Q 1. Read the following case statement carefully and answer the questions (1-5).

Case study

Under Vision 2030, KSA is aiming to change its overall outlook. It focuses on the diversification of the economy from an oil-based to a knowledge-based (with non-oil government revenues growth, reducing dependency on oil and increasing the role of the private sector, etc.). The vision has ambitious goals for securing meaningful employment for Saudi citizens. It aims to reduce the unemployment rate for Saudi citizens to 7 percent (currently at 11.6 percent), especially to increase the participation of women in its workforce to 30 percent by 2030 (currently at 22 percent).

Keeping vision 2030 into consideration, give your answers on the following:

a. Identify the sectors/industries for creating new employment/jobs for increasing the employment rate of the Saudis.

b. What circumstance would justify the transition of the KSA economy from an oil-based to a knowledge-basedeconomy?

c. In your view, what are the key factors that will help the effective achievement of the goals of this vision?

d. What will be the impact of this transition on the domestic and regional labor markets?

e. How would you support/critique the process of transition of the KSA economy from oil-based to knowledge-based?

Q 2. In the goal of achieving economic expansion under Vision 2030, what are your views on the followings:

a. Can KSA realistically compete in labor-intensivemanufacturing industries, as low wages and more work in the private sector do not attract Saudis accustomed to less work and high-paying public sector jobs?

b. Privatization requires higher dependency on foreign skilled labor and Saudis lack the skill and motivation to do manual and strenuous work, how the country can cope with this problem?

b. Privatization requires higher dependency on foreign skilled labor and Saudis lack the skill and motivation to do manual and strenuous work, how the country can cope with this problem?

b. List and discuss factors that help in explaining why public-sector employment rose faster than private-sector employment in Saudi Arabia.

Q. 4 Case Study

A daily newspaper (arabnews.com) reports that authorities are arresting undocumented workers on regular basis. Besides many reasons, one of the reasons for arresting these undocumented workers is to create opportunities for the Saudi labor force in local markets. It is assumed that most of these arrested undocumented workers work in an insecure and unhealthy environment, for longer hours than usual and atlower wages than the regular (documented) local workers. It is expected that these undocumented workers will be deported from KSA. Now keeping this information in view, comment on this statement:

"If authorities deported all undocumented workers who are now in KSA, the KSA total national unemployment will decline by the same number of people.