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The decline in the level of consumption was not counteracted by an increase in the level of exports in goods and services. This is reflected in the value of Egyptian exports, which reached 47.45 billion USD in 2018, a decrease of 1.66 billion USD compared to 2013. Other indicators also reflect a worsening international competitive position. For example, the trade deficit ballooned from -6.34% of the GDP in 2013 to -10.45% of the GDP in 2018

the regime did not invest in the development of the manufacturing sector, and it did not lay down the foundation for sustainable, long-term economic growth

The growth of the GDP is primarily driven by government spending on mega infrastructure projects (spearheaded by the military), leading to a boom in the construction sector. Government spending is financed by a bloated public debt, the burden of which is disproportionality shouldered by the lower segments of society.

the military directly employs 19.2% of the labour force. This makes the military the second largest employer in the country, after the public sector that employs 5.6 million.

projects include much-publicised mega infrastructure projects, with dubious economic benefit, the most notable of which is the new administrative capital. The construction sector, which is closely connected to the military led projects, played an important role in generating economic growth. In 2018, it is estimated to have grown by 8.9%, making it the number one contributor to the GDP growth

growth of the GDP is not driven by a dynamic private sector, but mainly by a massive military led construction spree, and mega-infrastructure projects that have little positive impact on increasing the competitiveness of the Egyptian economy

the unemployment rate, which reached 8.1% by the first quarter of 2019, the lowest in 10 years. This drop in the level of unemployment, however, requires some additional qualification. The rate of utilization, which measures the number of workers employed for at least one hour per week as a percentage of the population, has dropped from 44.5% to 39%. This is also accompanied by a reduction in the level of workforce participation from 46.4% to 41.6%, indicating a reduction in the level of those seeking work, rather than an increase in the number of available jobs. Loss of hope should be credited with the drop in the level of unemployment, not improved economic conditions.

profits generated from business owned by the armed forces are exempt from taxation, under law 96 (2015). This means that the government is shifting the burden on the shoulders of the poor, as they finance the military construction spree, which in-turn is used to enrich the military elites and other regime insiders

as debt continues to pile up, the pressure on the poor will continue to rise, as the government continues to cut social spending. This will reduce the level of effective local demand, leading to greater pressure on the private sector. In addition, if the construction spree continues, the possibility of overcapacity and over-accumulation of capital in the construction sector becomes more prominent. In essence, a bubble that is bound to burst.

The new IMF program requires 20 million vulnerable Egyptians to receive cash transfers by the end of January, but three years ago when things were far less precarious, there were already 30 million Egyptians in poverty and the World Bank estimated 60 million Egyptians were near or below the poverty line. Today, poverty levels are almost certainly higher and despite a modest increase in social protection coverage, domestic demand in the coming year will likely weaken even further

the IMF appears unrealistic about the coming pain, estimating just 14 percent inflation in the coming year. They are also likely to be unrealistic about how quickly growth can be achieved. It is not just the private sector that will not grow in the near term due to the many deterrents facing Egypt’s business community. 

Egypt’s GDP growth for the past several years was buoyed by enormous levels of public spending on roads, bridges, new cities (including a new capital city), massive rail projects including the world’s longest monorail line, and even a number of presidential palaces.  Now that the state is being required by the IMF to cut unnecessary large project stimulus and its ability to borrow is heavily constricted, the country’s growth model is at risk of decelerating.

The IMF has finally started to seriously engage with Egypt’s sizable governance issues and calls for reducing the size of the military’s economic empire which has done enormous damage to the country’s economy and private sector

The ratio of external debt to total exports of goods, services and primary incomes was even more dramatic for all four countries. This is a proxy of the capacity of these economies to service their growing external obligations. Between 2010 and 2017, the ratio increased from 75%, 99.6%, 97.6% and 125% for Egypt, Tunisia, Morocco and Jordan re2spectively, to 190%, 178%, 125% and 198% in 2017. All the figures exceed the 77% limit that, in the World Bank’s reckoning, foreign debt has a negative impact on growth.

In Egypt, the ratio of external debt to GNI more than doubled from 17% in 2010 to 36% in 2017. The change was as pronounced in Tunisia, were the ratio jumped from 54% to 83%. In Morocco and Jordan, the ratios changed as well from 65% and 29.6%, to 47% and 75%.

International capital markets are unstable and global trade is contracting. Governments should instead target local investment in brick-and-mortar sectors that can deliver real growth, create jobs and possibly reduce the dependency on some imports

better use of the net inflows of capital they have received for years in the form of remittances. Instead of channeling them into non-tradable sectors like real-estate, as has been often the case, they should be used to finance investment in more productive sectors

trade-oriented regional integration, opening markets in oil-rich countries. There might be room also for adding a regional dimension to plans for industrial diversification by Saudi Arabia and the United Arab Emirates, by coordinating flows of investment and technology and skill transfers in sectors like petrochemicals and hi-tech services.  Such measures would generate growth and employment for poorer allies and cement regional geopolitical arrangements

the Oman 2020 plan, launched in 1995. With the goal of diversifing the economy away from hydrocarbons and increasing the ratio of nationals in public and private employment to 95 per cent, from 68 per cent in 1996. However, these two goals have proven somewhat contradictory. The high rate of foreign labour in both the public and private sectors has increased since 2009 when a Free Trade Agreement with the US came into force– more than doubling the 2005 figure. High rates of unemployment, low wages and the concentration of wealth among elites aligned to the government were contributing factors to the popular unrest of 2011-12.

