5 year anniversary of Arab Spring Fethi Belaid/Getty Images

An Economic Ultimatum for the Arab World

If Middle Eastern countries do not start making real progress on fundamental political and economic reforms, further regional turmoil is inevitable. With the region's decades-old rentier systems now at a breaking point, policymakers must begin the difficult, but not impossible, process of establishing new social contracts.

WASHINGTON, DC – If Middle Eastern countries do not start making real progress on fundamental political and economic reforms, further regional turmoil is inevitable. With the rentier systems that governments have maintained for decades now at a breaking point, policymakers must begin the difficult, but not impossible, process of establishing new social contracts.

That contract in Arab countries started to erode at the turn of the century, when governments with inflated budgets and bloated bureaucracies could no longer provide an adequate supply of basic services such as health care and education, create a sufficient number of jobs, or sustain food and fuel subsidies. But, despite diminished state benefits, most leaders have continued to insist that their countries’ people uphold their end of the contract by not participating meaningfully in public life.

Arab governments were able to sustain inefficient economies for decades because they were propped up by oil revenues. In recent decades, most Arab countries have benefited in some way from the Middle East’s abundant oil and gas reserves. Hydrocarbon-producing countries used their profits to buy their citizens’ loyalty and establish what were effectively welfare states; and non-oil producers enjoyed the benefits of aid, capital inflows, and remittances sent back by their nationals working in resource-rich countries.

We hope you're enjoying Project Syndicate.

To continue reading, subscribe now.

Subscribe

Get unlimited access to PS premium content, including in-depth commentaries, book reviews, exclusive interviews, On Point, the Big Picture, the PS Archive, and our annual year-ahead magazine.

http://prosyn.org/PO29h71;

Cookies and Privacy

We use cookies to improve your experience on our website. To find out more, read our updated cookie policy and privacy policy.