Economic Research Forum (ERF)

June

Dependency on natural resources and diversification of economies in MENA

It is widely understood that natural resource dependency can have a significant negative impact on a country’s long-term economic growth. This column explores evidence for how such outcomes arise – as well as potential diversification strategies that could help to reduce the resource curse in the economies of the Middle East and North Africa.

When market contestability is not enough

In economies where the state maintains a big footprint, as in the Middle East and North Africa, improving the performance of public enterprises and dominant private firms would seem to require a stronger threat of competition. But as this column explains, such enhanced market contestability may not be enough if there is inadequate competition in the marketplace for policy ideas and public opinion.

Harmonising rules of origin for the African continental free trade area

For the African continental free trade area to become fully operational, it is essential for the 54 signatory countries to reach agreement on harmonisation of rules of origins – the ‘Made in Africa’ criteria to ensure that only bona fide African products will benefit from tariff concessions. This column reports on progress and the remaining challenges.

Interactions of economic, political and cultural populism

Economic populism often leads to political and cultural populism, according to this column, the final one in a series of three on this increasingly prominent phenomenon. Because the returns to ‘election economics’ are positive in the short run – in terms of growth and popular support – but negative in the long run as the economy suffers, governments eventually have to resort to authoritarianism. Populists often end up blaming migrants, minorities, international institutions and foreign powers for the declining economy.

Economic and political populism – and an application to Turkey

Populist governments often practice ‘election economics’, boosting public spending ahead of a vote to attract more support and reining it in afterwards to avoid inflation. This column, the second in a series of three on the increasingly prominent economic and political phenomenon of populism, explores the experiences of Turkey.

Vulnerable workers in MENA a year into the pandemic

How are labour markets in the Middle East and North Africa performing a year into the pandemic? This column assesses the impact of the crisis on employment and earnings using data from the second wave of the ERF Covid-19 MENA monitor surveys in Egypt, Jordan, Morocco and Tunisia. There are glimmers of progress but persistent problems in these four countries’ labour markets.

Kuwaiti small businesses after the pandemic: time for a new social contract

Has the Covid-19 outbreak been a blessing in disguise for the social contract for micro, small and medium-sized enterprises in Kuwait? This column argues that the double crisis of the pandemic and low oil prices provides an opportunity to adopt the reforms that are necessary to make the country’s economy more dynamic, in particular encouraging innovation and job creation in the small business sector.

Three types of populism: economic, political and cultural

Governments that stimulate the economy before elections by increasing transfer payments, authoritarian leaders who suppress opposition and undermine institutions that provide checks and balances, and political parties and governments that espouse racist and anti-immigrant policies are all referred to as ‘populist’. This column, the first of three on this increasingly prominent phenomenon, argues that we should distinguish three different kinds of populism: economic, political and cultural.

Most read

Empowering Egypt’s young people for the future of work

Egypt’s most urgent priority is creating more and better jobs for its growing youth population. This column reports on the first Development Dialogue, an ERF–World Bank joint initiative, which brought together students, scholars, policy-makers and private sector leaders at Cairo University to confront the country’s labour market challenge. The conversation explored why youth inclusion matters, what the data show and how dialogue and the forthcoming Country Economic Memorandum can inform practical pathways to accelerate job creation.

Preparing youth for the workforce of the future

As economies undergo rapid digital and green transformations, young people face a growing mismatch between their skills and what the modern labour market needs. This column argues that enabling youth to compete in the workforce of the future requires systemic reforms in education, skills formation and labour market institutions, especially in developing economies.

Connectivity and conflict: understanding the risks of inequality in the Middle East

While high inequality does not always lead to conflict, new research reported in this column shows that widespread internet access acts as a catalyst, transforming economic grievances into political instability. For policy-makers in the Middle East and North Africa, this means that as digital connectivity expands, the security costs of ignoring economic disparities rise dramatically. The combination of idle youth, high inequality and high-speed internet is a volatile mix.

The political economy of stalled structural reforms in MENA

There is a persistent pattern to the structural reforms that are required to underpin economic progress in the countries of the Middle East and North Africa: ambitious strategies are announced and partially implemented, but ultimately they are diluted or reversed. This column argues that the repeated stalling of reform is not primarily a failure of economic design. Rather, it reflects deep-seated political economy constraints rooted in rent dependence, elite bargaining and weak institutional credibility. Without addressing these underlying dynamics, reform efforts are likely to remain symbolic rather than transformative.

Closing the gender gap in political participation in MENA

Women across the Middle East and North Africa participate less than men in politics – not only in political parties and elections, but also in petitions, boycotts, protests and strikes. This column reports evidence from ten countries showing that differences in education, employment and political attitudes explain part of this disparity, yet a significant gender gap remains.




Linkedin