Oman faces a number of pressing, and distinctly Omani-challenges in the immediate and mid-term

if we follow the categorisation of the region's regimes discussed by Henry and Springborg in Globalization and the Politics of Development in the Middle East, we can see that Qaboos' Oman represents an almost completely different approach to government from most other regimes in the region. Indeed, it reflects neither the kind of practices of a bunker state – associated with rule "through military/security/party structures that are in turn controlled by alliances of these leaders' families and tribes", such as was the case in Salah's Yemen, Assad's Syria or Gaddafi's Libya – nor the kind of "bully praetorianism" which characterised the kleptocratic regimes of Ben Ali's Tunisia, Mubarak's Egypt or the PLO/PA under Arafat. Moreover, it also differs from the strife riddled monarchies in Riyadh and Manama particularly in as much as the ruling family has not gone out of its way to ostracise, exclude and oppress particular sections of the population. Instead, according to Henry and Springborg, "being the sole GCC ruler without a solid family and tribal base ... [Qaboos' Oman has] been the most assiduous in seeking to build an identity that simultaneously glorifies the Sultan himself".

Under a 1996 constitutional provision a council comprising members of the ruling family and senior officials is granted three days from the Sultan's death to choose a successor. If this process fails to provide a clear transition, then a contingency plan would be activated. This, as Qaboos himself told Foreign Affairs in a 1997 interview, would mean that: "As for a successor, the process, always known to us, has now been publicised in the Basic Law. When I die, my family will meet. If they cannot agree on a candidate, the Defence Council will decide, based on a name or names submitted by the previous sultan. I have already written down two names, in descending order, and put them in sealed envelopes in two different regions."

49 per cent of residents under the age of 20

some dissatisfaction arose during the height of the uprisings across the region in 2011-12. Though initially it appeared that Qaboos had handled popular protests deftly – through increased public sector spending, and some political reorganisation and an anti-corruption campaign – frustration at the slow pace of reform contributed to strikes by workers at Petroleum Development Oman and protests elsewhere. Authorities countered with arrests and a draconian crackdown on freedom of speech including hacking the social media accounts of intellectuals involved in the protest

Public taxation is also increasing. A sin tax was implemented in June 2019 on products like sugary carbonated drinks and tobacco, and a serially delayed 5% value-added tax is expected in 2021. According to Salmi, electricity and water subsidies could soon be slashed and, in the long term, Omanis could see an income tax.

Above all, reforming the labor market — an unpopular move — would be the cornerstone of a post-Qaboos welfare state. About 43% of Omanis work for public entities. Abousleiman recommended economic diversification to foster private sector job creation and to further "relieve the expectations on the government to provide employment."

Following a field visit to Oman in 2019, the International Monetary Fund (IMF) suggested that the wages and benefits of the private sector need to align more closely with the public sector to make employment in the former more appealing.

Omanis who talked to Al-Monitor, as well as Mukhaini, believe any upcoming austerity measures "should not make the poor poorer and the rich richer," Mukhaini said.

According to rating firm S&P, the new ruler will face “a difficult trade-off” in the coming months to address high unemployment among youths, weak growth, and fiscal and funding pressures

Defense and security expenses account for over a quarter of Oman's annual budge

Oman — rated junk by the three major rating agencies — has several other options to fund its short-term ballooning deficit: Go further into debt; deplete its sovereign wealth fund; sell state assets; devalue its currency; and seek assistance from neighboring countries or international organizations.

Analysts believe Oman should build a model of governance tailored to the post-oil era. Along with a more stringent budget environment, the new leadership pledged to implement structural reforms to diversify the rentier economy and foster private sector-led growth.

To ensure political and social stability, Sultan Qaboos avoided controversial measures that could have triggered short-term political unrest

In 2011, at the height of the Arab uprisings, Sultan Qaboos promised to create 50,000 jobs and institute unemployment benefits in an attempt to defuse unprecedented nationwide protests.

the lack of economic reforms did not stop Omanis from loving the monarch, who built a modern state out of a medieval-like society he inherited in the early 1970s

Sultan Haitham bin Tariq "is already planting the seeds by cutting the royal expenditures tremendously,"

The relationship between state and society that Omanis have known for decades will likely never be the same

As the host of COP27, Egypt has vowed to champion African concerns, which include how rapid population growth may heighten countries’ vulnerability to climate change. Africa is already severely impacted by climate change despite being responsible for only around 3 percent of global CO2 emissions.

The effects of Egypt’s soaring population are felt in its traffic jams and crowded malls, its overflowing classrooms and packed apartment buildings. But residents of urban areas remain somewhat sheltered from the environmental stresses on rural communities and agriculture, which is vital to the country’s economy.

