Economic Research Forum (ERF)

March

Shaping Africa’s post-Covid recovery: a new eBook

While most African countries have been largely spared so far from the direct health effect of the Covid-19 pandemic, the continent’s economy has been significantly hurt by the economic consequences. This is particularly concerning given Africa’s high prevalence of extreme poverty. This column introduces a new eBook from CEPR Press, which focuses on business and household responses to the Covid-19 crisis in Africa, as well as access to international finance, patterns in international borrowing and country-specific experiences during the pandemic.

E-governance for sustainable development in MENA countries

Efforts to create digital government in the Middle East and North Africa are typically perceived as technical support activities and not as a core strategic component of public sector activities. As this column explains, the alternative would be that e-governance is value-driven instead of technology-driven: it should become an enabler of sustainable development.

Can preparedness for a health disaster change the game?

Disease outbreaks like Ebola and Covid-19 have strong detrimental effects on mortality rates for mothers, infants and young children in low and middle-income countries, both immediately and in the longer term. As this column explains, strengthening preparedness for such emergencies has become more urgent as health disasters continue to erode recent improvements in maternal and child health.

Trade openness and global value chains: effects on Turkish industries

Production processes and distribution systems have become increasingly fragmented across countries since the 1990s. Many large economies have benefitted from this phenomenon of ‘global value chains’, but as this column explains, the story may be different for developing countries. Empirical evidence from Turkey reveals positive productivity and growth effects of linkages, but damaging effects of backward participation on industries.

Income inequality convergence across Egyptian governorates

Although the aggregate level of income inequality in Egypt seems to be relatively low and stable, the figures are likely to mask large inequalities at the regional level. This column summarises new evidence on differences in income inequality across governorates, the extent to which those differences are narrowing and the effects on different parts of the income distribution.

The impact of Covid-19 on labour markets: evidence from Morocco and Tunisia

How is the Covid-19 crisis affecting jobs and business in the MENA region? This column reports evidence from mobile phone surveys carried out in November in Morocco and Tunisia. The results, reported in a new ERF Policy Brief, indicate that vulnerable workers, small entrepreneurs and farmers have borne the brunt of the pandemic.

Recognising and redistributing unpaid care work in Egypt

Countries like Egypt with significant gender imbalances in unpaid work typically have low female labour force participation. As this column reports, unpaid domestic care responsibilities fall primarily on women, hindering their ability to participate in the country’s paid economy. It is essential to nurture changes in policies and social norms that recognise and redistribute unpaid care work and reward paid care work.

Most read

How trade policy can reduce MENA’s cereal import vulnerability

Heavy dependence on imported cereals, combined with climate change, water scarcity and geopolitical uncertainty, continues to threaten food resilience across MENA. This column explains how an inclusive trade policy can play a key role in making the region’s food security less vulnerable to shocks.

Digitalisation, global value chains and regional integration in MENA & SSA

Participation in global value chains is vital for countries pursuing structural transformation and inclusive economic development. This column summarises new evidence on how much production processes have been globalised in Africa and the Middle East relative to other regions; whether this process has taken place with partners within or outside the region; and whether it has taken place more in manufacturing or services.

Financing Lebanon’s Reconstruction: A Compact for Finance, Governance, and Accountability

As Lebanon embarks on another round of reconstruction, the key question is not how much financing can be mobilised, but whether each commitment is linked to a verified need, involves a transparent procurement process, is linked to clearly defined executing and operating institutions, and is based on a liability that is in line with the state’s ability to repay. This column proposes an operational mechanism for establishing that connection: a Reconstruction Finance and Accountability Compact.

The risks of a two-speed AI economy in MENA

Much of the debate about artificial intelligence in the Middle East and North Africa focuses on how many jobs it will replace. As this column explains, the more important challenge is that the new technology is likely to create a two-speed labour market, where countries with the capacity to invest in digital infrastructure and skills move rapidly ahead while others struggle to keep pace. Unless governments combine credible national reforms with targeted regional cooperation, AI could widen, not reduce, the economic divides across MENA.

Sanctions and conflict: why corruption changes the equation

Why do sanctions produce such different political outcomes across the countries that have been targeted? This column reports research examining the role of pre-existing corruption in shaping the relationship between sanctions and subsequent conflict or political instability. The evidence indicates that trade sanctions are associated with higher conflict-related deaths where pre-existing corruption is high.

The weak bread chain: cereal supply risks in six MENA economies

The Middle East and North Africa is one of the most food-import-dependent regions of the world, particularly for staple cereals such as barley, maize and wheat, and particularly in six countries – Algeria, Egypt, Jordan, Lebanon, Morocco and Tunisia. As this column reports, diversifying import sources has become an essential strategy for strengthening food security and improving resilience to geopolitical and climate-related disruptions.

From mega-investment to mega-productivity: closing MENA’s conversion gap

Across the Middle East and North Africa, governments are investing heavily in infrastructure, technology, diversification and new industries. Yet capital accumulation alone does not guarantee productivity growth. As this column argues, the region’s deeper challenge is its ‘investment-to-productivity conversion gap’: ensuring that large-scale investment translates consistently into stronger firms, technological diffusion, skills and better jobs. A different metric of success is required: not how much capital is deployed, but how much productive capability that capital leaves behind.

Why energy efficiency still struggles to attract finance in Egypt

Egypt has reduced energy subsidies and gradually adjusted domestic energy prices toward cost-recovery levels, improving the economic case for energy efficiency investments – but financing has not kept pace. Drawing on structured interviews with banks, developers and public officials, this column traces why energy efficiency projects in the country still struggle to attract capital, and sets out how a ‘financing ladder’ used elsewhere – from revolving funds to risk guarantees to green bonds – could close the gap.

Iran is still selling oil. But can it replace tomorrow’s barrels?

Iran’s oil exports have not disappeared, but continued sales may hide a deeper vulnerability. Arash Irani argues that selling barrels already in the logistics system is not the same as generating new export flows, and proposes five indicators to help policymakers judge whether trade under disruption is sustainable or merely running down its stocks.

The political economy of turning AI adoption into firm productivity in MENA

Generative AI can make individual tasks faster without making firms more productive. This column argues that across the Middle East and North Africa, turning AI adoption into better performance depends on organisational capabilities and on agreements within firms over authority, workloads and rewards. Public support can help by financing those capabilities through transparent selection, milestone-based assistance and independent evaluation.




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