The effectiveness of job generation in raising the

quality of life of citizens in Saudi Arabia in light of

Vision 2030
Introduction
Employment growth is a primary economic development
goal of most small communities. More jobs generally mean
more residents, more spending at local businesses, and
more tax revenues for local governments. Thus job growth
permits the expansion and improvement of public goods
and services, leading to an improved local quality of life
and enhanced prospects for future employment growth. In
addition, a vibrant job market provides an incentive for
local students to continue their education since the
rewards for such are evident in better local employment
opportunities. And an expanding job market encourages
local workers to upgrade their skills in order to qualify for
available higher wage jobs. Sustained job growth
stimulates improvements in the education and skills of the
local labor force, making the community a more attractive
location for businesses in the future.( David L. Barkley,
2001, p: 2)
The quality of life of citizens in a city is related to the
sustainable decisions made by their leaders. By using
principal component analysis (PCA) and taking an
intellectual capital perspective (all sources of knowledge
in human, relational and structural areas), we explore
which of the three dimensions used to measure the
sustainability of a city—economic, social or environmental
—has the greatest e_ect on a subjective measurement of
quality of life. We propose an econometric model based on
a tangible production model to study the relationship
between the quality of life and sustainability. To that end,
we perform an in-depth examination of the di_erent e_ects
on the four dimensions that comprise the measure of the
subjective quality of life: satisfaction, mobility, integration
and public service. The results of the estimated model of
citizens’ quality of life confirm the existence of a direct
relationship for the 52 European cities under study;
however, the least relevant role is played by the
environmental dimension, which is still unappreciated by
citizens. Conversely, the economic and social dimension
are found to be determinants in all cases, except for social
integration. Therefore, a key requirement of the
management aimed at achieving sustainable development
in European cities is to activate the environmental
dimension.( Víctor-Raúl López-Ruiz, 2019, p: 2)
In light of generating jobs and achieving quality of life for
the Saudi citizen, the Kingdom has established a
specialized body for job creation, The Job Creation
Commission implements a comprehensive methodology to
develop integrated job creation and employment
solutions, based on research and analysis. We propose
policies and regulations, collaborate with our partners in
the public, private and third sectors, and we provide them
with enablers, incentives and monitor the implementation
of programs, initiatives and plans that contribute to Saudi
Arabia’s Vision 2030.