The country “is nearing ‘absolute water scarcity,’” according to a recent report published by UNICEF and the American University in Cairo. The government has sought to restrict the amount of farmland that is used for growing water-intensive crops such as bananas.

In agricultural areas, the “policy of just having two children is totally out of touch,” Khamis said. When the government aggressively pushes for families to have fewer children, it can come off as “simply using the people as a scapegoat for the government’s shortcomings on economic growth.”

According to Egypt’s 2021 family health survey, around 65 percent of married women between the ages of 15 and 49 were using modern family planning — an increase of 8 percentage points from 2014. Around 63 percent of those using contraceptives said they obtained them from government-run facilities.

New policies and programs are announced constantly, while the delivery capacity of the sluggish Saudi bureaucracy continues to lag. Below the upper echelons, the Saudi state remains the deeply fragmented, bloated, and slow-moving machine that I described in my 2010 book. The government seems to have no clear strategy for reforming this bureaucracy

While space for political opposition arguably has narrowed, women will soon be allowed to drive and the religious police force that once harassed them has been almost entirely neutered. By relaxing religious controls over the public sphere, the crown prince is seeking to attract more foreign investment and facilitate diversification into tourism and entertainment

Saudi Arabia has tackled fiscal reforms more vigorously than most local and international observers expected, introducing unprecedented tax and energy price measures, including the introduction of a 5 percent value added tax, new levies on foreign workers, and increases in electricity and transport fuel prices. The government is now experimenting with new non-oil sectors with an increased sense of urgency, including information technology and defense manufacturing.

As limits on government employment kick in, young Saudis will increasingly have no choice but to seek private jobs. But they will face tough competition on the private labor market where employers have become accustomed to recruiting low-wage workers from poorer Arab and Asian countries

public sector employment remains the key means of providing income to Saudi nationals. Cheap foreign labor dominates private sector employment, thereby keeping consumer inflation at bay and business owners happy. Citizens, however, are parked in the overstaffed public sector. Out of every three jobs held by Saudis, roughly two are in government. The average ratio around the world is one in five. Public sector wages account for almost half of total government spending, among the highest shares in the world

Local economic advisors fear that the majority of private petrochemicals firms — the most developed part of Saudi industry — would lose money if prices of natural gas, their main input, increase to American levels.

Saudi wage demands will have to drop further if private job creation is to substitute for the erstwhile government employment guarantee. For the time being, private job creation has stalled as the government has pursued moderate austerity since 2015 in response to deficits and falling oil prices

The government has also underestimated how dependent private businesses are on state spending. The share of state spending in the non-oil economy is extremely high compared to other economies. Historically, almost all private sector growth has resulted from increases in public spending

As long as oil prices remain below $70 per barrel, the goal of a balanced budget will cause pain for businesses and limit private job creation. This will pose a major political challenge at a time when an estimated 200,000 Saudis are entering the labor market every year. More than 60 percent of the population is under 30, which means that the citizen labor force will grow rapidly for at least the next two decades.

It would be far more prudent to gently prepare citizens and businesses for a difficult and protracted adjustment period and to focus on a smaller number of priorities

The key structural challenge to non-oil growth is the way the Saudi government currently shares its wealth, most notably through mass public employment — an extremely expensive policy that bloats the bureaucracy, distorts labor markets, and is increasingly inequitable in an era when government jobs can no longer be guaranteed to all citizens. A stagnating economic pie that might even shrink in the coming years must be shared more equitably.

A basic income would not only guarantee a basic livelihood for all citizens, but also serve as a grand political gesture that could justify difficult public sector reforms. A universal wealth-sharing scheme would make it easier to freeze government hiring and send a clear signal that, from now on, Saudis need to seek and acquire the skills for private employment and entrepreneurship. The government could supplement this scheme by charging fees to firms that employ foreigners while subsidizing wages for citizens to fully close the wage gap between the two.

Focusing on such fundamentals might be less exciting than building new cities in the desert or launching the world’s largest-ever IPO — but they are more important for the kingdom’s economic future. No country as dependent on petroleum as Saudi Arabia has ever effectively diversified away from oil

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

young Africans are living in waithood

a growing number of young men and women must improvise livelihoods and conduct their personal relations outside of dominant economic and familial frameworks

there is scepticism among youth that growth alone, without equity, will bring the solution to their problems

recent protest movements, led mainly by young people, stem directly from the economic and social pressures they suffer, and from their pervasive political marginalisation

Young activists appear to be struggling to translate the political grievances of the protest movement into a broader political agenda. Clearly, they seem to be more united in defining what they don’t want and fighting it, and much less so in articulating what they collectively want

interviews I conducted with young people in Mozambique, Senegal, South Africa, and Tunisia, between 2008 and 2012, which resulted in my two most recent books: The Time of Youth: Work Social Change and Politics in Africa (published in August 2012 by Kumarian Press in the USA), and Youth and Revolution in Tunisia (published in June 2013 by Zed Books in the UK)

their sense of being “˜trapped’ in a prolonged state of youth

In Dakar in June 2011, rallying around the movement Y’en a Marre! (Enough is enough!), Senegalese youth came out to the streets, clashed with police, and managed to stop the approval of constitutional amendments that would benefit former president Wade. Galvanized by this victory, and using the slogan “Ma Carte d’Electeur, Mon Arme“ (my voting card, my weapon), the young Senegalese helped to remove Abdoulaye Wade from office in February 2012.

