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Ed Webb

Which Countries' Shadow Economies Are Biggest? - Hit & Run : Reason.com - 1 views

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    For purposes of comparison to non-OECD economies
Ed Webb

Agriculture in Europe to decline as Asian output grows: UN, OECD - 0 views

  • Agricultural production in Western Europe is set to decline over the coming decade, with output in Africa and Asia expected to increase, the OECD and the UN Food and Agriculture Organization said
  • Middle East meanwhile faces a rising threat of food insecurity, the report said, as conflict, climate change and poor policy all have the effect of keeping the region overly reliant on imports
  • In sub-Saharan Africa, crop production is set to expand by 30 percent, with meat and dairy both set to grow by 25 percent
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  • the region's food security is set to remain dependent on global markets, because "domestic production capacity will remain insufficient to meet the region's growing consumption needs"
  • The Middle East, which is mired in conflict and political unrest, has a "high and growing dependence" on imports for key food products, the report said, leaving the region in a state of increasing food insecurity.Arable land and water are growing more scarce in the region, both because of climate change pushing temperatures up, and as a result of poor agricultural policy from governments."It is difficult to overestimate the importance of the water issue in the Middle East and North Africa region," the report said."Along with conflict, it is the most profound man-made threat to the region's future,"
Ed Webb

New Texts Out Now: Joel Beinin, Workers and Thieves: Labor Movements and Popular Uprisi... - 0 views

  • situate the movements in Egypt and Tunisia in the framework of the imposition of neoliberal economic reform and structural adjustment programs (ERSAPs) on Tunisia, from the mid-1980s, and Egypt, from 1991. The labor movements were the most salient expression of the deteriorating conditions of life under the regime of neoliberal globalization, or “flexible accumulation,” as the regulation school of political economy terms it
  • The recent murder and torture of the Italian PhD student Giulio Regeni, who was researching the independent trade union movement in Egypt, suggests that it will be quite a while before anyone takes up this subject again.
  • class and political economy were far more salient elements of the 2011 uprisings in Tunisia and Egypt (and I might have added Bahrain and Morocco) than most Western (and even local) accounts were willing to acknowledge
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  • the economic and social discontent expressed by the desperate demise of Bouazizi and Yahyaoui has only intensified
  • The character and political role of the Tunisian and Egyptian armies is also a factor
  • the successful installation of a (highly problematic, to be sure) procedural democracy in Tunisia, in contrast to the establishment of an authoritarian praetorian regime far more vicious than that of Mubarak in Egypt, made it necessary to argue that class and political economy alone do not determine outcomes
  • In 2010 the national unemployment rate was under thirteen percent. By 2015 the figure rose to 15.3 percent. Unemployment rates in the center-west and southern regions of the country (including Kasserine and Sidi Bouzid) are typically nearly double the national average. In 2015 the OECD estimated national youth unemployment (ages fifteen to twenty-four) at nearly forty percent.
  • The government understands the problem, but has no solution. On 20 January the cabinet announced that 5,000 unemployed in Kasserine would be hired for new public sector jobs. Another 1,400 were to be hired through an existing employment program. However, on 22 January, Finance Minister Slim Chaker revoked the promise of 5,000 new jobs in Kasserine, claiming that the previous announcement was due to a “communication error.”
  • “There will be another revolution if the social and economic circumstances do not change,” said President Béji Caïd Essebsi on the fifth anniversary of Tarek Mohamed Bouazizi’s self-immolation. Nidaa Tounes, a big-tent coalition of secularists ranging from former communists to former Ben Ali supporters has split. Over two dozen of its deputies have left, and it is no longer the largest party in the parliament. The terrorist attacks have reduced tourism to a catastrophically low level. The economy is not expected to grow at all in 2016. None of its traditional elite political forces—secular or Islamist—imagine an economic program substantially different than the one Tunisia has pursued since the mid-1980s.
  • On 19 January, faced with a UGTT threat to call a general strike, the employers’ association (UTICA) agreed to increase wages for about 1.5 million private sector workers. But for the unemployed, the streets are their only recourse.
Ed Webb

Tunisia - between instability and renewal | European Council on Foreign Relations - 0 views

