Economics

Since the establishment of the Hashemite Kingdom of Jordan a hundred years ago, many have argued at one point or another that the country is on the brink of political or economic instability. It seems increasingly true these days, however. The unexpected shock of the COVID-19 pandemic adds even more pressure to the already floundering economy.

COVID-19 has disrupted both supply and demand around the world. Egypt is not immune to the recessionary trends caused by the sudden halt in supply chains and the sharp decline in demand, domestically and globally, resulting from the rapid spread of the virus.

No part of the world will emerge unscathed from the fallout of the coronavirus pandemic of 2020. Just because China and Italy were the first to be severely hit, does not imply, that when all is said and done, that they will have sustained the brunt of the damage. North Africa is a region dependent on global commodities prices, tourism, and political and monetary support from Europe and the Gulf, where regime brittleness, youth unemployment, and Islamic radicalism all intersect.

The Lebanese are in trouble. Lebanese leaders have borrowed and spent money for decades without addressing fundamental flaws in their state, economy, and society — operating in an order that, while not the cause of every problem under the sun, aggravates their poor politics, policy, planning, and governance.

Amid an unprecedented political, economic, and financial crisis and the emergence of a new threat from the global coronavirus pandemic, Lebanon needs all the help it can get. The U.S. has long been an important source of assistance, and yet, as conversations with officials in both Beirut and Washington make clear, the argument for halting U.S. aid to Lebanon seems to be gaining ground.

In the face of Algeria’s Hirak protest movement, the response of the EU so far has been measured, and it is notable that the EU’s calls for democratic reform are framed in economic terms that emphasize the benefits of greater economic integration between the states of the Maghreb. What opportunities do the ongoing changes in Algeria present for enhancing economic integration in the long term?

The outbreak of a Russian-Saudi oil price war earlier this month might offer some comfort to Iran, a country which has in recent years become unnerved by the increasingly close ties between Moscow and Riyadh. However, it is premature to see an Iranian geopolitical win emerging from the Russian-Saudi spat, and history should give Tehran plenty of reservations about Moscow’s ability to deliver on its economic promises to Iran. While Iran and Russia will likely continue to pay lip-service to the idea of an economic partnership, each side will remain preoccupied with larger concerns. This is a tale of unfulfilled economic potential.  

Economies around the world are being battered by two “black swan” events at the same time: the COVID-19 virus and the oil price war between Russia and Saudi Arabia. Naturally, the countries of the Middle East and North Africa (MENA) are also affected, although each in different ways. Those that are net users of energy, which could have benefitted substantially from the vastly lower energy prices, are getting hit hard by COVID-19, while oil and gas producers are suffering from an all-out oil price war made worse by the steep decline in worldwide demand caused by the pandemic. 

The story from Iraq since last October has been mainly one of uplifting hope, as mass protests sweep across the country in a fight against corruption, nepotism, and bad governance. But what of the places left behind and ignored? For most of its modern history, Iraq has been embroiled in sectarianism and conflict, most recently with the rise of ISIS. The country has celebrated its ability to fight ISIS and take back the areas the group controlled between 2013 and 2017, but for those that remain in the most vulnerable liberated areas, life is precarious and dangerous, with underserviced communities living in the most dire of conditions.

Washington’s foreign relations in the Middle East are often characterized by ebb and flow, tracking the region’s dynamic politics. But when it comes to Iraq, this ebb and flow is especially turbulent, and the country’s energy sector has been thrown under the spotlight as Washington presses Baghdad to take swift action to ensure its “energy independence” from Iran.

If OPEC’s history is anything to go by, everyone suffers from an oil price war.

It is a near truism that U.S. relations with Pakistan have been historically unstable, waxing and waning, climbing to heights of interdependence and sinking to mutual recrimination. Yet this is presently a period unmarked by either high promise or driven by crisis. Rather than a reason, however, for leaving the relationship untouched and unexamined, this can be a time of unusual opportunity to create a more deliberative approach to thinking about the bilateral relationship and for shaping fresh initiatives.

A surge of cases could strike the region’s most vulnerable populations, notably the nearly 12 million refugees and internally displaced persons.

The latest economic crisis in Syria is hitting the population hard. Syrians have been beset by currency depreciation, soaring prices for basic goods, and energy shortages that have left people to freeze in the harsh winter, leading to growing and increasingly vocal discontent.

There has been a largely overlooked yet significant trend in entrepreneurship in Egypt, the Arab world’s most populous country. Much of this has been concentrated in the country’s two main economic centers, Cairo and Alexandria, but there are also signs of a broader and more inclusive trend. Despite this boom, few start-ups seem to have left much of a mark beyond the early development stages. A lack of access to finance has long been recognized as a key obstacle, yet the approaches taken by the government and international development lenders have proven largely ineffective. If this, along with other obstacles, can be addressed, the country’s nascent start-up scene could become a catalyst for economic development.