Young Africans constitute a disenfranchised majority

Liggey, which means work in Wolof, the national language of Senegal, is celebrated as an important marker of adulthood. The ability to work and provide for themselves and others defines a person’s self-worth and position in the family and in the community. Yet, the majority of young people in Senegal and elsewhere in Africa are unable to attain the sense of dignity embedded in the notion of liggey.

African societies do not offer reliable pathways to adulthood; traditional ways of making this transition have broken down, and new ways of attaining adult status are yet to be developed

a liminal space in which they are neither dependent children nor autonomous adults

Waithood also evidences the multifaceted realities of young Africans’ difficult transition to adulthood, which goes beyond securing a job and extends to aspects of their social and political life

Ibrahim Abdullah (1998) and Abubakar Momoh (2000) have pointed to the use of the vernacular term youthman, in many West African countries, to describe those who are stuck in this liminal position

youth as a socially constructed category defined by societal expectations and responsibilities (Honwana and De Boeck 2005)

in the realm of improvisation, or “making it up as you go along,” and entails a conscious effort to assess challenges and possibilities and plot scenarios conducive to the achievement of specific goals (Vigh 2009)

Although women are becoming better educated and have always engaged in productive labour alongside household chores, marriage and motherhood are still the most important markers of adulthood. While giving birth may provide girls an entry into adulthood, their ability to attain full adult status often depends on men moving beyond waithood (Calví¨s et al. 2007)

Although growing numbers of young people are completing secondary school and even attending university, the mismatch between educational systems and the labour markets leaves many unemployed or underemployed; they are pushed into the oversaturated informal economy or become informal workers in the formal sector (Chen 2006

Young Senegalese and Tunisians employ the French term débrouillage, making do

While Singerman’s usage of waithood suggests a sense of passivity, my research indicates that young people are not merely waiting, and hoping that their situation will change of its own accord. On the contrary, they are proactively engaged in serious efforts to create new forms of being and interacting with society. Waithood involves a long process of negotiating personal identity and financial independence; it represents the contradictions of a modernity, in which young people’s expectations are simultaneously raised by the new technologies of information and communication that connect them to global cultures, and constrained by the limited prospects and opportunities in their daily lives

young women and men in waithood develop their own spaces where they subvert authority, bypass the encumbrances created by the state, and fashion new ways of functioning on their own. These youth spaces foster possibilities for creativity; and as Henrietta Moore puts it, for self-stylization, “an obstinate search for a style of existence, [and] a way of being” (Moore 2011: 2). The process of self-styling is made easier by cyber social networks such as YouTube, Facebook, Twitter and Instagram.

these new “˜youthscapes’ (Maira and Soep 2005) resemble Michel Maffesoli’s notion of “urban tribes,” understood as groupings that share common interests but whose association is largely informal and marked by greater “fluidity, occasional gatherings and dispersal” (1996: 98)

Waithood constitutes a twilight zone, or an interstitial space, where the boundaries between legal and illegal, proper and improper, and right and wrong are often blurred. It is precisely at this juncture that young people are forced to make choices. Their decisions help to define their relationships towards work, family, and intimacy, as well as the type of citizens they will become. Rather than being a short interruption in their transition to adulthood, waithood is gradually replacing conventional adulthood itself (Honwana 2012).

growth alone, without equity, will not guarantee social inclusion and better lives for the majority of the population. Indeed, young people rebel against the widening gap between the rich and the poor, and the rampant corruption that they observe as elites enrich themselves at others’ expense

Young Africans today are generally better educated and more closely connected with the rest of the world than their parents. The young people I interviewed did not seem like a “˜lost generation’ nor did they appear apathetic about what is happening in the societies surrounding them. They are acutely conscious of their marginal structural position, and no longer trust the state’s willingness and ability to find solutions to their problems. In their shared marginalisation, young people develop a sense of common identity and a critical consciousness that leads them to challenge the established order (Honwana 2012, 2013).

Asef Bayat calls these dispersed actions “˜non-movements,’ which he describes as “quiet and unassuming daily struggles” outside formal institutional channels in which everyday social activities blend with political activism (2010: 5)

Young activists find themselves more divided; the broad unity forged during street protests dissipates as they struggle to articulate a new common purpose and to define a new political role for themselves

In the aftermath of street protests, young people appear to be retreating back to the periphery of formal politics, into their “˜non-movements.’

Today, the divorce of power from politics is deepening because power is being seized by supranational finance and trade corporations and by transnational organised crime syndicates. Devoid of power, politics remains localised in the nation state and responds to the interests of supranational powers rather than to the will of the people. In this sense, “˜sovereignty is outsourced’ and democracy becomes a charade, as politics has no power but instead serves power.

Aditya Nigam points to the current crisis of the “˜political’ and suggests that in the wake of the North African revolutions, these societies are “living in an interregnum when the old forms of politics have become moribund and obsolete but new ones have not yet emerged … Something, clearly, is waiting to be articulated in this relentless refusal of the political” by the younger generation (2012: 175).

