Financial Support for Arab Countries in Transition


By Masood Ahmed

(Version in عربي)

The Arab Spring has injected new optimism into the Middle East and North Africa and, if managed well, the historic transitions that are under way will lead to a more prosperous future for the people of the region.

At the same time, the past year and a half has been difficult for the Arab countries in transition. They are facing economic strains as they manage political change and urgent social demands. It is a period when hard choices must be made, and it does not help that this is happening at a time of great turmoil in the global economy.

Close engagement

Throughout this difficult period, the IMF has remained closely engaged. We are advising countries on how to manage shocks to maintain economic stability, ensure that vulnerable households are protected during the transition, and lay the basis for job-creating growth.

We are also providing technical assistance to help build capacity and stronger institutions. In Egypt, for example, on tax reform to improve tax equity; in Libya to better manage its wealth through improved public financial management; and in Tunisia on measures to strengthen the financial sector.

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Arab Countries in Transition Under the Spotlight


By Masood Ahmed

(Version in عربي)

Historic transitions in several Arab countries are coming under increasing strain. Domestic uncertainty over the countries’ future course, compounded by the global slowdown and rising oil prices, took a toll on growth in 2011, and the current year will be equally challenging.

A joint and sustained effort is needed to help these countries navigate through this challenging period and set out an economic vision that is fair and inclusive.

Clear risks require strong resolve

The difficulties and challenges facing these countries were very much a focus of discussion during the recent 2012 IMF-World Bank Spring Meetings in Washington. The meetings brought together ministers and top officials from all over the world, with Middle East issues high on the agenda.

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What the Arab Spring Has Taught Us


By Masood Ahmed

(Version in عربي)

As we launch the IMF’s Arabic blog, Economic Window, we are witnessing an historic shift in the Middle East and North Africa (MENA). It is clear that the popular uprisings that began 10 months ago were born of a desire for greater freedom and for a more widespread and fairer distribution of economic opportunities.

But the scale of protests in the region and the associated deplorable loss of life came as a surprise to everyone, including us at the IMF.

Like others, we had pointed to the ticking time bomb of high unemployment, but we did not anticipate the consequences of the unequal access to opportunities. We had focused our efforts on helping countries in the region build solid macroeconomic foundations, liberalize economic activity, and introduce market-based reforms that would generate higher economic growth. IMF lending, policy advice, and technical assistance have indeed contributed to improving the economic indicators of many countries in the region. However, with hindsight, it is clear that we were not paying enough attention to how the benefits of economic growth were being shared.

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