  • Even though the 2011 revolution was motivated in large part by socio-economic concerns, the governments that have held office since then have been unable to improve the situation. Growth has remained low, and unemployment is high: 15 percent of the population is without work, and the rate for those with a university degree is over 30 percent. Inequality between the more prosperous coastal region and the deprived interior of the country remains striking. Around half of all workers are employed in the informal economy. Many young Tunisians lack any prospect of being able to afford a home or a car, or of being secure enough to start a family.
  • Faced with increasing debt and deficit levels and shrinking foreign currency reserves, Tunisia agreed a loan of $2.9 billion with the International Monetary Fund in 2016. The IMF called on Tunisia to cut public spending, overhaul its collection of taxes to raise government revenue, and allow the currency to depreciate. The IMF argues that it has been fairly flexible so far in enforcing public spending cuts, but it is now stepping up its pressure on the Tunisian authorities.
  • Wages in the public sector account for 15 percent of GDP (up from 10 percent in 2010), so it is hardly surprising that the government is now trying to limit spending in this area. Yet it is doing this at a time when inflation (worsened by the deflation of the Tunisian dinar that the IMF has promoted) and subsidy cuts have already had a severe impact on people’s purchasing power.
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  • It is an anomaly of the Tunisian political scene that the UGTT’s anti-austerity position has little representation among elected politicians: the largest political groups (the Islamist Ennahda party and various offshoots of the secular-modernist Nidaa Tounes party) have backed the IMF agreement
  • unemployment and the proliferation of grey-sector jobs are linked to structural biases in the economy that systematically favour a small group of politically connected businesses. Measures that might address this problem include increasing access to credit for would-be entrepreneurs, changing regulations and practices within the public and banking sectors that are tilted to a narrow elite, and reducing corruption. According to Tunisians, corruption has not been reduced but only “democratised” since the revolution. Investment in infrastructure serving disadvantaged parts of the country could also help spur more inclusive growth
  • Since the revolution, the overarching priority of political life in Tunisia has been to seek enough stability to preserve and complete the political transition. Much has been achieved, though a few important steps (notably the establishment of a Constitutional Court) remain unfulfilled. But Tunisia has now reached a point where the greatest threat to stability is no longer political rivalries around religious identity but unmet social and economic aspirations. Until now, the country’s political parties have not organised themselves to offer distinctive and coherent visions of how Tunisia’s socio-economic development can be improved, and they are paying the price in public alienation from the entire political system
Ed Webb

Israel's Arab labour force: Out of work | The Economist - 0 views

  • The new governor of the Bank of Israel, Karnit Flug, reckons that without successful integration of Arab workers, Israel’s GDP would contract by 1.3% annually.
  • srael's equality legislation is largely unenforced. Parliamentarians sought to circumvent it last year by backing legislation giving those who have served in the military—obligatory for Jews but not for Arabs—preferential treatment for government jobs.  UPS, a courier company, reportedly does not employ Arab drivers because they cannot get security clearance to enter the airport. In 2009, the national railway company sacked most of its Arab workers as part of a policy against hiring those without permits to carry weapons. “While Jews work in hi-tech, Arabs more often than not are day labourers,” says Muhammed Darawshe of the Abraham Fund, an Israeli NGO.
Ed Webb

Late Populism: State Distributional Regimes and Economic Conflict after the Arab Uprisi... - 0 views

