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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.

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 government is expected to play a "crucial" role in tourism development by injecting $6 billion over 25 years to trigger $43 billion worth of investments from the private sector.

the promises to allocate 223,000 direct tourism jobs to Omani nationals by 2040 does not align with Oman's undersized tourism education sector, which graduates only a few hundred students per year, mainly from the Oman Tourism College

although the number of tourists visiting Oman has doubled since 2008, the industry employs less than 17,000 Omanis.

“Corruption was also an issue since local authorities requested me to pay imaginary taxes," he said. "I am an ordinary man so I had to shut up and comply.”

“The concept of SMEs [small and medium enterprises] does not exist in the field of tourism anyway, the whole system is designed for large corporations,” said Christopher Chellapermal, a French entrepreneur. Chellapermal ran a scuba diving business in Oman for 15 years before being forced out of business in 2017.

The country’s ratio of debt to gross domestic product is rated junk by all three major agencies, as it has multiplied by 12 since 2014. Moreover, the Omani economy is ranked the worst performing among Gulf countries

For Chellapermal, Oman "makes the crazy wager" of luxury tourism by prioritizing premium visitors when the backpacker segment would be a better fit.

“Chinese and Indian tourists are very much interested in culture and heritage destinations," Hollister said. "Oman could focus on this segment to make it their niche, a differentiator.”

wealth of cultural and natural assets. The Ministry of Tourism promotes Oman as a hidden jewel at the tip of the Arabian Peninsula. 

regional tensions had very little impact on tourism

As Sultan Haitham bin Tariq Al Said takes power, analysts worry that Oman’s foreign policy of neutrality could be at stake. Will “any of Oman’s more assertive neighbors seek to sway Haitham to align more closely with their own approach,” Kristian Coates Ulrichsen wrote for Al-Monitor.

The prospect of tensions between Muscat and neighboring states does not please tourism actors, as Saudi Arabia and the United Arab Emirates are Oman’s key source regional markets for tourism. In 2018, Gulf citizens accounted for about half of international arrivals.

Saudi Arabia’s aggressive push to develop its leisure tourism industry and attract 100 million visits by 2030 collides with Oman’s ambitions

“A youth bulge is coming into the labour force at a time when the ability of Gulf societies to continue in the traditional pattern of offering public-sector jobs is diminished,”

In 2019, the World Bank estimated Oman’s youth unemployment rate at 49 percent. The pandemic has almost surely worsened it

Muscat is seeking to improve education and diversify the country’s economy by promoting job growth in sectors like tourism, manufacturing and technology

Like Oman, Saudi Arabia faces an acute problem of creating jobs for young people. Half the population is under the age of 25 and nearly 60 percent of unemployed people are under the age of 30

Oman is a country of just five million, with expats accounting for more than 38 percent of the population. Filling the roughly 80 percent of jobs held by foreigners in the private sector is critical to the government’s economic transformation plans

Muscat has recently passed laws making it more costly to hire foreign workers while also implementing nationwide training programmes to address skills gaps with Omani nationals

A demographic that has been more willing to take jobs in the private sector, particularly in Saudi Arabia, is young women

the challenge facing Oman's economy was "the regularisation of the labour market, which the government is working hard to achieve so that the market can handle the needs of each stage of development."

just 237,900 Omanis working in the sector compared to 1.87 million expats, according to government figures

districts with high inflows of domestic migrants in search of better living conditions exported more foreign fighters

the problem is not one of poverty or unemployment per se but rather the unmet expectations of highly educated youth who feel the country’s social contract has failed them

even policies that advance the right agenda items—such as increasing employment for well-educated youths—may not make any impact in addressing radicalization if they are too broadly based or target districts with low numbers of foreign fighters

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 unprecedented peaceful movement has been ever more harshly repressed and the oil-dependent economy has tanked on low crude prices, illegal departures have ticked up again

authorities arrested 1,433 people trying to depart illegally from Algeria’s shores in the first five months of this year — more than three times the figure for the same period of 2019

Sociologist Mohamed Mohamedi said the Hirak protest movement had offered citizens brief “hope of shaping a life” in Algeria. But, he said, “the return of the ‘harraga’ is due to the return of hopelessness”. Mahrez Bouich, a professor of philosophy and politics in Bejaia in northeastern Algeria, agreed that the lack of hoped-for changes, along with economic stagnation, were to blame. The pandemic has “exacerbated social inequalities and injustices”, Bouich said.

