The "Employer" Government and the Sponsor Government

In the current climate, a pivotal question is rolling onto the stage, imposing itself after years of neglect: How do we build a state with a strong economy, where the private sector is a genuine partner in driving growth and development? This is especially pertinent given that economic challenges are mounting, market dynamics are shifting, technological advancement is accelerating, and the cost of managing institutions is rising. All these factors have become drivers for rethinking the traditional model, which assigns the government as the primary manager and operator of a large number of economic sectors and activities. The alternative is for the government to concentrate its resources and capabilities in areas where it can perform its role with greater efficiency, rather than dispersing its assets in managing activities that the private sector can carry out with greater efficiency and flexibility.

Redefining the role of the state or government has become urgent, focusing on its core responsibilities while the private sector assumes a larger share of economic and productive, and even service-oriented, activities within a framework of regulation, oversight, and protection of the public interest. Health, education, and security remain at the forefront of the government’s responsibilities, as these sectors serve development.

The ultimate role of the government or state, according to this initiative, is to ensure and facilitate making the private sector the main driver of investment, production, trade, services, innovation, and job creation. When the private sector operates in a fair competitive environment and under clear laws, it can make decisions quickly, attract capital, develop products and services, and respond to market needs. The goal here is not to weaken the public sector, but rather to alleviate operational burdens on the state and unleash the economic energies present in society.

This initiative or project is not “privatization.” The term has become a tool of fear-mongering due to a lack of awareness and understanding. The core idea is to redistribute roles between the government and the private sector. This is the fundamental concept of the initiative. What is required is not arbitrary privatization or selling state institutions merely to shed their burdens, but a calculated redistribution of roles between the two parties. Some sectors must remain under the direct responsibility of the state, others can be managed by the private sector, and a third category can be based on partnerships between both parties.

Any major economic transformation must place human beings at its center. Therefore, reform should not become a source of anxiety for employees or a cause of sudden job insecurity. Instead, the transition should be accompanied by programs for retraining and skills development, redistribution of talents, encouragement of voluntary transitions to the private sector, and the creation of new opportunities for youth.

Nasser Al-Abduli