  • This note will briefly outline the notion of an Arab “variety of capitalism” characterized by the central role of a distributive state whose interventions lead to a deep, and at least in parts unintended, segmentation of business and labour markets into insiders and outsiders. It will explain how this model has led to economic stagnation and contributed to the uprisings of 2011 as well as how it has hobbled economic adjustment after the uprisings, both under anciens and new regimes. Its pessimistic conclusion is that distributional institutions in most Arab countries remain very sticky, having created powerful vested interests not only in business but also in society at large that undermine the negotiation of a new “social contract” – a concept that many are talking about but no one seems to be able to map out in any detail.
  • Authoritarian-populist republics like Algeria, Egypt, (pre-war) Syria and Tunisia have achieved particularly good human development scores considering their modest levels of wealth (figure 3).
  • While Arab governments’ ambition to provide might have led to solid coverage of basic services, most Arab states have pledged much wider material guarantees to their citizens – typically beyond their fiscal and administrative capacity, especially once economic growth started stalling in the 1970s. The result has been a rigid insider-outsider division in which some benefit from Arab governments’ relative generosity while others remain excluded.
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  • The shares of public in total employment across core Arab countries in Maghreb and Mashreq mostly lie between 20 and 40 percent, far above those in richer Latin America, where they range from 4 to 15 percent (OECD 2014, 61), sub-Saharan Africa, where they range from 2 to 9 percent (Monga and Lin 2015, 138), or East Asia and Pacific, where they mostly lie below 5 percent (Packard and Van Nguyen 2014, 16).
  • A majority of citizens, however, remains excluded from state employment, which is often seen to be allocated in intransparent ways. As formal employment in the private sector remains miniscule, the default option for most remains the badly paid, precarious informal sector.
  • A large informal sector also exists in other developing countries. But different from most other developing economies, the “insider” group on the labor market mostly consists of public employees (figure 5). This setup makes for a relatively large and protected insider group, but also crowds out state resources for more inclusive and growth-oriented policies.
  • Insider-outsider dynamics are also at play in Arab business, the top tiers of which are typically state-dependent cronies, protected through layers of heavy regulation as well as discretionary subsidies and credit allocation – themselves often distorted legacies of earlier periods of statist development
  • On labor markets, informality typically lasts longer, labor turnover is lower, and exits from public employment are almost unheard of
  • deep formal and informal state intervention and protection result in low mobility between segments
  • The only universal benefit on which most Arab states spend large amounts are energy subsidies, which are regressive as they disproportionately benefit richer households.
  • While Arab states have gone to great lengths to provide, popular expectations of provision in the region have also been particularly high (figure 6) – arguably a legacy of populist policies that have promised universal public services and employment to the masses since the age of Nasser.
  • Given these high expectations, material exclusion and inequality and the highly visible “winner takes all” business cronyism in the 2000s has been grating for many ordinary citizens – even if average levels of inequality in the region remain on a middling level in global comparison
  • While the elites leading the revolutions cared deeply about questions of political freedom, it is clear that material issues played an important role in the mass mobilization that tipped the balance in cases like Egypt or Tunisia.
  • Since 2011, some energy subsidies have been cut in a piecemeal fashion, but only under enormous fiscal pressure and without building a comprehensive social safety system to compensate. In the absence of such systems, public resistance to subsidy reforms has been strong. No ruler has yet dared to substantially change public employment policies.
  • This anti-development equilibrium of low capacity and vested interests has led Arab states even further down the route of unequal and exclusive distribution after 2011. In Tunisia, the most powerful interest group is the national union UGTT, which represents mostly middle aged, middle class government employees – not the informal sector whose rage fuelled the revolution. The UGGT has contributed to elite-level political pacts that have prevented Tunisia from backsliding into autocracy. In the economic field, however, it has mostly focused on defending insider privileges, investing much of its energy in fighting successfully for fiscally unsustainable civil service salary raises. In the meantime, little has been done for improving the lot of informal workers. They themselves remain fixated on the public sector: protesters from marginalized communities have been asking for the provision of one government job per family, and unrest has been triggered by the removal of individuals from an official list promising government employment.
  • Even “fierce” states embroiled in civil wars have deepened their old-style distributional commitments: Post-Saddam patronage policies under rival prime ministers have resulted in a state that now reportedly employs 7 million individuals, about half the total adult population (More than 55 percent of the population of about 36 million is under 20). Including in ISIS-occupied areas, 8 million individuals rely on a government salary or pension. Iraq competes with much richer GCC countries for the highest share of government employees anywhere in the world
  • Tunisian and Egyptian attempts to prosecute old regime cronies have been half-hearted at best and many cronies remain well connected to the new ruling elites. In the absence of an independent business class, both governments have made attempts to lure temporarily marginalized old-school business tycoons back into their countries to invest.
Ed Webb

Did democracy in Tunisia fail or did it never succeed? | openDemocracy - 0 views

  • The only country to emerge as a democratic success story from the so-called Arab Spring protests of 2011, Tunisia now appears to have returned to one-man rule.
  • Saied set up a system under which he would essentially govern Tunisia by decree, bypassing the 2014 Constitution that the country had proudly adopted after years of painstaking consultations and negotiations. Effectively, Tunisia is back to the authoritarian status it had under Zine El Abidine Ben Ali, the despot who ruled from 1987 until his fall in 2011.
  • “We are all Kais Saied, we are all Tunisia,” they shouted on the main thoroughfare in Tunis, declaring that “the people want the dissolution of parliament”. This despite warnings of a return to authoritarian rule by members of parliament, the powerful Tunisia General Labour Union (UGTT), political activists and a group of 15 local and international Tunis-based NGOs.
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  • the state’s failure to fulfil the promise of democracy for the people: good governance, peace, prosperity, and no corruption
  • In the decade since Tunisia’s 2011 democratic revolution, nine successive governments have failed to fix the serious economic problems that beset the country of 11 million. A September 2020 poll for the International Republican Institute, made for dismal reading, with 87% of Tunisians saying their country was headed in the wrong direction. Since 2011, the Tunisian dinar’s value has halved; unemployment currently hovers around the 18% mark nationally, but has been as high as 32% in some parts of the country and corruption is considered endemic by Tunisians. Public debt has more than doubled from 39% of GDP in 2010, and with the government forced to shell out large sums to service its debt, there is some concern that Tunisia will go the way of Lebanon and default.
  • pollster Arab Barometer’s 2019 country report on Tunisia found that confidence in democratic institutions had “fallen dramatically” and Tunisians were “far less likely to trust the government or parliament than at the time of the revolution”. In fact, more than half (51%) of the Tunisians surveyed said democracy is “indecisive”, 42% said it “leads to instability” and 39% blamed it for “weak economic outcomes”.
Ed Webb

