The Arab region to the economic difficulties
Amer Diab Al-Tamimi
Arab countries face an acute political crises, and live together a wide variety of civil conflict, including what amounts to a civil war, as is the case in Libya. But this situation was to be expected after the political deadlock and economic stagnation had suffered chronic Arab peoples over the past six decades.
The oil economy has not led to real development in the Arab countries, and adopted the Petroleum Exporting Countries on the philosophy of economic rents aimed at courting the political development without attention to the real viable, no matter how changed or changed economic conditions. Arab governments, and devoted the concepts of dependency and opportunism and exploitation of opportunities, and deprived the peoples and communities of seriousness appropriate to the economies of building a productive and fruitful and meaningful activities. It also encouraged people to reproduce without the Palatine to take care of this life and to provide appropriate education for them and improve the quality of life in front of them.
Thus, the Arab countries has been the fastest, after sub-Saharan Africa, population growth, reaching rates of 2.5-3 percent, while the world average is 1.2 percent. At the same time, these governments failed to develop mechanisms for the economy in their countries to become a modern, as happened during the past decades in the countries of East Asia, as it happens in a decade in many countries in Latin America or Eastern Europe. In addition, the state control of economic activities, the pivotal role of the private sector dropped to a large extent.
Now, after the fall of the legitimacy of many of the Arab political systems, you can revive the economic life and meet the requirements of life and promote economic activities?
Countries remain of Arab Petroleum Exporting dependent mainly, almost entirely, on the revenues from oil sales. And seek to spend this income through the channels of public spending without serious attempts to diversify the economic base. Whatever officials spoke about the importance of diversifying sources of national income, and they began to talk about it since the beginning of the oil age without interruption, the fact that these countries will continue to rely on oil for a long time. As is known, many of them, such as the Gulf countries, suffers from economic distortions as clear as the dependence of structural labor inflows and state control of basic activities, such as crude oil production and activity facilities, services and infrastructure and a number of other traditional activities.
Gulf countries, and to some degree Iraq, Libya, Algeria, dominated by the public sector and the private sector lost its vitality and its fundamental role in economic work. And public institutions have become a Lord of the core work of the citizens who are growing in the corridors of government departments and state-owned companies year after year without the availability of actual needs them. As these countries have not developed their education systems in line with the requirements of the labor market which make a lot of educational outcomes is suffering from unemployment, underemployment, unemployment and sometimes blatant.
There is no doubt that the conditions of other countries, non-oil producers in the form of basis, such as Egypt, Syria, Yemen, Morocco, Tunisia and Sudan, more difficult, because the constant increase in population and economic growth rates and weak economic resources are limited. Failed reform programs and the patch that tried to apply these countries under the auspices of international institutions, such as the World Bank and the IMF, to address the structural imbalances or enhance the ability to secure employment.
Can the new political systems, or future, in a number of Arab countries, to correct the economic conditions and promote optimism, a promising future for all citizens? Task will be, to say the least, difficult and expensive. These countries face the task of the obligations of a lack of financial resources, and does not have export capabilities and help them achieve sufficient revenues sovereign. The Arab countries exporting oil, and achieved fiscal surpluses, it does not need to raise a lot of questions before providing assistance in various forms of these countries. In addition, the rich industrial countries, or so it is supposed to be, faced with several problems, most notably the decline in economic performance and the dilemmas of public debt, which weakens their ability to give.
More importantly, however, that there are those who wonder about the economic trends that will be adopted by the political systems of new or unexpected. Emerged in Tunisia and Egypt directions may not be consistent with the demands of the private sector, economic liberalization and the establishment of business rules that are consistent with free market systems, and respond to the requirements of free competition and conditions of the trade, and freedom from bureaucratic constraints. If there are revisions to the contracts concluded during the past years, under previous regimes, it must be under the rules of international law and not according to political leanings of those in charge of the new political systems, and who may come through the mechanisms of possible legislative elections.
Seems that the political orientations regarding the nature of the economic structure of concern to investors and financial institutions, but can these Arab countries in light of the upcoming political departments, to work without aid or soft loans or direct investments? There is nostalgia with political activists to return to the ideas of a planned economy, or at least, stay away from foreign investment, but such ideas do not need to bring destruction to the Arab economies already suffering from poverty of gravity.
Should give serious consideration to the development of economies under the age criteria, benefits and integration with global economy and opening up investment. Also necessary to develop mechanisms of public spending so as not to bear the difficulties of these countries, large debts can not confront, or the process of paying off the debt at the expense of core spending, such as providing funding for the reform of services, facilities and systems of education and health care. But
Economic reform process will not be easy or smooth and require a realistic vision of politicians.