A job generation strategy

Any strategy for job generation in Britain at the present
time must be based on two essential components. First,
there needs to be a substantial increase in investment in
the tradable goods sector, and in manufacturing industry
in particular, in order to boost economic growth and net
exports, This is essential if we are to prevent full
employment from resulting in a surge in imports that
cannot be financed. It will also create orders for related
service activities, as well as generating increased tax
revenues to fund expanding public services. However,
since manufacturing needs to achieve high levels of
productivity to compete internationally, the potential for
immediate job generation in this sector alone is limited.
Second, therefore, any strategy to cut the dole queues
requires increased investment, suitably targeted, in public
services and infrastructure. It is not difficult to identify
areas of enormous unmet social need, where there is work
to be done and where jobs can be generated quickly:
record housing waiting-lists; investment in education and
training lagging behind that of our competitors; hospital
waiting-lists at unacceptable levels; and an environment
under increasing threat.( Michael Kitson, 1997, p: 7-8)
Job creation can be loosely defined as increasing the
number of jobs in the labor market. Job creation can occur
in a number of ways, including job creation by the state
through active labor market policies, job creation through
Keynesian demand, job creation through investment, and
“natural” job creation within firms. Active labor market
policies (ALMP), in general, are government measures that
seek to improve the functioning of the labor market and
are particularly directed at the unemployed. ALMPs
generally fall into three categories: ( Vicki Smith,
2013, p: 3-4)
(1) job placement, matching unemployed workers with
job vacancies and providing advice on interview and
résumé building skills.
(2) job training to help unemployed workers gain more
marketable skills and broaden their options and
opportunities for employment.
(3) direct job creation, through either private employment
subsidies or the creation of public-sector jobs, which is
often a short-term measure.
Strategies for Community Action to generate jobs :
1) Develop local industrial sites and public services, and
provide specific information on available labor. Once
businesses have decided where to locate, they want to set
up shop and start operating in a hurry. Wellprepared sites
and available facilities speed up this process. But the
community has to weigh the cost of these investments
against the likelihood of attracting a new industry.
2) Develop community and regional facilities to provide
transportation, recreation, communication, business
services, etc. These services not only attract new
employers they also benefit existing businesses and
prospective entrepreneurs. Businesses are giving such
facilities more weight when selecting a location. Natural
resources and market access are becoming relatively
unimportant in the location decision. Conditions that make
a community a nice place to live are growing in
importance.
3) Help provide capital resources. Reduced interest rates
through revenue bonds and other financial incentives
have become widespread. Large firms often look for this
type of community assistance as a way of reducing the
cost of constructing a new facility. However, giveaways or
temporary tax reductions seldom play a significant role in
plant location decisions.
4) Consider targeted searches for firms that might be
most interested in developing a local branch operation.
Industry targeting helps identify businesses that the
community would have the greatest chance of recruiting
and that have the most favorable impacts on the
community. Admittedly, such searches are longshots.
Nonetheless, the process of becoming well-prepared to
seek out prospective employers may also help businesses
already in the community.
5) Form organizations such as industrial development
corporations. It is important that local government be
involved in these efforts, but the flexibility of
nongovernmental organizations is often useful. For
instance, an industrial development corporation may
move faster than a local government in taking options on
land, or building streets in an industrial park. Communities
must be careful to avoid giving something to attract a firm
that they would not be willing to give existing businesses.(
David L. Barkley, 2001, p: 7)
The role of job creation in promoting economic
development :
There is a deep interest in the roles played by SMEs in
development processes and therefore, they are in the
forefront of policy debates in most countries.
Governments at all levels have undertaken initiatives to
promote the growth of SMEs . ( Connie Atristain-Suárez,
2012, p: 4)
SME development can promote the process of both inter
and intra-regional decentralisation; and, they may well
become a counterbalance force against the economic
power of larger enterprises. So, the development of SMEs
is seen as accelerating the achievement of the wider
economic and socio-economic objectives of a country,
including poverty alleviation (Cook and Nixson, 2000).
There is also a general consensus that the performance of
SMEs is important for both economic and social
development of developing countries. From the economic
perspective, SMEs provide various benefit. SMEs have
been noted to be one of the major areas of concern to
many political leaders in their attempts to accelerate the
rate of growth in their low-income countries. These
enterprises have been recognized as the engines through
which the growth objectives of developing countries can
be achieved. Also, they are potential sources of
employment and income in many developing countries.
However, most researchers agree that SMEs play an
important role in the concerns that impel the generation of
employment and economic growth. The main problems
that SMEs are faced with are: lack of financial resources;
lack of IT awareness, practical and support; lack of human
resources; lack of formal procedures; and discipline to
carry them out, lack of management skills, and lack of
experience of using consultants, SMEs play an important
role in the industrial development of a country, because
they generate more employment opportunities, use less
capital cost, generate more income and reduce poverty.
You can safely say that previous pattern of bad economic
development could have been largely avoided if SMEs had
been given more weight in industrial development.
However, the role of SMEs in the economic development
of a country is never realised effectively. Thus, the
importance and contribution of SMEs in economic activity
suggests that there is significant potential to improve their
growth through improvement of their operational
efficiency. ( Connie Atristain-Suárez, 2012, p: 6-8)

