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2018 | OriginalPaper | Buchkapitel

Social Entrepreneurship Strategies by the Middle Eastern Governments: A Review

verfasst von : Amir Forouharfar

Erschienen in: Entrepreneurship Ecosystem in the Middle East and North Africa (MENA)

Verlag: Springer International Publishing

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Abstract

Middle East as one of the most socially, politically and culturally vulnerable parts of the world is in an unprecedented turmoil, at least from the Second World War onward. Although there are plenty praiseworthy and socially entrepreneurial examples in some of the countries of the region, the flagrant and bare facts in this mostly war and drought stricken zone of the world with its numerous potentially smoldering social problems drove the middle eastern governments not to have a passive role but to dynamically choose strategic visions and missions and actively pave the way towards choosing social entrepreneurship strategies. This paper tries to provide an overview of the governmental SE strategies in the middle eastern countries; therefore, it is a review paper and relies mostly on secondary data, facts and figures which are issued by the authentic governmental agencies of these countries, the non-governmental operational SEOs, the UN, UNDP, UNHCR, UNESCO, GEM, ECOSOC, World Economic Forum, the World Bank, etc. Finally, the social entrepreneurship strategic views of each government in the Middle East are classified and a strategic model for social entrepreneurship strategy formulation in the public sector is proposed.

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Vorheriges Kapitel An Exploration into How Terrorism Impacts Business Environment in MENA Region

Nächstes Kapitel Entrepreneurial Ecosystem and Performance in Iran

Although this classification is very general, it does not neglect the reality that many ethnic groups and religions constitute ME (e.g. some of the ethnic groups consist of Arabs, Persians, Turks, Kurds, Azeris, Armenians, Assyrians, Jews, etc.).

For instance, the Human Development Index (HDI) of Arab countries which is reported in UNDP (Human Development Report 2007/2008) “is 0.699, lower than that of Mean Income countries which was 0.776 in 2005” (Housseini 2009).

Co-optative strategy is a manipulative strategy for the implementation of intended change by “giving resisters a lead role in the change process [that] can trigger compliance and support” (Higuera 2017); based on Merriam-Webster’s Dictionary, the etymology of the word co-opt explains the origin of the word from Latin cooptare, means to choose, and defines one of the shades of meaning as “to take into a group (as a faction, movement, or culture)”. In respect to SE strategies of the governments, the usage of the word by the author intends to explain the situation that governments intelligently employ some of the residents of the community who resist to the benevolent change, to be able to eradicate their resistance and to promote the change by their cooperation as facilitators to the change (Author).

The Presidential Summit on Entrepreneurship, held in Washington, DC, on Monday April 26, and Tuesday, April 27, 2010, at the Ronald Reagan Building (Wikipedia).

A term coined by Claude Lévi-Strauss, French social anthropologist. Merriam-Webster’s Dictionary quotes the famous Lévi-Strauss’s sentence that the artist “shapes the beautiful and useful out of the dump heap of human life” and then he makes an analogy between the action of an artist and a handyman in using the available materials to solve the technical problems.

The study applies the term “NGO”.

https://www.ashoka.org/en/about-ashoka

http://grameen-jameel.com/entrepreneurship-in-the-middle-east/

In its reports, GEM classifies the economies of the countries based on the World Economic Forum’s classification of economies into three classes: Factor-Driven, Efficiency-Driven, and Innovation-Driven economies.

This economic classification of the ME economies could differ yearly, for example the innovative-driven economies in GEM’s 2015 Report consist of Kuwait, Israel and Qatar.

These basic indicators are Total Early-stage Entrepreneurial Activity (TEA), Entrepreneurial Employee Activity (EEA) and Social Entrepreneurial Activity (SEA).

Note: The report did not include all the ME countries.

The United Nations Conference on Trade and Development.

Investing in the Power of Women; Progress Report on the Goldman Sachs 10,000 Women Initiative, Developed by Babson College, Wellesley, MA, 2014.

