I sympathize with the author's point of view. If I were in her shoes I would feel oppressed too. Although I am not an economist but here is my approach :
No.1 - There can be a social security for the locals. Since there is no system of tax, the revenue for the social security can be generated by charging some percentage from private business. This should remove any grievances from the locals who feel they are not employed in private institutions and is a mutual beneficial approach.
No.2 - Government aid and subsidies - only to those organizations having 80:20 ratio of locals vs expats.

Again, I am no economist and probably my views are skewed.