In Tunisia, young activists are enjoying the freedom of independent civic and political engagement following the revolution, as these were banned under the old regime. But at the same time, their disappointment with party politics makes some young people turn to politicized forms of Islam. For example, the famous rapper of the revolution, “˜El General,’ is today an advocate for the instauration of Sharia law, and the lyrics of his latest song, titled “I Wish,” call for Tunisia to become an Islamic state. Indeed, young Islamists who joined radical Salafist groups believe that Sharia will be the solution to their problems because, as some of them put it: “Sharia is not politics, but a whole way of life, with its laws and its science.”

In Senegal, the Y’en a Marre activists pride themselves on being non-partisan and vow to work towards making politicians accountable to those who elected them

a “˜New Type of Senegalese’ described as: one that is more socially and politically conscious, assumes her/his responsibilities as a citizen, and fights for the well-being of the Senegalese people

my young interlocutors seem to believe that it is possible to achieve fundamental change outside of dominant political structures, even if they have not yet fully articulated how to do so

When one looks in detail at the data provided by the World Bank theimpression is certainly positive and some notable achievements have been realizedby the Tunisian regime in the social sphere as well. Poverty rates declined from 7.7per cent in 1984, three years before Ben Ali came to power, to 3.8 per cent in 2005.Literacy rates went up from a low 48 per cent in 1984 to 78 per cent in 2008 andwomen were included in this literacy drive

the Tunisian regime wasable to increase its spending on education and health, apparently confirming thevalidity of the model of ‘social liberalism’ given that in 2011 its Index of HumanDevelopment was still higher than its North African neighbours

While the fundamentals of the economymight indeed have been good enough for global markets and international investorsand trading partners, the economic miracle of Tunisia had a very dark side whereunder-employment, unemployment, difficult access to the labour market, incomeinequalities and wide regional gaps were the main features

if the figures published by the interimgovernment after the revolution are accurate, ‘the unemployment rate among youngpeople from 18 to 19 almost rose to 30 per cent in 2009, and soared to 45 per cent inthe case of higher education graduates’.

thecomplexity of the Ben Ali period and how to ‘read’ it increases if one looks at thefact that between 1995 and 1998 the Caisse 26 – 26 (a national solidarity fund)implemented a number of development projects in the area of Sidi Bouzid and inpoorer regions such as the one around Gafsa, but after 2000 no further projects werelaunched in that region partly because from that moment the funds in the Caissewere used by Ben Ali’s inner circle to sustain their economic activities

a predatory economicsystem with members of the president’s family and close collaborators takingadvantage of these networks of patronage to acquire an increasingly larger slice ofthe economy

there was very littlethat was predictable about the uprising and the fall of the regime, and even withthe benefit of hindsight it remains quite difficult to find a causal mechanism toaccount for the success of the Tunisian uprising because events could have turnedout very differently

the same corrupt practicesalienated many working-class youth who, rather than becoming fully de-politicized,chose ‘below-the-radar’ social activism based around loosely structured socialnetworks and developed a particular dislike for state authorities, a factor that wouldbe useful when fighting running battles with the police during the uprising

the regime monitored Publinets veryclosely and periodically blocked access to a number of websites, but the point here isthat the regime also inadvertently improved not only the skills necessary foreconomic growth, but also those necessary for anti-regime online mobilization

For the supporters of the democratization paradigm, there was no doubt that theBen Ali regime seemed to keep the promises of democratic gradualism. Initially, itsslow pace was explained as necessary in order to avoid the problems that Algeria hadencountered in the same period when the country liberalized the political systemquite abruptly and, in hindsight, with catastrophic consequences

Ultimately the authoritarian resilience paradigm has been more fruitful inexplaining that the regime survived thanks to a mix of co-optation and repressionwhere rhetorical commitment to democracy and human rights was far from genuine,but does not capture the whole story because it does not pay sufficient attention tohow society reacted to sustained repression of dissent

there was an almost hidden, but very significant increase inIslamization based on the adoption of personal pious behaviour that was overtlya-political, but had quite clear anti-regime overtones

the increasing disconnect between thevalues of the ruling elites together with an urban-based, French-speaking milieu anda large part of the population which both lived by and wished society to be moreattuned to Arab-Muslim values

such behaviour was also a personalact of defiance against an authoritarian regime that did not perform its duties and wasmired in what many saw as decadence and corruption

The events of 2008 in themining district of Gafsa (Allal, 2010) is probably the best known episode ofanti-regime social mobilization in Tunisia during the Ben Ali years, as the wholedistrict took to the streets and faced down the security services in order to protestagainst the hiring policies and working conditions in the local mines. What issignificant about the protest is that it was not simply the workers taking to the streets.The whole population of the area was on board with this protest, which was brutallyput down. There are however other smaller incidents that occurred throughout thecountry (Chomiak & Entelis, 2011) and that indicated that social peace wasa fabrication of the regime

