Economic Research Forum (ERF)

Life satisfaction in Arab countries

1817
How do people in Egypt, Jordan, Morocco and Tunisia feel about their lives? Summarising analysis of data collected in nationally representative surveys, this column highlights three core messages about their reported health, happiness and views of the future.

In a nutshell

Personal experiences largely determine whether people continue to support the economic and political institutions that underpin their society.

In terms of satisfaction with their economic situation, only 15% of respondents in the region say that they are living comfortably on their present income.

More than two thirds of people in the region are generally optimistic about their future, with women slightly more optimistic than men.

Since the early days of the Arab Spring in 2010, many Middle Eastern countries have experienced a profound transformation of their economic and political institutions. How has this affected people’s lives and their social, economic and political preferences? Understanding this process is important as personal experiences largely determine whether people continue to support the economic and political institutions that underpin their society.

To monitor people’s perceptions and attitudes, the European Bank for Reconstruction and Development (EBRD) publishes assessments for its countries of operation in the South-eastern Mediterranean region (SEMED): Egypt, Jordan, Morocco and Tunisia. (Lebanon became an EBRD country of operation in mid-2017 and is not part of the most recent assessment round.)

The most recent assessments are based on data from the 2011 and 2015 Gallup World Polls, nationally representative surveys that are conducted every year in over 120 countries. In each country, about 1,000 individuals are asked about a wide range of topics.

The data provide rich information on demographic characteristics (age, gender, educational attainment, marital status and religion) as well as labour market outcomes. The survey also includes sections on attitudes and values, public service delivery and inclusion, among others. Importantly, the Gallup data also make it possible to benchmark the SEMED region vis-à-vis some advanced market economies (France, Germany, Italy, Sweden and the UK) as well as Emerging Europe (the ‘transition region’).

The ‘transition region’ comprises Central Asia (Kazakhstan, Kyrgyz Republic, Mongolia, Tajikistan, Turkmenistan and Uzbekistan); Central Europe and the Baltic states (Croatia, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic and Slovenia); Eastern Europe and the Caucasus (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine); Russia; South-eastern Europe (Albania, Bosnia and Herzegovina, Bulgaria, Cyprus, Former Yugoslav Republic of Macedonia, Greece, Kosovo, Montenegro, Romania and Serbia); and Turkey.

The country assessments reveal three core messages about attitudes in the SEMED region:

The ‘happiness gap’ remains substantial

Today, individuals living in the SEMED region report levels of life satisfaction lower than for those who live in the transition region and Western Europe (Figure 1). Egypt (25%) has the lowest share of respondents who are currently satisfied with their life. In sharp contrast, life satisfaction is higher in Jordan (43%) than in any other SEMED country.

There are also some notable differences with regard to demographic characteristics. For example, Figure 2 shows that women have considerably higher levels of life satisfaction in Jordan and Morocco. When it comes to satisfaction with the economic situation, only 15% of respondents in the SEMED region state that they are living comfortably on their present income. The corresponding proportions are 17% in the transition region and 36% in Western Europe.

People are optimistic about the future

On the bright side, people in the SEMED region are generally optimistic about their future (68% – Figure 3). This figure is higher than in the transition region (55%) and Western Europe (41%).

Moreover, women are slightly more optimistic than men in all SEMED countries (Figure 4). Additional analysis of the Gallup data shows that on average, older and poorer individuals tend to report lower levels of life satisfaction. These groups are also less optimistic about the future and this holds across the entire region.

A majority report that their physical health is good

In the SEMED region, 64% of respondents agree or strongly agree that their physical health is very good (Figure 5). This figure is higher than the averages for the transition region (52%) and Western Europe (57%).

Perhaps not surprisingly, across the entire region, younger and richer individuals are more likely to report being in good health than their counterparts in the lower and middle-income brackets. In addition, men report being somewhat healthier than women in the SEMED countries, except for Jordan (Figure 6).

Further reading

EBRD (2017) ‘Life in Transition: A Decade of Measuring Transition’.

Most read

EU climate policy: potential effects on the exports of Arab countries

The carbon border adjustment mechanism aims to ensure that Europe’s green objectives are not undermined by the relocation of production to parts of the world with less ambitious climate policies – but it could impose substantial costs on developing countries that export to the European Union. This column examines the potential impact on exporters in the Arab world – and outlines possible policy responses that could mitigate the economic damage.

Financial development, corruption and informality in MENA

Reducing the extent of informality in the Middle East and North Africa would help to promote economic growth. This column reports evidence on how corruption and financial development influence the size of the informal economy in countries across the region. The efficiency of the financial sector in MENA economies reduces the corruption incentive for firms to seek to join and stay in the formal sector.

Green hydrogen production and exports: could MENA countries lead the way?

The Arab region stands at the threshold of a transformative opportunity to become a global leader in green hydrogen production and exports. But as this column explains, achieving this potential will require substantial investments, robust policy frameworks and a commitment to technological innovation.

Climate change threats and how the Arab countries should respond

The Arab region is highly vulnerable to extreme events caused by climate change. This column outlines the threats and explores what can be done to ward off disaster, not least moving away from the extraction of fossil fuels and taking advantage of the opportunities in renewable energy generation. This would both mitigate the potential for further environmental damage and act as a catalyst for more and better jobs, higher incomes and improved social outcomes.

Freedom: the missing piece in analysis of multidimensional wellbeing

Political philosophy has long emphasised the importance of freedom in shaping a meaningful life, yet it is consistently overlooked in assessments of human wellbeing across multiple dimensions. This column focuses on the freedom to express opinions, noting that it is shaped by both formal laws and informal social dynamics, fluctuating with the changing cultural context, particularly in the age of social media. Data on public opinion in Arab countries over the past decade are revealing about how this key freedom is perceived.

Child stunting in Tunisia: an alarming rise

Child stunting in Tunisia seemed to have fallen significantly over the past two decades. But as this column reports, new analysis indicates that the positive trend has now gone dramatically into reverse. Indeed, the evidence is unequivocal: the nutritional health of the country’s youngest citizens is rapidly deteriorating and requires immediate and decisive action.

Exchange rate undervaluation: the impact on participation in world trade

Can currency undervaluation influence participation in world trade through global value chains (GVC)? This column reports new evidence on the positive impact of an undervalued real exchange rate on the involvement of a country’s firms in GVCs. Undervaluation acts as an economy-wide industrial policy, supporting the competitiveness of national exports in foreign markets vis-à-vis those of other countries.

New horizons for economic transformation in the GCC countries

The countries of the Gulf Cooperation Council (GCC) have historically relied on hydrocarbons for economic growth. As this column explains ahead of a high-level ERF policy seminar in Dubai, emerging technologies like artificial intelligence, blockchain and robotics – what some call the fourth industrial revolution – present a unique opportunity for the region to reduce its dependence on oil and make the transition to a knowledge-based economy.

Shifting public trust in governments across the Arab world

The Arab Spring, which began over a decade ago, was driven by popular distrust in governments of the region. The column reports on how public trust has shifted since then, drawing on survey data collected soon after the uprising and ten years later. The findings reveal a dynamic and often fragile landscape of trust in Arab governments from the early 2010s to the early 2020s. Growing distrust across many countries should raise concerns about future political and social instability.

Corruption in Iran: the role of oil rents

How do fluctuations in oil rents influence levels of corruption in Iran? This column reports the findings of new research, which examines the impact of increases in the country’s oil revenues on corruption, including the mechanisms through which the effects occur – higher inflation, greater public spending on the military and the weakness of democratic institutions.




LinkedIn