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The Elusive Quest for Economic Development in the Arab Countries

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  • Ahmed Galal
  • Hoda Selim
Abstract
This paper reviews the development experience of the Arab countries since World War II, arguing that the lack of inclusive economic and political institutions is the primary cause for the current state of underdevelopment in the region. While macroeconomic mismanagement and oil abundance are important determinants of performance, these factors are shaped primarily by the prevailing political institutions which predated the discovery of oil. In the oil-poor Arab countries, limited progress is attributed to an authoritarian bargain in which the rulers exchanged economic benefits to the poor and the middle class for political acquiesce. Finally, the paper concludes by speculating whether the recent Arab revolts will spread to the rest of the region and whether these revolts will be remembered in the future as a critical juncture towards more inclusive institutions and shared progress. It does not offer a conclusive answer, but suggests that early indications are positive.

Suggested Citation

  • Ahmed Galal & Hoda Selim, 2013. "The Elusive Quest for Economic Development in the Arab Countries," Middle East Development Journal, Taylor & Francis Journals, vol. 5(1), pages 1350002-131, January.
    • Handle: RePEc:taf:rmdjxx:v:5:y:2013:i:1:p:1350002-1-1350002-33
    DOI: 10.1142/S1793812013500028
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    Cited by:

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    2. Kamiar Mohaddes & Jeffrey B. Nugent & Hoda Selim, 2018. "Reforming fiscal institutions in resource-rich Arab economies: Policy proposals," CAMA Working Papers 2018-41, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.
    3. Melani Cammett & Nisreen Salti, 2016. "Popular Grievances and Perceptions of Socioeconomic Conditions in the Arab Region Prior to the Uprisings," Working Papers 1006, Economic Research Forum, revised May 2016.
    4. Hoda Selim & Chahir Zaki, 2014. "The Institutional Curse of Natural Resources in the Arab World," Working Papers 890, Economic Research Forum, revised Dec 2014.

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