Upgradedauthoritarianism (Heydemann, 2007) was the notion that many scholars utilized toargue that authoritarian ruling elites were, paradoxically, strengthening their grip onthe different countries through the adoption of political and economic liberalreforms that were subsequently deprived of any substance and meaning and hijackedfor the elites’ own benefit. One of the masters of such authoritarian upgrading wascertainly Ben Ali, who in the process also managed to project an international imageof a secular and liberal modernizer bent on slowly constructing a democraticpolitical system

liberaleconomic reforms of the late 2000s resulted in growth in the economy while at thesame time rewarding social groups and clan members most loyal to the president,but also generated an economically and culturally globally connected middle class,which developed its own mechanisms to voice political dissent, but had benefited inthe 1990s from the liberalization of the economy that Ben Ali had implemented toget the country out of stagnation

the promulgation of secularlegislation out of kilter with the values of the majority of the population and theespousal of a rhetoric of modernization that clashed with the everyday reality ofhuman rights abuses, elitist consumerism and corruption, saw the emergence ofpublic expressions of a social pious Islamism that made important inroads inTunisian society while going almost undetected

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.

the industriousness and ingenuity displayed by the Mashhour crew and their colleagues on the tug boats are the very qualities that allow millions of Egyptians to survive the misrule that has led to rising poverty levels even as limited reforms have primarily benefited the ruling elites and crony capitalists. While the government in Cairo has received kudos for GDP growth, Egypt’s poverty rate has nearly doubled over 20 years, from 16.7% in the year 2000 to 32.5% in 2019.

The patronizing view that the man in the street needs the guiding hand of his betters has often encouraged international partners over the years to direct funding to the elites rather than small and medium-sized enterprises, despite pledges to prioritize those very sectors.

their government provides them with neither the competitive market economy nor the political freedoms that would allow them to demonstrate their readiness.

the waterway is of exceptional value to the government in Cairo: Not only is it a significant source of hard currency for a country with a chronic trade deficit, its strategic importance to global commerce elevates Egypt’s international status

Many who seek the resources — and salaries — commensurate with their skills must leave the country to find them. This is why remittances from abroad dwarf many sectors of the economy. Remittances in 2020 were worth $29.6 billion, over five times the Suez Canal’s revenue of $5.61 billion and more than double the revenues from tourism at its 2019 peak of $13 billion.

The widely reproduced claim that 2 to 3 million people were driven into extreme poverty by the 2006–2009 drought was drawn, extraordinarily, from analyses by the United Nations Development Programme (UNDP) of pre-drought poverty levels.[4] The claim that around 1.5 million people were displaced was derived from a single humanitarian news bulletin, seemingly on the basis of a misreading of the UN’s estimate of those affected—not displaced—by the drought. Using Syrian government numbers, the UN actually reported drought-period displacement to be around 40,000–60,000 families.

A presidential decree in 2008, which tightened restrictions on land sales across the northeastern-most province of Hasakah, led to the extensive loss of land rights and was credited by some organizations as a key factor in the increased migration from northeast Syria prior to the war

during 2008–2009 rural Syria was hit by triple-digit increases in the prices of key agricultural inputs. In May 2008 fuel subsidies were halved, leading to an overnight 342 percent spike in the price of diesel. And then in May 2009 fertilizer subsidies were removed, causing prices to rise anywhere from 200 to 450 percent. The fuel subsidy cuts had particularly devastating economic consequences, especially for farmers reliant on cheap fuel for groundwater irrigation.

The fact that a number of neighboring countries experienced equivalent precipitation declines during 2006–2009—or in Iraq’s case an even larger decline—but no comparable migration crises, suggests at the very least that the migration from Syria’s northeast must have been caused more by these Syria-specific factors than by the drought.

Proponents of the climate conflict thesis typically claim that drought-induced displacement caused a “population shock” within Syria’s urban peripheries, exacerbating pre-existing socio-economic pressures. Yet Syria’s cities grew rapidly throughout the decade before the civil war, not only during the drought years. By our calculations, excess migration from the northeast during 2008–2009 amounted to just 4–12 percent of Syria’s 2003–2010 urban growth (and this excess migration was not all triggered by drought)

as Marwa Daoudy concludes in her new book on the subject, there is “little evidence” that “climate change in Syria sparked popular revolt in 2011”—but “a lot of evidence” that “suggests it did not.”

a deep and long-term structural agrarian crisis

it is evident that northeastern Syria’s agrarian troubles—and especially those in the province of Hasakah—went all the way back to 2000, and indeed earlier. Production of the two main government-designated strategic crops, wheat and cotton, was in decline in Hasakah from the early 2000s onward. Land and settlements were being abandoned there well before the drought. Net out-migration from Hasakah during this period was higher than from any other province. And the reasons for this lay not in the drought but in the contradictions of Syrian development.

an agrarian socialist development program, promoting rapid expansion of the country’s agricultural sector and deploying Soviet aid and oil income to this end. Among other elements, this program involved heavy investment in agricultural and especially water supply infrastructure, low interest loans for private well drilling, price controls on strategic crops at well above international market value, the annual wiping clean of state farm losses and, as already indicated, generous input subsidies

Environmentally, the model relied above all on the super-exploitation of water resources, especially groundwater—a problem which by the early 2000s had become critical. And economically, Syrian agriculture had become highly input dependent, reliant on continuing fuel subsidies in particular.

