Economic Research Forum (ERF)

Steffen Hertog

Author

Steffen Hertog
Associate Professor of Comparative Politics, London School of Economics and Political Science.

Steffen Hertog is an associate professor of comparative politics at the London School of Economics and Political Science. His research interests include Middle East and Gulf political economy, political violence and radicalization. Over the last 15 years, he has undertaken a wide range of public policy work in the MENA region on issues like labor market and migration reform, public sector governance and economic diversification, working with institutions like the World Bank, the ILO, the OECD, and ESCWA. His book about Saudi state-building, “Princes, Brokers and Bureaucrats: Oil and State in Saudi Arabia” was published by Cornell University Press in 2011. He is the co-author, with Diego Gambetta, of “Engineers of Jihad: the Curious Connection between Violent Extremism and Education” (with Princeton University Press 2016) ) and has most recently published a short monograph entitled “Locked Out of Development: Insiders and Outsiders in Arab Capitalism” (Cambridge University Press 2023).

Content by this Author

Insiders and outsiders: the political economy of Arab labour markets

Labour markets across much of the Arab region are split into two parts – they are dualistic. On one side, there are public sector workers who, while not paid handsomely, are protected from reform by incumbent governments desperate to secure middle class support. This insider group contrasts with the region’s outsiders – informally employed private sector workers and the unemployed. This column argues that outsiders are often left behind in terms of economic opportunities and outcomes, and that this hampers the overall growth potential of countries across the Arab world. Yet political feedback loops keep regimes from improving welfare and economic opportunities for outsiders.

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Artificial intelligence and the renewable energy transition in MENA

Artificial intelligence has the potential to bridge the gap between abundant natural resources and the pressing need for reliable, sustainable power in the Middle East and North Africa. This column outlines the constraints and proposes policies that can address the challenges of variability of renewable resources and stress on power grids, and support the transformation of ‘sunlight’ to ‘smart power’.

Arab youth and the future of work

The Arab region’s labour markets are undergoing a triple transformation: demographic, digital and green. As this column explains, whether these forces evolve into engines of opportunity or drivers of exclusion for young people will hinge on how swiftly and coherently policy-makers can align education, technology and employment systems to foster adaptive skills, inclusive institutions and innovation-led pathways to decent work.

Digitalising governance in MENA: opportunities for social justice

Can digital governance promote social justice in MENA – or does it risk deepening inequality and exclusion? This column examines the evolution of digital governance in three sub-regions – Egypt, Jordan and the countries of the Gulf Cooperation Council – highlighting how data practices, transparency mechanisms and citizen trust shape the social outcomes of technological reform.

Wrong finance in a broken multilateral system: red flags from COP30-Belém

With the latest global summit on climate action recently wrapped up, ambitious COP pledges and initiatives continue to miss delivery due to inadequate commitments, weak operationalisation and unclear reporting systems. As this column reports, flows of climate finance remain skewed: loans over grants; climate mitigation more than climate adaptation; and weak accountability across mechanisms. Without grant-based finance, debt relief, climate-adjusted lending and predictable multilateral flows, implementation of promises will fail.

Why political connections are driving business confidence in MENA

This column reports the findings of a new study of how the political ties of firms in the Middle East and North Africa boost business confidence. The research suggests that this optimism is primarily driven by networked access to credit and lobbying, underscoring the need for greater transparency and institutional reform in corporate governance.




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