Amer Diab Al-Tamimi
Arab countries face an acute political crises, and live together a wide variety of civil conflict, including what amounts to a civil war, as is the case in Libya. But this situation was to be expected after the political deadlock and economic stagnation had suffered chronic Arab peoples over the past six decades.
The oil economy has not led to real development in the Arab countries, and adopted the Petroleum Exporting Countries on the philosophy of economic rents aimed at courting the political development without attention to the real viable, no matter how changed or changed economic conditions. Arab governments, and devoted the concepts of dependency and opportunism and exploitation of opportunities, and deprived the peoples and communities of seriousness appropriate to the economies of building a productive and fruitful and meaningful activities. It also encouraged people to reproduce without the Palatine to take care of this life and to provide appropriate education for them and improve the quality of life in front of them.
Thus, the Arab countries has been the fastest, after sub-Saharan Africa, population growth, reaching rates of 2.5-3 percent, while the world average is 1.2 percent. At the same time, these governments failed to develop mechanisms for the economy in their countries to become a modern, as happened during the past decades in the countries of East Asia, as it happens in a decade in many countries in Latin America or Eastern Europe. In addition, the state control of economic activities, the pivotal role of the private sector dropped to a large extent.
Now, after the fall of the legitimacy of many of the Arab political systems, you can revive the economic life and meet the requirements of life and promote economic activities?
Countries remain of Arab Petroleum Exporting dependent mainly, almost entirely, on the revenues from oil sales. And seek to spend this income through the channels of public spending without serious attempts to diversify the economic base. Whatever officials spoke about the importance of diversifying sources of national income, and they began to talk about it since the beginning of the oil age without interruption, the fact that these countries will continue to rely on oil for a long time. As is known, many of them, such as the Gulf countries, suffers from economic distortions as clear as the dependence of structural labor inflows and state control of basic activities, such as crude oil production and activity facilities, services and infrastructure and a number of other traditional activities.
Gulf countries, and to some degree Iraq, Libya, Algeria, dominated by the public sector and the private sector lost its vitality and its fundamental role in economic work. And public institutions have become a Lord of the core work of the citizens who are growing in the corridors of government departments and state-owned companies year after year without the availability of actual needs them. As these countries have not developed their education systems in line with the requirements of the labor market which make a lot of educational outcomes is suffering from unemployment, underemployment, unemployment and sometimes blatant.
There is no doubt that the conditions of other countries, non-oil producers in the form of basis, such as Egypt, Syria, Yemen, Morocco, Tunisia and Sudan, more difficult, because the constant increase in population and economic growth rates and weak economic resources are limited. Failed reform programs and the patch that tried to apply these countries under the auspices of international institutions, such as the World Bank and the IMF, to address the structural imbalances or enhance the ability to secure employment.
Can the new political systems, or future, in a number of Arab countries, to correct the economic conditions and promote optimism, a promising future for all citizens? Task will be, to say the least, difficult and expensive. These countries face the task of the obligations of a lack of financial resources, and does not have export capabilities and help them achieve sufficient revenues sovereign. The Arab countries exporting oil, and achieved fiscal surpluses, it does not need to raise a lot of questions before providing assistance in various forms of these countries. In addition, the rich industrial countries, or so it is supposed to be, faced with several problems, most notably the decline in economic performance and the dilemmas of public debt, which weakens their ability to give.
More importantly, however, that there are those who wonder about the economic trends that will be adopted by the political systems of new or unexpected. Emerged in Tunisia and Egypt directions may not be consistent with the demands of the private sector, economic liberalization and the establishment of business rules that are consistent with free market systems, and respond to the requirements of free competition and conditions of the trade, and freedom from bureaucratic constraints. If there are revisions to the contracts concluded during the past years, under previous regimes, it must be under the rules of international law and not according to political leanings of those in charge of the new political systems, and who may come through the mechanisms of possible legislative elections.
Seems that the political orientations regarding the nature of the economic structure of concern to investors and financial institutions, but can these Arab countries in light of the upcoming political departments, to work without aid or soft loans or direct investments? There is nostalgia with political activists to return to the ideas of a planned economy, or at least, stay away from foreign investment, but such ideas do not need to bring destruction to the Arab economies already suffering from poverty of gravity.
Should give serious consideration to the development of economies under the age criteria, benefits and integration with global economy and opening up investment. Also necessary to develop mechanisms of public spending so as not to bear the difficulties of these countries, large debts can not confront, or the process of paying off the debt at the expense of core spending, such as providing funding for the reform of services, facilities and systems of education and health care. But
Economic reform process will not be easy or smooth and require a realistic vision of politicians.