Within just a few short years, Syria embraced principles of economic liberalization, privatized state farms, liberalized trade and reduced price control levels. At the same time domestic oil production and exports fell rapidly, thus undermining the regime’s rentier foundations and its capacity to subsidize agriculture

Irrespective of any drought impacts, these developments essentially occurred when the props that had until then artificially maintained an over-extended agricultural production system—oil export rents, a pro-agrarian ideology and their associated price controls—were suddenly and decisively removed.

As Syria’s pre-eminent breadbasket region—the heartland of strategic crop production—Hasakah was particularly vulnerable to economic liberalization and the withdrawal of input supports. No other region of the country was so dependent on groundwater for irrigation, a factor that made it particularly vulnerable to fuel price increases. Hasakah’s groundwater resources were also exceptionally degraded, even by Syrian standards

The region was also deeply affected by intense irrigation development and over-abstraction of groundwater resources within Turkey

It was Ba’athist state policies which had turned Hasakah into a region of wheat monoculture, failed to promote economic diversification and facilitated cultivation ever deeper into the badiya (the desert) while over-exploiting surface and groundwater resources. Moreover, these measures were taken partly for strategic and geostrategic reasons, bound up with regime interests in expanding and consolidating Hasakah’s Arab population (its project of Arabization), in controlling and excluding the province’s Kurdish population and in extending its control and presence within a strategically sensitive borderland and frontier region. During the heyday of Ba’athist agrarian development, Hasakah’s population and agricultural sector expanded like in no other area. With the collapse of this development model, rural crisis and out-migration were the inevitable result.

After an initial reluctance to acknowledge the depth of the crisis in the northeast, the government eventually embraced the climate crisis narrative with gusto. The drought was “beyond our powers,” claimed Asad. The drought was “beyond our capacity as a country to deal with,” claimed the Minister of Agriculture. “Syria could have achieved [its] goals pertaining to unemployment, poverty and growth if it was not for the drought,” proclaimed Deputy Prime Minister Abdullah al-Dardari.[12] Indeed, as the International Crisis Group reported, the Asad regime would regularly take diplomats to the northeast and tell them, “it all has to do with global warming,” blaming what was in essence a state-induced socio-ecological crisis on climatic transformations beyond its control.[13] This shifting of blame is essentially how the Syria climate crisis narrative began.

Official UN reports on the crisis in the northeast, which were produced in collaboration with the Syrian regime, were predictably drought-centric, barely mentioning any factors other than drought, omitting any criticisms of government policy and ignoring the existence of a discriminated-against Kurdish minority

International media reports on the subject were similarly focused on  drought, no doubt partly because of media preferences for simplified and striking narratives, but also because they relied upon UN sources and took these at their word

The climate crisis narrative reached its apogee in 2015, in the run-up to the UN Paris conference on climate change, when countless politicians and commentators turned to the example of Syria to illustrate the urgency of international action to limit greenhouse gas emissions.

regurgitated as a statement of fact in the scientific journal Proceedings of the National Academy of Sciences and by Western liberal politicians and eco-socialist campaigners alike

climate change is also much more than a physical reality and looming environmental threat: It is simultaneously an object of discourse, debate and rhetoric, a potent meta-narrative that can be invoked for explanation, legitimation, blame avoidance and enrichment.

climate change is already regularly invoked to questionable ends across the Middle East and North Africa. It is used to explain away ecological catastrophes actually caused by unsustainable agricultural expansion, to make the case for investment in new and often unnecessary mega-projects, to obscure state mismanagement of local environmental resources and to argue against the redistribution of such resources to oppressed and minority groups

blaming climate change is often a distraction from the real causes of socio-ecological crisis

Leaks reveal insiders’ growing uneasiness, which points to the elephant-in-the-room question: Will MBS’ grandiose venture bankrupt the kingdom?

Saudi private investors will also be encouraged to pitch in during a potential public listing of Neom in 2024. That raises questions about how consensual this private investment will be. Indeed, Saudi Arabia reportedly “bullied” several of the kingdom’s wealthiest families to become cornerstone investors out of “patriotic duty” in the IPO of Saudi energy firm Aramco in 2019.

a large chunk of Saudi money carefully set aside for decades to fund the transition to a post-oil era will pay for Neom's astronomical price tag. A bet on an unproven vision

“Infrastructure spending is like doing lines of cocaine; you have to do bigger and bigger and bigger lines just to feel high,”

Neom’s initial burst of economic activity, if unsustainable at a similar pace, would simply be "stealing" future economic benefits to create an illusion of growth right now

perhaps the motive is not sustainable growth at all, but creating what Pettis calls a "pyramid effect." This would be an attempt to copy monarchs of ancient Egypt who redistributed wealth to the population through jobs – paid laborers built Egyptian pyramids, not slaves. Although Saudi Arabia’s oil wealth is already redistributed to ordinary Saudis through public-sector jobs and subsidies, a large tranche is retained and stored in its sovereign wealth funds and U.S. Treasuries. In theory, flushing Saudi citizens with cash would stimulate the local non-oil economy. But in practice, the pyramid effect is likely to first and foremost cause economic leakages, as the kingdom imports most of what it consumes locally, including labor, despite the “Saudification” of the labor market being one of Vision 2030’s key priorities. Migrant workers account for about 77 percent of private sector jobs. At Neom, highly paid Western consultants are toiling to match MBS’ demands, and Asian low-income workers are building it, remitting Saudi money home.

