Strategizing Human Development for a Country in Transition from a Resource-Based to a Knowledge-Based Economy

A Transformative State in the Wake of COVID-19: What Is Needed to Enable Innovation, Entrepreneurship, and Education in Qatar?

Economic diversification is vital in achieving sustainable economic development, especially for countries relying on nonrenewable natural resources, such as oil and gas, in the case of the Gulf Cooperation Council (GCC) countries. Moreover, the global crisis caused by the COVID-19 pandemic underscored the significance of boosting resilience to adverse shocks. Indeed, the pandemic highlighted the need to promote nonhydrocarbon sectors by strengthening the fundamental pillars of the knowledge-based economy: ICT, innovation, R&D, education, entrepreneurship, and the economic and institutional regime. The COVID-19 pandemic has also shown how important it is to mobilize these pillars in record time. Like the other GCC countries, Qatar is seen as a transformative state, suggesting that, although oil and gas provide its primary export revenue, the government has also pushed to diversify its economy toward a knowledge-based one. Indeed, in 2019, hydrocarbons dominated Qatar’s economy, accounting for 90% of government income and 80% of export profits. However, this reliance exposes Qatar to fluctuations in the global oil and gas markets. Accordingly, economic diversification has come to the top of the government’s priority list. Preceding the COVID-19 pandemic, Qatar was already in the middle of an economic transition. The economic crisis caused by the pandemic and the drop in oil prices prompted the Qatari government to increase its diversification efforts. Qatar has a solid basis for transitioning to a knowledge-based economy based on its macroeconomic stability, suitable growth rates, and good governance. However, Qatar confronts several challenges in implementing the structural changes necessary for this transition. This paper has three objectives. Firstly, it aims to present the pillars of the knowledge-based economy and their link to the COVID-19 pandemic. Secondly, the paper aims to analyze the present state of the knowledge-based economy in Qatar, including its strengths, drawbacks, and its prospect for the future. Finally, the paper presents some structural reform recommendations to enable innovation, entrepreneurship, and education in Qatar.

Women Entrepreneurship for Sustainability: Investigations on Status, Challenges, Drivers, and Potentials in Qatar

Economic diversification is vital in achieving sustainable economic development. This diversification is chiefly important for countries relying on natural resources for their economy, such as Qatar. Private enterprises, mainly through small-to-medium enterprises (SMEs), have been recognized as crucial and effective means for healthy economic diversification, stimulating economic development, and ensuring equal sharing and distribution of wealth. Recognizing the vulnerabilities within the current economic model has motivated Qatar to relentlessly diversify away from its heavy reliance on natural gas exports. Such diversified and sustainable development cannot be achieved without the contribution of women, who make up a significant percentage of the educated and talented population in this country. However, despite the conspicuous support the state has been providing them with in an aim to promote for their active economic participation as part of Qatar National Vision 2030, women’s full potential to contribute both socially and economically is either hindered or not fully acknowledged due to several socio-economic factors. There is a dearth of studies reporting on the perceived status, challenges, and access to needed resources by women entrepreneurs in Qatar. To address such scarcity, this study builds, in a first step, on a systematic literature review (SLR) to unlock themes related to women and entrepreneurship by analyzing 23 peer-reviewed articles concentrating on the cases of Qatar and the MENA region. Subsequently, a qualitative approach is followed to investigate and examine current successes and obstacles by interviewing 25 actual and aspiring women entrepreneurs in Qatar as well as 5 incubators and government representatives. In a final stage, and based on a design thinking approach and applying the gender-aware framework (known as the 5Ms framework), the paper proposes a preliminary conceptual framework to address the pertaining barriers and pave the way for more progressive policies to cater to the needs of women entrepreneurs and to further promote for sustainable development.

Investigation on Human Development Needs, Challenges, and Drivers for Transition to Sustainable Development: The Case of Qatar

Human development has been widely accepted as both the primary goal and driver of sustainable development. Human development is critically important for countries attempting a radical transformation from a resource-based economy to knowledge-based, sustainable development, like Qatar. This paper examines Qatar’s human development needs and challenges with respect to its economic, demographic, and educational development goals. Following a comprehensive literature review, domain-specific documentary information and data were collected and analyzed, along with qualitative insights and data obtained through semi-structured interviews with local professionals from various sectors, to gather opinions about the needs, challenges, drivers, and recommendations for human development. A preliminary integrated policy framework and set of recommendations for human development planning are proposed as a guide, for Qatar and similar countries, for transitioning from a resource-based economy to knowledge-based sustainable development. This framework and the understanding of the needs, challenges, and drivers based on the qualitative research, in conjunction and in comparison with the literature analysis, are expected to assist decision-makers in devising, and more importantly implementing, tailored policies and roadmaps focused on four key dimensions: skills (education), citizenship, leadership, and health.

Driving Factors of Economic Diversification in Resource-Rich Countries via Panel Data Evidence

Economic diversification is an essential aspect of sustainable development as diversification enhances macroeconomic stability and promotes structural and long-term transformation not only in the economy but also in other pillars of development such as social institutions and dimensions. There is empirical evidence suggesting an impact of economic and structural factors on diversification. However, there is no consensus on the results in the literature because of various factors, such as the employment of different variables, methodologies, countries, and periods. This paper empirically explores the relations driving economic diversification in 14 resource-rich countries between 2001 and 2019, with six alternative models. In this regard, feasible generalized least squares regression was employed for the proposed model specifications. It provides strong evidence that gross capital formation, financial development, labor force participation, education, and the rule of law have statistically significant and positive impacts on economic diversification performance. On the other hand, inward foreign direct investment, real GDP growth, and self-employment rate also have statistically significant, but negative, impacts on economic diversification, probably because they further promote or are a result of resource-based growth rather than diversification into other technology- and knowledge-based sectors.