Job Creation through Investment

Business investment is the most direct form of job
creation. If a business invests in new plants and
equipment, it will soon need to hire more workers and
create jobs. Economic growth and demand for new
products and services encourages investment by
businesses, thus creating jobs. Job creation through
investment often crosses country lines in the current
globalized economy. This foreign direct investment
creates jobs in other countries but results in lower
investments in the country of origin. Low wages in
developing countries attract employers seeking to cut
labor costs, resulting in a loss of potential jobs for the
home countries. Many manufacturing jobs have been
outsourced this way, and concerns about working
conditions in factories outside a company's home country
have become prevalent. ( Vicki Smith, 2013, p: 4)
Countries and states often try toenact policies that
encourage investment by businesses. Political
conservatives often describe an ideal environment for job
creation through investment as a country with low
corporate tax rates and little regulation .Arthur Laffer's
supply side theory (illustrated by the Laffer curve) predicts
that lowering the tax rate on business can increase
government revenues because more jobs and profits are
created. The conservative idea is highly criticized,
however, since many factors influence how much
businesses will invest. Often, state governments compete
with each other over new manufacturing plants and other
investments. They may offer lower taxes, land site
preparation, a good business climate (i.e., a nonunion
environment), or building educational infrastructure (i.e.,
community college programs nearby). However, many of
these efforts simply redistribute production rather than
creating new facilities. If a plant simply moves from one
state to another, the gain for one state is a loss for the
other. ( Vicki Smith, 2013, p: 5)
CONCEPTUALISATION OF QUALITY of life
What do we mean by the term 'life quality'? life quality
was originally proposed as a standard by which to
measure the extent to which the quality of the daily lives
of citizens have attained an acceptable European level.
(Beck, van der Maesen and Walker, 1998, p: 5).
life quality, therefore, is a reflection of European
citizenship. To measure life quality requires a broad multi-
dimensional standard, broader than more familiar social
indicators like poverty and social exclusion. Moreover,
social quality is a feature of societies and their institutions
even though it is assessed with reference to its impact on
citizens. Therefore the concept of human needs did not
capture what we were looking for, Also, given the highly
developed nature of the EU, it would have been
inappropriate to employ a concept such as basic needs. It
also had to incorporate a mixture of structural factors and
individual-level ones. We were mindful of the need to
properly represent the delicate balance in Europe between
collective and individual responsibility. Standard quality of
life scales were not adequate for the purposes outlined
above for the reasons set out below. ( Alan Walker* &
Laurent van der Maesen, 2013, p: 6-7)
Most of the early social research into quality of life was
done in the US and focussed on satisfaction, happiness
and well-being. A theoretical model of quality of life as 'the
good life' was first proposed by Lawton (1983) who
defined it as behavioural competence, the objective
environment and perceived quality of life. In the UK
research was dominated, until recently, by health and
health-related issues and, within that field, economic
assessments of quality of life have been particularly
influentia). The best known example is the Quality
Adjusted Life Years (QALY) measure which uses health
professionals' definitions of the constituents of quality of
life in order to assess the value of clinical interventions.
(Beck, van der Maesen and Walker, 1998, p: 6).
Historical Context and Meaning of Quality of Life
Quality of life is a concept that emerged in the sixties. It
arises as a critique of development and welfare as
necessary products for economic growth. These criticisms
have already been expressed by different authors at the
beginning of the 20th century, but especially in the post-
World War II era, which deepened this perception and
debate. Later - in the framework of the post-development
discussion - the illuminist idea of “progress” was
questioned. The modern, influential thinkers of the
eighteenth, nineteenth and twentieth century’s thought
and spread the idea that progress, supported this time by
science and technology, would be a historically
uninterrupted, permanent process, but they were wrong.
Progress advances and regresses in the history of modern
societies, according to stage, class and social group
interests, and how social, political and environmental
conflicts are resolved. In addition, progress does not
benefit all sectors of society equally. Inequality is a
permanent phenomenon that accompanies the
development of capitalist societies. It represents an
inherent and intrinsic characteristic of a system for
domination, varying and transforming according to society
advancements.
Industrialization not only produced consumer goods and
progress. It also produced pollution problems,
occupational diseases, modern life stress, depredation of
ecosystems, human communication problems and various
forms of repression in its multiple expressions.
Industrialization tended to standardize life styles,
curtailing the individual, limiting and preventing their free
realization as a person. Long days of work alienated to
obtain economic sustenance that allowed the consumption
of perishable and durable goods. The value of a happy and
relaxed life was not part of the culture, or the paradigm of
economic growth policies, or the ideology of so-called
progress. .( HERNÁNDEZ, 2017, p: 25)
In this context, there are strong and profound criticisms of
the development model, which even included the so-called
“real socialisms”, not considered as genuine alternatives
for human and social development. Discomfort instills
itself in the consciousness of citizens. Herbert Marcuse
published The One-dimensional Man in 1965.
Representative of critical social theory, in this work he
denounces the tendencies or totalitarian features of
advanced societies, with great impact in intellectual and
young circles. The system produces false needs through
mass media, advertising and the integration of workers
into the industrialized consumer society. The system
works with a strong dose of individualism. These would be
societies of control, which do not oppose social change but
contains it. So Quality of life seeks to establish itself as a
universal and scientific system of measuring.(
HERNÁNDEZ, 2017, p: 27)
The relationship between quality of life and
