Economic Research Forum (ERF)

After the Arab uprisings: reconstruction, peace and democratic change

710
Any post-uprisings transformation leading to lasting national peace in Arab countries will be conditional on laying the foundations for inclusive socio-economic development in the context of a genuinely democratic environment. This column, which summarises a forthcoming multi-authored ERF book explores how these goals can be achieved.

In a nutshell

Political greed (abuse of power and corruption on the part of governing authorities and privileged classes) leading to socio-economic grievances (induced by economic and wealth inequality, extreme poverty, high unemployment, etc.) underpin Arab conflicts.

Inclusive power-sharing institutions, which mandate the participation of several parties in decision‐making processes, are key to post-conflict national peace and democratic stability.

The main goal of post-conflict reconstruction should be the elimination altogether of the pre-war institutional fabric of the countries in conflict, effecting a major shift in the developmental ideology and operations of the political system.

The Arab uprisings were a stark reminder that sooner or later a fundamental transformation in the socio-economic and political order of the Arab countries will be in the offing. What course such a transformation will take and what type of new social contract will emerge remains uncertain, as demonstrated by the experiences of the countries where the uprisings took place a decade ago.

The future course of countries in civil conflicts will be defined by the nature of the settlements of their respective conflicts and the conditions thereof. Whatever form these settlements may take, a major premise of a forthcoming ERF book is that in today’s world any transformation leading to lasting national peace in Arab countries will be conditional on laying the foundations for inclusive socio-economic development in the context of a genuinely democratic environment.

Irrespective of the form it takes, a democratic system is taken to imply a political system characterised by equality before the law, basic human rights, guarantees of minority rights, accountability, transparency and multiple parties.

A second premise of the book is that whatever form the new social contract may take, it will require a massive transformation of the institutional fabric of society – that is, the set of key institutions – that helped to create the conditions for an inevitable conflict. We should keep in mind what experience has shown, namely that parliamentary elections, even if free, are not necessarily sufficient to ensure the needed accountability in governance. Institutional reforms should allow for its regular implementation.

The book adopts a two-tier approach whereby it is divided into two parts. Part I comprises three thematic contributions that present a general framework describing the overall socio-economic agenda for the Arab countries recovering from civil conflicts and domestic violence, complemented by two specific dimensions of the conflict question relevant to the Arab region:

·         The effects of horizontal inequality (associated with the grievances-based approach) and its conditionality on oil resources and government spending (associated with the greed-based approach).

·         The relationship between power‐sharing institutions and post‐conflict trajectories in countries that have experienced civil war and their quest to achieve a new, more stable social contract.

Part II of the book is devoted to case studies of four countries in conflict (Libya, Syria, Yemen and Iraq) with special emphasis on Syria where civil war has wrought comparatively the largest magnitude of human havoc and material destruction, and invited a multitude of direct foreign military involvements as well as armed intervention by fundamentalist groups that attempted and succeeded for a while in establishing their own state in the north eastern part of the country.

Accounting for the analyses of Part I, the case studies explore the causes of the respective conflicts, trace subsequent politico-economic developments, identify major questions and issues faced in the post-conflict phase and identify the major areas of reform that need to be implemented to achieve the objectives of economic reconstruction and national peace.

In common, misconceived attempts at reform through neoliberal policies that were not accompanied by political reform and proper governance structures aggravated actual as well as perceived inequality and reinforced political unrest that eventually led to the 2011 uprising.

The studies argue that for a country to achieve lasting peace and inclusive development in the post-conflict transition, a new social contract that embodies genuine power-sharing is needed though its nature and degree of optimality remain to be determined in light of how the civil conflict is going to be finally settled.

Looking beyond the eventual settlement of their current conflicts, the book endeavours to identify the conditions that would govern their post-conflict path to sustained national peace and development. The thematic chapters provide three pivotal overall insights.

The first is that political greed (for example, abuse of power and corruption on the part of the governing authorities and privileged classes) leading to socio-economic grievances (induced by economic and wealth inequality, extreme poverty, high unemployment, etc.) underlay the Arab conflicts whereby they created the conditions for state failures.

Hence the second insight at the political level that inclusive power-sharing institutions (which mandate the participation of several parties in decision‐making processes) are key to post-conflict national peace and democratic stability.

And the third that focuses on the main goal of post-conflict reconstruction as being the elimination altogether of the pre-war institutional fabric of the countries in conflict, effecting a major shift in the developmental ideology and operations of the political system.

Two major objectives of this shift would be to achieve wider economic inclusion and lesser inequality, as well as generating increasing employment opportunities; and, equally important, to align economic reforms and policies with the establishment of an implicit or explicit new social contract that would reflect the attributes of democratic governance.

In line with the thematic studies and looking beyond the eventual settlement of any continuing conflict, the case studies assert that if national peace and equitable development are to be sustained, the old (pre-conflict) social contract, based on autocratic rule, heavy government intervention, weak institutions, massive public employment and unsustainable transfers to the population would no longer be a viable option.

Instead, a new social contract would have to be put in place; one that would reflect socio-economic inclusivity, institutional reform and democratic political governance that ensure equitable power-sharing and accountability; otherwise, the seeds for renewed conflicts would remain.

In consequence, the direct role of the state in the national economy would diminish though its specific transformation could differ from one country to another depending in part on the relative importance of natural resources such as oil in the economy. In contrast, the regulatory functions of the state are expected to be developed further to assure the proper functioning of the emerging post-conflict state and economy.

