Economic Research Forum (ERF)

August

Fighting poverty: innovative policy lessons from the second Arab Multidimensional Poverty Report

Poverty is a complex and multidimensional policy challenge. Understanding the interconnected causes and effects of poverty is a critical first step for policy-makers trying to improve people’s lives. This column presents an updated model for measuring deprivation levels in the Arab region, and proposes a series of policy suggestions to improve economic and social outcomes. Put simply, any reforms in the region should be based on a joined-up policy approach, built on an understanding of the interplay between different aspects of poverty and inequality.

The human toll: Assessing the damage caused by revolution and war in Iran

Wars and revolutions have a notable effect on several socio-economic metrics, including life expectancy. Measuring these impacts is not always straightforward. This column presents new findings from a study on Iran, using a counterfactual scenario to estimate how the Islamic Revolution and subsequent war with Iraq affected life outcomes for Iranians. The effects are substantial, with the combination of the regime change and conflict that followed leading to a five-year fall in average life expectancy. In other words, had there been no revolution and war, the life expectancy of an average Iranian would have been half a decade longer.

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A Macroeconomic Accounting of Unemployment in Jordan:  Unemployment is mainly an issue for adults and men

Since unemployment rates in Jordan are higher among young people and women than other groups, unemployment is commonly characterised as a youth and gender issue. However, the majority of the country’s unemployed are adults and men. This suggests that unemployment is primarily a macroeconomic issue challenge for the entire labour market. The appropriate response therefore is coordinated fiscal, monetary, structural and institutional policies, while more targeted measures can still benefit specific groups.

Tunisia’s energy transition: the key role of small businesses

Micro, small and medium-sized enterprises (MSMEs) play a critical role in Tunisia’s economy, contributing significantly to GDP and employment. As this column explains, they are also essential for advancing the country’s ambitions to make a successful transition from reliance on fossil fuels to more widespread use of renewable energy sources. A fair distribution of the transition’s benefits across all regions and communities will secure a future where MSMEs thrive as leaders in a prosperous, inclusive and sustainable Tunisia.

The hidden potential of Jordan’s small firms for driving a green transition

For Jordan, a green transition represents an enormous transformative opportunity. But a decade-long increase in the use of renewable energy has not freed the country of its economic woes. This column explores the currently underused yet potentially powerful force of micro, small and medium-sized enterprises – and proposes policies that could improve the investment climate and clear legislative and regulatory barriers.

Global value chains and sustainable development

What is the role of exchange rate undervaluation in promoting participation in global value chains by firms in developing countries? What is the impact of the stringency of national environmental regulations on firms’ GVC participation? And how do firms’ political connections affect their participation in GVCs? These questions will be explored for the MENA region at a special session of the ERF annual conference, which takes place in Cairo in April 2025.

Adoption of decentralised solar energy: lessons from Palestinian households

The experience of Palestinian households offers a compelling case study of behavioural adaptation to energy poverty via solar water heater adoption. This column highlights the key barriers to solar energy adoption in terms of both the socio-economic status and dwellings of potential users. Policy-makers need to address these barriers to ensure a just and equitable transition, particularly for households in conflict-affected areas across the MENA region.




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