Economic Research Forum (ERF)

July

Why data transparency matters for MENA economies

Magda Kandil was a highly regarded economist and long-time supporter of ERF and The Forum. In her final column, written shortly before her untimely passing, she concludes that the Covid-19 pandemic provides an opportunity to integrate short-term challenges into the long-term reform agenda so that MENA countries can graduate from the current crisis to a better and sustainable path of growth and prosperity.

Seven questions about Covid-19 and its consequences

What is the nature of the Covid-19 shock? What are the consequences of and immediate responses to Covid-19? Are lockdowns sustainable? Can all countries do ‘whatever it takes’ to deal with the pandemic? How should countries prepare for a recovery? What of global supply chains and trade? And what of sovereign debt restructuring? This column addresses these seven key questions.

The case for a solidarity tax to close the poverty gap in Arab countries

High rates of poverty coupled with high concentration of wealth in Arab countries indicate the need for stronger civic solidarity and the shared responsibility of the public, the private sector and the state for lifting the downtrodden out of poverty. This column makes the case for taxing top wealth to close the poverty gap and promote civic unity.

Poverty in Arab countries: the likely impact of Covid-19

The economic slowdown caused by Covid-19 is expected to affect jobs, incomes, businesses and the flow of trade and remittances worldwide and across the Arab region. This column reports that an additional 16 million people are expected to be poor in 14 Arab countries as a consequence of the pandemic. Unfortunately, this is not a new trend.

Access to finance in Egypt: structural and cyclical determinants

Access to credit is valuable for small and medium-sized firms in developing countries that have substantial growth opportunities; but it can also make it more difficult to hide revenues from tax authorities. This column reports a study of how the characteristics of firms in Egypt affect the trade-off involved in participating in the financial system – and the extent to which firms are able to obtain credit when they need it.

Sources of the 2020 crisis in Lebanon

The devastating financial tsunami that is engulfing Lebanon has been brewing since the early 1990s. This column explores the economic factors and policies that have led to this crisis – including austerity, political corruption, recession, sectarianism and unemployment – as well as the role of the central bank, the Banque du Liban.

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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.

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.

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.

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.

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.

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.

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.




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