Download PS 142A Readings - b

Chaudry
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by internatinal standards, the Middle East and North Africa has relatively low
levels of poverty and economic inequality…suggests that commonly used indicia
of economic well being might be poor predictors of broader social outcomes
extreme levels of economic instability and flux have defined the region since
1973
o reliance on oil exports and the transmission has had deeply destabilizing
effects at the social, political and psychological levels
history of economic cycles fluctuating between boom and bust
o this flux reinforces and feeds into a host of long standing political conflicts
that center on issues of citizenship, entitlement and national belonging and
can lead to violent conflict both within and between countries.
Economic insecurity not only shapes economic behavior in dramatic ways, it
reaches both up into the realm of high politics and down into the realm of the
family and the individual psyche.
Almost all of the debt was accumulated after 1970, and it has continued to rise in
the 1990s….repayments of debt have declined, suggesting that the debt burden on
future generations will be high…tax capacity is low, so budget deficits can only
be made up by external sources.
Agencies have an interest in presenting a positive view of those countries in the
region that are complying with their policy prescriptions
o Economists affiliated with the World Bank often focus on select countries
that permit them to deploy an image of economic health
Arab governments are secretive about their economic information because it is
politically sensitive
Increasing poverty and declining living standards
o 17% rise in absolute poverty in MENA as reported by the World Bank
poverty, like joblessness, is concentrated among the young
the drama of war often conceals its long term impact on human economic
insecurity and the way wars suddenly reshape regional economic inequality in far
reaching and unexpected ways.
Wars and economic volatility reshape economic fortunes in the region across
countries n ways that are unanticipated and sudden…especially in changing
patterns of labor imports.
In labor force, preference for non Arabs grows, owing to a variety of factors…
rampant joblessnesss will spawn anti-foreign violence