By David Lipton
(Version in عربي)
Almost two years since the Arab Awakening started, the future of the Middle East and North Africa is in a flux, with fledgling democracies struggling to find their way and renewed outbreaks of violence adding to the challenges the region is facing. Some are starting to worry aloud that the revolutionary path may hit a dead end.
To me, a useful way to think about the present situation is that the region could end up taking any one of three alternative paths, as far as its economic future is concerned. We could witness either:
- Economic deterioration, if squabbling over political power prevents stabilization, let alone reform;
- Stabilization through a reassertion of vested business interests that would offer a respite from eroding economic conditions, but condemn the region to a return to economic stagnation or at best tepid growth;
- Or we could see a new economy emerge, as newly elected governments gradually find a way to end economic disruptions and undertake reforms that open the way to greater economic opportunity for their people.
While the first two paths would be undesirable, they could come to pass. Needless to say, the third path of transformation would be best.
No doubt the Arab countries in transition will chart their own paths. But I strongly believe that the international community also has a role in helping them avoid the unfavorable outcomes. Let me share some thoughts on how we can provide support.
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Filed under: Africa, Economic Crisis, Economic research, Employment, Europe, Finance, Financial Crisis, Globalization, growth, IMF, Inequality, Investment, Middle East, Politics, Public debt, عربي | Tagged: Arab, Arab Awakening, Arab Spring, Belgium, David Lipton, EBRD, European Union, exports, Gulf Cooperation Council, Hamadi Jebali, iMFdirect, Jordan, Libya, MENA, Morocco, transformation, Tunisia, Turkey, United States, Yemen | 3 Comments »
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