Read MEI’s weekly briefing featuring expert analysis of key regional developments for the week ahead.
Over the last two decades, the Mediterranean has become an important region. Many scholars, policymakers and analysts have mostly referred to this region from a nexus of security, geopolitics and traditional energy politics. With the war in Ukraine, the relevance of this whole region has increased along the same line. The Mediterranean today is home to some of the most enduring conflicts in the world. New energy resources are being discovered in disputed areas in an environment of intense geopolitical competition over regional leadership and energy routes within and beyond the region.
In the past few years, Jordan’s public debt has become a major policy concern for the government, the international community, and key donors that support Amman. The public debt has risen significantly over the past 15 years, raising many questions about Jordan’s future macroeconomic stability, public debt sustainability, and the government’s ability to finance development projects.
The blue economy can offer huge potential in climate change mitigation and resilience, given the fact that marine habitats, such as mangroves, tidal marshes, and seagrass meadows, provide significant protection from erratic climate events. MENA countries would benefit from developing the blue economy to aid in reversing natural resource degradation, sustaining inclusive economic development, and building resilience to climate change.
Until recently, the EU has favored a piecemeal approach toward the Northwestern Indian Ocean, the Gulf, and the Red Sea, despite their close interdependence and inter-connectedness in the security, political, and economic realms. But the EU is now signaling a growing desire to steer its naval policy toward a more holistic and organic process, creating an opportunity for Brussels to become a more relevant security actor in the waters off the Arabian Peninsula.
As Turkey heads to the polls for presidential and parliamentary elections this month, the consequences for its troubled economy are likely to be significant and wide-ranging. Financial stability, business confidence, purchasing power, and asset prices all depend on whether President Recep Tayyip Erdoğan’s two-decade-long rule will continue; at the same time these factors will also determine his chances for re-election. There are a number of potential election outcomes that could lead to greater uncertainty and volatility rather than clarity and stability.
What happens when a petrostate loses its oil rents? While the oil market continues to go through boom-and-bust cycles, cases such as Iraq provide evidence of how the rapid loss of oil revenues—traumatic decarbonization—may affect the politics and stability of these petrostates. In Iraq, multiple shocks to oil revenues from 2014 through 2020 fundamentally altered the organization and concentration of political power in Iraq with destabilizing and democratic consequences.
Lebanon is on the verge of complete collapse, and if Washington is serious about preventing not just another failed state but a growing normalization of unchecked authoritarianism in the Middle East, it must stop outsourcing leadership on Lebanon to France.
Both historical and modern-day conflicts in the Middle East have all been centered around classical territorial considerations of the loss or recovery of land. Escaping that cycle required a shift away from one of the main root causes of conflict: geography. The current changes in the region, characterized by a significant drive toward de-escalation and a growing willingness to periodically part ways with traditional allies, may be telling symptoms of a profound tectonic shift toward “quantum politics.”
President Kais Saied’s statement during a speech on April 6 claiming to reject the conditions, or “diktats” as he called them, that come with a potential loan from the IMF has provoked debate. Reactions to the speech as well as actions taken by Tunisian officials before and after it seem to contradict its intention, causing confusion over whether the deal is still on. Meanwhile, others took the speech as a sign that Tunisia is seriously considering the possibility of alternatives to IMF financing or even a geopolitical reorientation.
Over the coming decades, the worsening effects of climate change will increasingly displace many millions of vulnerable people in the Middle East and North Africa, and many of these refugees will attempt to relocate to the Global North. To avert such a monumental looming problem requires pragmatic solutions and their swift implementation.
Egyptian fish farmers are facing mounting pressures: Year after year, their fish are getting smaller and less healthy, their production decreases, and they are forced to take out loans they are later unable to pay back. The Egyptian government’s recent efforts to invest heavily in aquaculture, though intended to address future food shortages, may only worsen the position of local fish farmers in the Nile Delta by exacerbating the effects of urbanization and climate change while undercutting prices.
When Saudi Arabia suddenly announced in early April that it would reduce its oil production by 500,000 bpd, followed shortly thereafter by several other OPEC+ members, bringing the total cut to 1.1 million bpd, Japan was greatly concerned. In spite of Japan’s serious efforts to work toward a carbon-neutral society, the country is still heavily dependent on oil, the overwhelming majority of which comes from the Persian Gulf.
Last week’s spring meetings of the IMF and World Bank in Washington, D.C., were an important occasion for financial and economic leaders from the MENA region to meet with their counterparts from these IFIs and major bilateral donor countries. At the same time, they serve as a lead up to the important Annual Meetings that will be held in Marrakech, Morocco, in the fall — the first time they will be hosted by an Arab or African country.
The World Bank’s MENA regional economic update released on April 6, 2023 is one that may herald a sharp divide, both within the region, with its uneven economic trajectory and obstacles to human capital development, and globally, as a cleavage between energy exporters and importers.