The lowest rates of Total Entrepreneurial Activity (TEA) are related to women in MENA at 4% of the population (Salama 2016).

A/RES/63/311, http://daccess-dds-ny.un.org/doc/UNDOC/GEN/N09/513/62/PDF/N0951362.pdf?OpenElement, [accessed on October 10, 2015].

The United Nations Fourth World Conference on Women (1995), http://www.un.org/womenwatch/daw/beijing/platform/economy.htm, [accessed on October 10, 2015].

The World Summit for Social Development Program of Action—Chap. 3, http://www.un.org/esa/socdev/wssd/text-version/agreements/poach3.htm, [accessed on October 10, 2015].

ECOSOC resolution 2011/6, http://www.un.org/en/ecosoc/docs/2011/res%202011.6.pdf, [accessed on October 10, 2015].

ECOSOC resolution 2008/34, http://www.un.org/en/ecosoc/docs/2008/resolution%202008-34.pdf, [accessed on October 10, 2015].

Scott, L.M. (N.D). Thinking critically about women’s entrepreneurship in developing countries, p.6. Unpublished paper. Said Business School, Oxford, United Kingdom.

http://www.oghaf.ir/

Ashoka is the largest network and promoter of SE in the world which consists of 3000 prominent social entrepreneurs, known and elected Ashoka Fellows, in 70 countries.

http://ashoka-arab.org/en/

http://ashoka-arab.org/en/partners-with-ashoka/

http://ashoka-arab.org/en/vision-mission/

http://ashoka-arab.org/en/press-releases/

http://www.ldn-lb.org/UserFiles/File/Ashoka%20Arab%20World%20-%20Quarterly%20Report.pdf

http://www.iyfnet.org/region/middle-east-north-africa (These six countries in ME consist of Saudi Arabia, Palestine, Lebanon, Jordan, Israel, and Egypt)

http://www.iyfnet.org/country/palestine

http://www.iyfnet.org/country/saudi-arabia

http://www.iyfnet.org/country/lebanon

http://www.iyfnet.org/country/jordan

http://www.iyfnet.org/country/egypt

http://www.synergos.org/about/mission.htm

http://www.synergos.org/programs/approach.htm

http://www.synergos.org/socialinnovators/overview.htm

http://www.synergos.org/12/dbmefawsipartnership.htm

http://alwaleedphilanthropies.org/

“Breakthrough Energy Ventures (BEV) is an investor-led fund that will finance emerging energy breakthroughs to deliver affordable and reliable energy with the goal of reducing global greenhouse gas emissions to near-zero.” (Al′ Waleed Philanthropies 2016).

http://www.mlsd.gov.bh/en

http://www.mlsd.gov.bh/en/node/4067

http://bna.bh/portal/en/news/586338 (Bahrain News Agency)

[Persian]Gulf Cooperation Council countries consist of all the Arab governments of the Persian Gulf except Iraq.

http://www.injazbh.org/

For instance in It is My Business program, which is designed for intermediate school student besides entrepreneurial skills it focuses on “social studies” too.

For more Info. See: http://www.injazbh.org/inner.aspx?PMID=2

https://www.jaworldwide.org/

https://www.jaworldwide.org/aboutja/

http://www.diabetes.bh/

Some national organizations, make donations to Diabetes.bh, one of the latest on is National Bank of Bahrain (NBB), which help the facilitation of the funding for its SE activities.

http://inspirengage.com/

http://www.melodyhossaini.com/about-me/

http://www.melodyhossaini.com/tag/social-entrepreneurship-in-bahrain/

http://www.moss.gov.eg

For more info.(in Arabic) see: http://www.moss.gov.eg/misa/Portals/0/Documents

http://www.mcls.gov.ir/

http://behzisti.ir/RContent/000YB0-%D8%A2%D9%85%D8%A7%D8%B1-%D9%88-%D8%A7%D8%B7%D9%84%D8%A7%D8%B9%D8%A7%D8%AA.aspx

