Responding to increasing global and regional competition, the Kingdom of Bahrain in 2008 launched an ambitious program of economic and institutional reform to take place in the coming decades. In the year since the Economic Vision 2030 and the accompanying National Economic Strategy (NES) were adopted by the Kingdom, much progress has been achieved in reforming Bahrain’s economy and in increasing the effectiveness of government agencies.
The Economic Vision 2030 defines Bahrain’s aspirations for the future. It is forward looking and places Bahrain’s people right at the heart of the Kingdom’s development. It recognises above all else that the aim of economic growth is an increase in prosperity and opportunity for each and every individual.
The Economic Vision 2030 concentrates on three areas, defining the direction for government, society and the economy. It is driven by the philosophy that our society and government must embrace the principles of Sustainability, Competitiveness and Fairness to ensure that every Bahraini has the means to live a secure and fulfilling life and reach their full potential.
The National Economic Strategy translates the aspirations set in the Vision into actionable initiatives for implementation and it aims to identify the country’s most important initiatives that will be implemented over the next four years and outlines actions/measures needed to achieve those initiatives and assign clear responsibilities for each action. Moreover, it also illustrates how government organisations are inter-related and interdependent in implementing the initiatives.
Of the major reform initiatives identified in the NES, more than two thirds are being implemented by the different government entities. Of these more than half were well on track, and some progress was registered in the remainder. Less than a third of the total number of initiatives had not yet begun implementation - often because they were on a longer timetable and required the completion of other work before they could begin.
This record of early achievement in a complex and diverse reform plan affirms the value of the NES as a powerful strategic planning tool. While the successes have been more rapid and widespread than expected, there have also been major challenges in the implementation of some commitments in the NES.
The NES was recognized to be a living document, subject to revision and updating as goals were achieved, unexpected difficulties were encountered, and new issues arose. However, the 2030 Vision of a Sustainable, Fair and Competitive Economy will not change. The strategies to attain that Vision will vary in the light of experience and changing circumstances.
In line with the two year budget periods 2011 – 2014 for the country, the NES will need reviewing and revising. The first of these biannual reviews is scheduled to take place in 2010. This will be done to ensure that the NES initiatives are still relevant and up to date with economic and fiscal developments, and that that the State Budget is linked to the national priorities identified in the NES. The revision of the NES will also take into account the global and regional changing circumstances witnessed in 2009, which might impact the relevance of some initiatives. To that end, the EDB will work with relevant stakeholders to ensure that the revision of the National Economic Strategy will be aligned with the State Budget, and the four year strategic plans of Ministries and Government Agencies.
This revision seizes the opportunity to align the NES planning process with the formulation of the government budget. The two processes share a common set of reform and development themes, a common set of economic assumptions, and a common set of spending and revenue disciplines. While the rolling four year planning time frame of the NES is longer than the two year fiscal framework, all projected NES spending for 2011 and 2012 will be coordinated with spending targets for agencies within the Budget process. The 2011-2012 Budget and the revision of the NES will be developed concurrently.
NES and its Initiatives
The National Economic Strategy (NES) sets the path to transform the Vision into reality. It is focused on different initiatives concentrated on Education and Training, Economics, Health, and Society.
The (NES) comes as a result of continuous cooperation and coordination between the government and the EDB. It aims to realize His Majesty the King’s future Economic Vision, which places the Bahraini citizen at the heart of growth and development and the primary beneficiary of prosperity, and the opportunities arising from economic and social development.
The NES includes strategic initiatives and sub-initiatives which ministries and other government organizations will implement over the next six years. It also defines potential measures of success for these initiatives which will facilitate the process of evaluating performance and progress of the implementation of those initiatives. As such, these relevant bodies will adopt the necessary policies and procedures that will enable the redeployment of human and financial resources in order to achieve the objectives of the NES, as specified by the measures of success.
The partners
The NES has been a joint effort between legislative, executive, judicial authorities, and continuous cooperation between ministries, government organizations, the private sector, and civil society. More information on the partners can be accessed from the document.