Aboard the boats are doctors, nurses, policemen, the unemployed and entire families, lawyer Zerguine said, arguing that the phenomenon cannot be explained by unemployment alone. Those who decide to leave “want to live with the times, they want more freedom and dignity”. Mohamed, the prospective migrant, said Algeria’s social conservatism had overlooked young people. “My grandparents are more open in spirit than my parents — it’s mad,” he said. “Society has regressed and I refuse to regress with it.”

In neighbouring Tunisia, clandestine departures towards Europe quadrupled in the first five months of the year compared to 2019, according to the UN refugee agency UNHCR. And while a growing number of migrants attempting the crossings are from West Africa, Tunisians also appear to have ever more reason to leave. Many are disillusioned with the aftermath of the country’s 2011 revolution, while the coronavirus pandemic has further crushed their economic prospects, said Khaled Tababi, a sociologist specialising in migration. Many jobs have simply disappeared, especially in the tourism sector, he said.

“Living in a foreign country hit by the pandemic is easier than living here without money, without prospects and with the unemployment that strangles us,”

These reforms are not targeting the root causes of restrictions on women, but are selected to portray certain types of reforms that can be promoted in international media

He doesn’t want any competition, any counter-opinions, any criticism. So he’s almost shut down everybody, and he’s moving ahead with his reform. When he arrested intellectuals last September, it was meant to silence everybody. The purge on corruption was planned to make everyone dependent on his mercy. If he succeeds, he will succeed alone. If not, maybe he will include the Saudi people in his reforms. I wish he could do that today, but right now he has all the power and the international community is not pressuring him on human rights.

selected reforms aimed at certain purposes, but not necessarily towards developing human capital or investing in people, or women, at large

He’s raising expectations to riskily high levels. If in two, three, five years nothing significant has really changed for the prospects of individual people looking to get ahead, they may begin to question whether Mohammad bin Salman is really the revolutionary he claims to be. We’ve seen a lot of his supporters here in Washington buying into that revolutionary, Arab Spring-like figure-of-change image, embracing his top-down approach without pausing to think about the extent to which there is a bottom-up counterpart

meeting with President Donald Trump on Tuesday was punctuated by a particularly uncomfortable exchange in which Trump went into detail about the $12.5 billion in new U.S. weapons the prince agreed to buy and then said to the prince, “that’s peanuts for you.” Ulrichsen suggested that the scene would not play well in Saudi Arabia: I think if I were watching yesterday’s press conference with Donald Trump, I would have been quite dismayed to have seen a U.S. president treat his Saudi counterpart as if he were just a source of opportunities for the U.S. Some of the president’s tenor and demeanor was quite remarkable. Khashoggi agreed that Trump’s performance was not helpful for the crown prince: President Trump is wrong when he says that money is “peanuts” to us. Saudi Arabia has a serious poverty problem—money is not “peanuts” to us. To spend billions of dollars on military equipment is a serious thing. Today the Saudi Shura Council is talking about 35 or 40 percent unemployment—the official figure is 12 percent. So as much as Donald Trump is concerned about providing jobs for Americans, Mohammad bin Salman should be concerned about providing jobs for Saudis.

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

Saudi leaders likely hope that Sultan Haitham will be more amenable to a Saudi-led Gulf, and without U.S. support, Oman may feel pressure to acquiesce or face potential repercussions. Omani officials have privately expressed concerns that Oman could be the next target of a Saudi- and Emirati-led blockade

Despite precipitating the world’s most urgent humanitarian crisis in Yemen, Saudi Arabia has used its military presence there to declare its intention to build a pipeline through the Mahra region and construct an oil port on the Yemeni coast. Saudi Arabia currently ships oil through the Strait of Hormuz and the Bab el-Mandeb strait, whereas the proposed pipeline would allow direct access to the Indian Ocean.