Riyadh sweetened the project’s launch party with a flurry of social reforms, such as lifting the ban on women driving. (Saudi Arabia was the last country in the world to lift this kind of ban, and it didn’t do so as a principled stand on behalf of women’s rights.) The idea was not only creating a buzz among investors and the global public, but whipping up aspirational momentum among Saudis.

60 skyscrapers that were built in Riyadh’s financial center are still standing largely empty.

MBS, high on his visionary self-branding and his concentration of power, may have to pay the costs of bankruptcy – whether by admitting full responsibility or via a renewed deployment of decidedly imperious and despotic tactics to crush dissent. The latter path is, of course, what the late Shah of Iran chose, with notorious results.

the EAF is able, through the use of land designations and other means, to control much of the public lands (desert, agricultural and urban) that comprise 94 percent of Egypt’s area, through the use of land designations, the ability to auction such lands and to receive compensation from the state treasury when military zones are rezoned to civilian purposes. The army also controls the coastline (officially classed as border territory) and is thus able to profit from tourist developments. As such, the EAF wields enormous influence over the real estate market and the country’s development structure

Estimates as to how much of the total economy is controlled by the EAF range from 40 percent, according to telecoms billionaire Naguib Sawiris (in comments to local media last March) to somewhere between 45 percent and 60 percent, according to Transparency International

the consensus among those asked by Middle East Eye as to the size of the military-economic complex is that the EAF’s reach extends into virtually every economic sector, from foodstuffs like tomato paste and olive oil, to consumer electronics to real estate, construction, transport and services

since the military’s budget - and by extension, its economic fiefdom – is kept secret, EAF-controlled businesses can benefit from subsidies that are kept off the books, as well as having more freedom of manoeuvre amid the lack of oversight.  One example was the decision under the Supreme Council of the Armed Forces to slash fuel subsidies for industrialists. Since the military’s budget (and therefore, its energy costs) are off the books, the rising energy prices disproportionately affected EAF competitors, but not the forces themselves

military involvement in the political economy generally leads to worse performance. Within the region, the examples of Iran and Algeria point to this, while China has taken steps to reduce its armed forces’ commercial exposure over the past few years precisely for this reason

A further effect of the EAF’s economic dominance is a lack of growth opportunities for SMEs, since only favoured insiders can win lucrative contracts and deal with the permit system. In turn, this leads to a large informal economy of insiders, leaving many Egyptians outside, in poverty

While patronage is nothing new in Egyptian politics, since President Abdel Fattah el-Sisi came to power the top brass has expanded intra-military patronage to the extent that they are crowding out other economic actors and failing to bring in key constituencies such as opposition groups, the private sector bourgeoisie and the urban poor. The EAF has expanded its reach so fast that now it has to defend its empire against these groups, sowing seeds of further strife in future.

The way for Turkey to achieve a sustainable growth rate by financing its current deficit is to make the country attractive for direct foreign investment. That in turn requires Turkey to have a properly functioning legal system, properly and justly operating independent institutions, good governance, a stable democracy and a free market — in short, to be predictable. Authoritarian and arbitrarily governed countries first lose their predictability.

The same situation has emerged concerning the Koc Group, which has been subjected to one tax penalty after another. The Koc Group, the largest capital group of Turkey, attracted the ire of Erdogan during the June 2013 Gezi Park protests when the nearby Divan Hotel it owns opened its doors to those escaping the pepper gas and brutality of the police. Erdogan perceived that as a challenge and accused the Koc Group of being accomplices to the protesters. Alluding to the group June 17, he actually said, "We know those who cooperate with terrorists and accommodate them in their hotels. We will settle accounts on this. Now we have an interest lobby emerging.” We all discovered how that account was be settled when tax audit teams from the Ministry of Finance accompanied by police raided the Koc companies.

Mustafa Boydak, the president of the Chamber of Industry of the Anatolian industrial city of Kayseri and a well-known conservative industrialist, denounced the tax audit of the Koc Group and called on the government "not to become party to the business world and not to treat the companies that carry Turkey as an enemy.” The government clearly didn’t appreciate Boydak’s call and responded with a tax audit of the Boydak Holding group of companies.

Some public corporations led by Turkish Airlines and private companies with ties to the government withdrew 900 million lira ($391 million) of deposits from Bank Asya, recognized as the Gulen movement's bank, on the same day without waiting for the deposits to mature, and put the bank in a tough bind. Bank Asya was saved from going under when companies and businessmen affiliated with Gulen deposited the same amount of money.

The first allegations of the AKP government using tax penalties as a political weapon came out in 2008, when the Dogan Media Group was openly targeted by Erdogan and fined $1.6 billion