on this occasion the efforts made by his government and the services of his embassy to "convince American companies to invest in Tunisia and the region in general."
However, a cultural problem must be addressed, Fernandez points out. "American companies generally stick to the American market and those interested in export represent only 1%, half of which is to a single country, Mexico." Surprising, but it's the reality.
That said, Americans are aware that they will now need to focus on what they do best. "The Maghreb has a huge lack of infrastructure. It is therefore a huge market for our public works and construction companies, which are world leaders in the sector. We must first convince them to invest there."
Will This Time Be Different?
Is the United States serious this time about investing in the Maghreb countries? Has the initiative come at the right time, or are the Americans lagging behind their potential (economic and political) competitors in the region?
"European and Arab investors (from the Gulf Cooperation Council (GCC) countries) don't scare us," says Mr. Fernandez. "Our companies are capable of facing any kind of competition in the region."
Will their determination and prospecting techniques adapted to the reality and history of the Maghreb follow? Wait and see!
Published December 6, 2010
Posted online December 7, 2010
kapitalis.com
After repeated failures, for various reasons, to strengthen economic ties and trade, the United States now seems to be preparing a "push" into the Arab Maghreb market.
The visit of José W. Fernandez, US Under Secretary of State for Economic, Energy and Business Affairs, to four countries in the region (Algeria, Tunisia, Libya and Morocco), the launch on December 1st in Algiers of the North African Partnership for Economic Opportunities (Napeo) and the recent EU-Maghreb Conference on entrepreneurship can only be understood in this context.
Mr. Fernandez, the highest-ranking US economic official to visit Tunisia in three years, was in Tunis to promote Napeo and explore investment opportunities in a large and still largely untapped market.
"American Push"
Mr. Fernandez acknowledged to the Tunisian press that "American companies have not penetrated the region as they should." Stressing that his government is very keen to "improve trade with Tunisia," the American official said that any initiative will be based on a public-private partnership (PPP), the formula that obviously appeals most to both political decision-makers and American investors.
Therefore, the strategy that the US government will adopt will be typically American. A renowned think tank, the Aspen Institute, and Intel, the GPU giant, will be full-time partners in the initiative.
Aspen will handle day-to-day management ("the secretariat," according to Fernandez) and bring its PPP experience. Intel will provide its expertise in training and teacher training.
The Algiers Conference, the first in a series of annual conferences on entrepreneurship, "aims to strengthen the capacity of entrepreneurs through training workshops and networking opportunities," emphasizes Fernandez.
"The United States supports this initiative by identifying key stakeholders, participants and American entrepreneurs who can help advance our shared goals of economic partnership for entrepreneurship, innovation and job creation in the Maghreb."
More of a Cultural than an Economic Problem
The people of the Maghreb countries, and the markets, now only want concrete results. They are tired of promises and political speeches that are difficult or impossible to implement on the ground.
"We have no preconceived ideas," replies José Fernandez. "We are open to proposals from the Tunisian government and we only aim to create jobs and develop trade."
He continues: "Our goal is to create jobs. Both in the Maghreb and in the United States."
The United States is Tunisia's sixth largest trading partner. "That's not bad," says Fernandez, "but we hope to do much better."
Gordon Gray, the US ambassador to Tunis, recalled on this occasion the efforts made by his government and the services of his embassy to "convince American companies to invest in Tunisia and the region in general."
However, a cultural problem must be addressed, Fernandez points out. "American companies generally stick to the American market and those interested in export represent only 1%, half of which is to a single country, Mexico." Surprising, but it's the reality.
That said, Americans are aware that they will now need to focus on what they do best. "The Maghreb has a huge lack of infrastructure. It is therefore a huge market for our public works and construction companies, which are world leaders in the sector. We must first convince them to invest there."
Will This Time Be Different?
Is the United States serious this time about investing in the Maghreb countries? Has the initiative come at the right time, or are the Americans lagging behind their potential (economic and political) competitors in the region?
"European and Arab investors (from the Gulf Cooperation Council (GCC) countries) don't scare us," says Mr. Fernandez. "Our companies are capable of facing any kind of competition in the region."
Will their determination and prospecting techniques adapted to the reality and history of the Maghreb follow? Wait and see!
Published December 6, 2010
Posted online December 7, 2010
kapitalis.com
