Arab bankers expressed optimism about the region's economy in the medium and long terms, despite the negative impact of the Arab Spring on the economy at present. Senior bankers from Tunisia, Libya and Egypt, speaking at the 15th Annual Arab Banking Conference held in Beirut Thursday, have all singled out stability as key to economic recovery in their countries. Their optimism was anchored on the transition to democratic governance and reform that manifests in the region. The participants also stressed they had confidence that despite the harsh economic impact of the revolutions, Arab countries could be soon on the road to recovery if they coordinate policies and better use financial resources available. They proposed an “Arab equivalent of the Marshall Plan” similar to the United States' financial support to European economies after World War II. The Central bank of Tunisia Governor Moustapha Nabli said that “completing the transition to democracy is the most important step to restore investor confidence essential to foster growth, job creation and economic recovery.” He said unemployment was the primary reason behind revolutions, noting that the “unemployment among educated had multiplied six times between 1994 and 2010. It rose from a mere 3.8 percent in 1994 to 23 percent last year. “This exposed our economy's inability to create quantity and quality of jobs needed to maintain economic and social stability,” he added. He warned that unemployment problem would continue to cultivate instabilities across the region if countries were unable to find solutions.
