Economic Research Forum (ERF)

October

Trade policy options to improve Palestine’s food security

Palestine’s limited access to international markets and trade disruptions caused by Israeli closures create food shortages as well as surges in prices across the Palestinian territories. For healthier relations between Israel and Palestine, new arrangements are needed to pave the way to a sovereign Palestinian state with full control over its territory and trade policies. This column reports research simulating different trade policies in a future sovereign Palestinian state and assesses which policy options would improve food security in the West Bank.

Chronic illness and the labour market in Arab countries

Chronic illnesses are widespread in the Arab countries – and they have damaging consequences for labour market participation and wider economic performance. Drawing on evidence from Egypt and Tunisia, this column proposes a package of practical actions to protect workers from becoming victims of chronic diseases – and to reduce the losses of income, labour supply and labour productivity.

Human capital and regional disparities in Turkey

Turkey has a longstanding problem of uneven economic development across its regions. This column explores the interactions between the market access of central and remote parts of the country, the varying levels of human capital accumulation in those places, and the wage returns to education. The research evidence indicates the potential of regional policy to reduce inequalities.

Structural transformation in Egypt, Morocco and Tunisia

Despite considerable economic progress before 1990, Egypt, Morocco and Tunisia all experienced ‘premature deindustrialisation’ and unfinished structural transformation. This column looks back at structural change in these three countries over the past half a century and draws lessons for today on how to unleash their productive potential. In short, an effective industrial policy is needed.

Extreme poverty in Arab states: a growing cause for concern

Extreme poverty is rising in Arab states and the outlook is concerning. This column outlines the latest figures and the implications for policies to promote inclusive and sustainable development in the region.

Exchange rate policies and external public debt in the MENA region

Emerging economies are often subject to currency crises and foreign debt crises around the same time. This column explores the links between these phenomena in five MENA economies – Egypt, Jordan, Morocco, Tunisia and Turkey – and the current sustainability of fiscal and exchange rate policies in these countries.

The investment decisions of Arab sovereign wealth funds

What are the key objectives of the sovereign wealth funds (SWFs) of Arab countries? This column presents the results of new quantitative analysis, which reveals that these institutions typically pursue a top-down investment strategy in which they first screen target countries or jurisdictions, then target sectors and finally target businesses. In the risk-return trade-off, Arab SWFs seem to put significantly more weight on risk mitigation than on returns.

Turkey’s reversal of fortune

Recent changes in Turkey’s economic, social and political environment have not only failed to generate the potential for sustainable growth, but they have also made the country prone to both economic and social crises. This column outlines what lies behind the reversal of fortune – and what needs to be done to get back on a sustainable development track.

Rethinking the state’s role in Arab economies

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.

Oil prices and the performance of UAE banks

The fall in the oil price to a ‘new normal’ has had a negative impact on four indicators of banks’ performance in the United Arab Emirates (UAE): return on assets; return on equity; and growth of credit and deposits. This column uses data on 22 national banks to examine differences in performance between conventional and Islamic banks, and outlines measures to improve the banking sector’s resilience and profitability.

Galal Amin and the Egyptian middle class

A sense of ‘defeat’ among the Egyptian middle class was the main motivation for the uprising of 25 January 2011. In a tribute to economics professor Galal Amin, who passed away last month, this column explores what his analysis would suggest lay behind that feeling. The main culprit is the pursuit of stabilisation at any cost: macroeconomic stability rarely translates into more investment and better-quality jobs; liberalisation typically leads to crony capitalism and greater inequality; and it is the poor and the middle class who experience the pain.

Most read

Egypt’s labour market: new survey data for evidence-based decision-making

As Egypt faces substantial social and economic shifts, understanding the labour market is crucial for designing policies that promote employment and inclusive economic growth. This column introduces the latest wave of the Egypt Labor Market Panel Survey, which provides fresh, nationally representative data that are vital for examining these dynamics.

The evolution of labour supply in Egypt

Egypt stands at a critical point in its demographic and labour market evolution. As this column explains, while fertility rates have dropped, reducing long-term demographic pressures, the ‘echo generation’, children of the youth bulge, will soon enter the labour market, intensifying the need for policies to accelerate job creation. At the same time, participation in the labour force, particularly among women and young people, is declining, partly as a result of discouragement.

More jobs, better jobs and inclusive jobs: the promise of renewable energy

Among the many economic and environmental challenges facing the countries of the Middle East and North Africa (MENA), two stand out: the need for jobs and the need to combat the threat of climate change by moving away from reliance on fossil fuels. As this column explains, embracing renewable energy technologies presents an opportunity for the region to diversify its economy, mitigate the possible negative impacts of digital technologies on existing jobs, reduce its carbon footprint and create significant levels of employment, particularly for women and the youth, across a variety of sectors.

Sanctions and energy efficiency in Iran’s industries

What is the effect of economic sanctions on the energy efficiency of Iran’s industries? This column reports the findings of new research, which examines the impact of sanction intensity within industrial sub-sectors of the Iranian economy on their energy efficiency.

Towards a productive, inclusive and green economy in MENA

Decarbonisation of the global economy is a huge opportunity for countries in the Middle East and North Africa. As this column explains, they can supercharge their development by breaking into fast-growing industries that will help the world to reduce its emissions and reach net zero, as well as offering greater employment opportunities and new export lines. Micro, small and medium enterprises in the region can lead the transition to a cleaner and sustainable future, but this may require the formation of clusters of firms that overcome some of the constraints that their limited size could involve.

Poverty and plutonomy: measuring extreme bipolarisation in the Arab world

Inequality in the Arab world is not just a question of extreme poverty or extreme affluence: it’s about both. This column presents research that uses the lenses of both poverty analysis and plutonomy analysis to capture the extreme polarisation between the poor, who suffer from exclusion and deprivation, and the ultra-wealthy, who wield immense power over economic and political systems.

Participation of Arab countries in global value chains

To what extent are countries in the Arab region participating in the global value chains (GVCs) that now dominate world trade? What are the main determinants of engagement in GVCs? And what are the expected benefits for Arab countries from joining them? This column answers these questions, concluding that it is important to focus on the products in which countries both enjoy a natural comparative advantage and can increase domestic value added in the intermediate and final parts of the production process.

The future of regionalism in the Arab world: a political economy view

The potential growth benefits of greater trade integration of the Arab countries, both within the Middle East and with the rest of the world economy, have long been discussed. But as this column explains, in the current climate of international political and economic relations, moves towards trade liberalisation and new or deeper trade agreements are unlikely to happen. Policy-makers in the region need to pursue alternative strategies to develop their economies.

Growth in the Middle East and North Africa

What is the economic outlook for the Middle East and North Africa? How is the current conflict centred in Gaza affecting economies in the region? What are the potential long-term effects of conflict on development? And which strategies can MENA countries adopt to accelerate economic growth? This column outlines the findings in the World Bank’s latest half-yearly MENA Economic Update, which answers these questions and more.

Rising influence: women’s empowerment within Arab households

In 2016 and again in 2022, a reliable poll of public opinion in the Arab world asked respondents in seven countries whether they agreed with the statement that ‘a man should have final say in all decisions concerning the family’. As this column reports, the changing balance of responses between the two surveys gives an indication of whether there been progress in the distribution of decision-making within households towards greater empowerment of women.




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