Omid Entrepreneurship Credit Institute

http://www.karafariniomid.ir/

http://www.karafariniomid.ir/shownews?public_sid=6570

http://www.icana.ir/fa/news/288969 (Iran’s parliament official news agency)

http://www.emdad.ir/mcontent/amar/amar_gozaresh_saliane/kholase%20amare%20amalkard%20emdad%2092.pdf (The latest report by the foundation consists of a span of time from 1979 to 2013)

“In Islamic law, is the financial compensation paid to the victim or heirs of a victim in the cases of murder, bodily harm or property damage.” (Wikipedia)

IANA (Iranian Agriculture News Agency) http://iana.ir/fa/news/38921 (The report says that Sandouqhaye Keyriyeh do not issue financial statements which inherently make governmental supervision impossible) [accessed on Jan.15.2017].

http://kayhanarch.kayhan.ir/881111/5.htm (On Jan., Saturday 16th and Sunday 17th, 2010, Kayhan News Paper, an Iranian official news paper published two articles on the issue) [accessed on Jan.15.2017].

school-maker philanthropists

http://www.tehranedu.ir/Modules/News/NewsShow.aspx?page=1andmid=338andNewsID=11483 (Tehran’s Ministry of Education official website)

http://www.mahak-charity.org/main/index.php/en/home-en

https://www.unglobalcompact.org/what-is-gc/participants/101541-MAHAK-the-Society-to-Support-Children-Suffering-from-Cancer

Fars Heart Foundation

The hosting countries of refugees such as Lebanon and Jordan which already had scarce capacities, are in a predicament for providing the large communities of the refugees with basic access to health services and education (OECD 2016).

http://www.jordan.gov.jo

http://www.schwabfound.org/content/zeinab-momany

http://www.mosal.gov.kw/MOSAL/

http://www.mosal.gov.kw/MOSAL/static/about.jsf (in Arabic, translated by the author).

http://www.mosal.gov.kw/MOSAL/6ZX+UeHIq56Bj5IXUWvZwcFbatYd9+/F3ApB1l0vmSo=.jsf

Festival of the Persian Gulf

http://www.mosal.gov.kw/MOSAL/6ZX+UeHIq56Bj5IXUWvZwcFbatYd9+/F3ApB1l0vmSo=.jsf (in Arabic, translated by the author)

Note: This is based on the calculation of the author according to “employment statistics in government sector” issued on April, 2016 available in Arabic on: Employment_Statistic_in_Government_Sector_(Kuwaiti_-_Non-Kuwaiti)_2015.pdf, and the recent rough estimation of the population of State of Kuwait on: http://countrymeters.info/en/Kuwait. According the former reference the employed population of Kuwait in 2015 is 363,016 people (267,109 Kuwaiti and 95,907 non-Kuwaiti), and based on the latter, the unofficial population of the state is roughly 4,207,973 people.

https://www.csb.gov.kw/Socan_Statistic_EN.aspx?ID=13

http://www.schwabfound.org/content/naif-mutawa

https://www.e.gov.kw/sites/kgoenglish/Pages/CitizensResidents/IslamicServices/InfoCharity.aspx

http://www.eslah.com/main/

Note: The missions are translated directly from Arabic into English by the author.

http://www.eslah.com/main/?page_id=68

http://krcs.org.kw/krcs-projects/iraq/

http://krcs.org.kw/krcs-projects/syria/

http://www.khaironline.net/Default.aspx

http://www.khaironline.net/Rhtml/vision.aspx

Note: The mission statement is translated directly from Arabic into English by the author.

http://knet.phf.org.kw/site/index.php

In Kuwait it is called “Vezarat Al’Shoun Al’Ejtemaeeah”.

http://knet.phf.org.kw/site/index.php?route=information/informationandinformation_id=4

Note: The objectives are translated directly from Arabic into English by the author.

http://knet.phf.org.kw/site/index.php?route=journal2/blog

http://knet.phf.org.kw/site/index.php?route=journal2/blog/postandjournal_blog_post_id=69

https://direct-aid.org/cms/about-us/public-strategy/

http://www.alnajat.org.kw/al-najat-charity/

100

http://www.socialaffairs.gov.lb/MSADefault.aspx

101

In Arabic Al’Barnamaj Al’Vatani Ledeam Al’Asra Al’Aksar Fogharaa.

