Emerging Developments and Challenges in the Arab World

Abstract

The events of the last few weeks are a
 watershed for Tunisia, Egypt, and other Middle East and
 North Africa (MENA) countries. The ongoing political events
 will resonate regionally and globally and, if followed by
 sound transitions to better governance structures, these
 events provide a unique opportunity to change MENA's
 political and social landscape. The root cause of the
 political turmoil in MENA is fatigue with longstanding
 authoritarian rule and weak political and economic
 governance as confirmed by public concerns over voice,
 social justice, accountability and access to services. The
 MENA region also has its strengths: its youth, resource base
 and the resilience shown during the global crisis. The
 economic and social impact will be significant in the short
 term with slippages in economic growth, fiscal revenues and
 tourism and Foreign Direct Investment (FDI) receipts. Large
 parts of the population lack adequate access to jobs, land,
 services, finance and justice. They may be further affected
 as inflationary pressures grow depending, among others, on
 oil and food prices.