The Middle East, North Africa, and Pakistan (MENAP) has a rapidly-growing population with the region’s youth growing up facing a raft of social and economic challenges—obstacles that limit opportunities and hinder their potential to compete with global peers.1 We recognize that the region is not a monolith in terms of the challenges it faces—for example, there are countries in the region that are global leaders in public service access and delivery, and others on the other end of the spectrum. In this report, however, we highlight challenges that are common in most of the countries we cover and propose solutions we believe will have an outsized impact on all countries if implemented. We also recognize that the COVID-19 Pandemic has created both headwinds and tailwinds for many of the solutions outlined. As we enter the third decade of the 21st century, MENAP faces five broad challenges that the region needs to confront to change its trajectory. — Job prospects are low, unemployment is high. The region’s youth are entering the labor market in increasing numbers, but unemployment is high compared to global norms, while automation and technology create additional risks in the future. The region also faces a huge challenge to bring more women into the workforce. Although women make up nearly half the region’s population, female participation in the labor force lags far behind that of men.2 This is an enormous missed economic and social opportunity. — Learning institutions leave youth unequipped for the labor market. The region ranks low on global educational outcomes compared to leading countries. There is a notable lack of children going through early childhood education—which affects their skills later in life—while the skills of the region’s graduates are not aligned with needs of a new and highly-digitized labor market. This is a big challenge, especially given MENAP’s high unemployment levels. — Populations’ health levels are poor, and health systems do not meet international standards. The region’s population has some of the highest disease burdens globally and the issue is expected to worsen as the median age of the population increases. Additionally, except for a handful of countries, COVID-19 has exposed the vulnerabilities in health systems in the region where supply of healthcare services is neither adequate nor affordable. — Conflict and challenges undermine opportunities. Armed conflict and geopolitical turmoil have closed the door on many opportunities for youth growing up in these environments. Many people have been killed, displaced, left vulnerable, left in need of humanitarian assistance, or left without education. Conflict-hit countries have suffered collective losses of approximately $175 billion in GDP and have seen their per capita income, on average, cut in half3. — Government services and delivery are challenged, lagging behind global standards. Some of the region’s governance mechanisms lag behind global standards, hindering their ability to create jobs and drive economic development. MENAP governments score poorly across a range of indicators measuring the effectiveness of governance and are behind others in adopting digital technology, , although COVID-19 has accelerated progress. Much has been written about these challenges and the growing sense of urgency for the trajectory to change. It’s easy to feel pessimistic - the facts don’t paint a positive picture. We believe, however, that these narratives miss the big picture – the one that focuses on the incredible opportunity hovering at the surface, waiting to breakthrough. This is where we choose to focus our energy.

This report first briefly highlights a set of foundational actions that have consistently been identified to tackle the region’s big challenges. We then propose a set of game-changers that could have an outsized impact on creating a better future for youth in the region. Finally, we look at what a reimagined region might look like if it rises to the challenge.