In parallel, the case studies identify major economic reforms to be implemented as an integral part of the post-conflict development phase. Each country has its own specific concerns in this regard – for example, a more efficient management of oil resources and a more vibrant private sector in Iraq and Libya; a more equitable regional distribution of development expenditure in Syria; and a more efficient enforcement of property rights in Yemen, especially after its expected reunification.

At the same time, these countries face common post-conflict economic challenges at the structural, economic and institutional levels. They include, among others, the issue of economic diversification, control of inflation, raising employment levels, husbanding fiscal expenditures, controlling corruption, and the implementation of transparent policies.

Some of the case studies point out that reaching these goals may not be feasible in the period immediately following the settlement of the conflicts. Rather, a more gradual route might have to be traversed, starting with political arrangements that initially may not be fully democratic but with sustained development would evolve into genuine democratic institutions, as in the case of South Korea and other countries.

Failure to carry out major economic reforms, it should be stressed, could lead to the disruption of the desired or intended political change towards genuine democratic governance and, at worst, a return to various forms of open or disguised autocratic rule.

This column summarises Aftershock of the Arab Uprisings: Reconstruction, National Peace and Democratic Change, a forthcoming book edited by Samir Makdisi and Raimundo Soto with the participation of C. Bodea, C. Houle, N. Sambanis, N. Kabbani, A. Boustati; S. Abosedra, A. Fakih, N. Haimoun, M. Alsamara, Z. Mrabet, A. Shikh Ebid, B. Yousif, R. Morrar, O. El-Joumayle, M Al Iriani, H. Hassan, I. Martinez, A. Hamada, M. Sokmen and C. Zaki.

Most read

Trust in Lebanon’s public institutions: a challenge for the new leadership

Lebanon’s new leadership confronts daunting economic challenges amid geopolitical tensions across the wider region. As this column explains, understanding what has happened over the past decade to citizens’ trust in key public institutions – parliament, the government and the armed forces – will be a crucial part of the policy response.

Climate change: a growing threat to sustainable development in Tunisia

Tunisia’s vulnerability to extreme weather events is intensifying, placing immense pressure on vital sectors such as agriculture, energy and water resources, exacerbating inequalities and hindering social progress. This column explores the economic impacts of climate change on the country, its implications for achieving the sustainable development goals, and the urgent need for adaptive strategies and policy interventions.

Small businesses in the Great Lockdown: lessons for crisis management

Understanding big economic shocks like Covid-19 and how firms respond to them is crucial for mitigating their negative effects and accelerating the post-crisis recovery. This column reports evidence on how small and medium-sized enterprises in Tunisia’s formal business sector adapted to the pandemic and the lockdown – and draws policy lessons for when the next crisis hits.

Assessing Jordan’s progress on the sustainable development goals

Global, regional and national assessments of countries’ progress towards reaching the sustainable development goals do not always tell the same story. This column examines the case of Jordan, which is among the world’s leaders in statistical performance on the SDGs.

Qatarisation: playing the long game on workforce nationalisation

As national populations across the Gulf have grown and hydrocarbon reserves declined, most Gulf countries have sought to move to a more sustainable economic model underpinned by raising the share of citizens in the productive private sector. But, as this column explains, Qatar differs from its neighbours in several important ways that could render aggressive workforce nationalization policies counterproductive. In terms of such policies, the country should chart its own path.

The threat of cybercrime in MENA economies

The MENA region’s increasing access to digital information and internet usage has led to an explosion in e-commerce and widespread interest in cryptocurrencies. At the same time, cybercrime, which includes hacking, malware, online fraud and harassment, has spread across digital networks. This column outlines the challenges.

Economic consequences of the 2003 Bam earthquake in Iran

Over the decades, Iran has faced numerous devastating natural disasters, including the deadly 2003 Bam earthquake. This column reports evidence on the unexpected economic boost in Bam County and its neighbours after the disaster – the result of a variety of factors, including national and international aid, political mobilisation and the region’s cultural significance. Using data on the intensity of night-time lights in a geographical area, the research reveals how disaster recovery may lead to a surprising economic rebound.

Qatar’s pursuit of government excellence: promises and pitfalls

As Qatar seeks to make the transition from a hydrocarbon-based economy to a diversified, knowledge-based economy, ‘government excellence’ has been identified as a key strategic objective. This column reports what government effectiveness means in terms of delivery of public services, digitalisation of services, and control of corruption – and outlines the progress made to date on these development priorities and what the country needs to do to meet its targets.

The impact of climate change and resource scarcity on conflict in MENA

The interrelationships between climate change, food production, economic instability and violent conflict have become increasingly relevant in recent decades, with climate-induced economic shocks intensifying social and political tensions, particularly in resource-constrained regions like MENA. This column reports new evidence on the impact of climate change on economic and food production outcomes – and how economic stability, agricultural productivity and shared water resources affect conflict. While international aid, economic growth and food security reduce the likelihood of conflict, resource scarcity and shared water basins contribute to high risks of conflict.

Education and health in Tunisia: is human capital at risk?

Tunisia has made significant strides in enhancing the skills, knowledge and health of its population, all cornerstones of economic growth and social progress. This column examines the state of the country’s education and healthcare systems, identifying structural weaknesses that could jeopardise human capital and, by extension, progress towards achieving the sustainable development goals.