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Prior to the COVID-19 shock, the key challenge facing policymakers
in the Middle East, North Africa, and Central Asia region was how
to generate strong, sustainable, job-rich, inclusive growth.
Post-COVID-19, this challenge has only grown given the additional
reduction in fiscal space due to the crisis and the increased need
to support the recovery. The sizable state-owned enterprise (SOE)
footprint in the region, together with its cost to the government,
call for revisiting the SOE sector to help open fiscal space and
look for growth opportunities.
The Central, Eastern, and South Eastern European (CESEE) region is
ripe for a reassessment of the role of the state in economic
activity. The rapid income convergence with Western Europe of the
early 2000s was not always equally shared across society, and it
has now slowed dramatically in many countries of the region.
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Nadine Gordimer
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