As recent events in the Arab region have amply demonstrated, the problems of poverty. Unemployment and social and political exclusion cannot be forever ignored without their arising demands for change in the basic arrangements of society. Today, the dramatic revolts in diverse Arab societies have highlighted the failures of the pre-existing development model, as well as the necessity and opportunity for transformation, raising the hope that an Arab awakening can initiate an Arab renaissance. This second Arab Development Challenges Report makes an outstanding contribution in this regard, surveying the challenges presented by the current economic and social situation and proposing approaches to them