102

In Arabic Al’Barnamaj Al’Vatani Letaelim Al’Kebaar.

103

The annual news for each year is available in Arabic at: http://www.socialaffairs.gov.lb/MSASubPage.aspx?parm=294andparentID=100

104

In Arabic Barnamat Al’Sekaan va Al’Tanmiyyah.

105

(Translated from Arabic) http://www.socialaffairs.gov.lb/MSASubPage.aspx?parm=235

106

http://www.pch.gov.lb/Cultures/ar-LB/NewsEvents/News/Pages/loanRequests.aspx

107

http://www.wrf.org.lb/profile.aspx

108

https://www.mosd.gov.om/index.php/en/home

109

https://www.mosd.gov.om/images/pdf/Tawasul.pdf

110

https://www.mosd.gov.om/images/pdf/Taqdeer.pdf

111

https://www.mosd.gov.om/images/pdf/Tamask.pdf

112

https://www.mosd.gov.om/images/pdf/Taqayof.pdf

113

https://www.mosd.gov.om/index.php/en/home

114

It means “support”.

115

http://www.wegrowwithc3.com/

116

C3, is awarded the Social Enterprise Mark CIC , “The Social Enterprise Mark is the only internationally available social enterprise accreditation scheme, enabling credible social enterprises to prove that they are making a difference” (Social Enterprise Mark website 2017).

117

http://www.mosa.gov.ps/#

118

http://www.mosa.gov.ps/showTopic.php?id=49 (In Arabic, translated by the author.)

119

http://pcrf.net/

120

http://www.care.org/about

121

http://www.care.org/emergencies/west-bank-gaza-crisis

122

http://www.zakat.org/about/

123

http://www.zakat.org/country/palestine/

124

http://www.atfaluna.net/

125

http://www.canaan.org.ps/html/index.htm

126

http://www.nablusculture.ps/index.htm

127

http://right2edu.birzeit.edu/

128

http://www.crs.org/our-work-overseas/where-we-work/jerusalem-west-bank-and-gaza

129

https://www.childrens-relief-bethlehem.org.uk/en/

130

http://www.dci-palestine.org/

131

http://fakhoora.org/

132

http://hopeandplay.org/

133

http://www.interpal.org/

134

http://www.mecaforpeace.org/

135

https://www.map.org.uk/

136

http://pacescharity.org/

137

http://www.savethechildren.org/site/c.8rKLIXMGIpI4E/b.6146405/k.C7E9/About_Us.htm

138

https://www.soschildrensvillages.org.uk/donate/sponsor-a-child/

139

https://www.unicef.org.uk/

140

http://www.unrwa.org/who-we-are

141

http://www.welfareassociation.org.uk/

142

http://portal.www.gov.qa/wps/portal/directory/agency/ministryoflaborandsocialaffairs

143

A declaration on “Integrating Crime Prevention and Criminal Justice into the Wider United Nations Agenda to Address Social and Economic Challenges and to Promote the Rule of Law at the National and International Levels, and Public Participation” (UN’s Report of the Economic and Social Council 2015).