Top Africa Stories in 2022 - 0 views

  • On Feb. 24, Russia invaded Ukraine, and sanctions imposed on Russia by Western states led to surging food, fuel, and fertilizer prices. Burkina Faso saw two successful coups and a third foiled putsch. There were failed power grabs in São Tomé and Príncipe, the Democratic Republic of the Congo, and against Mali’s military junta, sparked by armed groups’ escalating attacks and creeping inflation on food and services. It was a continuation of a trajectory set in 2021, a year that saw four successful coups in Africa (in Chad, Guinea, Mali, and Sudan).
  • Tunisia is just one of many countries experiencing a rollback of democratic gains. Amid an economic crisis worsened by the pandemic and made even more acute by the war in Ukraine, democratic backsliding is increasing. As reported in Africa Brief this year, Sudan’s democratic future still hangs in the balance, and Mali’s putsch leaders agreed to a two-year democratic transition that would allow coup leader Col. Assimi Goïta and other military members to run in general elections in 2024. Ibrahim Traoré, an army captain in Burkina Faso, proclaimed himself the new president of the country’s military junta in the country’s second coup in eight months while Guinea’s military rulers issued a three-year ban on public demonstrations to combat growing calls for democracy. And around 50 people were killed by security forces as Chadians took to the streets to demand a quicker transition to democratic rule.
  • Recent elections in Kenya and Angola showed democratic gains as Kenyans defied their outgoing president’s chosen successor and young Angolans increasingly challenged their one-party state. Africans want more democracy even if their leaders want less of it.
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  • In the midst of this global energy crisis, African leaders have argued that their nations should also be allowed to ramp up fossil fuel use to improve domestic energy access—given they had contributed so little to historic carbon emissions. Indeed, 43 percent of Africa’s 1.4 billion people still lack access to electricity. As a result of soaring energy prices, the number of people without access to energy across Africa rose for the first time in decades, threatening to erode all gains made. According to the International Energy Agency, around 1 billion Africans will still rely on dirty fuels, such as firewood, for cooking in 2030. However, Western governments demanded that multilateral lenders, such as the World Bank, stop funding fossil fuel projects to reduce global carbon emissions.
  • Egypt, Africa’s second-largest economy, agreed on Oct. 27 to a $3 billion bailout from the International Monetary Fund (IMF). It was the country’s fourth since Abdel Fattah al-Sisi took power in a coup in 2013, making Egypt the IMF’s second-largest debtor after Argentina. Long a top choice for emerging market investors, Egypt had become heavily dependent on hot money, but investors panicking over the war in Ukraine pulled around $20 billion out of Egypt between February and March.
  • Inflation in Ghana rose to 15.7 percent in March as the Ghanaian currency lost 16 percent of its value against the dollar, prompting protests in June over the soaring cost of living.
  • Africa is seeking more than just climate reparations as it looks to transform the global system. African leaders want a permanent seat for the African Union at the G-20, two seats on the U.N. Security Council, and a reordering of global tax rules under the United Nations.
  • 2022 was a year for the restitution of Africa’s historical artifacts stolen by colonial powers. The Smithsonian Institution agreed to return its collection of Benin Bronzes and placed legal ownership with Nigerian authorities. In July, Germany handed back two bronzes and put more than 1,000 other items into Nigeria’s ownership while a digital database—known as Digital Benin, which documents Western museums’ existing collection of Benin’s artifacts—was unveiled in November. Despite this progress, there are still unanswered calls for the British Museum, the largest holder of Benin Bronzes, to return its loot. In September, the world marked the 200th anniversary of the deciphering of the Rosetta Stone, a fragment of written decrees issued by Egyptian priests during the reign of Ptolemy V (204 to 180 B.C.). Egyptian scholars and archaeologists renewed their demand for the stone’s return, which has been housed at the British Museum in London since 1802. Their call has garnered more than 135,000 signatures on an online petition.
  • An online archive to showcase Mali’s cultural history was launched in March, digitizing more than 40,000 of Timbuktu’s ancient manuscripts, some dating to the 12th century and originally written in medieval Arabic but translated to several languages in an online platform. Malian librarians and their assistants secretly transported hundreds of thousands of documents into family homes in a bid to save them from destruction by jihadis. Through those efforts, some 350,000 manuscripts from 45 libraries across the city were kept safe.
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