Mahra has close links to the adjacent Dhofar region of Oman, which has long viewed the province as an informal buffer from the instability in other parts of Yemen. Sultan Qaboos offered aid as well as dual citizenship to residents of Mahra as a means of eliminating the potential for another conflict resembling the Dhofar War of 1963-1976, which drew cross-border support from the People’s Democratic Republic of Yemen operating from Mahra into Dhofar

Inhabitants of Mahra have expressed frustration with the presence of both the Saudis and Emiratis, given that these kingdoms’ alleged foes—the Houthis as well as al Qaeda in the Arabian Peninsula—are not present in Mahra

The UAE has taken control of the Yemeni island of Socotra, building a military base in a unique ecosystem nominally protected by UNESCO. The UAE is also building bases in Eritrea and Somaliland as part of a plan to develop a “string of ports” that will allow it to project power and escape possible pressure from Iran in the Persian Gulf.

Other Emirati ambitions include the Musandam Peninsula, an Omani enclave that forms the narrowest point in the Strait of Hormuz. The inhabitants of the peninsula have close ties to the UAE, as Musandam connects geographically to the emirates of Ras al-Khaimah and Fujairah, rather than Oman. Oman’s control of the strategic chokepoint reflects the sultanate’s history as an empire whose territory once stretched from southern Pakistan to Zanzibar. 

The border between Oman and the UAE was only formally demarcated in 2008, but Omanis see a circle of potential threats arising from Emirati activity in or possible designs on Musandam, Mahra, and Socotra.

the UAE may feel that Oman’s new sultan may be more receptive to alignment with Emirati objectives than his predecessor

Oman has failed to significantly diversify its economy

As in many oil-dependent economies, unemployment is high, especially among young people

During the popular uprising of 2011, which brought thousands of Omanis to the street for the first time, the government used its nest egg to pay for a massive expansion of the government payroll.

there are no available resources to try to finance a transition away from oil, and the low price of oil has further impeded the government’s efforts to meet its obligations

overt ethnic nature of the Hirak protest

The Moroccan government was quick to take advantage of the inexperience of Zefazafi and painted the movement as a secessionist security threat controlled by neighboring Algeria. The discourse of pro- and anti-regime advocates is reflective of this dynamic. While online activists dismiss pro-regime voices as “slaves (to the monarchy),” the latter describe the protesters as a racist ethnic separatist group funded by foreign hostile interests.

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

Saudi Arabia is not popular with most Jordanians, and MBS is especially vilified for his role in the Yemen war and his flirtation with Israeli Prime Minister Benjamin Netanyahu. A coup plot with MBS involved would face massive opposition from the military and the general populace.

Jordan faces serious structural problems. The country lacks natural resources, water is scarce, and the population has grown to more than 10 million. Unemployment is high, especially for women. Waves of refugees have arrived from Iraq and Syria. The pandemic has added to the underlying difficulties. Tourism, key to the economy, has been largely closed. Corruption is endemic.

Lebanon did its time with its own bloody 15-year sectarian regional war, and still was able to recover and re-establish its cosmopolitan flair. There is a lot to build on. The failures and dashed expectations of the uprisings in Egypt and Syria, which quickly fell prey to regional and ideological agendas and violence, and Lebanon’s own tragic past, could make it an incubator for a new approach to governance that would allow Lebanon to realize its potential, rather than fall victim to the rhetoric and false promise of what was once known as the Arab Spring

The catch for Lebanon, as it has been for Egypt, is that most International Monetary Fund-based recommendations to address bloated and corrupt public ministries require downsizing and reductions in subsidies — such as electricity and gasoline — and an expanded tax base — the very things that trigger the protests of those already on the economic margins.

the short-term urgency of meeting the demands of the street need to be combined with a long-term plan for structural reform. This could be accomplished via a new government, quickly formed, or by getting the buy-in of those demanding change by adding new faces and technocrats to those vital ministries that manage economy and infrastructure and are widely associated with corruption and inefficiency

The country’s low-income communities have thus borne the brunt of the pandemic’s economic fallout

Unemployment remains the main impetus behind the majority of demonstrations

In addition to these existing labor movements, a new movement emerged in January 2020 called the National Coordination of Recruitment Is My Right. The movement includes unemployed youth demanding the adoption of a basic law to provide urgent employment opportunities for those who have been without work for more than 10 years

different labor groups have also taken to the streets to demand the payment of their salaries without any deductions during the lockdown and to ask for government financial assistance as well as public subsidies to deal with the economic impact of the health crisis