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The Arab Spring constitutes perhaps the most far-reaching political and economic transition since the end of communism in Europe. For too long, the economic aspirations of the people in the region, especially young people, have been ignored by leaders in Arab countries and abroad. Competing views as to how best to meet these aspirations are now being debated in the region. The outcome will shape Arab societies for generations to come.The authors of this book argue that significant economic reforms must accompany the major political transitions that are underway. Although each country has a different economic structure and history and must make its own way forward, there are spill-overs from trade and investment linkages, the contagion of news cycles, interaction of people and sharing of expectations that are too great to ignore. Some common foundation of the new Arab economies is needed. Towards that end, this volume addresses four central challenges of economic reform in the Arab world. First, with two-thirds of the population under the age of 30, the disproportionate burdens of unemployment and poor education can no longer be heaped on youth. Second, while some government policies may have improved the living standards of Arab citizens in the past, they have also entrenched cronies, enriched a small elite, and become unaffordable. Third, if Arab economies are to compete in the 21st century they cannot depend solely on oil and gas money, remittances, and tourism, but will require active, independent private sectors. And finally, the relative isolation of Arab economies--both from each other and from the world--must end.Rather than providing specific lists of recommendations, this book sets forth a set of guidelines and priorities for reformers who will begin creating new opportunities for youth, rebuilding the institutions of the state, diversifying the private sector, and cooperating with each other and integrating with the world economy.
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The dilemma felt by Arab youth was captured in Tunisia by the selfimmolation in 2010 of Mohamed Bouazizi, who was frustrated by restrictions on his small street-vending business. His death became the catalyst for revolts throughout the Middle East. The frustration had been building for some time: large segments of society were denied economic progress, while the middle class was squeezed, and governments had cut back on services and public employment.Since the series of uprisings began, the debate in Arab countries has focused almost exclusively on politics and questions of national identity. However, economic issues are driving the agenda, and real economic grievances must be addressed in order for the many transitions to succeed.Hafez Ghanem gives a thorough assessment of the Arab Spring, beginning with political developments since the revolutions and changes in the legal and institutional frameworks that affect economies. Arab economies grew at healthy rates before the revolts, but the benefits of economic growth were unfairly distributed. The politically connected reaped great benefits, while educated youth could not find decent jobs, and the poor and middle class struggled to make ends meet.Ghanem advises that Arab countries need to adopt new economic policies and programs that enhance inclusiveness, expand the middle class, and foster growth in undeveloped regions. Key elements include strengthening economic institutions, developing small businesses, reforming the education system to better prepare Arab youth for the modern labor market, promoting gender equality with the objective of raising female labor market participation rates, and setting up programs for rural and regional development to reduce inequality and eliminate extreme poverty.
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Volume 1 of The Arab Spring Five Years Later is based on extensive research conducted by scholars from a variety of backgrounds, including many associated with the Japan International Cooperation Agency (JICA). The original research papers are gathered in volume 2 and are available for readers who wish to go even further in understanding the economic background of the Arab Spring. Papers examine women's issues and agricultural practices in Morocco; urban transportation, small enterprises, governance, and inclusive planning in Egypt; reconstruction in Iraq; youth employment in Tunisia; education in Yemen; and more.In addition to Hafez Ghanem, contributors include Mongi Boughzala (University of Tunis ElManar, Tunisia), Mohamed Tlili Hamdi (University of Sfax, Tunisia),Yuriko Kameyama (JICA), Hideki Matsunaga (JICA), Mayada Magdy (JICA), Yuko Morikawa (JICA), Akira Murata (JICA), Kei Sakamoto (JICA), Seiki Tanaka (JICA), Masanori Yoshikawa (JICA), and Takako Yuki (JICA).