144

The forum had been on “Crime Prevention and Criminal Justice”

145

A/CONF.222/17

146

https://www.qcharity.org

147

https://www.qcharity.org/en/global/home/whatwedo

148

https://www.qcharity.org/en/global/donation/projects

149

http://shopandaid.com/en/

150

https://www.qcharity.org/en/global/news/details/3694-qatar-charity-embarks-on

151

http://us-saudiwomensforum.blogspot.com/

152

Acumen Fund and King Khaled Foundation, “Patient Capital: Investing in Development and Leadership” (presentation, 3rd World Congress of Muslim Philanthropists, Doha, March 22, 2010, cited in Abdou et al. 2010)

153

http://www.aile.gov.tr/

154

http://www.saglik.gov.tr/

155

https://en.wikipedia.org/wiki/Ministry_of_Family_and_Social_Policy_(Turkey)

156

The six factors which are presented in RobecoSAM (2016), which shows the decline of the governance in all six factors, are as follows: voice and accountability, political stability, governance effectiveness, regulatory quality, rule of law, and control of corruption.

157

http://www.kamer.org.tr/eng/icerik_detay.php?id=270

158

http://www.kamer.org.tr/eng/icerik_detay.php?id=254

159

http://www.kamer.org.tr/eng/icerik_detay.php?id=186

160

http://www.kedv.org.tr/about-kedv/?lang=en

161

http://turkey.ashoka.org/fellows-uyeleri

162

https://www.msa.gov.ae/MSA/AR/Pages/MSAHome.aspx

163

https://www.msa.gov.ae/MSA/EN/Pages/StrategicObjectives.aspx?eqs=l7BbbJMJkRop3+jyp938630EcxZiyXFy

164

For the complete list see: https://www.msa.gov.ae/MSA/EN/Pages/initiatives20142016.aspx?eqs=vuDaVZRpwRO7ElPUaRhsDw==

165

In the UAE, “Department of Economic Development” is in charge of commercial businesses while “Ministry of Social Affairs” administers the charities (Talib 2015)

166

The United Nations High Commissioner for Refugees (UNHCR) at the end of 2015, estimated that approximately 170,000 people have escaped from the war in Yemen to the neighboring countries and 2.5 million other were displaced inside the country (UNHCR 2016).

167

http://www.undp.org/content/undp/en/home/ourwork/our-projects-and-initiatives/Responding_to_crisis_Syria.html

168

http://www.ye.undp.org/content/yemen/en/home/presscenter/pressreleases/2015/10/26/first-social-business-lab-in-sana-a-to-support-social-entrepreneurship-for-resilience-inaugurated-0.html

169

http://reliefweb.int/report/syrian-arab-republic/humanitarian-action-children-2017-syrian-arab-republic

170

Bystander Effects: Referring to the psychological finding that people are less likely to help when others are present (Nolen-Hoeksema et al. 2009, p. 614).

171

For example, the World Bank has “ease of doing business” ranking in governmental-sponsored entrepreneurship which measures “regulatory simplicity” and “protection for property rights” (World Economic Forum 2011).

172

“Administrative Burdens are costs imposed on businesses, when complying with information obligations stemming from government regulation.” (Better Regulation Unit Malta website).

173

For example to “eliminate red tape” microfinance should be legalized and supported (World Economic Forum 2011) within the governmental SE strategies and policies in all the countries of the region.

174

“While Sa’di often counsels tolerant and altruistic humanism in the Golestān (e.g., “mankind are all members of one body,” Chap. 1:10), his principles sometimes derive from conventional mores, or from simple comfort and convenience (Chap. 2:29), and sometimes betray the prejudices of the day against black Africans (Chap. 1:40), Jews (Chaps. 3:21, 4:9), and women (G179), etc. (Southgate 1984)” (Encyclopedia Iranica).

175

To legally recognize a form and structure for the establishment of SE within that country, e.g. Benefit Corporation in the U.S., Community Interest Company in the U.K., Social Cooperatives and Social EX Ledge in Italy, Social Enterprise in South Korea.

176

Such as following tax relief policies.

177

To manage the demand and supply on the side of the public to the established SE, by governmental regulations.

178

To invest in public ventures which could have the highest SROI (Social Return On Investment).

179

To facilitate the availability and access to finance for those social enterprises which cannot provide sufficient collaterals to the finance institutes.

180

To induce the public invest through the bonds on those social projects and enterprises which are important to the government.

