One striking feature of the recent economic history of the Middle East is high-income Gulf economies financing the persistent external imbalances of its geo-strategically important neighbours. This column asks what happens when, as a consequence of the technological disruptions of the global fossil fuel market, the current account deficits of key countries in the region are no longer sustainable.
The crises that began with the Arab revolts signal the urgent need for economic and social transformation in the Middle East and North Africa. Yet there has been near universal failure to implement the structural reforms required to transform hidebound, state-dominated economies into modern ones that embrace technology and recognise the salutary impact of competition and private enterprise. This column outlines what has to change.
The Arab world's state-led development model may be set to reach a breaking point, as hundreds of millions of young people prepare to enter the labour market in the coming decades. This Project Syndicate column argues that with the public sector unlikely to be able to absorb these new workers, there is an urgent need to create a dynamic and competitive private sector.
The Middle East and North Africa urgently needs a new social contract focused on economically empowering the hundreds of millions of youth who are expected to join the labour market in the coming decades. This Project Syndicate column argues that the key to success will be technological adoption, adaptation and innovation, encouraged and facilitated by governments.
After years of high commodity prices, a new era of lower prices, especially for oil, will be challenging for resource-rich countries, which must cope with the decline in income and the potential widening of internal and external imbalances. This column summarises a recent eBook in which leading economists examine the shifting landscape in commodity markets and explore the exchange rate, monetary and fiscal policy options, as well as the role of finance, including sovereign wealth funds and diversification.
A new economic reality is needed in the Middle East and North Africa (MENA). This column proposes a ‘moonshot’, which, like the US effort to land a man on the moon in the 1960s, can unite people behind a common goal and transform the ways in which governments, companies, international financial institutions and civil societies conduct business. It would transform MENA economies and help to ensure that millions of the region’s young people can find the good jobs they deserve.
Commodity markets have been on a rollercoaster ride in the first two decades of the twenty-first century. A new book, summarised in this column, examines the long-term forces of technology, geography, demography and policy that influence these markets, and how their interplay sends price signals to producers and consumers.
Many oil- and gas-rich countries have either announced or put in place policies to reduce their dependence on oil by diversifying their economies. This column argues that the key is to shift the focus away from the end goal of diversification and towards the transformation process of how to get there.