Sustainability ;
The concepts of sustainability and sustainable
development have been gathering momentum in recent
years as a response to ecosystem alterations, In this
regard, sustainable development is understood to be
development that meets people’s present needs without
compromising the ability of future generations to meet
their own needs, a definition that was first set out in the
report produced by the World Commission on Environment
and Development ,This concept has been further
developed and extended to address the issue at the levels
of countries, regions and cities. Furthermore, the concept
of sustainability has been widely discussed, and there
have been major controversies regarding its definition ,
Consequently, a number of difficulties have arisen in the
practical application of this concept.( Ruiz, 2019, p: 3)
According toAhi andSearcy (2013), the
term“sustainability” has been understood in various ways,
fluctuating from an intergenerational philosophical point
to a multidimensional term for business management.
However, the concept appears to have evolved such that
it is now generally understood to be based on three pillars:
environmental, social and economic .(Ahi, P.; Searcy,2013,
52)
This evolution has entailed the development of ideas,
concepts and measurement processes aimed at providing
tools to support policymakers. Initially, the focus was
exclusively on the environmental dimension, with the
social and then economic dimensions subsequently
incorporated, as associated with the concept of the triple
bottom line (TBL). In this sense, Alfaro et al. (2017) stated
that a city’s intellectual capital is formed for all sources of
knowledge in di_erent areas: human resources,
infrastructure e_ciency, mobility, accessibility, business,
image, quality of life, tourism, innovation, and
sustainability of environment, all of which allow for smart
and sustainable growth and wealth capacity.
Dimensions of quality life
World Health Organisation (WHO 1997) defined six
dimensions: (physical health, psychological, level of
independence, social relationships, environment, and
spirituality/religion/personal beliefs ). Other authors have
put forward different dimensions.( Cummins ,1997 , P: 22),
for example, proposes the following seven dimensions:
(material well-being, health, productivity, intimacy, safety,
place in community, and emotional well-being).
However it is possible to extract some common elements
from the most accepted theories. The work of Escuder-
Mollon (2012a, 2012b) introduces the concepts quality of
life (QoL) related to education, and from which the
following QoL aspects are taken:
• The importance of the subjective factor. QoL is governed
by objective and subjective elements, most of
which are part of the culture or are used to weigh the
importance and
satisfaction of any objective perception .
• Life satisfaction. Once basic needs are met (housing,
subsistence, basic relationships), life satisfaction is based
on covering other needs .
• Personal improvement ; state that QoL has the same
essential foundations for everyone, regardless of physical
or mental disability or age. Once basic needs are met, for
QoL to be enhanced, the aspects that each individual
considers most important in his or her life must be
improved.( Schalock and Verdugo 2002 ,p.11-30)
• Adaptation. According to Cummings high QoL is
maintained by people with the ability to adapt to any
changes in their lives.
• Subjective Well-Being. The cognitive protective factors
Cummings identifies – self-esteem, perceived control and
optimism – are also known as subjective well-being. To
raise QoL, actions designed to enhance previous factors
must be implemented.
Changes and new role. Changes in the environment
(structure of the family, social context, home) and the
individual’s personal and family role can affect his or her
own personal status and role either positively or
negatively. The new environment, structure and the new
role must first be understood. Several options are
available in the second stage: to accept changes, to
negotiate or to act.
• Social participation. QoL is closely related to social
participation. In this sense it is understood as the
satisfaction individuals experience as a result of their
participation in the activities in the family, in the
workplace and within their community, for which they
exercise their abilities and develop their personality. By
social participation we refer to ‘significant social
participation’, the process of personal interaction that
involves taking part in an active and engaged manner in a
joint activity, which the person perceives as beneficial.
Social participation refers to support systems or
psychosocial resources as links between individuals,
characterised by material aid, physical assistance, shared
thoughts, feelings and experiences, and positive social
contacts. Significant social participation essentially occurs
in four areas: education, occupation, physical activity and
recreational groups, and social relations where the aim is
mutual interaction and social integration. However the
quality of social contacts is more important than their
quantity.
• Loneliness and exclusion. In consequence, among the
main risk factors of deteriorated QoL is the social isolation
linked to the exclusion and rejection of old age. one of the
criteria for assuming the status of being ‘old’ is the decline
of social participation and the feeling of uselessness.
• Lifelong learning. Recent research has shown the
importance of lifelong learning (as a psychosocial activity)
for enhanced QoL. Learning can be seen as an activity that
keeps people active, but also enables them to increase
their creativity, personal development, personal skills and
life satisfaction Lifelong learning in this way is a powerful
tool that is commonly part of the “Personal Development”
dimension (Shalock and Vertugo 2002, P: 31)
• Usefulness and aims. Continuing to have goals and
objectives in life and being an active member of a social
group is related to continuing good health. older people
must maintain a generative function: on the one hand
they should produce and create, and on the other hand,
they should build links with other people and feel
responsible for them, because all citizens' lives are
interlinked, and this implies working together to achieve
common goals and causes by interacting with others
through communication and social solidarity. But social
participation must not only be related to each individual's
own initiatives, which could be linked to their individual
lifestyles, their internal motivations or other external
motivations; social participation is also related to the
place that society assigns to its older citizens ( Pilar
Escuder-Mollon, 2014, P: 2, 4)
The role of the Kingdom of Saudi Arabia in
generating jobs to raise the quality of life for
citizens:

Saudi Arabia's economy stands at a crossroads. The

current economic model is driven by oil exports, which
account for 84 percent of exports and 42 percent of GDP.
A historic rise in oil prices starting in 2003 led to a
doubling of Saudi Arabia’s GDP and created 1.7 million
Saudi jobs in a decade. After the rise, however, came the
fall, as by 2016 oil prices stood at 40 percent of their
peak. The last time Saudi Arabia experienced a sharp
decline in oil prices in 1981, there followed a deep,
prolonged recession. Consumption per-capita only
recovered to its 1980 level nearly three decades later in
the midst of the most recent oil price boom. With 4.5
million young Saudis entering the workforce by 2030 and
the continuous evolution of global energy markets, waiting
another quarter century for the return of high oil prices is
no longer a viable option. ( Growth Lab Search, Harverd
University, [Link]
research/saudi-arabia)

In April 2016, Saudi officials announced Vision 2030, an

ambitious plan to diversify the Saudi economy away from
its dependence on oil. The scale and speed of reforms
called for by Vision 2030 and the accompanying National
Transformation Plan (NTP) require careful planning and
sequencing of reforms to revamp the country’s economic
model toward a diversified, knowledge-driven economy,
The Growth Lab at Harvard's Center for International
Development (CID) in mid-2016 launched a policy
engagement with the Ministry of Economy and Planning to
advance research and policy development processes on
how to spark economic diversification and job creation in
Saudi Arabia. The Growth Lab has advanced global
research on the understanding of how growth happens,
placing diversification and complexity at the heart of the
story. In pioneering a series of methodologies and
visualization tools that map paths to diversification, the
team applied these tools to better understand the Saudi
industrial landscape. By mapping what capabilities exists,
these tools can identify new, high-complexity industries
that hold promise to create new jobs and income gains,
while relying on capabilities that already exist locally.
These tools offer a new approach to identify industries to
drive growth and job creation, as a fundamental rethink of
economic strategy to focus on Saudi Arabia’s most
powerful resource: the skills of Saudi workers.( GROWTH
LAB Search, Harverd University,
[Link]
arabia)

The Quality of Life Program was launched in 2018 to

improve the quality of life of residents and visitors to the
Kingdom by developing the necessary environment to
create more vibrant options that enhance the participation
and experience of citizens and residents.

The program was able to expand the horizons of many

sectors that directly impact citizens, including: sports,
culture and entertainment. It worked on diversifying
entertainment opportunities, such as inaugurating the first
cinema in the Kingdom and organizing many international
events, such as the “Dakar Rally”. In addition, the
program actively contributed to establishing a number of
cultural museums and music festivals. The program has
also invested in developing Saudi human capital in these
sectors, launching several academies and programs, such
as the Talent Development Program and the Mahd Sports
Academy.

The program also focuses on developing the tourism

sector in the Kingdom as well as contributing to
strengthening the Kingdom’s position as a global tourist
destination, achieving tangible accomplishments. This
includes launching the tourist visa scheme and increasing
the number of registered sites in the UNESCO World
Heritage List in addition to localizing leadership
professions in the hospitality sector. The program also
establishes enabling mechanisms for the private sector
and automating the licensing process to facilitate
investors’ “ease-of-doing-business” and establishing
development funds such as The Nomow Cultural Fund
which is an example of said enablement.

he Quality of Life Program endevours to improve the

individual and families’ quality of life by creating the
necessary environment to develop and support new
liveable and lifestyle options. These options will bolster
the participation of citizens, residents and visitors in
cultural, entertainment, sports, tourism, and urban
activities, and other related activities that nurture their
quality of life. Such diverse options will definitely have
their own economic and social impact through creating
jobs, diversifying economic activity, and consequently
boost Saudi cities' ranking amongst the World’s top
liveable cities.(
[Link]
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