Iraq has been a nexus of fragility for the last three decades, and has experienced multiple types of conflict: internal insurgency, international war, sectarian strife, terrorism, internal fragmentation, and the spillover effects of conflict from other countries. As another crisis unfolds, does the recent past, marked by relative stability, hold any lessons for the future?
As the price of oil falls, the discussion is heating up on what the impact will be for countries in the Arab World – especially online through the popular Arabic hashtag النفط_دون_50_دولار # translating to “oil below US$50 . The World Bank’s Chief Economist for the Middle East and North Africa, Shanta Devarajan, weighs in on the conversation.
Seven countries in the Middle East and North Africa (MENA) region --Egypt, Tunisia, Iran, Lebanon, Jordan, Yemen and Libya (MENA 7)--are facing similar economic problems: i) volatile growth that has remained significantly below potential; ii) limited fiscal space resulting from rising budget deficits, public debt and declining foreign reserves that have reduced savings available for public and private investment; and iii) a weak private sector that is far from becoming a driver of growth and creator of jobs.