Tanfeedh: The living, breathing programme

Opinion Saturday 31/December/2016 15:17 PM
By: Times News Service
Tanfeedh: The living, breathing programme

Economic programmes are never static – to stay truly relevant, they must evolve according to their context. Often, they need to expand and accommodate new areas and ideas, originating from experience. In other instances, they may have to eliminate certain aspects that do not serve the community as intended. Perceiving Tanfeedh – Oman’s national economic diversification plan launched in 2016 – as a rigid, unchangeable programme could lead to a dead end and counterintuitively obstruct our efforts when time is of the essence.
We need to treat Tanfeedh as a living, breathing being – a newborn that needs care and nurturing until it matures. And in order for the programme to reach its potential, we have to monitor, examine, and analyse each of its phases at the time of implementation. In accordance with our observations, the next phase should then organically expand on the outcome of the preceding phase while laying down the foundations for the following phase. Feedback should be methodical, constructive, and based on solid facts, rather than on wishful thinking that tends to focus on highlighting achievements and often fails to point out weaknesses.
As someone who has closely followed the programme from the early stages, I will outline my observations here in the hope that they will contribute to its sustained success.
First, in the case of transformative industries, we must rely on national resources for raw materials, human capital, and scientific research as much as possible. The Tanfeedh programme is an excellent opportunity to develop national talent and expertise, and to optimally utilise natural resources available in Oman.
Our people are our greatest asset - with over 40 per cent of our population between the ages of 25 and 54, we must work to ensure an empowered workforce that will drive our industries in the years to come. To support this process we must nurture an environment that encourages active participation and innovation from all stakeholders of society. Such an environment will facilitate the sustained flow of ideas and their prudent application across different walks of life. With the right focus we will surely succeed in shaping a knowledge-based economy in Oman.
It is of utmost importance that the country nationalises its industry to the greatest possible extent. However, rather than forgoing foreign expertise altogether, we should strike up active collaboration with foreign entities within the context of Omanisation. We should seek strong, sustainable partnerships that yield optimum benefits for both sides through targeted campaigns to attract established global players with extensive industry expertise and a keen interest in our region.
Second, with regard to transformative industries, we must consider the needs of the Omani and wider GCC markets first even while emphasizing the importance of competing on a global scale. Today, the globalisation of products has ensured the quality of the production process. The stagnation in markets worldwide following the last global financial crisis, has allowed new sources of essential commodities to emerge. The recession has also changed the international economic and created new economic hubs in Europe, Latin America, and Asia that have the potential to become global leaders. Developing trade and communication networks between Oman and these key markets will bring us closer to a new and more prosperous economic future.
Third, food security is a great international concern. Scarcity of food sources as a result of droughts and climate change, may serve as triggers for crises and conflicts, instead of only acting as hidden threats.
Given these challenges, it is necessary to carefully plan foreign investments while considering the deficits the Omani market may face. Many countries in Latin America, Asia, and Africa are ready for partnerships in agriculture and livestock production. Although Oman has more fertile soil than its neighbours, while looking ahead, we must take into account increasing production demands in line with growing population.
Fourth, it is imperative to organically link the financial sector to the development industries targeted by Tanfeedh. The purpose is not only to ensure sufficient funding for development, but also to finance projects from national capital as much as possible and avoid borrowing from international financial institutions. The experience of countries such as Ecuador, Chile, and Argentina has proven that the policies of the International Monetary Fund (IMF) and World Bank are sometimes ill-suited for local development processes.
Financing development projects from local, social, and institutional capital clearly indicates a nation’s independence and sustainability. In order to secure funding, the financial sector must work with government authorities to issue new bonds. Making these bonds available to citizens and companies for purchase has the potential to raise substantial funds that the country can use to accelerate Tanfeedh and expand the program’s footprint.
The fifth point, under extensive discussion in Oman, pertains to the importance of financing SMEs and collectively-owned enterprises in particular. Modern development projects often carry the inherent risk of allowing large multinational corporations to control the national economy. In this context, supporting SMEs creates the much-needed balance in ownership and equity, and protects against monopolies.
The brief history of Tanfeedh to date triggers many observations, ideas, and innovations. As I have highlighted, we must see it as a living, breathing organism that draws strength from responding to ever-changing real-life experiences. For the programme to reach maturity and register optimum results, we need to identify its strengths, weaknesses, opportunities, and threats before addressing them in a dynamic and flexible manner.
At every stage we must remind ourselves that for successful implementation of the plan and its various components we need to ensure an immediacy in its execution. With careful thinking, in-depth analysis, and commitment to ongoing improvement, there is no doubt we can use Tanfeedh to build a better and more prosperous future for Oman.
- The author is the Chairman of National Bank of Oman, Executive Chairman of Investcorp and an International Advisor to the Brookings Instituition. All the views and opinions expressed in the article are solely those of the author and do not reflect those of Times of Oman.