Economic Research Forum (ERF)

May

Public employment in Arab countries: A Reassessment

In Arab countries, there are concerns that the public sector is too large. This column shows that the extent to which this is the case depends on how exactly the labour force is measured. Beyond this, focusing on size alone is to miss the point, at least in part. Policy-makers in the Arab region should instead focus on the quality of public services, ensuring they deliver their intended goals at a good price. Concerns over the size of the public sector are of course important, but not as much as ensuring that efficient and effective public services are available to all those who need them. This blogpost is based on a chapter in a book under preparation edited by Samir Makdisi and Raimundo Soto on Conflict and Post Conflict Transitions to Peace Building in War Afflicted Arab Countries

How can the digital economy benefit everyone in the Arab world—and prevent the region from falling farther behind?

Digitalization is one of the main forces shaping the modern global economy—and an area in which the Arab world has fallen behind. Policy-makers in the region must find ways to capitalize on the enormous dividends of new digital technologies and mitigate their risks. Reaping the benefits will require improved education and training, better cybersecurity, more private sector support, and international cooperation.

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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.

Migration, human capital and labour markets in MENA

Migration is a longstanding and integral part of the MENA region’s economic and social fabric, with profound implications for labour markets and human capital development. To harness the potential of migration for promoting economic and social development, policy-makers must aim to deliver mutual benefits for origin countries, host countries and migrants. Such a triple-win strategy requires better data, investment in return migration, skill partnerships, reduced remittance costs and sustained support for host countries.

Shifting gears: how the private sector can be an engine of growth in MENA

Businesses are a key source of productivity growth, innovation and jobs. But in the Middle East and North Africa, the private sector is not dynamic and the region has a long history of low growth. This column summarises a new report explaining how a brighter future for MENA’s private sector is within reach if governments rethink their role and firms harness talent effectively.

Losing the key to joy: how oil rents undermine patience and economic growth

How does reliance on oil revenues shape economic behaviour worldwide? This column reports new research showing that oil rents weaken governance, eroding patience – a key driver of economic growth and, according to the 13th century Persian poet Rumi, ‘the key to joy’. Policy measures to counter the damage include enhancing transparency in oil revenue management, strengthening independent oversight institutions and ensuring that sovereign wealth funds have robust rules of governance.

Building net-zero futures: Asian lessons for MENA’s construction sector

Three big economies in Asia are achieving carbon neutrality in construction. This column draws lessons from Japan, Taiwan and Thailand – and explains why, given the vast solar potential and growing focus on environmental, social and governance matters in the Middle East and North Africa, governments in the region must adopt similarly ambitious policies and partnerships.

Fiscal Limits and Debt Sustainability in MENA Economies

Public debt is piling up across the Middle East and North Africa after years of political upheavals, economic shocks and the Covid-19 pandemic. With fiscal space shrinking, governments are under pressure to act. This column explains why for many countries in the region, the room for manoeuvre on the public finances may be smaller than policy-makers think. Urgent action is needed to restore debt sustainability.

Market integration in the Middle East and the Balkans, 1560-1914

Trade has re-emerged as a central issue in global policy debates, as governments debate not only the costs and benefits of trade, but also the underlying determinants of market integration. To inform the discussion, this column reports new research evidence on the experiences of the former Ottoman territories in the Middle East and the Balkans over nearly four centuries, tracing the evolution, drivers and consequences of trade integration across these regions.




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