Economic Research Forum (ERF)

March

What is the likely impact of the earthquakes on economic growth in Türkiye?

The earthquakes in Türkiye and Syria in February 2023 have caused widespread destruction and loss of life. As explained in this column, originally published at the Economic Observatory, experiences from a previous earthquake suggest that the impact on GDP in Türkiye is likely to be short-lived, as public spending on reconstruction will provide a substantial economic boost.

Measuring poverty in Lebanon in the time of economic collapse

What has been the impact of Lebanon’s long-running economic crisis on the daily lives of citizens? This column documents a sharp increase in absolute poverty starting in 2019. Having at least three poor people out of every five residents of the country is a clear signal of the emergency of the situation.

Gender and corruption in MENA countries

The Middle East and North Africa is generally thought to be among the parts of the world where corruption spreads the fastest – and this is despite the progress of legislation in some MENA countries and the economic wealth in others. The role of women in the fight against corruption in the region is often ignored and underestimated. This column argues that more gender egalitarianism in a fair system can enhance efforts to reduce corruption.

Social protection in Jordan: towards collaborative implementation

Jordan has an ambitious national strategy for social protection, adopted in 2019. But as this column explains, implementing it has not been easy in the context of economic challenges, the global pandemic and geopolitical instability. Achieving transformative social protection requires a new social contract, citizen engagement and effective support from the international donor community.

The impact of revolution and war on income inequality in Iran

How did Iran’s revolution of 1978-79 and the war with Iraq from 1980 to 1988 affect levels of income inequality levels in the country? Would income inequality have developed differently in Iran if the revolution and war had never occurred? And how significant were the effects of the revolution and war in reducing income inequality? This column reports new research findings on these questions.

Investing in climate action and the SDGs for a resilient future

The interlinked crises of climate change, lingering effects of Covid-19 and the ensuing food and energy crises need to be tackled together – and as this column explains, this is best done within the broader context of achieving the Sustainable Development Goals and in a framework of effective partnerships.

On calamities, debt and growth in developing countries

What implications does the aftermath of the Covid-19 pandemic have for debt and growth in developing countries? This column, originally published by the World Bank, summarises new research evidence on the economic impact of three types of calamities – natural disasters, conflicts and external debt distress.

Funding women entrepreneurs in MENA

Do women entrepreneurs in the Middle East and North Africa face obstacles in funding their businesses, either from others’ behaviour, such as discrimination, or their own, such as self-selection? This column reports evidence from data collected on more than 6,000 enterprises in six MENA countries, documenting the financial behaviour of both owners and managers according to their gender.

Economic issues affecting MENA through the lens of public opinion

For more than a decade, policy-makers in developing countries in the Middle East and North Africa have been confronted with high inequality, low growth, rising poverty, and high youth and women’s unemployment. They now face new challenges as well. This column, originally published by the Middle East Institute, identifies some of the most important issues affecting the region, relates them to the results of a recent survey of 12 Arab countries carried out by Arab Barometer, and suggests some pathways out of the current quagmire.

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EU climate policy: potential effects on the exports of Arab countries

The carbon border adjustment mechanism aims to ensure that Europe’s green objectives are not undermined by the relocation of production to parts of the world with less ambitious climate policies – but it could impose substantial costs on developing countries that export to the European Union. This column examines the potential impact on exporters in the Arab world – and outlines possible policy responses that could mitigate the economic damage.

Financial development, corruption and informality in MENA

Reducing the extent of informality in the Middle East and North Africa would help to promote economic growth. This column reports evidence on how corruption and financial development influence the size of the informal economy in countries across the region. The efficiency of the financial sector in MENA economies reduces the corruption incentive for firms to seek to join and stay in the formal sector.

Green hydrogen production and exports: could MENA countries lead the way?

The Arab region stands at the threshold of a transformative opportunity to become a global leader in green hydrogen production and exports. But as this column explains, achieving this potential will require substantial investments, robust policy frameworks and a commitment to technological innovation.

Climate change threats and how the Arab countries should respond

The Arab region is highly vulnerable to extreme events caused by climate change. This column outlines the threats and explores what can be done to ward off disaster, not least moving away from the extraction of fossil fuels and taking advantage of the opportunities in renewable energy generation. This would both mitigate the potential for further environmental damage and act as a catalyst for more and better jobs, higher incomes and improved social outcomes.

Freedom: the missing piece in analysis of multidimensional wellbeing

Political philosophy has long emphasised the importance of freedom in shaping a meaningful life, yet it is consistently overlooked in assessments of human wellbeing across multiple dimensions. This column focuses on the freedom to express opinions, noting that it is shaped by both formal laws and informal social dynamics, fluctuating with the changing cultural context, particularly in the age of social media. Data on public opinion in Arab countries over the past decade are revealing about how this key freedom is perceived.

Child stunting in Tunisia: an alarming rise

Child stunting in Tunisia seemed to have fallen significantly over the past two decades. But as this column reports, new analysis indicates that the positive trend has now gone dramatically into reverse. Indeed, the evidence is unequivocal: the nutritional health of the country’s youngest citizens is rapidly deteriorating and requires immediate and decisive action.

Exchange rate undervaluation: the impact on participation in world trade

Can currency undervaluation influence participation in world trade through global value chains (GVC)? This column reports new evidence on the positive impact of an undervalued real exchange rate on the involvement of a country’s firms in GVCs. Undervaluation acts as an economy-wide industrial policy, supporting the competitiveness of national exports in foreign markets vis-à-vis those of other countries.

New horizons for economic transformation in the GCC countries

The countries of the Gulf Cooperation Council (GCC) have historically relied on hydrocarbons for economic growth. As this column explains ahead of a high-level ERF policy seminar in Dubai, emerging technologies like artificial intelligence, blockchain and robotics – what some call the fourth industrial revolution – present a unique opportunity for the region to reduce its dependence on oil and make the transition to a knowledge-based economy.

Shifting public trust in governments across the Arab world

The Arab Spring, which began over a decade ago, was driven by popular distrust in governments of the region. The column reports on how public trust has shifted since then, drawing on survey data collected soon after the uprising and ten years later. The findings reveal a dynamic and often fragile landscape of trust in Arab governments from the early 2010s to the early 2020s. Growing distrust across many countries should raise concerns about future political and social instability.

Corruption in Iran: the role of oil rents

How do fluctuations in oil rents influence levels of corruption in Iran? This column reports the findings of new research, which examines the impact of increases in the country’s oil revenues on corruption, including the mechanisms through which the effects occur – higher inflation, greater public spending on the military and the weakness of democratic institutions.




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