181

Such as governmental Seoul Creative Lab in South Korea and Social Incubator Fund in the UK.

182

Environmental, Social and Governance.

183

Based on CFA institute (2015) some ESG issues in Environmental issues are: climate change and carbon emissions, air and water pollution, biodiversity, deforestation, energy efficiency, waste management, water scarcity, and for the Social ones: customer satisfaction, data protection and privacy, gender and diversity, employee engagement, community relations, human rights, labor standards and finally the Governance issues: board composition, audit committee structure, bribery and corruption, executive compensation, lobbying, political contributions, and whistleblower schemes.

184

In reference to the RobecoSAM’s country sustainability assessment (2016) for the ESG criteria, among 62 countries, the rank of 6 ME countries which are derived by the author are as follows: Israel (31), Qatar (35), Saudi Arabia (41), Kuwait (44), Turkey (55) and Egypt (60). It is noteworthy that the selection of the research agency had been based on “22 developed and 40 emerging market economies”. Moreover, RobecoSAM with the cooperation of S & P Dow Jones Indices, publish Dow Jones Sustainability Indices (DJSI) which is a globally known group of indices for the evaluation of the sustainability performance and assessment of 2500 companies in the Dow Jones Global Total Stock Market Index.

185

Socially Responsible Investment.

186

“The Social Progress Imperative is registered as a nonprofit organization in the United States.” (Social Progress Imperative 2016).

187

Consists of: 1. Finland (90.09), 2. Canada (89.49), 3. Denmark (89.39), 4. Australia (89.13), 5. Switzerland (88.87), 6. Sweden (88.80), 7. Norway (88.70), 8. Netherlands (88.65), 9. United Kingdom (88.58), 10. Iceland (88.45), 11. New Zealand (88.45), 12. Ireland (87.94).

188

Social Progress Index consists of three components: Basic Human Needs (Nutrition and Basic Medical Care, Water and Sanitation, Shelter, and Personal Safety), Foundations of Well-being (Access to Basic Knowledge, Access to Information and Communications, Health and Wellness, and Environmental Quality) Opportunity (Personal Rights, Personal Freedom and Choice, Tolerance and Inclusion, and Access to Advanced Education). Relying only on GDP for the measurement of progress is absolutely economic and cannot fully reveal the overall progress of the country, so using SPI for the evaluation of a countries progress is recommended beside GDP.

189

http://www.socialprogressimperative.org/

190

Based on the data provided at: http://www.theglobaleconomy.com/economies/

191

http://www.tamin.ir/News/Item/14382/2/14382.html

192

“In the next ten years, there would be 7 elders above 70 years old, for each 10 Iranian families” (Translated from Persian http://www.mashreghnews.ir/fa/news/300587/)

193

Qatar has always had rankings above 27 in the 9 successive annual reports from 2008 to 2017.

194

It is not cited directly, but shown in Fig. 11.

195

Nudge is defined as “any aspect of the choice architecture that alters people’s behavior in a predictable way without forbidding any options or significantly changing their economic incentives. To count as a mere nudge, the intervention must be easy and cheap to avoid. Nudges are not mandates. Putting fruit at eye level counts as a nudge. Banning junk food does not” (Thaler and Sunstein 2008).

196

In some countries like the UK, Australia and the USA, there are some governmental teams called Behavioral Insights Team, which helps the governments in operational public policy-makings.

197

Social and Behavioral Science Team (SBST) is formed in USA by Barack Obama, in Feb.2014.

198

http://www.tamin.ir/

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Titel: Social Entrepreneurship Strategies by the Middle Eastern Governments: A Review
verfasst von: Amir Forouharfar
Verlag: Springer International Publishing
Buch: Entrepreneurship Ecosystem in the Middle East and North Africa (MENA)
Print ISBN: 978-3-319-75912-8

Electronic ISBN: 978-3-319-75913-5

Copyright-Jahr: 2018
DOI: https://doi.org/10.1007/978-3-319-75913-5_7

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